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Balance Sheet Components | 12 Months Ended
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Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Components | Balance Sheet Components Accounts receivable
| June 30,
| 2019 |  | 2018
| (in thousands)
Accounts receivable | $ | 48,401 |  |  | $ | 52,687 |
Less: Allowance for price adjustments | (24,075 | ) |  | (18,902 | )
Less: Allowance for doubtful accounts | (30 | ) |  | (30 | )
Accounts receivable, net | $ | 24,296 |  |  | $ | 33,755 |
Inventories
| June 30,
| 2019 |  | 2018
| (in thousands)
Raw materials | $ | 59,076 |  |  | $ | 47,097 |
Work in-process | 38,214 |  |  | 35,243 |
Finished goods | 14,353 |  |  | 7,842 |
| $ | 111,643 |  |  | $ | 90,182 |
Other current assets:
| June 30,
| 2019 |  | 2018
| (in thousands)
VAT receivable | $ | 30,769 |  |  | $ | 17,601 |
Other prepaid expenses | 2,745 |  |  | 2,121 |
Prepaid insurance | 939 |  |  | 906 |
Prepaid maintenance | 481 |  |  | 556 |
Prepayments to supplier | 583 |  |  | 227 |
Prepaid income tax | 267 |  |  | 761 |
Customs deposit | 114 |  |  | 5,749 |
Lease financing cost | 825 |  |  | 960 |
Other receivables | 379 |  |  | 670 |
| $ | 37,102 |  |  | $ | 29,551 |
Property, plant and equipment, net
| June 30,
| 2019 |  | 2018
| (in thousands)
Land | $ | 4,877 |  |  | $ | 4,877 |
Building | 36,205 |  |  | 4,325 |
Manufacturing machinery and equipment | 303,750 |  |  | 265,192 |
Equipment and tooling | 20,739 |  |  | 16,605 |
Computer equipment and software | 34,048 |  |  | 25,686 |
Office furniture and equipment | 3,243 |  |  | 2,314 |
Leasehold improvements | 53,597 |  |  | 29,900 |
Land use rights | 8,760 |  |  | 9,089 |
| 465,219 |  |  | 357,988 |
Less: accumulated depreciation | (252,982 | ) |  | (225,184 | )
| 212,237 |  |  | 132,804 |
Equipment and construction in progress | 197,500 |  |  | 198,852 |
Property, plant and equipment, net | $ | 409,737 |  |  | $ | 331,656 |
Total depreciation expense was $31.9 million, $29.2 million and $27.2 million for fiscal year 2019, 2018 and 2017, respectively. The gross amount of computer software recorded under capital leases was $13.7 million and $8.2 million and the related accumulated depreciation was $8.2 million and $7.3 million, respectively, at June 30, 2019 and 2018. The Company capitalized $0.8 million, $0.3 million and 0.2 million of software development costs during the fiscal year 2019, 2018 and 2017, respectively. Amortization of capitalized software development costs was $0.5 million in fiscal year 2019, and $0.6 million in each of the fiscal year 2018 and 2017, respectively. Unamortized capitalized software development costs in each of the periods presented at June 30, 2019 and 2018 were $0.9 million and $0.7 million, respectively. There is no private land ownership in China. Individuals and companies are permitted to acquire land use rights for specific purpose. In March 2017, the JV Company received the necessary land use right certificate from the PRC government. The land use rights will expire on November 30, 2066. Other long-term assets
| June 30,
| 2019 |  | 2018
| (in thousands)
Prepayments for property and equipment | $ | 4,846 |  |  | $ | 17,599 |
Investments in privately held companies | 700 |  |  | 700 |
Lease financing costs | 1,758 |  |  | 1,922 |
VAT long-term receivable | — |  |  | 3,396 |
Customs deposit | 980 |  |  | 1,589 |
Other long-term deposits | 889 |  |  | 2,252 |
Office leases deposits | 1,031 |  |  | 853 |
Other | 413 |  |  | 387 |
| $ | 10,617 |  |  | $ | 28,698 |
Intangible assets, net
| June 30,
| 2019 |  | 2018
| (in thousands)
Patents and technology rights | $ | 18,037 |  |  | $ | 17,633 |
Trade name | 268 |  |  | 268 |
Customer relationships | 1,150 |  |  | 1,150 |
| 19,455 |  |  | 19,051 |
Less: accumulated amortization | (2,842 | ) |  | (2,729 | )
| 16,613 |  |  | 16,322 |
Goodwill | 269 |  |  | 269 |
Intangible assets, net | $ | 16,882 |  |  | $ | 16,591 |
The carrying value of goodwill was $0.3 million for fiscal years 2019, 2018 and 2017. Intangible assets of patents and technology rights are primarily related to a license agreement that the Company entered into with STMicroelectronics International N.V. (“STMicro”) on September 5, 2017, pursuant to which STMicro granted the Company a world-wide, royalty-free and fully-paid license to use its technologies to develop, market and distribute certain digital multi-phase controller products, which have been offered by STMicro. This agreement allows the Company to develop and market products in a new market, primarily in the computer server segment. Under the license agreement, the Company agreed to pay a total price in cash of $17.0 million based on the payment schedule of approximately $10.1 million, $6.7 million, and $0.2 million in calendar year 2017, 2018 and 2019, respectively. As of June 30, 2019, the Company recorded $16.2 million of intangible assets related to STMicro. The Company begins amortizing such license fees when the technology has met the Company's qualification. Amortization expense for intangible assets was $113,000, $76,000 and $2,000 for the years ended June 30, 2019, 2018 and 2017, respectively. Estimated future minimum amortization expense of intangible assets is as follows (in thousands):
Year ending June 30, |
2020 | $ | 925 |
2021 | 3,360 |
2022 | 3,360 |
2023 | 3,286 |
2024 | 3,249 |
Thereafter | 2,433 |
| $ | 16,613 |
Accrued liabilities
| June 30,
| 2019 |  | 2018
| (in thousands)
Accrued compensation and benefits | $ | 16,385 |  |  | $ | 18,484 |
Warranty accrual | 623 |  |  | 535 |
Stock rotation accrual | 1,921 |  |  | 1,750 |
Accrued professional fees | 1,721 |  |  | 1,922 |
Accrued inventory | 857 |  |  | 667 |
Accrued facilities related expenses | 4,233 |  |  | 2,163 |
Accrued financing lease costs | 728 |  |  | 1,510 |
Accrued property, plant and equipment | 11,527 |  |  | 18,145 |
Other accrued expenses | 6,080 |  |  | 4,665 |
| $ | 44,075 |  |  | $ | 49,841 |
The activity in the warranty accrual, included in accrued liabilities is as follows:
| Year Ended June 30,
| 2019 |  | 2018 |  | 2017
| (in thousands)
Beginning balance | $ | 535 |  |  | $ | 1,866 |  |  | $ | 1,495 |
Addition | 236 |  |  | (147 | ) |  | 1,476 |
Released | — |  |  | (1,000 | ) |  | (580 | )
Utilization | (148 | ) |  | (184 | ) |  | (525 | )
Ending balance | $ | 623 |  |  | $ | 535 |  |  | $ | 1,866 |
The activity in the stock rotation accrual, included in accrued liabilities is as follows:
| Year Ended June 30,
| 2019 |  | 2018 |  | 2017
| (in thousands)
Beginning balance | $ | 1,750 |  |  | $ | 1,871 |  |  | $ | 1,988 |
Addition | 5,267 |  |  | 2,714 |  |  | 4,819 |
Utilization | (5,096 | ) |  | (2,835 | ) |  | (4,936 | )
Ending balance | $ | 1,921 |  |  | $ | 1,750 |  |  | $ | 1,871 |
Deferred margin Deferred margin consists of the following:
| June 30,
| 2019 |  | 2018
| (in thousands)
Deferred revenue | $ | — |  |  | $ | 2,555 |
Deferred costs | — |  |  | (890 | )
Deferred margin | $ | — |  |  | $ | 1,665 |
Other long-term liabilities:
| June 30, 2019 |  | June 30, 2018
| (in thousands)
Deferred rent | $ | 65 |  |  | $ | 238 |
Customer deposits | 10,000 |  | * | — |
Computer software liabilities | 3,701 |  |  | — |
Other | 155 |  |  | 755 |
Other long-term liabilities | $ | 13,921 |  |  | $ | 993 |
* Customer deposit from our customer A and customer B for securing future shipment from the Company

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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