ALPHA & OMEGA SEMICONDUCTOR LTD, 10-Q filed on 11/6/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Sep. 30, 2015
Oct. 31, 2015
Document and Entity Information [Abstract]
 
 
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
Sep. 30, 2015 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
22,200,060 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Current assets:
 
 
Cash and cash equivalents
$ 72,868 
$ 106,085 
Restricted cash
196 
368 
Accounts receivable, net
37,198 
38,781 
Inventories
61,958 
64,175 
Deferred income tax assets
2,424 
2,205 
Other current assets
4,174 
4,279 
Total current assets
178,818 
215,893 
Property, plant and equipment, net
117,431 
119,579 
Intangible assets, net
16 
17 
Goodwill
269 
269 
Deferred income tax assets - long term
10,482 
10,848 
Other long-term assets
1,522 
2,011 
Total assets
308,538 
348,617 
Current liabilities:
 
 
Accounts payable
37,689 
44,083 
Accrued liabilities
21,225 
19,225 
Income taxes payable
1,748 
1,372 
Deferred margin
714 
716 
Capital leases
714 
941 
Total current liabilities
62,090 
66,337 
Income taxes payable - long term
1,614 
1,601 
Deferred income tax liabilities
3,972 
3,548 
Capital leases - long term
64 
64 
Other long term liabilities
902 
953 
Total liabilities
68,642 
72,503 
Commitments and contingencies (Note 8)
   
   
Preferred shares, par value $0.002 per share:
 
 
Authorized: 10,000 shares, issued and outstanding: none at September 30, 2015 and June 30, 2015
0 
0 
Common shares, par value $0.002 per share:
 
 
Authorized: 50,000 shares, issued and outstanding: 27,411 shares and 22,483 shares, respectively at September 30, 2015 and 27,314 shares and 26,316 shares, respectively at June 30, 2015
55 
55 
Treasury shares at cost, 4,928 shares at September 30, 2015 and 998 shares at June 30, 2015
(43,833)
(8,593)
Additional paid-in capital
182,203 
181,040 
Accumulated other comprehensive income
739 
905 
Retained earnings
100,732 
102,707 
Total shareholders’ equity
239,896 
276,114 
Total liabilities and shareholders’ equity
$ 308,538 
$ 348,617 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2015
Jun. 30, 2015
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)
27,411,000 
27,314,000 
Common stock, shares outstanding (in shares)
22,483,000 
26,316,000 
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)
4,928,000 
998,000 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Revenue
$ 81,439 
$ 88,217 
Cost of goods sold
66,378 
70,057 
Gross profit
15,061 
18,160 
Operating expenses
 
 
Research and development
6,164 
6,796 
Selling, general and administrative
9,659 
9,604 
Total operating expenses
15,823 
16,400 
Operating income (loss)
(762)
1,760 
Interest income and other, net
11 
48 
Interest expense
(10)
(73)
Income (Loss) before income taxes
(761)
1,735 
Income tax expense
1,214 
1,171 
Net income (loss)
$ (1,975)
$ 564 
Net income (loss) per share
 
 
Basic (in dollars per share)
$ (0.09)
$ 0.02 
Diluted (in dollars per share)
$ (0.09)
$ 0.02 
Weighted average number of common shares used to compute net income (loss) per share
 
 
Basic (in shares)
22,698 
26,385 
Diluted (in shares)
22,698 
27,003 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Net income (loss)
$ (1,975)
$ 564 
Foreign currency translation adjustment, net of tax
(166)
(48)
Total comprehensive income (loss)
$ (2,141)
$ 516 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities
 
 
Net income (loss)
$ (1,975)
$ 564 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
Depreciation
6,894 
6,955 
Amortization
1 
91 
Share-based compensation expense
789 
1,102 
Deferred income taxes, net
571 
54 
Loss on disposal of property and equipment
0 
22 
Government grant via forgiven loan
0 
(250)
Changes in assets and liabilities:
 
 
Accounts receivable
1,583 
1,469 
Inventories
2,217 
(1,849)
Other current and long-term assets
595 
(383)
Accounts payable
(5,193)
(515)
Income taxes payable
389 
472 
Accrued and other liabilities
1,885 
(103)
Net cash provided by operating activities
7,756 
7,629 
Cash flows from investing activities
 
 
Purchases of property and equipment
(6,002)
(2,345)
Restricted cash released (placed)
172 
(122)
Net cash used in investing activities
(5,830)
(2,467)
Cash flows from financing activities
 
 
Proceeds from exercise of stock options
424 
858 
Payment for repurchase of common shares
(35,240)
0 
Repayments of borrowings
0 
(5,714)
Principal payments on capital leases
(227)
(237)
Net cash used in financing activities
(35,043)
(5,093)
Effect of exchange rate changes on cash and cash equivalents
(100)
(23)
Net increase (decrease) in cash and cash equivalents
(33,217)
46 
Cash and cash equivalents at beginning of period
106,085 
117,788 
Cash and cash equivalents at end of period
72,868 
117,834 
Supplemental disclosures of non-cash investing and financing information:
 
 
Property and equipment purchased but not yet paid
$ 4,472 
$ 5,594 
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 personal 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, 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, 2015. 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 months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. The condensed consolidated balance sheet at June 30, 2015 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, 2015.
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 July 2015, the FASB issued No. 2015-11, Inventory - Simplifying the Measurement of Inventory("ASU 2015-11"). ASU 2015-11 is additional guidance regarding the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016. 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.

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. 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.  In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. In August 2015 the FASB issued ASU 2015-14, Revenue from Contracts with customers - Deferral of the Effective Date", that defers by one year the effective date of ASU 2014-09.  The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.  The Company is in the process of evaluating the timing of its adoption and the impact of 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.

In February 2015, the FASB issued ASU No. 2015-2, “Consolidation (Topic 820): Amendments to the Consolidation Analysis.” ASU 2015-2 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. 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.

In April 2015, the FASB issued ASU No. 2015-03, Interest -Imputation of Interest(Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and the accounting for debt issue costs under IFRS. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. ASU 2015-03 is effective for the annual period ending after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. 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 (Loss) Per Share
Net Income (Loss) 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 September 30,
 
2015
 
2014
 
(in thousands, except per share data)
Numerator:
 
 
 
Net income (loss)
$
(1,975
)
 
$
564

 
 
 
 
Denominator:
 
 
 
Basic:
 
 
 
Weighted average number of common shares used to compute basic net income (loss) per share
22,698

 
26,385

Diluted:
 
 
 
Weighted average number of common shares used to compute basic net income (loss) per share
22,698

 
26,385

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

 
618

Weighted average number of common shares used to compute diluted net income (loss) per share
22,698

 
27,003

Net income (loss) per share:
 
 
 
Basic
$
(0.09
)
 
$
0.02

Diluted
$
(0.09
)
 
$
0.02


The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Employee stock options and RSUs
3,617

 
2,393

ESPP to purchase common shares
188

 
—

Total potential dilutive securities
3,805

 
2,393

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 September 30,
Percentage of revenue
2015
 
2014
Customer A
23.1
%
 
24.1
%
Customer B
36.0
%
 
39.6
%
Customer C
14.3
%
 
12.9
%

 
September 30,
2015
 
June 30,
2015
Percentage of accounts receivable
 
Customer A
19.4
%
 
29.4
%
Customer B
27.3
%
 
27.7
%
Customer C
25.4
%
 
14.7
%
Balance Sheet Components
Balance Sheet Components
Balance Sheet Components
Accounts receivable:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Accounts receivable
$
54,630

 
$
58,249

Less: Allowance for price adjustments
(17,402
)
 
(19,438
)
Less: Allowance for doubtful accounts
(30
)
 
(30
)
Accounts receivable, net
$
37,198

 
$
38,781



Inventories:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Raw materials
$
20,242

 
$
19,423

Work in-process
31,586

 
31,269

Finished goods
10,130

 
13,483

 
$
61,958

 
$
64,175


 
Property, plant and equipment, net:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Land
$
4,877

 
$
4,877

Building
4,243

 
4,243

Manufacturing machinery and equipment
183,888

 
172,467

Equipment and tooling
11,821

 
11,261

Computer equipment and software
20,739

 
20,602

Office furniture and equipment
1,798

 
1,762

Leasehold improvements
27,842

 
27,568

 
255,208

 
242,780

Less: Accumulated depreciation
(148,628
)
 
(141,883
)
 
106,580

 
100,897

Equipment and construction in progress
10,851

 
18,682

Property, plant and equipment, net
$
117,431

 
$
119,579


Other long-term assets:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Prepayments for property and equipment
$
76

 
$
692

Investment in a privately held company
100

 
100

Office leases deposits
1,343

 
1,215

Other
3

 
4

 
$
1,522

 
$
2,011


Accrued liabilities:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Accrued compensation and benefit
$
6,419

 
$
5,600

Accrued vacation
1,828

 
1,830

Accrued bonuses
1,120

 
1,152

Warranty accrual
2,203

 
1,957

Stock rotation accrual
1,910

 
1,894

Accrued professional fees
1,420

 
1,402

ESPP payable
827

 
343

Customer deposits
611

 
149

Accrued inventory
699

 
697

Accrued facilities related expenses
1,389

 
1,367

Other accrued expenses
2,799

 
2,834

 
$
21,225

 
$
19,225




The activities in the warranty accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Beginning balance
$
1,957

 
$
1,346

Additions
305

 
530

Utilization
(59
)
 
(646
)
Ending balance
$
2,203

 
$
1,230


The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Beginning balance
$
1,894

 
$
1,645

Additions
1,510

 
1,294

Utilization
(1,494
)
 
(1,332
)
Ending balance
$
1,910

 
$
1,607


Other Long-term liabilities:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Deferred rent
$
902

 
$
953

Shareholders' Equity and Share-based Compensation
Shareholders' Equity and Share-based Compensation
Shareholders' Equity and Share-based Compensation
Share Repurchase

On May 8, 2014, the Company's Board of Directors reactivated its existing $25.0 million share repurchase program which was originally authorized on October 22, 2010. The Board authorized management to repurchase, subject to oversight by the Board, its common shares up to remaining balance of the program, or $22.7 million. In April 2015, the Board of Directors approved an increase in the remaining available amount under the Company’s share repurchase program from approximately $17.8 million to $50.0 million. The repurchases may be made from the open market pursuant to a pre-established Rule 10b5-1 trading plan (as amended, the "Repurchase Trading Plan") or through privately negotiated transactions. The amount and timing of any repurchases depend on a number of factors, including but not limited to, the Company's trading price, volume and availability of its common shares, applicable legal requirements, its business and financial conditions an general market environment. There is no guarantee that any repurchases under the Program will be made or that such repurchases would enhance the value of our shares. 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.

In June 2015, the Company commenced a modified Dutch auction tender offer (the "Tender Offer") to repurchase an aggregate of $30.0 million of its outstanding common shares with a price range between $8.50 and $9.20 per share. In July 2015, the Company completed the Tender Offer in which it purchased 3,296,703 shares of its common shares, at a purchase price of $9.10 per share, for an aggregate purchase price of $30.0 million, excluding fees and expenses relating to the Tender Offer. These shares represent approximately 12.53% of the total number of the Company's common shares issued and outstanding as of June 30, 2015. The Tender Offer was part of the $50.0 million share repurchase program approved by the Board in April 15, 2015. Immediately following the completion of the Tender Offer, approximately $18.2 million remained available under the share repurchase program.
 
During the three months ended September 30, 2015, the Company repurchased 3,930,106 shares from the open market, including 3,296,703 shares in the Tender Offer, for a total cost of $35.0 million, at an average price of $8.90 per share, excluding fees and related expenses of $0.3 million, under the share repurchase program.  Since the inception of the program in 2010, the Company repurchased an aggregate of 4,957,700 shares from the open market for a total cost of $44.0 million, at an average price of $8.87 per share, excluding fees and related expenses.  No repurchased shares have been retired. Of the 4,957,700 repurchased shares, 29,675 shares with a weighted average repurchase price of $13.84 per share, were reissued at an average price of $2.19 per share for option exercises and vested restricted share units.

Stock Options
The following table summarizes the Company's stock option activities for the three months ended September 30, 2015:
 
 
 
Weighted
 
 
 
 
 
Average
 
 
 
Number of
 
Exercise Price
 
Aggregate
 
Shares
 
Per Share
 
Intrinsic Value
Outstanding at June 30, 2015
2,836,217

 
$
10.77

 
$
1,410,538

Granted
—

 
$
—

 
 
Exercised
(78,453
)
 
$
5.41

 
$
219,159

Canceled or forfeited
(81,283
)
 
$
7.98

 
 
Outstanding at September 30, 2015
2,676,481

 
$
11.01

 
$
284,049


Information with respect to stock options outstanding and exercisable at September 30, 2015 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
2,676,481

 
4.33
 
$
11.01

 
2,256,226

 
$
11.59

Options vested and expected to vest
2,636,712

 
4.27
 
$
11.06

 
 
 
 
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 three months ended September 30, 2015 with the following weighted average assumptions:
 
Three Months Ended September 30,
 
2015
Volatility rate
40.13%
Risk-free interest rate
1.7%
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's publicly traded shares history is also included in estimating the volatility rate.
Restricted Stock Units ("RSU")
The following table summarizes the Company's RSU activities for the three months ended September 30, 2015:
 
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, 2015
873,946

 
$
8.64

 
1.77
 
$
7,638,288

Granted
49,690

 
$
7.76

 
 
 
 
Vested
(24,682
)
 
$
9.32

 
 
 
 
Forfeited
(53,480
)
 
$
8.67

 
 
 
 
Nonvested at September 30, 2015
845,474

 
$
8.57

 
1.60
 
$
6,586,242

RSUs vested and expected to vest
732,498

 
 
 
1.50
 
$
5,706,155

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:
 
 
 
Three Months Ended September 30,
 
2015
Volatility rate
31.4%
Risk-free interest rate
0.1% - 0.6%
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 September 30,
 
2015
 
2014
 
(in thousands)
Cost of goods sold
$
131

 
$
154

Research and development
193

 
206

Selling, general and administrative
465

 
742

 
$
789

 
$
1,102


Total unrecognized stock-based compensation expense as of September 30, 2015 was $4.0 million, which includes estimated forfeitures and is expected to be recognized over a weighted-average period of 1.5 years.
Income Taxes
Income Taxes
Income Taxes
The Company recognized income tax expense of approximately $1.2 million and $1.2 million for the three months ended September 30, 2015 and 2014, respectively. The estimated effective tax rate for the three months ended September 30, 2015 was (159.5)% compared to 67.5% for the three months ended September 30, 2014. The changes in the effective tax rate and tax expense between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current and same period of last year.
The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2015 remain open to examination by U.S. federal and state tax authorities. The tax years 2009 to 2015 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 September 30, 2015, the gross amount of unrecognized tax benefits was approximately $6.4 million, of which $4.3 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.

On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision has yet to be issued by the Tax Court due to other outstanding issues related to the case. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any benefit as of September 30, 2015. The Company will continue to monitor ongoing developments and potential impacts to its financial statements.
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 September 30,
 
2015
 
2014
 
(in thousands)
Hong Kong
$
70,453

 
$
75,247

China
9,016

 
10,957

South Korea
658

 
639

United States
717

 
683

Other Countries
595

 
691

 
$
81,439

 
$
88,217

The following is a summary of revenue by product type:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Power discrete
$
59,912

 
$
64,891

Power IC
17,514

 
19,156

Packaging and testing services
4,013

 
4,170

 
$
81,439

 
$
88,217

 
Long-lived assets, net consisting of property, plant and equipment, by geographical area are as follows:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
China
$
70,774

 
$
71,618

United States
46,214

 
47,439

Other Countries
443

 
522

 
$
117,431

 
$
119,579

Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Purchase Commitments
As of September 30, 2015 and June 30, 2015, the Company had approximately $28.2 million and $29.2 million, respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts and packaging and testing services, and approximately $0.7 million and $3.7 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 September 30, 2015 and June 30, 2015.
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, 2015. 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 months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. The condensed consolidated balance sheet at June 30, 2015 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, 2015.
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 July 2015, the FASB issued No. 2015-11, Inventory - Simplifying the Measurement of Inventory("ASU 2015-11"). ASU 2015-11 is additional guidance regarding the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016. 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.

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. 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.  In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. In August 2015 the FASB issued ASU 2015-14, Revenue from Contracts with customers - Deferral of the Effective Date", that defers by one year the effective date of ASU 2014-09.  The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.  The Company is in the process of evaluating the timing of its adoption and the impact of 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.

In February 2015, the FASB issued ASU No. 2015-2, “Consolidation (Topic 820): Amendments to the Consolidation Analysis.” ASU 2015-2 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. 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.

In April 2015, the FASB issued ASU No. 2015-03, Interest -Imputation of Interest(Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and the accounting for debt issue costs under IFRS. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. ASU 2015-03 is effective for the annual period ending after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. 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 (Loss) 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 September 30,
 
2015
 
2014
 
(in thousands, except per share data)
Numerator:
 
 
 
Net income (loss)
$
(1,975
)
 
$
564

 
 
 
 
Denominator:
 
 
 
Basic:
 
 
 
Weighted average number of common shares used to compute basic net income (loss) per share
22,698

 
26,385

Diluted:
 
 
 
Weighted average number of common shares used to compute basic net income (loss) per share
22,698

 
26,385

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

 
618

Weighted average number of common shares used to compute diluted net income (loss) per share
22,698

 
27,003

Net income (loss) per share:
 
 
 
Basic
$
(0.09
)
 
$
0.02

Diluted
$
(0.09
)
 
$
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 (loss) per share as their effect would have been anti-dilutive:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Employee stock options and RSUs
3,617

 
2,393

ESPP to purchase common shares
188

 
—

Total potential dilutive securities
3,805

 
2,393

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 September 30,
Percentage of revenue
2015
 
2014
Customer A
23.1
%
 
24.1
%
Customer B
36.0
%
 
39.6
%
Customer C
14.3
%
 
12.9
%

 
September 30,
2015
 
June 30,
2015
Percentage of accounts receivable
 
Customer A
19.4
%
 
29.4
%
Customer B
27.3
%
 
27.7
%
Customer C
25.4
%
 
14.7
%
Balance Sheet Components (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable 
Accounts receivable:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Accounts receivable
$
54,630

 
$
58,249

Less: Allowance for price adjustments
(17,402
)
 
(19,438
)
Less: Allowance for doubtful accounts
(30
)
 
(30
)
Accounts receivable, net
$
37,198

 
$
38,781

Schedule of Inventory, Current 
Inventories:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Raw materials
$
20,242

 
$
19,423

Work in-process
31,586

 
31,269

Finished goods
10,130

 
13,483

 
$
61,958

 
$
64,175

Property, Plant and Equipment 
Property, plant and equipment, net:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Land
$
4,877

 
$
4,877

Building
4,243

 
4,243

Manufacturing machinery and equipment
183,888

 
172,467

Equipment and tooling
11,821

 
11,261

Computer equipment and software
20,739

 
20,602

Office furniture and equipment
1,798

 
1,762

Leasehold improvements
27,842

 
27,568

 
255,208

 
242,780

Less: Accumulated depreciation
(148,628
)
 
(141,883
)
 
106,580

 
100,897

Equipment and construction in progress
10,851

 
18,682

Property, plant and equipment, net
$
117,431

 
$
119,579

Schedule of Other Assets, Noncurrent 
Other long-term assets:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Prepayments for property and equipment
$
76

 
$
692

Investment in a privately held company
100

 
100

Office leases deposits
1,343

 
1,215

Other
3

 
4

 
$
1,522

 
$
2,011

Schedule of Accrued Liabilities 
Accrued liabilities:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Accrued compensation and benefit
$
6,419

 
$
5,600

Accrued vacation
1,828

 
1,830

Accrued bonuses
1,120

 
1,152

Warranty accrual
2,203

 
1,957

Stock rotation accrual
1,910

 
1,894

Accrued professional fees
1,420

 
1,402

ESPP payable
827

 
343

Customer deposits
611

 
149

Accrued inventory
699

 
697

Accrued facilities related expenses
1,389

 
1,367

Other accrued expenses
2,799

 
2,834

 
$
21,225

 
$
19,225

Schedule of Product Warranty Liability 
The activities in the warranty accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Beginning balance
$
1,957

 
$
1,346

Additions
305

 
530

Utilization
(59
)
 
(646
)
Ending balance
$
2,203

 
$
1,230

Stock Rotation Accrual 
The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Beginning balance
$
1,894

 
$
1,645

Additions
1,510

 
1,294

Utilization
(1,494
)
 
(1,332
)
Ending balance
$
1,910

 
$
1,607

Schedule of Other Noncurrent Liabilities 
Other Long-term liabilities:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
Deferred rent
$
902

 
$
953

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 three months ended September 30, 2015:
 
 
 
Weighted
 
 
 
 
 
Average
 
 
 
Number of
 
Exercise Price
 
Aggregate
 
Shares
 
Per Share
 
Intrinsic Value
Outstanding at June 30, 2015
2,836,217

 
$
10.77

 
$
1,410,538

Granted
—

 
$
—

 
 
Exercised
(78,453
)
 
$
5.41

 
$
219,159

Canceled or forfeited
(81,283
)
 
$
7.98

 
 
Outstanding at September 30, 2015
2,676,481

 
$
11.01

 
$
284,049


Information with respect to stock options outstanding and exercisable at September 30, 2015 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
2,676,481

 
4.33
 
$
11.01

 
2,256,226

 
$
11.59

Options vested and expected to vest
2,636,712

 
4.27
 
$
11.06

 
 
 
 
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 three months ended September 30, 2015 with the following weighted average assumptions:
 
Three Months Ended September 30,
 
2015
Volatility rate
40.13%
Risk-free interest rate
1.7%
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 three months ended September 30, 2015:
 
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, 2015
873,946

 
$
8.64

 
1.77
 
$
7,638,288

Granted
49,690

 
$
7.76

 
 
 
 
Vested
(24,682
)
 
$
9.32

 
 
 
 
Forfeited
(53,480
)
 
$
8.67

 
 
 
 
Nonvested at September 30, 2015
845,474

 
$
8.57

 
1.60
 
$
6,586,242

RSUs vested and expected to vest
732,498

 
 
 
1.50
 
$
5,706,155

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:
 
 
 
Three Months Ended September 30,
 
2015
Volatility rate
31.4%
Risk-free interest rate
0.1% - 0.6%
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 September 30,
 
2015
 
2014
 
(in thousands)
Cost of goods sold
$
131

 
$
154

Research and development
193

 
206

Selling, general and administrative
465

 
742

 
$
789

 
$
1,102

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:
 
September 30,
2015
 
June 30,
2015
 
(in thousands)
China
$
70,774

 
$
71,618

United States
46,214

 
47,439

Other Countries
443

 
522

 
$
117,431

 
$
119,579

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 September 30,
 
2015
 
2014
 
(in thousands)
Hong Kong
$
70,453

 
$
75,247

China
9,016

 
10,957

South Korea
658

 
639

United States
717

 
683

Other Countries
595

 
691

 
$
81,439

 
$
88,217

Revenue from External Customers by Products and Services 
The following is a summary of revenue by product type:
 
Three Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Power discrete
$
59,912

 
$
64,891

Power IC
17,514

 
19,156

Packaging and testing services
4,013

 
4,170

 
$
81,439

 
$
88,217

Net Income (Loss) Per Share - Basic and Diluted Income Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Numerator:
 
 
Net income (loss)
$ (1,975)
$ 564 
Basic:
 
 
Weighted average number of common shares used to compute basic net income (loss) per share
22,698 
26,385 
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements
0 
618 
Effect of potentially dilutive securities:
 
 
Weighted average number of common shares used to compute diluted net income (loss) per share
22,698 
27,003 
Net income (loss) per share:
 
 
Basic (in dollars per share)
$ (0.09)
$ 0.02 
Diluted (in dollars per share)
$ (0.09)
$ 0.02 
Net Income (Loss) Per Share - Potential Dilutive Shares (Details)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Potential dilutive securities (in shares)
3,805 
2,393 
Employee stock options and RSUs
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Potential dilutive securities (in shares)
3,617 
2,393 
ESPP to purchase common shares
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Potential dilutive securities (in shares)
188 
0 
Concentration of Credit Risk and Significant Customers - (Details)
3 Months Ended
Sep. 30, 2015
Minimum [Member]
Sep. 30, 2015
Maximum [Member]
Sep. 30, 2015
Customer A
Sales Revenue, Goods, Net
Customer Concentration Risk
Sep. 30, 2014
Customer A
Sales Revenue, Goods, Net
Customer Concentration Risk
Sep. 30, 2015
Customer A
Accounts Receivable
Customer Concentration Risk
Jun. 30, 2015
Customer A
Accounts Receivable
Customer Concentration Risk
Sep. 30, 2015
Customer B
Sales Revenue, Goods, Net
Customer Concentration Risk
Sep. 30, 2014
Customer B
Sales Revenue, Goods, Net
Customer Concentration Risk
Sep. 30, 2015
Customer B
Accounts Receivable
Customer Concentration Risk
Jun. 30, 2015
Customer B
Accounts Receivable
Customer Concentration Risk
Sep. 30, 2015
Customer C
Sales Revenue, Goods, Net
Customer Concentration Risk
Sep. 30, 2014
Customer C
Sales Revenue, Goods, Net
Customer Concentration Risk
Sep. 30, 2015
Customer C
Accounts Receivable
Customer Concentration Risk
Jun. 30, 2015
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
 
 
23.10% 
24.10% 
19.40% 
29.40% 
36.00% 
39.60% 
27.30% 
27.70% 
14.30% 
12.90% 
25.40% 
14.70% 
Balance Sheet Components - Accounts receivable (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Balance Sheet Related Disclosures [Abstract]
 
 
Accounts receivable
$ 54,630 
$ 58,249 
Less: Allowance for price adjustments
(17,402)
(19,438)
Less: Allowance for doubtful accounts
(30)
(30)
Accounts receivable, net
$ 37,198 
$ 38,781 
Balance Sheet Components - Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Balance Sheet Related Disclosures [Abstract]
 
 
Raw materials
$ 20,242 
$ 19,423 
Work in-process
31,586 
31,269 
Finished goods
10,130 
13,483 
Inventory, net
$ 61,958 
$ 64,175 
Balance Sheet Components - Property, plant, and equipment (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
$ 255,208 
$ 242,780 
Less: Accumulated depreciation
(148,628)
(141,883)
Property, plant and equipment excluding equipment and construction in progress, net
106,580 
100,897 
Equipment and construction in progress
10,851 
18,682 
Property, plant and equipment, net
117,431 
119,579 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
4,877 
4,877 
Building
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
4,243 
4,243 
Manufacturing machinery and equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
183,888 
172,467 
Equipment and tooling
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
11,821 
11,261 
Computer equipment and software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
20,739 
20,602 
Office furniture and equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
1,798 
1,762 
Leasehold improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
$ 27,842 
$ 27,568 
Balance Sheet Components - Other long term assets (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Balance Sheet Related Disclosures [Abstract]
 
 
Prepayments for property and equipment
$ 76 
$ 692 
Investment in a privately held company
100 
100 
Office leases deposits
1,343 
1,215 
Other Assets, Miscellaneous, Noncurrent
3 
4 
Other long-term assets
$ 1,522 
$ 2,011 
Balance Sheet Components - Accrued liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Sep. 30, 2014
Jun. 30, 2014
Balance Sheet Related Disclosures [Abstract]
 
 
 
 
Accrued compensation and benefit
$ 6,419 
$ 5,600 
 
 
Accrued vacation
1,828 
1,830 
 
 
Accrued bonuses
1,120 
1,152 
 
 
Warranty accrual
2,203 
1,957 
1,230 
1,346 
Stock rotation accrual
1,910 
1,894 
1,607 
1,645 
Accrued professional fees
1,420 
1,402 
 
 
ESPP payable
827 
343 
 
 
Customer deposits
611 
149 
 
 
Accrued inventory
699 
697 
 
 
Accrued facilities related expenses
1,389 
1,367 
 
 
Other accrued expenses
2,799 
2,834 
 
 
Accrued liabilities
$ 21,225 
$ 19,225 
 
 
Balance Sheet Components - Product Warranty Accrual (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
 
 
Beginning balance
$ 1,957 
$ 1,346 
Additions
305 
530 
Utilization
(59)
(646)
Ending balance
$ 2,203 
$ 1,230 
Balance Sheet Components - Other Long Term Liability (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Balance Sheet Related Disclosures [Abstract]
 
 
Deferred rent
$ 902 
$ 953 
Other long term liabilities
$ 902 
$ 953 
Balance Sheet Components - Stock Rotation Accrual (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Stock Rotation Accrual Increae (Decrease) [Roll Forward]
 
 
Beginning balance
$ 1,894 
$ 1,645 
Additions
1,510 
1,294 
Utilization
(1,494)
(1,332)
Ending balance
$ 1,910 
$ 1,607 
Shareholders' Equity and Share-based Compensation - Shares Repurchase (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 59 Months Ended 59 Months Ended 0 Months Ended
Sep. 30, 2015
Sep. 30, 2015
Jul. 8, 2015
Apr. 30, 2015
Mar. 31, 2015
May 8, 2014
Oct. 22, 2010
Sep. 30, 2015
Treasury Stock Reissued
Jul. 7, 2015
Dutch Auction Tender Offer [Member]
Common Stock [Member]
Jun. 30, 2015
Dutch Auction Tender Offer [Member]
Common Stock [Member]
Jun. 7, 2015
Dutch Auction Tender Offer [Member]
Common Stock [Member]
Jun. 7, 2015
Dutch Auction Tender Offer [Member]
Minimum [Member]
Common Stock [Member]
Jun. 7, 2015
Dutch Auction Tender Offer [Member]
Maximum [Member]
Common Stock [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase program, authorized amount (USD in Millions)
 
 
 
 
 
 
$ 25.0 
 
 
 
$ 30.0 
 
 
Stock Repurchase Program, Authorized Cost Per Share
 
 
 
 
 
 
 
 
 
 
 
$ 8.50 
$ 9.20 
Shares Repurchase Program Remaining Balance
 
 
18.2 
50.0 
17.8 
22.7 
 
 
 
 
 
 
 
Treasury stock acquired, shares repurchased (in shares)
3,930,106 
4,957,700 
 
 
 
 
 
 
3,296,703 
 
 
 
 
Treasury Stock, Value, Acquired, Cost Method
35.0 
44.0 
 
 
 
 
 
 
30.0 
 
 
 
 
Treasury Stock, Shares, Acquired, Represent Percentage Of The Company's Common Shares Issued And Outstanding
 
 
 
 
 
 
 
 
 
12.53% 
 
 
 
Treasury stock acquired, average price per share (in dollars per share)
$ 8.90 
$ 8.87 
 
 
 
 
 
$ 13.84 
$ 9.10 
 
 
 
 
Treasury stock, Acquired, Fees and related expenses
$ 0.3 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury Stock, Shares, Retired
 
0 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in shares)
 
 
 
 
 
 
 
29,675 
 
 
 
 
 
Treasury Stock Reissued, Average Price Per Share
 
$ 2.19 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' Equity and Share-based Compensation - Share-based Compensation (Details) (USD $)
3 Months Ended
Sep. 30, 2015
Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Outstanding at June 30, 2015 (in shares)
2,836,217 
 
Granted (in shares)
0 
 
Exercised (in shares)
(78,453)
 
Canceled or forfeited (in shares)
(81,283)
 
Outstanding at September 30, 2015 (in shares)
2,676,481 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
 
Outstanding at June 30, 2015 (in dollars per share)
$ 10.77 
 
Granted (in dollars per share)
$ 0 
 
Exercised (in dollars per share)
$ 5.41 
 
Canceled or forfeited (in dollars per share)
$ 7.98 
 
Outstanding at September 30, 2015 (in dollars per share)
$ 11.01 
 
Options Outstanding Aggregate Intrinsic Value
$ 284,049 
$ 1,410,538 
Options Exercised Aggregate Intrinsic Value
$ 219,159 
 
Employee Share Purchase Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility Rate
31.40% 
 
Expected Term
1 year 3 months 18 days 
 
Expected Dividend Rate
0.00% 
 
Employee Share Purchase Plan [Member] |
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Risk Free Interest Rate
0.10% 
 
Employee Share Purchase Plan [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Risk Free Interest Rate
0.60% 
 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Volatility Rate
40.13% 
 
Risk Free Interest Rate
1.70% 
 
Expected Term
5 years 6 months 
 
Expected Dividend Rate
0.00% 
 
Shareholders' Equity and Share-based Compensation - Stock Options Outstanding and Exercisable (Details) (USD $)
3 Months Ended
Sep. 30, 2015
Jun. 30, 2015
Share-based Compensation [Abstract]
 
 
Options, Number Outstanding (in shares)
2,676,481 
2,836,217 
Options, Weighted-Average Remaining Contractual Life (in years)
4 years 3 months 29 days 
 
Options, Weighted-Average Exercise Price (in dollars per share)
$ 11.01 
$ 10.77 
Options, Number Exercisable (in shares)
2,256,226 
 
Options, Weighted-Average Exercise Price (in dollars per share)
$ 11.59 
 
Options vested and expected to vest, Number Outstanding (in shares)
2,636,712 
 
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years)
4 years 3 months 7 days 
 
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share)
$ 11.06 
 
Shareholders' Equity and Share-based Compensation - Restricted Stock Activity (Details) (USD $)
3 Months Ended
Sep. 30, 2015
Jun. 30, 2015
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 6 months 4 days 
 
Restricted Stock
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
Nonvested at June 30, 2015
873,946 
 
Granted
49,690 
 
Vested
(24,682)
 
Forfeited
(53,480)
 
Nonvested at September 30, 2015
845,474 
873,946 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
 
Nonvested at June 30, 2015
$ 8.64 
 
Granted
$ 7.76 
 
Vested
$ 9.32 
 
Forfeited
$ 8.67 
 
Nonvested at September 30, 2015
$ 8.57 
$ 8.64 
Weighted Average Remaining Recognition Period (Years)
1 year 7 months 6 days 
1 year 9 months 7 days 
RSUs Nonvested Aggregate Intrinsic Value
$ 6,586,242 
$ 7,638,288 
RSUs vested and expected to vest, Outstanding (in shares)
732,498 
 
RSUs vested and expected to vest, Weighted Average Remaining Recognition Period (in years)
1 year 6 months 0 days 
 
RSUs vested and expected to vest, Aggregate Intrinsic Value
$ 5,706,155 
 
Shareholders' Equity and Share-based Compensation - Share-based Compensation Expenses (Details) (USD $)
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated share-based compensation expense
$ 789,000 
$ 1,102,000 
Unrecognized compensation expense
4,000,000 
 
Recognition period of share-based compensation expense (in years)
1 year 6 months 4 days 
 
Cost of goods sold
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated share-based compensation expense
131,000 
154,000 
Research and development
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated share-based compensation expense
193,000 
206,000 
Selling, general and administrative
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Allocated share-based compensation expense
$ 465,000 
$ 742,000 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Income Tax Disclosure [Abstract]
 
 
Income tax expense
$ 1,214,000 
$ 1,171,000 
Estimated effective income tax rate
(159.50%)
67.50% 
Unrecognized tax benefits
6,400,000 
 
Unrecognized tax benefit that would impact effective tax rate
$ 4,300,000 
 
Segment and Geographic Information - Revenue by Location and Product Type (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
$ 81,439 
$ 88,217 
Power discrete
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
59,912 
64,891 
Power IC
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
17,514 
19,156 
Packaging and testing services
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
4,013 
4,170 
Hong Kong
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
70,453 
75,247 
China
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
9,016 
10,957 
South Korea
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
658 
639 
United States
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
717 
683 
Other Countries
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
$ 595 
$ 691 
Segment and Geographic Information - Long-lived Assets (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
$ 117,431 
$ 119,579 
China
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
70,774 
71,618 
United States
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
46,214 
47,439 
Other Countries
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
$ 443 
$ 522 
Segment and Geographic Information - Narratives (Details)
3 Months Ended
Sep. 30, 2015
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
Sep. 30, 2015
Jun. 30, 2015
Raw materials, wafers, and packaging and testing services puchase commitments
 
 
Purchase Commitment, Excluding Long-term Committment [Line Items]
 
 
Purchase commitment, amount
$ 28.2 
$ 29.2 
Property and equipment purchase commitments
 
 
Purchase Commitment, Excluding Long-term Committment [Line Items]
 
 
Purchase commitment, amount
$ 0.7 
$ 3.7 
Commitments and Contingencies - Guarantees (Details) (Indemnification Agreement, USD $)
Sep. 30, 2015
Jun. 30, 2015
Indemnification Agreement
 
 
Loss Contingencies [Line Items]
 
 
Indemnifications accrual
$ 0 
$ 0