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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 28, 2018	Jan. 31, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	AVIAT NETWORKS, INC.
Entity Central Index Key	0001377789
Current Fiscal Year End Date	--06-28
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 28, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		5,380,128
Entity Emerging Growth Company	false
Entity Small Business	false

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 28, 2018	Jun. 29, 2018
Current Assets:
Cash and cash equivalents	$ 31,542	$ 37,425
Restricted cash	3	3
Accounts receivable, net	48,624	43,068
Unbilled receivables	32,336	14,167
Inventories	8,593	21,290
Customer service inventories	1,113	1,507
Other current assets	4,873	6,006
Total current assets	127,084	123,466
Property, plant and equipment, net	17,016	17,179
Deferred income taxes	5,127	5,600
Other assets	11,957	9,816
TOTAL ASSETS	161,184	156,061
Current Liabilities:
Short-term debt	9,000	9,000
Accounts payable	34,777	30,878
Accrued expenses	22,663	25,864
Advance payments and unearned revenue	15,846	19,300
Restructuring liabilities	1,567	1,426
Total current liabilities	83,853	86,468
Unearned revenue	7,721	6,593
Other long-term liabilities	1,346	1,250
Reserve for uncertain tax positions	3,403	2,941
Deferred income taxes	1,534	1,293
Total liabilities	97,857	98,545
Commitments and contingencies (Note 11)
Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 5,399,357 shares issued and outstanding at December 28, 2018; 5,351,155 shares issued and outstanding at June 29, 2018, respectively	54	54
Additional paid-in-capital	815,392	816,426
Accumulated deficit	(739,176)	(746,359)
Accumulated other comprehensive loss	(12,943)	(12,605)
Total equity	63,327	57,516
TOTAL LIABILITIES AND EQUITY	$ 161,184	$ 156,061

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares	Dec. 28, 2018	Jun. 29, 2018
Statement of Financial Position [Abstract]
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock shares authorized (in shares)	50,000,000	50,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	300,000,000	300,000,000
Common stock shares issued (in shares)	5,399,357	5,351,155
Common stock shares outstanding (in shares)	5,399,357	5,351,155

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Revenues:
Total revenues	$ 65,088	$ 61,723	$ 125,592	$ 117,905
Cost of revenues:
Total cost of revenues	42,598	39,833	85,177	78,719
Gross margin	22,490	21,890	40,415	39,186
Operating expenses:
Research and development expenses	5,316	5,144	10,253	9,942
Selling and administrative expenses	14,291	14,104	27,997	27,826
Restructuring charges	0	(252)	796	(250)
Total operating expenses	19,607	18,996	39,046	37,518
Operating income	2,883	2,894	1,369	1,668
Interest income	43	42	94	100
Interest expense	(76)	(13)	(81)	(19)
Other (expense) income, net	0	(136)	0	(166)
Income before income taxes	2,850	2,787	1,382	1,583
Provision for (benefit from) income taxes	540	(2,564)	(178)	(3,203)
Net income	2,310	5,351	1,560	4,786
Less: Net income attributable to noncontrolling interest, net of tax	0	280	0	372
Net income attributable to Aviat Networks	$ 2,310	$ 5,071	$ 1,560	$ 4,414
Net income per share of common stock outstanding:
Basic (in dollars per share)	$ 0.43	$ 0.95	$ 0.29	$ 0.83
Diluted (in dollars per share)	$ 0.41	$ 0.90	$ 0.28	$ 0.79
Weighted-average shares outstanding:
Basic (in shares)	5,397	5,329	5,382	5,323
Diluted (in shares)	5,627	5,624	5,663	5,616
Product sales
Revenues:
Total revenues	$ 41,956	$ 37,719	$ 81,081	$ 72,786
Cost of revenues:
Total cost of revenues	26,159	23,784	52,958	47,447
Services
Revenues:
Total revenues	23,132	24,004	44,511	45,119
Cost of revenues:
Total cost of revenues	$ 16,439	$ 16,049	$ 32,219	$ 31,272

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 2,310	$ 5,351	$ 1,560	$ 4,786
Other comprehensive (loss) income:
Net change in cumulative translation adjustments	(204)	556	(338)	621
Other comprehensive (loss) income	(204)	556	(338)	621
Comprehensive income	2,106	5,907	1,222	5,407
Less: Comprehensive income attributable to noncontrolling interest, net of tax	0	280	0	372
Comprehensive income attributable to Aviat Networks	$ 2,106	$ 5,627	$ 1,222	$ 5,035

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017
Operating Activities
Net income	$ 1,560	$ 4,786
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Depreciation and amortization of property, plant and equipment and capitalized software	2,384	2,590
(Recovery from) provision for uncollectible receivables	(212)	14
Share-based compensation	938	1,154
Deferred tax assets, net	169	(2,737)
Charges for inventory and customer service inventory write-downs	156	205
Loss on disposition of property, plant and equipment, net	15	28
Changes in operating assets and liabilities:
Accounts receivable	(3,336)	3,490
Unbilled receivables	(9,533)	2,626
Inventories	962	(2,098)
Customer service inventories	(23)	(83)
Accounts payable	4,628	(381)
Accrued expenses	(2,735)	(1,672)
Advance payments and unearned revenue	4,205	3,801
Income taxes payable or receivable	139	(232)
Other assets and liabilities	117	(2,320)
Net cash (used in) provided by operating activities	(566)	9,171
Investing Activities
Payments for acquisition of property, plant and equipment	(3,236)	(3,342)
Net cash used in investing activities	(3,236)	(3,342)
Financing Activities
Proceeds from borrowings	18,000	18,000
Repayments of borrowings	(18,000)	(18,000)
Payments for repurchase of Company stock	(1,436)	0
Payments related to tax withholding for share-based compensation	(536)	0
Proceeds from issuance of common stock under employee stock plans	0	11
Net cash (used in) provided by financing activities	(1,972)	11
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(164)	72
Net (decrease) increase in cash, cash equivalents, and restricted cash	(5,938)	5,912
Cash, cash equivalents and restricted cash, beginning of period	37,764	36,569
Cash, cash equivalents and restricted cash, end of period	$ 31,826	$ 42,481

The Company and Basis of Presentation	6 Months Ended
The Company and Basis of Presentation	Dec. 28, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation The Company Aviat Networks, Inc. (the “Company,” “we,” “us,” and “our”) designs, manufactures and sells a range of wireless networking solutions and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast system operators across the globe. Due to the volume of our international sales, especially in developing countries, we may be susceptible to a number of political, economic and geographic risks that could harm our business as outlined in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 29, 2018. Our products include broadband wireless access base stations and customer premises equipment for fixed and mobile, point-to-point digital microwave radio systems for access, backhaul, trunking and license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of our management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the three and six months ended December 28, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Consolidated Financial Statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 29, 2018. The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. We operate on a 52-week or 53-week year ending on the Friday closest to June 30. The first two quarters of fiscal 2019 and fiscal 2018 included 13 weeks in each quarter. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019. Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for uncollectible receivables, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, restructuring obligations, product warranty obligations, share-based awards, contingencies, recoverability of long-lived assets and useful lives of property, plant and equipment. Summary of Significant Accounting Policies There have been no material changes in our significant accounting policies as of and for the six months ended December 28, 2018, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended June 29, 2018, with the exception of our revenue recognition policy. Effective June 30, 2018, we adopted Accounting Standards Update (ASU) No. 2014-09 (Accounting Standards Codification 606 or ASC 606), Revenue from Contracts with Customers, as amended. See Note 3, “Revenue Recognition” to the Notes to unaudited Condensed Consolidated Financial Statements for discussion of the impact of the adoption of this standard on our policies for revenue. Comparability We adopted ASC 606, effective June 30, 2018, using the modified retrospective method. Prior-period financial statements were not retrospectively restated. The Consolidated Balance Sheet as of June 29, 2018 and results of operations for the three and six months ended December 29, 2017 were prepared using accounting standards that were different than those in effect for the three and six months ended December 28, 2018. As a result, the balance sheets as of December 28, 2018 and June 29, 2018 are not directly comparable, nor are the results of operations for the three and six months ended December 28, 2018 and December 29, 2017. Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued ASC 606 which supersedes nearly all current U.S. GAAP guidance on this topic and eliminates industry-specific guidance. Revenue recognition under ASC 606 depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the FASB amended its guidance related to the capitalization and amortization of the incremental costs of obtaining a contract with a customer. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption. We adopted ASC 606 using the modified retrospective method as of June 30, 2018 with the cumulative effect recognized as an adjustment to the opening balance of our accumulated deficit (net of tax). Prior periods have not been retroactively adjusted and will continue to be reported under the accounting standards in effect for those periods. See Note 3, “Revenue Recognition” to the Notes to unaudited Condensed Consolidated Financial Statements for more information. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. This ASU is effective for fiscal years beginning after December 15, 2017. We adopted this update during the first quarter of fiscal 2019. The adoption had no material impact on our unaudited Condensed Consolidated Financial Statements. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU 2018-10, Codification Improvements to Topic 842, Leases, and ASU 2018-11, Leases (Topic 842) Targeted Improvements, each issued in July 2018 (collectively, Topic 842), all of which provides guidance on the recognition, measurement, presentation, and disclosure of leases. Topic 842 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. This standard will become effective for fiscal years beginning after December 15, 2018 including interim periods within those years, with early adoption permitted. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous guidance. Although we are currently evaluating the impact the pronouncement will have on our unaudited Condensed Consolidated Financial Statements and related disclosures, we expect that most of our operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation: Improvement to Nonemployees Share-Based Payment Accounting (ASU 2018-07), which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 will be effective for fiscal years beginning after December 15, 2018, including interim periods within those years, with early adoption permitted. We do not expect the adoption of this guidance will have a material impact on our unaudited Condensed Consolidated Financial Statements. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. Our first presentation of changes in stockholders’ equity will be included in our Form 10-Q for the quarter ending March 29, 2019. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will become effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The standard can be adopted either using the prospective or retrospective transition approach. We are evaluating the effect the adoption of the standard will have on our unaudited Condensed Consolidated Financial Statements.

Net Income Per Share of Common Stock

6 Months Ended

Dec. 28, 2018

Earnings Per Share [Abstract]

Net Income Per Share of Common Stock

Net income per share is computed using the two-class method, by dividing net income attributable to us by the weighted-average number of shares of our outstanding common stock and participating securities outstanding. Our restricted shares contain rights to receive non-forfeitable dividends and therefore are considered to be participating securities and included in the calculations of net income per basic and diluted common share. Undistributed losses are not allocated to unvested restricted shares as the unvested restricted shares are not contractually obligated to share our losses. The impact on earnings per share of the participating securities under the two-class method was immaterial.

The following table presents the computation of basic and diluted net income per share attributable to our common stockholders:



	Three Months Ended				Six Months Ended
(In thousands, except per share amounts)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Numerator:
Net income attributable to Aviat Networks	$	2,310	$	5,071	$	1,560	$	4,414

Denominator:
Weighted-average shares outstanding, basic	5,397		5,329		5,382		5,323
Effect of potentially dilutive equivalent shares	230		295		281		293
Weighted-average shares outstanding, diluted	5,627		5,624		5,663		5,616

Net income per share of common stock outstanding:
Basic	$	0.43	$	0.95	$	0.29	$	0.83
Diluted	$	0.41	$	0.90	$	0.28	$	0.79

The following table summarizes the weighted-average equity awards that were excluded from the diluted net income per share calculations since they were anti-dilutive:



	Three Months Ended		Six Months Ended
(In thousands)	December 28, 2018	December 29, 2017	December 28, 2018	December 29, 2017
Stock options	412	357	376	341
Restricted stock units and performance stock units	52	—	32	—
Total shares of common stock excluded	464	357	408	341

Revenue Recognition

6 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Effective June 30, 2018, we adopted ASC 606, using the modified retrospective method applied to those contracts that were not completed as of June 29, 2018. Results for the reporting periods after June 29, 2018 are presented under ASC 606, while prior‑period amounts are not adjusted and continue to be reported in accordance with our historical accounting under ASC 605.

We recognize revenue by applying the following five-step approach: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation.

Revenue from product sales is generated predominately from the sales of products manufactured by third-party manufacturers to whom we have outsourced our manufacturing processes. Printed circuit assemblies, mechanical housings, and packaged modules are manufactured by contract manufacturing partners, with periodic business reviews of material levels and obsolescence. Product assembly, product testing, complete system integration and system testing may either be performed within our own facilities or at the locations of our third-party manufacturers.

Revenue from services includes certain installation, extended warranty, customer support, consulting, training and education. It also can include certain revenue generated from the resale of installation materials purchased on behalf of customers for installation service contracts we perform for customers. Maintenance and support services are generally offered to our customers over a specified period of time and from sales and subsequent renewals of maintenance and support contracts.

Contracts and customer purchase orders are used to determine the existence of an arrangement. In addition, shipping documents and customer acceptances, when applicable, are used to verify delivery and transfer of control. We typically satisfy our performance obligations upon shipment or delivery of product depending on the contractual terms. Payment terms to customers generally range from net 30 to 120 days from invoice, which are considered to be standard payment terms. We assess our ability to collect from our customers based primarily on the creditworthiness and past payment history of the customer.

While our customers do not have the right of return, we reserve for estimated product returns as an offset to revenue based primarily on historical trends. Actual product returns may be different than what was estimated. These factors and unanticipated changes in economic and industry condition could make actual results differ from our return estimates.

We present transactional taxes such as sales and use tax collected from customers and remitted to government authorities on a net basis.

ASC 606 Adoption

We recorded a net reduction to the opening balance of our accumulated deficit of $5.6 million as of June 30, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to our bill-and-hold and services revenue. Our revenue was $65.1 million and $125.6 million for the three and six months ended December 28, 2018, respectively, under ASC 606, compared to $63.0 million and $112.9 million, respectively, under ASC 605. The details of the significant changes and quantitative impact of our adoption of ASC 606 are set out below:

•

Bill-and-Hold Sales: Certain customer arrangements consist of bill-and-hold characteristics under which transfer of control has been met (including the passing of title and significant risk and reward of ownership to the customers). Therefore, the customers can direct the use of the bill-and-hold inventory while we retain physical possession of the product until it is installed at a customer site at a point in time in the future. The change under ASC 606 requires consideration of the indicators of when control has been transferred and sets forth additional criteria to be met in a bill-and-hold arrangement potentially resulting in revenue being recognized earlier than under ASC 605. Upon adoption of ASC 606, we recorded a cumulative effect adjustment to June 30, 2018 opening accumulated deficit consisting of bill-and-hold backlog of $10.5 million that will not be recognized as revenue, less related cost of product sales and income taxes, resulting in a net decrease to accumulated deficit of $1.7 million.

•

Professional Services Revenue: We historically recognized certain professional services revenue upon completion under ASC 605 which changed to over time revenue recognition under ASC 606. We use the input method based on costs incurred, where revenue is calculated based on the percentage of total costs incurred in relation to total estimated costs at completion of the contract. The input method is reasonable because the costs incurred best reflect our efforts toward satisfying the performance obligation over time. The use of the input method requires us to make reasonably dependable estimates. Upon adoption of ASC 606, we recorded a cumulative effect adjustment to June 30, 2018 opening accumulated deficit of $4.7 million that will not be recognized as revenue, less related cost of services and income taxes resulting in a net decrease to accumulated deficit of $1.6 million.

•

Transfer of Control: Certain of our contracts include penalties, acceptance provisions or other price variability that precluded revenue recognition under ASC 605 because of the requirement for amounts to be fixed or determinable. ASC 606 requires us to estimate and account for variable consideration as a reduction of the transaction price. Upon adoption of ASC 606, we recorded a cumulative effect adjustment to June 30, 2018 opening accumulated deficit of $0.6 million that will not be recognized as revenue, less related cost of revenues and income taxes resulting in a net decrease to accumulated deficit of $0.4 million.

In addition, revenue allocation under ASC 606 requires an allocation of revenue between deliverables, or performance obligations, within an arrangement. Under ASC 605, the allocation of revenue was restricted to the amount which was not contingent on future deliverables; however, ASC 606 removes this restriction. Upon adoption of ASC 606, we recorded a cumulative effect adjustment to decrease June 30, 2018 opening accumulated deficit by $0.5 million.

Under ASC 605, we deferred revenue for stand-alone software licenses where vendor-specific objective evidence (VSOE) of fair value had not been established for undelivered items, and revenue was recognized straight line over the term of the maintenance agreement. Under ASC 606, software revenue is allocated to delivered and undelivered elements based on relative fair value resulting in more software arrangement revenue being recognized earlier. Upon adoption of ASC 606, we recorded a cumulative effect adjustment to decrease June 30, 2018 opening accumulated deficit by $0.7 million.

Previously, we expensed the majority of our commission expense as incurred. Under the new standard, we capitalize and amortize incremental commission costs to obtain the contract over a benefit period. We elected a practical expedient to exclude contracts with a benefit period of a year or less from this deferral requirement. Upon adoption of ASC 606, we recorded a cumulative effect adjustment to decrease June 30, 2018 opening accumulated deficit by $0.7 million.

Termination Rights

The contract term is determined on the basis of the period over which the parties to the contract have present enforceable rights and obligations. Certain customer contracts include a termination for convenience clause that allows the customer to terminate services without penalty, upon advance notification. We concluded that the duration of support contracts does not extend beyond the non-cancellable portion of the contract.

Variable Consideration

The consideration associated with customer contracts is generally fixed. Variable consideration includes discounts, rebates, refunds, credits, incentives, penalties, or other similar items. The amount of consideration that can vary is not a substantial portion of total consideration.

Variable consideration estimates will be re-assessed at each reporting period until a final outcome is determined. The changes to the original transaction price due to a change in estimated variable consideration will be applied on a retrospective basis, with the adjustment recorded in the period in which the change occurs. Changes to variable consideration will be tracked and material changes disclosed.

Stand-alone Selling Price

Stand-alone selling price is the price at which an entity would sell a good or service on a stand-alone (or separate) basis at contract inception. Under the model, the observable price of a good or service sold separately provides the best evidence of stand-alone selling price. However, in certain situations, stand-alone selling prices will not be readily observable and the entity must estimate the stand-alone selling price.

When allocating on a relative stand-alone selling price basis, any discount provided in the contract is allocated proportionately to all of the performance obligations in the contract.

The majority of products and services that we offer have readily observable selling prices. For products and services that do not, we estimate stand-alone selling price using the market assessment approach based on expected selling price and adjust those prices as necessary to reflect our costs and margins. As part of our stand-alone selling price policy, we review product pricing on a periodic basis to identify any significant changes and revise our expected selling price assumptions as appropriate.

Shipping and Handling

Shipping and handling costs are included as a component of costs of product sales in our unaudited Condensed Consolidated Statements of Operations because they are also included in revenue that we bill our customers.

Costs to Obtain a Contract

We have assessed the treatment of costs to obtain or fulfill a contract with a customer. Sales commissions have historically been expensed as incurred. Under ASC 606, we capitalize sales commissions related to multi-year service contracts and amortize the asset over the period of benefit, which is the estimated service period. Sales commissions paid on contract renewals, including service contract renewals, is commensurate with the sales commissions paid on the initial contracts.

We elected ASC 606’s practical expedient to expense sales commissions as incurred when the amortization period of the related asset is one year or less. These costs are recorded as sales and marketing expense and included on the unaudited Condensed Consolidated Balance Sheet as accrued expenses until paid.

Contract Balances

The following table provides information about receivables and liabilities from contracts with customers (in thousands):



	December 28, 2018		At Adoption on June 30, 2018
Contract Assets
Accounts receivable, net	$	48,624	$	45,571
Unbilled receivables	$	32,336	$	22,794
Capitalized commissions	$	627	$	656
Contract Liabilities
Advance payments and unearned revenue	$	15,846	$	12,700
Unearned revenue, long-term	$	7,721	$	7,295

As of December 28, 2018, we had $23.6 million in advance payments and unearned revenue and long-term unearned revenue, of which approximately 40% is expected to be recognized as revenue in the next six months of fiscal year 2019 and the remainder thereafter. During the three and six months ended December 28, 2018, we recognized approximately $2.4 million and $5.4 million, respectively, in maintenance service revenue, which was included in unearned revenue at June 29, 2018.

Impacts on Financial Statements

The following tables summarize the impacts of adopting ASC 606 on the unaudited Condensed Consolidated Statements of Operations for the three and six months ended December 28, 2018 and our Consolidated Balance Sheet as of June 29, 2018 (in thousands):



	Three Months Ended December 28, 2018
	As Reported		Adjustments			Balances without Adoption of ASC 606
Income Statement
Revenues:
Revenue from product sales	$	41,956	$	(1,574	)	$	40,382
Revenue from services	23,132		(519		)	22,613
Total revenues	$	65,088	$	(2,093	)	$	62,995
Cost of revenues:
Cost of product sales	$	26,159	$	(357	)	$	25,802
Cost of services	16,439		(744		)	15,695
Total cost of revenues	$	42,598	$	(1,101	)	$	41,497

Selling and administrative expenses	$	14,291	$	52		$	14,343

Net income	$	2,310	$	(1,241	)	$	1,069



	Six Months Ended December 28, 2018
	As Reported		Adjustments			Balances without Adoption of ASC 606
Income Statement
Revenues:
Revenue from product sales	$	81,081	$	(10,519	)	$	70,562
Revenue from services	44,511		(2,143		)	42,368
Total revenues	$	125,592	$	(12,662	)	$	112,930
Cost of revenues:
Cost of product sales	$	52,958	$	(5,728	)	$	47,230
Cost of services	32,219		(1,530		)	30,689
Total cost of revenues	$	85,177	$	(7,258	)	$	77,919

Selling and administrative expenses	$	27,997	$	(35	)	$	27,962

Net income (loss)	$	1,560	$	(5,320	)	$	(3,760	)

See Note 9, “Segment and Geographic Information” to the Notes to unaudited Condensed Consolidated Financial Statements for discussion on the impact of additional information, including disaggregated revenue disclosures.



	Balances as of June 29, 2018			Adjustments due to ASC 606			As Adjusted Balances at June 30, 2018
Balance Sheet
Assets
Accounts receivable, net	$	43,068		$	2,503		$	45,571
Unbilled receivables	$	14,167		$	8,627		$	22,794
Inventories	$	21,290		$	(11,516	)	$	9,774
Other current assets	$	6,006		$	476		$	6,482
Deferred income taxes	$	5,600		$	(545	)	$	5,055
Other assets	$	9,816		$	180		$	9,996

Liabilities
Advance payments and unearned revenue	$	19,300		$	(6,600	)	$	12,700
Unearned revenue - long term	$	6,593		$	702		$	7,295

Equity
Accumulated deficit	$	(746,359	)	$	5,623		$	(740,736	)

The effects of the adoption of the new revenue recognition guidance on our December 28, 2018 unaudited Condensed Consolidated Balance Sheet were as follows:



	As of December 28, 2018
	As Reported			Adjustments due to ASC 606			Balances without adoption of ASC 606
Balance Sheet
Assets
Accounts receivable, net	$	48,624		$	(4,505	)	$	44,119
Unbilled receivables	$	32,336		$	(15,177	)	$	17,159
Inventories	$	8,593		$	18,785		$	27,378
Other current assets	$	4,873		$	(375	)	$	4,498
Deferred income taxes	$	5,127		$	545		$	5,672
Other assets	$	11,957		$	(252	)	$	11,705

Liabilities
Accrued expenses	$	22,663		$	(80	)	$	22,583
Advance payments and unearned revenue	$	15,846		$	11,138		$	26,984
Unearned revenue - long term	$	7,721		$	(1,055	)	$	6,666
Reserve for uncertain tax positions	$	3,403		$	(39	)	$	3,364

Equity
Accumulated deficit	$	(739,176	)	$	(10,943	)	$	(750,119	)

Balance Sheet Components

6 Months Ended

Dec. 28, 2018

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Cash, Cash Equivalents and Restricted Cash

The following table provides a summary of our cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in the Condensed Consolidated Statement of Cash Flows:



(In thousands)	December 28, 2018		June 29, 2018
Cash and cash equivalents	$	31,542	$	37,425
Restricted cash	3		3
Restricted cash included in Other assets	281		336
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	31,826	$	37,764

Accounts Receivable, net

Our net accounts receivable are summarized below:



(In thousands)	December 28, 2018			June 29, 2018
Accounts receivable	$	50,642		$	44,656
Less: Allowances for collection losses	(2,018		)	(1,588		)
Total accounts receivable, net	$	48,624		$	43,068

Inventories

Our inventories are summarized below:



(In thousands)	December 28, 2018		June 29, 2018
Finished products	$	5,371	$	15,496
Work in process	—		3,246
Raw materials and supplies	3,222		2,548
Total inventories	$	8,593	$	21,290
Deferred cost of revenue included within finished goods	$	432	$	3,667
Consigned inventories included within raw materials and supplies	$	1,700	$	1,492

We record recovery or charges to adjust our inventory and customer service inventory due to excess and obsolete inventory resulting from lower sales forecast, product transitioning or discontinuance. During the three and six months ended December 28, 2018, we recorded a net recovery of $221,000 and $246,000, respectively, in each case related to previously reserved inventory due to sell through. Such recovery or charges during the three and six months ended December 28, 2018 and December 29, 2017 were classified in cost of product sales as follows:



	Three Months Ended					Six Months Ended
(In thousands)	December 28, 2018			December 29, 2017		December 28, 2018			December 29, 2017
Excess and obsolete inventory (recovery) charges	$	(221	)	$	106	$	(246	)	$	(143	)
Customer service inventory write-downs	200			158		402			348
Total inventory (recovery) charges	$	(21	)	$	264	$	156		$	205

Property, Plant and Equipment, net

Our property, plant and equipment, net are summarized below:



(In thousands)	December 28, 2018			June 29, 2018
Land	$	710		$	710
Buildings and leasehold improvements	11,644			11,597
Software	17,130			15,498
Machinery and equipment	47,990			48,076
Total property, plant and equipment, gross	77,474			75,881
Less accumulated depreciation and amortization	(60,458		)	(58,702		)
Total property, plant and equipment, net	$	17,016		$	17,179

Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Depreciation and amortization	$	1,096	$	1,308	$	2,384	$	2,590

Accrued Expenses

Our accrued expenses are summarized below:



(In thousands)	December 28, 2018		June 29, 2018
Accrued compensation and benefits	$	7,479	$	8,574
Accrued agent commissions	1,925		1,774
Accrued warranties	3,416		3,196
Other	9,843		12,320
Total accrued expenses	$	22,663	$	25,864

Accrued Warranties

We accrue for the estimated cost to repair or replace products under warranty. Changes in our warranty liability, which is included as a component of accrued expenses in the unaudited Condensed Consolidated Balance Sheets were as follows:



	Three Months Ended						Six Months Ended
(In thousands)	December 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Balance as of the beginning of the period	$	3,216		$	2,964		$	3,196		$	3,056
Warranty provision recorded during the period	620			797			1,166			1,228
Consumption during the period	(420		)	(593		)	(946		)	(1,116		)
Balance as of the end of the period	$	3,416		$	3,168		$	3,416		$	3,168

Advance payments and Unearned Revenue

Our advance payments and unearned revenue are summarized below:



(In thousands)	December 28, 2018		June 29, 2018
Advance payments	$	2,166	$	7,151
Unearned revenue	13,680		12,149
Total advance payments and unearned revenue	$	15,846	$	19,300

Fair Value Measurements of Assets and Liabilities

6 Months Ended

Dec. 28, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants as of the measurement date. We maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value and establish a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows:


•	Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities;


•	Level 2 — Observable market-based inputs or observable inputs that are corroborated by market data; and


•	Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amounts, estimated fair values, and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of December 28, 2018 and June 29, 2018 were as follows:



	December 28, 2018				June 29, 2018				Valuation Inputs
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Cash and cash equivalents:
Money market funds	$	14,079	$	14,079	$	13,871	$	13,871	Level 1
Bank certificates of deposit	$	1,577	$	1,577	$	1,645	$	1,645	Level 2
Other current assets:
Foreign exchange forward contracts	$	3	$	3	$	—	$	—	Level 2
Liabilities:
Other accrued expenses:
Foreign exchange forward contracts	$	7	$	7	$	158	$	158	Level 2

We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items mainly are money market funds. As of December 28, 2018 and June 29, 2018, these money market funds were valued at $1.00 net asset value per share.

We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. The changes in fair value related to our foreign currency forward contracts were recorded in cost of revenues on our unaudited Condensed Consolidated Statements of Operations.

As of December 28, 2018 and June 29, 2018, we did not have any recurring assets or liabilities that were valued using significant unobservable inputs.

Our policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the first six months of fiscal 2019 and 2018, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Credit Facility and Debt	6 Months Ended
Credit Facility and Debt	Dec. 28, 2018
Debt Disclosure [Abstract]
Credit Facility and Debt	Credit Facility and Debt On June 29, 2018, we entered into a Third Amended and Restated Loan Agreement with Silicon Valley Bank (the SVB Credit Facility). The SVB Credit Facility expires on June 29, 2019. The SVB Credit Facility provides for a $30.0 million accounts receivable formula-based revolving credit facility that can be borrowed by our U.S. company, with a $30.0 million sublimit that can be borrowed by our Singapore subsidiary. Loans may be advanced under the SVB Credit Facility based on a borrowing base equal to a specified percentage of the value of eligible accounts of the borrowers under the SVB Credit Facility. The borrowing base is subject to certain eligibility criteria. Availability under the SVB Credit Facility can also be utilized to issue letters of credit with a $12.0 million sublimit. We may prepay loans under the SVB Credit Facility in whole or in part at any time without premium or penalty. As of December 28, 2018, available credit under the SVB Credit Facility was $15.7 million, reflecting the calculated borrowing base of $25.5 million less existing borrowings of $9.0 million and outstanding letters of credit of $0.8 million. The SVB Credit Facility carries an interest rate computed, at our option, based on either (i) at the prime rate reported in the Wall Street Journal plus a spread of 0.50% to 1.50%, with such spread determined based on our adjusted quick ratio; or (ii) if we satisfy a minimum adjusted quick ratio, a LIBOR rate determined in accordance with the SVB Credit Facility, plus a spread of 2.75%. Any outstanding Singapore subsidiary borrowed loans shall bear interest at an additional 2.00% above the applicable prime or LIBOR rate. During the first six months of fiscal 2019, the weighted-average interest rate on our outstanding loan was 5.89%. As of December 28, 2018 and June 29, 2018, our outstanding debt balance under the SVB Credit Facility was $9.0 million, and the interest rate was 6.00% and 5.50%, respectively. The SVB Credit Facility contains quarterly financial covenants including minimum adjusted quick ratio and minimum profitability (EBITDA) requirements. In the event our adjusted quick ratio falls below a certain level, cash received in our accounts with Silicon Valley Bank may be directly applied to reduce outstanding obligations under the SVB Credit Facility. The SVB Credit Facility also imposes certain restrictions on our ability to dispose of assets, permit a change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments, make certain restricted payments and enter into transactions with affiliates under certain circumstances. Certain of our assets, including accounts receivable, inventory, and equipment, are pledged as collateral for the SVB Credit Facility. Upon an event of default, outstanding obligations would be immediately due and payable. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default at a per annum rate of interest equal to 5% above the applicable interest rate. As of December 28, 2018, we were in compliance with the quarterly financial covenants, as amended, contained in the SVB Credit Facility. The $9.0 million borrowing was classified as a current liability as of December 28, 2018 and June 28, 2019. On September 28, 2018, we entered into Amendment No. 1 (the Amendment) to the Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank. Among other things, the Amendment provides for the definition of Quick Assets set forth in the Agreement to be modified to include up to the lesser of (a) 50% of unbilled accounts receivable or (b) $7.0 million. In addition, we have a short-term line of credit for up to $0.4 million from a bank in New Zealand to support the operations of our subsidiary located there. This line of credit provides for up to $0.3 million in short-term advances at various interest rates, all of which was available as of December 28, 2018 and June 29, 2018. The line of credit also provides for the issuance of standby letters of credit and company credit cards, of which $0.1 million was outstanding as of December 28, 2018. This line of credit may be terminated upon notice, is reviewed annually for renewal or modification, and is supported by a corporate guarantee.

Restructuring Activities

6 Months Ended

Dec. 28, 2018

Restructuring and Related Activities [Abstract]

Restructuring Activities

The following table summarizes our restructuring-related activities during the first six months of fiscal 2019:



	Severance and Benefits											Facilities and Other			Total
(In thousands)	Fiscal 2018-2019 Plan			Fiscal 2016-2017 Plan			Fiscal 2015-2016 Plan			Fiscal 2013-2014 Plan		Fiscal 2015-2016 Plan
Accrual balance, June 29, 2018	$	1,532		$	14		$	36		$	64	$	266		$	1,912
Charges, net	796			—			—			—		—			796
Cash payments	(227		)	(12		)	(36		)	—		(23		)	(298		)
Foreign exchange impact	—			—			—			—		2			2
Accrual balance, September 28, 2018	2,101			2			—			64		245			2,412
Cash payments	(242		)	—			—			—		—			(242		)
Foreign exchange impact	—			—			—			—		(6		)	(6		)
Accrual balance, December 28, 2018	$	1,859		$	2		$	—		$	64	$	239		$	2,164

As of December 28, 2018, $1.6 million of the accrual balance was in short-term restructuring liabilities while $0.6 million was included in other long-term liabilities on the unaudited Condensed Consolidated Balance Sheets.

We expect to substantially complete the restructuring activities under our fiscal 2018-2019 restructuring plan (Fiscal 2018-2019 Plan) by the end of fiscal 2019. Payments related to the accrued restructuring liability balance for this plan are expected to be fully paid by the end of fiscal 2020.

For further information, see “Note 7. Restructuring Activities” in Part II, Item 8 of our 2018 Form 10-K.

Equity

6 Months Ended

Dec. 28, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity

Stock Repurchase Program

In May 2018, our board of directors approved a repurchase program, which does not have an expiration date, for the repurchase of up to $7.5 million of our common stock.

The following table summarizes the repurchases of our common stock:



	Three Months Ended		Six Months Ended
(In thousands, except share amounts)	December 28, 2018		December 28, 2018
Number of shares repurchased	68,006		91,585
Aggregate purchase price, including commissions	$	1,049	$	1,439

All repurchased shares were retired. As of December 28, 2018, $6.1 million remained available under our stock repurchase program.

Stock Incentive Programs

As of December 28, 2018, we had two stock incentive plans (both Plans) for our employees and nonemployee directors, the 2018 Incentive Plan and the 2007 Stock Equity Plan, as amended and restated effective November 13, 2015. The 2018 Incentive Plan was approved by the stockholders during the fiscal year 2017 Annual Stockholders’ Meeting and it added 500,000 shares to the equity pool of shares available to grant to employees. During the three months ended December 28, 2018, we issued 15,584 restricted stock units. During the three months ended September 28, 2018, we issued 78,236 performance restricted stock units and 156,466 options to purchase shares of our common stock.

Total compensation expense for share-based awards included in our unaudited Condensed Consolidated Statements of Operations was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
By Expense Category:
Cost of revenues	$	52	$	55	$	100	$	99
Research and development	45		39		81		78
Selling and administrative	405		486		757		977
Total share-based compensation expense	$	502	$	580	$	938	$	1,154
By Types of Award:
Options	$	116	$	34	$	155	$	68
Restricted and performance stock awards and units	386		546		783		1,086
Total share-based compensation expense	$	502	$	580	$	938	$	1,154

As of December 28, 2018, there was approximately $1.3 million of total unrecognized compensation expense related to nonvested stock options granted under both Plans. This expense is expected to be recognized over a weighted-average period of 2.69 years. As of December 28, 2018, there was $1.4 million of total unrecognized compensation expense related to nonvested stock awards and units granted under both Plans. This expense is expected to be recognized over a weighted-average period of 1.08 year.

Segment and Geographic Information

6 Months Ended

Dec. 28, 2018

Segment Reporting [Abstract]

Segment and Geographic Information

We operate in one reportable business segment: the design, manufacturing and sale of a range of wireless networking products, solutions and services. We conduct business globally and our sales and support activities are managed on a geographic basis. Our Chief Executive Officer is our Chief Operating Decision Maker.

We report revenue by region and country based on the location where our customers accept delivery of our products and services. Revenue by region for the three and six months ended December 28, 2018 and December 29, 2017 was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
North America⁽¹⁾	$	37,316	$	36,985	$	65,079	$	67,987
Africa and the Middle East ⁽¹⁾	13,832		12,682		27,979		26,144
Europe and Russia ⁽¹⁾	3,233		3,814		6,945		8,260
Latin America and Asia Pacific⁽¹⁾	10,707		8,242		25,589		15,514
Total revenue	$	65,088	$	61,723	$	125,592	$	117,905

⁽¹⁾Prior-period amounts have not been adjusted under the modified retrospective method for the adoption of ASC 606.

During both the three and six months ended December 28, 2018, Mobile Telephone Networks Group (MTN Group) accounted for 12% of our total revenue. During the three and six months ended December 29, 2017, MTN Group accounted for 11% and 13%, respectively, of our total revenue. As of December 28, 2018 and June 29, 2018, MTN Group also accounted for 20% and 13%, respectively, of our accounts receivable. No other customers accounted for more than 10% of our revenue or accounts receivable for the periods presented. We have entered into separate and distinct contracts with MTN Group, as well as separate arrangements with their various subsidiaries. The loss of all business from MTN Group, or any other significant customers, could adversely affect our unaudited Condensed Consolidated Financial Statements.

Income Taxes	6 Months Ended
Income Taxes	Dec. 28, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate varies from the U.S. federal statutory rate of 21% due to results of foreign operations that are subject to income taxes at different statutory rates, certain jurisdictions where we cannot recognize tax benefits on current losses, and tax benefit from release of valuation allowance. During interim periods, we accrue tax expenses for jurisdictions that are anticipated to be profitable for fiscal 2019. The determination of our income taxes for the six months ended December 28, 2018 and December 29, 2017 was based on our estimated annual effective tax rate adjusted for losses in certain jurisdictions for which no tax benefit can be recognized. The tax benefit for the six months ended December 28, 2018 was primarily due to tax expense related to profitable subsidiaries, net against the release of valuation allowance due to the potential foreign tax refund to be received from the Department of Federal Revenue of Brazil. The tax benefit for the six months ended December 29, 2017 was primarily due to the foreign tax refunds received from the Inland Revenue Authority of Singapore (IRAS) and the release of valuation allowance related to the refundable alternative minimum tax credit as provided under the Tax Cuts and Jobs Act (the Tax Act), offset by tax expense related to profitable subsidiaries. Due to the uncertainty regarding the timing and extent of our future profitability, we continue to record a full valuation allowance to offset our U.S. deferred tax assets which primarily represent future income tax benefits associated with our operating losses because we do not currently believe that it is more likely than not that these assets will be realized. In the future, if we conclude that sufficient positive evidence (including our estimate of future taxable income) exists to support a reversal of all or a portion of the valuation allowance, we expect that a significant portion of any release of the valuation allowance will be recorded as an income tax benefit at the time of release. We entered into a tax sharing agreement with Harris Corporation (Harris) effective on January 26, 2007, the acquisition date of Stratex. The sharing agreement addresses, among other things, the settlement process associated with pre-merger tax liabilities and tax attributes that were attributable to the Microwave Communication Division when it was a division of Harris. There were no settlement payments recorded since the acquisition date. During the first quarter of fiscal 2019, we received notification from the Department of Federal Revenue of Brazil that our withholding tax refund request had been approved. We recorded a net discrete income tax benefit of $1.6 million for the release of valuation allowance previously recorded as a deferred tax asset for the withholding tax credits. This consisted of an income tax benefit of $1.9 million for the refundable withholding tax credit, less tax expense of $0.3 million from recognizing an ASC 740-10 reserve previously recorded as a reduction to the withholding tax credits. During the three months ended December 28, 2018, we reduced the refundable withholding tax credit to $1.8 million, primarily due to foreign exchange differences, and recorded a discrete income tax expense of $0.1 million. We have a number of open income tax audits covering various tax years, which vary from jurisdiction to jurisdiction. Our major tax jurisdictions where audits are pending include Singapore, Nigeria, and Saudi Arabia. The earliest years that are open and subject to potential audits are as follows: U.S. - 2003; Singapore - 2011; Nigeria - 2011: Saudi Arabia - 2010, and Ivory Coast - 2016. We account for interest and penalties related to unrecognized tax benefits as part of our provision for federal, foreign and state income taxes. Such interest expense was not material for the three and six months ended December 28, 2018 and December 29, 2017. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin (SAB) No. 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with our initial analysis of the impact of the Tax Act, we recorded provisional estimates related to the remeasurement of deferred taxes and the Deemed Repatriation Transition Tax in our financial statements for our fiscal year ended June 29, 2018. The measurement period ended in the second quarter of fiscal 2019. As of December 28, 2018, we have completed the accounting for the impact of the Tax Act based on the guidance, interpretations, and data available. No adjustments to these provisional estimates have been recorded. Although the measurement period has closed, the accounting for the impact of the Tax Act may change to account for additional factors such as the issuance of further regulatory guidance, changes in interpretations, the collection and analysis of additional information, and any deferred adjustments related to the filing of our 2017 federal and state income tax returns. In accordance with ASC 740, we will recognize any additional effects of the guidance in income tax expense (benefit) in the period that such guidance is issued. For tax years beginning after December 31, 2017, the Tax Act introduced new provisions of U.S. taxation of certain Global Intangible Low-Taxed Income (GILTI). As of December 28, 2018, we have not yet determined our policy election with respect to whether to record deferred taxes for temporary basis differences expected to reverse as GILTI in future periods, or account for taxes on GILTI using the period cost method. However, as of December 28, 2018, we did not expect to generate a GILTI inclusion due to a forecasted overall net loss for our foreign subsidiaries.

Commitments and Contingencies

6 Months Ended

Dec. 28, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating Lease Commitments

We lease office and manufacturing facilities under non-cancelable operating leases expiring at various dates through 2026. We lease approximately 19,000 square feet of office space in Milpitas, California as our corporate headquarters.

As of December 28, 2018, our future minimum lease payments under all non-cancelable operating leases with an initial lease term in excess of one year were as follows:



Fiscal Years	Amounts
	(In thousands)
2019 (two quarters remaining)	$	1,040
2020	1,323
2021	926
2022	196
2023	150
Thereafter	1,873
Total	$	5,508

These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent concessions, leasehold improvement incentives or unusual provisions or conditions. We sublease a portion of our facilities to third parties and the total minimum rents to be received in the future under our non-cancelable subleases were $0.1 million as of December 28, 2018. The future minimum lease payments are not reduced by the minimum sublease rents.

Rent expense for operating leases, including rentals on a month-to-month basis, was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Rent expense	$	1,008	$	959	$	1,921	$	1,898

Purchase Orders and Other Commitments

From time to time in the normal course of business we may enter into purchasing agreements with our suppliers that require us to accept delivery of, and remit full payment for, finished products that we have ordered, finished products that we requested be held as safety stock, and work in process started on our behalf, in the event we cancel or terminate the purchasing agreement. Because these agreements do not specify fixed or minimum quantities, do not specify minimum or variable price provisions, and do not specify the approximate timing of the transaction, and we have no present intention to cancel or terminate any of these agreements, we currently do not believe that we have any future liability under these agreements. As of December 28, 2018, we had outstanding purchase obligations with our suppliers or contract manufacturers of $19.4 million. In addition, we had contractual obligations of approximately $1.8 million associated with software licenses as of December 28, 2018.

Financial Guarantees and Commercial Commitments

Guarantees issued by banks, insurance companies or other financial institutions are contingent commitments issued to guarantee our performance under borrowing arrangements, such as bank overdraft facilities, tax and customs obligations and similar transactions or to ensure our performance under customer or vendor contracts. The terms of the guarantees are generally equal to the remaining term of the related debt or other obligations and are generally limited to two years or less. As of December 28, 2018, we had no guarantees applicable to our debt arrangements.

We have entered into commercial commitments in the normal course of business including surety bonds, standby letters of credit agreements and other arrangements with financial institutions primarily relating to the guarantee of future performance on certain contracts to provide products and services to customers. As of December 28, 2018, we had commercial commitments of $55.8 million outstanding that were not recorded on our unaudited Condensed Consolidated Balance Sheets. We do not believe, based on historical experience and information currently available, that it is probable that any significant amounts will be required to be paid on the performance guarantees in the future.

Indemnifications

Under the terms of substantially all of our license agreements, we have agreed to defend and pay any final judgment against our customers arising from claims against such customers that our products infringe the intellectual property rights of a third party. As of December 28, 2018, we have not received any notice that any customer is subject to an infringement claim arising from the use of our products; we have not received any request to defend any customers from infringement claims arising from the use of our products; and we have not paid any final judgment on behalf of any customer related to an infringement claim arising from the use of our products. Because the outcome of infringement disputes is related to the specific facts of each case and given the lack of previous or current indemnification claims, we cannot estimate the maximum amount of potential future payments, if any, related to our indemnification provisions. As of December 28, 2018, we had not recorded any liabilities related to these indemnifications.

Legal Proceedings

We are subject from time to time to disputes with customers concerning our products and services. In May 2016, we received notification of a claim for approximately $1.0 million in damages from a customer in Austria alleging that certain of our products were defective. We are continuing to investigate this claim, and at this time an estimate of the reasonably possible loss or range of loss cannot be made. We believe that we have numerous contractual and legal defenses to these disputes, and we intend to dispute them vigorously.

From time to time, we may be involved in various other legal claims and litigation that arise in the normal course of our operations. We are aggressively defending all current litigation matters. Although there can be no assurances and the outcome of these matters is currently not determinable, we currently believe that none of these claims or proceedings are likely to have a material adverse effect on our financial position. We expect to defend each of these disputes vigorously. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. As a result, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any.

We record accruals for our outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. We have not recorded any accrual for loss contingencies associated with such legal claims or litigation discussed above.

Contingent Liabilities

We record a loss contingency as a charge to operations when (i) it is probable that an asset has been impaired or a liability has been incurred at the date of the unaudited Condensed Consolidated Financial Statements; and (ii) the amount of the loss can be reasonably estimated. Disclosure in the Notes to the unaudited Condensed Consolidated Financial Statements is required for loss contingencies that do not meet both those conditions if there is a reasonable possibility that a loss may have been incurred. Gain contingencies are not recorded until realized. We expense all legal costs incurred to resolve regulatory, legal and tax matters as incurred.

Periodically, we review the status of each significant matter to assess the potential financial exposure. If a potential loss is considered probable and the amount can be reasonably estimated, we reflect the estimated loss in our unaudited Condensed Consolidated Statement Of Operations. Significant judgment is required to determine the probability that a liability has been incurred or an asset impaired and whether such loss is reasonably estimable. Further, estimates of this nature are highly subjective, and the final outcome of these matters could vary significantly from the amounts that have been included in our unaudited Condensed Consolidated Financial Statements. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise estimates accordingly. Such revisions in the estimates of the potential liabilities could have a material impact on our results of operations and financial position.

The Company and Basis of Presentation (Policies)	6 Months Ended
The Company and Basis of Presentation (Policies)	Dec. 28, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of our management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the three and six months ended December 28, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Consolidated Financial Statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 29, 2018. The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. We operate on a 52-week or 53-week year ending on the Friday closest to June 30. The first two quarters of fiscal 2019 and fiscal 2018 included 13 weeks in each quarter. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019
Use of Estimates	Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for uncollectible receivables, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, restructuring obligations, product warranty obligations, share-based awards, contingencies, recoverability of long-lived assets and useful lives of property, plant and equipment.
Accounting Standards Adopted and Accounting Standards Not Yet Adopted	Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued ASC 606 which supersedes nearly all current U.S. GAAP guidance on this topic and eliminates industry-specific guidance. Revenue recognition under ASC 606 depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the FASB amended its guidance related to the capitalization and amortization of the incremental costs of obtaining a contract with a customer. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption. We adopted ASC 606 using the modified retrospective method as of June 30, 2018 with the cumulative effect recognized as an adjustment to the opening balance of our accumulated deficit (net of tax). Prior periods have not been retroactively adjusted and will continue to be reported under the accounting standards in effect for those periods. See Note 3, “Revenue Recognition” to the Notes to unaudited Condensed Consolidated Financial Statements for more information. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. This ASU is effective for fiscal years beginning after December 15, 2017. We adopted this update during the first quarter of fiscal 2019. The adoption had no material impact on our unaudited Condensed Consolidated Financial Statements. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU 2018-10, Codification Improvements to Topic 842, Leases, and ASU 2018-11, Leases (Topic 842) Targeted Improvements, each issued in July 2018 (collectively, Topic 842), all of which provides guidance on the recognition, measurement, presentation, and disclosure of leases. Topic 842 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. This standard will become effective for fiscal years beginning after December 15, 2018 including interim periods within those years, with early adoption permitted. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous guidance. Although we are currently evaluating the impact the pronouncement will have on our unaudited Condensed Consolidated Financial Statements and related disclosures, we expect that most of our operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation: Improvement to Nonemployees Share-Based Payment Accounting (ASU 2018-07), which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 will be effective for fiscal years beginning after December 15, 2018, including interim periods within those years, with early adoption permitted. We do not expect the adoption of this guidance will have a material impact on our unaudited Condensed Consolidated Financial Statements. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. Our first presentation of changes in stockholders’ equity will be included in our Form 10-Q for the quarter ending March 29, 2019. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will become effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The standard can be adopted either using the prospective or retrospective transition approach. We are evaluating the effect the adoption of the standard will have on our unaudited Condensed Consolidated Financial Statements.
Net Income Per Share of Common Stock	Net income per share is computed using the two-class method, by dividing net income attributable to us by the weighted-average number of shares of our outstanding common stock and participating securities outstanding. Our restricted shares contain rights to receive non-forfeitable dividends and therefore are considered to be participating securities and included in the calculations of net income per basic and diluted common share. Undistributed losses are not allocated to unvested restricted shares as the unvested restricted shares are not contractually obligated to share our losses. The impact on earnings per share of the participating securities under the two-class method was immaterial.
Revenue Recognition	Effective June 30, 2018, we adopted ASC 606, using the modified retrospective method applied to those contracts that were not completed as of June 29, 2018. Results for the reporting periods after June 29, 2018 are presented under ASC 606, while prior‑period amounts are not adjusted and continue to be reported in accordance with our historical accounting under ASC 605. We recognize revenue by applying the following five-step approach: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Revenue from product sales is generated predominately from the sales of products manufactured by third-party manufacturers to whom we have outsourced our manufacturing processes. Printed circuit assemblies, mechanical housings, and packaged modules are manufactured by contract manufacturing partners, with periodic business reviews of material levels and obsolescence. Product assembly, product testing, complete system integration and system testing may either be performed within our own facilities or at the locations of our third-party manufacturers. Revenue from services includes certain installation, extended warranty, customer support, consulting, training and education. It also can include certain revenue generated from the resale of installation materials purchased on behalf of customers for installation service contracts we perform for customers. Maintenance and support services are generally offered to our customers over a specified period of time and from sales and subsequent renewals of maintenance and support contracts. Contracts and customer purchase orders are used to determine the existence of an arrangement. In addition, shipping documents and customer acceptances, when applicable, are used to verify delivery and transfer of control. We typically satisfy our performance obligations upon shipment or delivery of product depending on the contractual terms. Payment terms to customers generally range from net 30 to 120 days from invoice, which are considered to be standard payment terms. We assess our ability to collect from our customers based primarily on the creditworthiness and past payment history of the customer. While our customers do not have the right of return, we reserve for estimated product returns as an offset to revenue based primarily on historical trends. Actual product returns may be different than what was estimated. These factors and unanticipated changes in economic and industry condition could make actual results differ from our return estimates. We present transactional taxes such as sales and use tax collected from customers and remitted to government authorities on a net basis.
Fair Value Policy	We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items mainly are money market funds. As of December 28, 2018 and June 29, 2018, these money market funds were valued at $1.00 net asset value per share. We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. The changes in fair value related to our foreign currency forward contracts were recorded in cost of revenues on our unaudited Condensed Consolidated Statements of Operations. As of December 28, 2018 and June 29, 2018, we did not have any recurring assets or liabilities that were valued using significant unobservable inputs. Our policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the first six months of fiscal 2019 and 2018, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

Net Income Per Share of Common Stock (Tables)

6 Months Ended

Dec. 28, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the computation of basic and diluted net income per share attributable to our common stockholders:



	Three Months Ended				Six Months Ended
(In thousands, except per share amounts)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Numerator:
Net income attributable to Aviat Networks	$	2,310	$	5,071	$	1,560	$	4,414

Denominator:
Weighted-average shares outstanding, basic	5,397		5,329		5,382		5,323
Effect of potentially dilutive equivalent shares	230		295		281		293
Weighted-average shares outstanding, diluted	5,627		5,624		5,663		5,616

Net income per share of common stock outstanding:
Basic	$	0.43	$	0.95	$	0.29	$	0.83
Diluted	$	0.41	$	0.90	$	0.28	$	0.79

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table summarizes the weighted-average equity awards that were excluded from the diluted net income per share calculations since they were anti-dilutive:



	Three Months Ended		Six Months Ended
(In thousands)	December 28, 2018	December 29, 2017	December 28, 2018	December 29, 2017
Stock options	412	357	376	341
Restricted stock units and performance stock units	52	—	32	—
Total shares of common stock excluded	464	357	408	341

Revenue Recognition (Tables)

6 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

The following table provides information about receivables and liabilities from contracts with customers (in thousands):



	December 28, 2018		At Adoption on June 30, 2018
Contract Assets
Accounts receivable, net	$	48,624	$	45,571
Unbilled receivables	$	32,336	$	22,794
Capitalized commissions	$	627	$	656
Contract Liabilities
Advance payments and unearned revenue	$	15,846	$	12,700
Unearned revenue, long-term	$	7,721	$	7,295

Schedule of New Accounting Pronouncements and Changes in Accounting Principles



	Balances as of June 29, 2018			Adjustments due to ASC 606			As Adjusted Balances at June 30, 2018
Balance Sheet
Assets
Accounts receivable, net	$	43,068		$	2,503		$	45,571
Unbilled receivables	$	14,167		$	8,627		$	22,794
Inventories	$	21,290		$	(11,516	)	$	9,774
Other current assets	$	6,006		$	476		$	6,482
Deferred income taxes	$	5,600		$	(545	)	$	5,055
Other assets	$	9,816		$	180		$	9,996

Liabilities
Advance payments and unearned revenue	$	19,300		$	(6,600	)	$	12,700
Unearned revenue - long term	$	6,593		$	702		$	7,295

Equity
Accumulated deficit	$	(746,359	)	$	5,623		$	(740,736	)

The effects of the adoption of the new revenue recognition guidance on our December 28, 2018 unaudited Condensed Consolidated Balance Sheet were as follows:



	As of December 28, 2018
	As Reported			Adjustments due to ASC 606			Balances without adoption of ASC 606
Balance Sheet
Assets
Accounts receivable, net	$	48,624		$	(4,505	)	$	44,119
Unbilled receivables	$	32,336		$	(15,177	)	$	17,159
Inventories	$	8,593		$	18,785		$	27,378
Other current assets	$	4,873		$	(375	)	$	4,498
Deferred income taxes	$	5,127		$	545		$	5,672
Other assets	$	11,957		$	(252	)	$	11,705

Liabilities
Accrued expenses	$	22,663		$	(80	)	$	22,583
Advance payments and unearned revenue	$	15,846		$	11,138		$	26,984
Unearned revenue - long term	$	7,721		$	(1,055	)	$	6,666
Reserve for uncertain tax positions	$	3,403		$	(39	)	$	3,364

Equity
Accumulated deficit	$	(739,176	)	$	(10,943	)	$	(750,119	)



	Three Months Ended December 28, 2018
	As Reported		Adjustments			Balances without Adoption of ASC 606
Income Statement
Revenues:
Revenue from product sales	$	41,956	$	(1,574	)	$	40,382
Revenue from services	23,132		(519		)	22,613
Total revenues	$	65,088	$	(2,093	)	$	62,995
Cost of revenues:
Cost of product sales	$	26,159	$	(357	)	$	25,802
Cost of services	16,439		(744		)	15,695
Total cost of revenues	$	42,598	$	(1,101	)	$	41,497

Selling and administrative expenses	$	14,291	$	52		$	14,343

Net income	$	2,310	$	(1,241	)	$	1,069



	Six Months Ended December 28, 2018
	As Reported		Adjustments			Balances without Adoption of ASC 606
Income Statement
Revenues:
Revenue from product sales	$	81,081	$	(10,519	)	$	70,562
Revenue from services	44,511		(2,143		)	42,368
Total revenues	$	125,592	$	(12,662	)	$	112,930
Cost of revenues:
Cost of product sales	$	52,958	$	(5,728	)	$	47,230
Cost of services	32,219		(1,530		)	30,689
Total cost of revenues	$	85,177	$	(7,258	)	$	77,919

Selling and administrative expenses	$	27,997	$	(35	)	$	27,962

Net income (loss)	$	1,560	$	(5,320	)	$	(3,760	)

Balance Sheet Components (Tables)

6 Months Ended

Dec. 28, 2018

Balance Sheet Related Disclosures [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash



(In thousands)	December 28, 2018		June 29, 2018
Cash and cash equivalents	$	31,542	$	37,425
Restricted cash	3		3
Restricted cash included in Other assets	281		336
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	31,826	$	37,764

Schedule of Accounts Receivable, Net

Our net accounts receivable are summarized below:



(In thousands)	December 28, 2018			June 29, 2018
Accounts receivable	$	50,642		$	44,656
Less: Allowances for collection losses	(2,018		)	(1,588		)
Total accounts receivable, net	$	48,624		$	43,068

Schedule of Inventories

Our inventories are summarized below:



(In thousands)	December 28, 2018		June 29, 2018
Finished products	$	5,371	$	15,496
Work in process	—		3,246
Raw materials and supplies	3,222		2,548
Total inventories	$	8,593	$	21,290
Deferred cost of revenue included within finished goods	$	432	$	3,667
Consigned inventories included within raw materials and supplies	$	1,700	$	1,492

Schedule of Adjustments to Inventory

Such recovery or charges during the three and six months ended December 28, 2018 and December 29, 2017 were classified in cost of product sales as follows:



	Three Months Ended					Six Months Ended
(In thousands)	December 28, 2018			December 29, 2017		December 28, 2018			December 29, 2017
Excess and obsolete inventory (recovery) charges	$	(221	)	$	106	$	(246	)	$	(143	)
Customer service inventory write-downs	200			158		402			348
Total inventory (recovery) charges	$	(21	)	$	264	$	156		$	205

Property, Plant and Equipment, Net

Our property, plant and equipment, net are summarized below:



(In thousands)	December 28, 2018			June 29, 2018
Land	$	710		$	710
Buildings and leasehold improvements	11,644			11,597
Software	17,130			15,498
Machinery and equipment	47,990			48,076
Total property, plant and equipment, gross	77,474			75,881
Less accumulated depreciation and amortization	(60,458		)	(58,702		)
Total property, plant and equipment, net	$	17,016		$	17,179

Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Depreciation and amortization	$	1,096	$	1,308	$	2,384	$	2,590

Schedule of Accrued Expenses

Our accrued expenses are summarized below:



(In thousands)	December 28, 2018		June 29, 2018
Accrued compensation and benefits	$	7,479	$	8,574
Accrued agent commissions	1,925		1,774
Accrued warranties	3,416		3,196
Other	9,843		12,320
Total accrued expenses	$	22,663	$	25,864

Schedule of Changes in Warranty Liability

Changes in our warranty liability, which is included as a component of accrued expenses in the unaudited Condensed Consolidated Balance Sheets were as follows:



	Three Months Ended						Six Months Ended
(In thousands)	December 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Balance as of the beginning of the period	$	3,216		$	2,964		$	3,196		$	3,056
Warranty provision recorded during the period	620			797			1,166			1,228
Consumption during the period	(420		)	(593		)	(946		)	(1,116		)
Balance as of the end of the period	$	3,416		$	3,168		$	3,416		$	3,168

Schedule of Advance Payments and Unearned Income

Our advance payments and unearned revenue are summarized below:



(In thousands)	December 28, 2018		June 29, 2018
Advance payments	$	2,166	$	7,151
Unearned revenue	13,680		12,149
Total advance payments and unearned revenue	$	15,846	$	19,300

Fair Value Measurements of Assets and Liabilities (Tables)

6 Months Ended

Dec. 28, 2018

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping



	December 28, 2018				June 29, 2018				Valuation Inputs
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Cash and cash equivalents:
Money market funds	$	14,079	$	14,079	$	13,871	$	13,871	Level 1
Bank certificates of deposit	$	1,577	$	1,577	$	1,645	$	1,645	Level 2
Other current assets:
Foreign exchange forward contracts	$	3	$	3	$	—	$	—	Level 2
Liabilities:
Other accrued expenses:
Foreign exchange forward contracts	$	7	$	7	$	158	$	158	Level 2

Restructuring Activities (Tables)

6 Months Ended

Dec. 28, 2018

Restructuring and Related Activities [Abstract]

Schedule of Restructuring-Related Activities

The following table summarizes our restructuring-related activities during the first six months of fiscal 2019:



	Severance and Benefits											Facilities and Other			Total
(In thousands)	Fiscal 2018-2019 Plan			Fiscal 2016-2017 Plan			Fiscal 2015-2016 Plan			Fiscal 2013-2014 Plan		Fiscal 2015-2016 Plan
Accrual balance, June 29, 2018	$	1,532		$	14		$	36		$	64	$	266		$	1,912
Charges, net	796			—			—			—		—			796
Cash payments	(227		)	(12		)	(36		)	—		(23		)	(298		)
Foreign exchange impact	—			—			—			—		2			2
Accrual balance, September 28, 2018	2,101			2			—			64		245			2,412
Cash payments	(242		)	—			—			—		—			(242		)
Foreign exchange impact	—			—			—			—		(6		)	(6		)
Accrual balance, December 28, 2018	$	1,859		$	2		$	—		$	64	$	239		$	2,164

Equity (Tables)

6 Months Ended

Dec. 28, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Repurchased

The following table summarizes the repurchases of our common stock:



	Three Months Ended		Six Months Ended
(In thousands, except share amounts)	December 28, 2018		December 28, 2018
Number of shares repurchased	68,006		91,585
Aggregate purchase price, including commissions	$	1,049	$	1,439

Schedule of Compensation Expense for Share-based Compensation Awards

Total compensation expense for share-based awards included in our unaudited Condensed Consolidated Statements of Operations was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
By Expense Category:
Cost of revenues	$	52	$	55	$	100	$	99
Research and development	45		39		81		78
Selling and administrative	405		486		757		977
Total share-based compensation expense	$	502	$	580	$	938	$	1,154
By Types of Award:
Options	$	116	$	34	$	155	$	68
Restricted and performance stock awards and units	386		546		783		1,086
Total share-based compensation expense	$	502	$	580	$	938	$	1,154

Segment and Geographic Information (Tables)

6 Months Ended

Dec. 28, 2018

Segment Reporting [Abstract]

Revenue by Region

Revenue by region for the three and six months ended December 28, 2018 and December 29, 2017 was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
North America⁽¹⁾	$	37,316	$	36,985	$	65,079	$	67,987
Africa and the Middle East ⁽¹⁾	13,832		12,682		27,979		26,144
Europe and Russia ⁽¹⁾	3,233		3,814		6,945		8,260
Latin America and Asia Pacific⁽¹⁾	10,707		8,242		25,589		15,514
Total revenue	$	65,088	$	61,723	$	125,592	$	117,905

⁽¹⁾Prior-period amounts have not been adjusted under the modified retrospective method for the adoption of ASC 606.

Commitments and Contingencies (Tables)

6 Months Ended

Dec. 28, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments for Operating Leases

As of December 28, 2018, our future minimum lease payments under all non-cancelable operating leases with an initial lease term in excess of one year were as follows:



Fiscal Years	Amounts
	(In thousands)
2019 (two quarters remaining)	$	1,040
2020	1,323
2021	926
2022	196
2023	150
Thereafter	1,873
Total	$	5,508

Schedule of Rent Expense

Rent expense for operating leases, including rentals on a month-to-month basis, was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Rent expense	$	1,008	$	959	$	1,921	$	1,898

The Company and Basis of Presentation (Details)	3 Months Ended
The Company and Basis of Presentation (Details)	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal period duration	91 days	91 days	91 days	91 days

Net Income Per Share of Common Stock (Schedule of Earnings Per Share - Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Earnings Per Share [Abstract]
Net income attributable to Aviat Networks	$ 2,310	$ 5,071	$ 1,560	$ 4,414
Weighted average shares outstanding, basic (in shares)	5,397	5,329	5,382	5,323
Effect of potentially dilutive equivalent shares (in shares)	230	295	281	293
Weighted average shares outstanding, diluted (in shares)	5,627	5,624	5,663	5,616
Earnings Per Share, Basic and Diluted [Abstract]
Basic (in dollars per share)	$ 0.43	$ 0.95	$ 0.29	$ 0.83
Diluted (in dollars per share)	$ 0.41	$ 0.90	$ 0.28	$ 0.79

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

Net Income Per Share of Common Stock (Schedule of Common Stock Excluded Because they were Antidilutive) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	464	357	408	341
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	412	357	376	341
Restricted stock units and performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	52	0	32	0

Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Jun. 30, 2018	Jun. 29, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, performance obligation, description of timing			Payment terms to customers generally range from net 30 to 120 days from invoice, which are considered to be standard payment terms.
Unbilled receivables	$ 32,336		$ 32,336		$ 22,794	$ 14,167
Decrease to accumulated deficit	(739,176)		(739,176)		(740,736)	(746,359)
Advance payments and unearned revenue	15,846		15,846		12,700	19,300
Total revenues	65,088	$ 61,723	125,592	$ 117,905
Advance Payments and Unearned Revenue and Long-term Unearned Revenue	23,600		23,600
Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unbilled receivables	(15,177)		(15,177)		8,627
Decrease to accumulated deficit	(10,943)		(10,943)		5,623
Advance payments and unearned revenue	11,138		11,138		(6,600)
Total revenues	(2,093)		(12,662)
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unbilled receivables	17,159		17,159			14,167
Decrease to accumulated deficit	(750,119)		(750,119)			(746,359)
Advance payments and unearned revenue	26,984		26,984			$ 19,300
Total revenues	62,995		112,930
Product sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	41,956	37,719	81,081	72,786
Product sales \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	(1,574)		(10,519)
Product sales \| Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	40,382		70,562
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	23,132	$ 24,004	44,511	$ 45,119
Revenue recognized, previously deferred	2,400		5,400
Services \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	(519)		(2,143)
Services \| Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 22,613		$ 42,368
Transferred at Point in Time \| Product sales \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unbilled receivables					10,500
Decrease to accumulated deficit					1,700
Transferred over Time \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Decrease to accumulated deficit					700
Transferred over Time \| Product sales \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Decrease to accumulated deficit					700
Transferred over Time \| Services \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unbilled receivables					4,700
Decrease to accumulated deficit					1,600
Transfer of Control \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Decrease to accumulated deficit					400
Advance payments and unearned revenue					(600)
Unbilled Revenues [Member] \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Decrease to accumulated deficit					$ 500

Revenue Recognition (Performance Obligation) (Details)	Dec. 28, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Percentage	40.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Percentage	60.00%

Revenue Recognition (Contracted Assets) (Details) - USD ($) $ in Thousands	Dec. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 48,624	$ 45,571	$ 43,068
Unbilled receivables	32,336	22,794	14,167
Capitalized commissions	627	656
Advance payments and unearned revenue	15,846	12,700	19,300
Unearned revenue, long-term	$ 7,721	$ 7,295	$ 6,593

Revenue Recognition (Impacts on Financial Statements) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Jun. 30, 2018	Jun. 29, 2018
Income Statement Related Disclosures [Abstract]
Total revenues	$ 65,088	$ 61,723	$ 125,592	$ 117,905
Total cost of revenues	42,598	39,833	85,177	78,719
Selling and administrative expenses	14,291	14,104	27,997	27,826
Net income	2,310	5,351	1,560	4,786
ASSETS
Accounts receivable, net	48,624		48,624		$ 45,571	$ 43,068
Unbilled receivables	32,336		32,336		22,794	14,167
Inventories	8,593		8,593		9,774	21,290
Other current assets	4,873		4,873		6,482	6,006
Deferred income taxes	5,127		5,127		5,055	5,600
Other assets	11,957		11,957		9,996	9,816
Liabilities [Abstract]
Accrued expenses	22,663		22,663			25,864
Advance payments and unearned revenue	15,846		15,846		12,700	19,300
Unearned revenue	7,721		7,721		7,295	6,593
Reserve for uncertain tax positions	3,403		3,403			2,941
Equity [Abstract]
Accumulated deficit	(739,176)		(739,176)		(740,736)	(746,359)
Calculated under Revenue Guidance in Effect before Topic 606
Income Statement Related Disclosures [Abstract]
Total revenues	62,995		112,930
Total cost of revenues	41,497		77,919
Selling and administrative expenses	14,343		27,962
Net income	1,069		(3,760)
ASSETS
Accounts receivable, net	44,119		44,119			43,068
Unbilled receivables	17,159		17,159			14,167
Inventories	27,378		27,378			21,290
Other current assets	4,498		4,498			6,006
Deferred income taxes	5,672		5,672			5,600
Other assets	11,705		11,705			9,816
Liabilities [Abstract]
Accrued expenses	22,583		22,583
Advance payments and unearned revenue	26,984		26,984			19,300
Unearned revenue	6,666		6,666			6,593
Reserve for uncertain tax positions	3,364		3,364
Equity [Abstract]
Accumulated deficit	(750,119)		(750,119)			$ (746,359)
Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Income Statement Related Disclosures [Abstract]
Total revenues	(2,093)		(12,662)
Total cost of revenues	(1,101)		(7,258)
Selling and administrative expenses	52		(35)
Net income	(1,241)		(5,320)
ASSETS
Accounts receivable, net	(4,505)		(4,505)		2,503
Unbilled receivables	(15,177)		(15,177)		8,627
Inventories	18,785		18,785		(11,516)
Other current assets	(375)		(375)		476
Deferred income taxes	545		545		(545)
Other assets	(252)		(252)		180
Liabilities [Abstract]
Accrued expenses	(80)		(80)
Advance payments and unearned revenue	11,138		11,138		(6,600)
Unearned revenue	(1,055)		(1,055)		702
Reserve for uncertain tax positions	(39)		(39)
Equity [Abstract]
Accumulated deficit	(10,943)		(10,943)		$ 5,623
Product sales
Income Statement Related Disclosures [Abstract]
Total revenues	41,956	37,719	81,081	72,786
Total cost of revenues	26,159	23,784	52,958	47,447
Product sales \| Calculated under Revenue Guidance in Effect before Topic 606
Income Statement Related Disclosures [Abstract]
Total revenues	40,382		70,562
Total cost of revenues	25,802		47,230
Product sales \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Income Statement Related Disclosures [Abstract]
Total revenues	(1,574)		(10,519)
Total cost of revenues	(357)		(5,728)
Services
Income Statement Related Disclosures [Abstract]
Total revenues	23,132	24,004	44,511	45,119
Total cost of revenues	16,439	$ 16,049	32,219	$ 31,272
Services \| Calculated under Revenue Guidance in Effect before Topic 606
Income Statement Related Disclosures [Abstract]
Total revenues	22,613		42,368
Total cost of revenues	15,695		30,689
Services \| Adjustments due to ASC 606 \| Accounting Standards Update 2014-09
Income Statement Related Disclosures [Abstract]
Total revenues	(519)		(2,143)
Total cost of revenues	$ (744)		$ (1,530)

Balance Sheet Components (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Dec. 28, 2018	Jun. 29, 2018	Dec. 29, 2017	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Cash and cash equivalents	$ 31,542	$ 37,425
Restricted cash	3	3
Restricted cash included in Other assets	281	336
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$ 31,826	$ 37,764	$ 42,481	$ 36,569

Balance Sheet Components (Receivables) (Details) - USD ($) $ in Thousands	Dec. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 50,642		$ 44,656
Less: Allowances for collection losses	(2,018)		(1,588)
Total accounts receivable, net	$ 48,624	$ 45,571	$ 43,068

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands	Dec. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Balance Sheet Related Disclosures [Abstract]
Finished products	$ 5,371		$ 15,496
Work in process	0		3,246
Raw materials and supplies	3,222		2,548
Total inventories	8,593	$ 9,774	21,290
Deferred cost of revenue included within finished goods	432		3,667
Consigned inventories included within raw materials and supplies	$ 1,700		$ 1,492

Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Balance Sheet Related Disclosures [Abstract]
Excess and obsolete inventory (recovery) charges	$ (221)	$ 106	$ (246)	$ (143)
Customer service inventory write-downs	200	158	402	348
Total inventory (recovery) charges	$ (21)	$ 264	$ 156	$ 205

Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Jun. 29, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 77,474		$ 77,474		$ 75,881
Less accumulated depreciation and amortization	(60,458)		(60,458)		(58,702)
Total property, plant and equipment, net	17,016		17,016		17,179
Depreciation and amortization	1,096	$ 1,308	2,384	$ 2,590
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	710		710		710
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	11,644		11,644		11,597
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	17,130		17,130		15,498
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 47,990		$ 47,990		$ 48,076

Balance Sheet Components (Accrued Expenses) (Details) - USD ($) $ in Thousands	Dec. 28, 2018	Jun. 29, 2018
Balance Sheet Related Disclosures [Abstract]
Accrued compensation and benefits	$ 7,479	$ 8,574
Accrued agent commissions	1,925	1,774
Accrued warranties	3,416	3,196
Other	9,843	12,320
Total accrued expenses	$ 22,663	$ 25,864

Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Warranty Liability Roll Forward
Balance as of the beginning of the period	$ 3,216	$ 2,964	$ 3,196	$ 3,056
Warranty provision recorded during the period	620	797	1,166	1,228
Consumption during the period	(420)	(593)	(946)	(1,116)
Balance as of the end of the period	$ 3,416	$ 3,168	$ 3,416	$ 3,168

Balance Sheet Components (Advance Payments and Unearned Revenue) (Details) - USD ($) $ in Thousands	Dec. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Balance Sheet Related Disclosures [Abstract]
Advance payments	$ 2,166		$ 7,151
Unearned revenue	13,680		12,149
Total advance payments and unearned revenue	$ 15,846	$ 12,700	$ 19,300

Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 28, 2018	Jun. 29, 2018
Level 1 \| Money market funds
Liabilities:
Money market, net asset value (in dollars per share)	$ 1.00	$ 1.00
Recurring \| Level 1 \| Carrying Amount \| Money market funds
Assets:
Cash equivalents	$ 14,079	$ 13,871
Recurring \| Level 1 \| Fair Value \| Money market funds
Assets:
Cash equivalents	14,079	13,871
Recurring \| Level 2 \| Carrying Amount \| Foreign exchange forward contracts
Assets:
Foreign exchange forward contracts	3	0
Liabilities:
Foreign exchange forward contracts	7	158
Recurring \| Level 2 \| Carrying Amount \| Bank certificates of deposit
Assets:
Cash equivalents	1,577	1,645
Recurring \| Level 2 \| Fair Value \| Foreign exchange forward contracts
Assets:
Foreign exchange forward contracts	3	0
Liabilities:
Foreign exchange forward contracts	7	158
Recurring \| Level 2 \| Fair Value \| Bank certificates of deposit
Assets:
Cash equivalents	$ 1,577	$ 1,645

Credit Facility and Debt (Details) - USD ($)	6 Months Ended		12 Months Ended
Credit Facility and Debt (Details) - USD ($)	Dec. 28, 2018	Dec. 29, 2017	Jun. 29, 2018	Sep. 28, 2018	Mar. 28, 2014
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 9,000,000		$ 9,000,000
Silicon Valley Bank
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity			$ 30,000,000
Available credit under credit facility	15,700,000
Line of credit facility, current borrowing capacity	$ 25,500,000
Weighted-average interest rate			5.89%
Additional spread on applicable rate in event of default	5.00%
Silicon Valley Bank \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%
Silicon Valley Bank \| Minimum \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Silicon Valley Bank \| Maximum \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Silicon Valley Bank \| Singapore Line of Credit
Line of Credit Facility [Line Items]
Credit facility sublimit available for Singapore			$ 30,000,000
Silicon Valley Bank \| Line of Credit
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 9,000,000		9,000,000
Weighted-average interest rate	6.00%	5.50%
Quick assets, percent of unbilled receivables threshold				50.00%
Quick assets, amount of unbilled receivables threshold				$ 7,000,000
Silicon Valley Bank \| Letter of Credit
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity					$ 12,000,000
Letters of credit outstanding	$ 800,000
Bank of New Zealand \| New Zealand
Line of Credit Facility [Line Items]
Line of credit facility, amount outstanding	100,000
Bank of New Zealand \| Line of Credit \| New Zealand
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	400,000
Bank of New Zealand \| Short-term Advances \| New Zealand
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 300,000		$ 300,000

Restructuring Activities (Restructuring Related Activities) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Dec. 28, 2018	Sep. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Jun. 29, 2018
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	$ 2,412	$ 1,912		$ 1,912
Charges, net	0	796	$ (252)	796	$ (250)
Cash payments	(242)	(298)
Foreign exchange impact	(6)	2
Accrued balance, end of period	2,164	2,412		2,164
Accrual balance in short-term restructuring liabilities	1,567			1,567		$ 1,426
Accrual balance in other long-term liabilities	600			600
Severance and Benefits \| Fiscal 2018-2019 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	2,101	1,532		1,532
Charges, net		796
Cash payments	(242)	(227)
Foreign exchange impact	0	0
Accrued balance, end of period	1,859	2,101		1,859
Severance and Benefits \| Fiscal 2016-2017 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	2	14		14
Charges, net		0
Cash payments	0	(12)
Foreign exchange impact	0	0
Accrued balance, end of period	2	2		2
Severance and Benefits \| Fiscal 2015-2016 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	0	36		36
Charges, net		0
Cash payments	0	(36)
Foreign exchange impact	0	0
Accrued balance, end of period	0	0		0
Severance and Benefits \| Fiscal 2013-2014 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	64	64		64
Charges, net		0
Cash payments	0	0
Foreign exchange impact	0	0
Accrued balance, end of period	64	64		64
Facilities and Other \| Fiscal 2015-2016 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	245	266		266
Charges, net		0
Cash payments	0	(23)
Foreign exchange impact	(6)	2
Accrued balance, end of period	$ 239	$ 245		$ 239

Equity (Narrative) (Details)	3 Months Ended		6 Months Ended
Equity (Narrative) (Details)	Dec. 28, 2018 USD ($) plan shares	Sep. 28, 2018 shares	Dec. 28, 2018 USD ($) plan	Jun. 29, 2018 shares	May 31, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans \| plan	2		2
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, unrecognized compensation expense \| $	$ 1,300,000		$ 1,300,000
Nonvested awards, expense expected to be recognized, weighted average period			2 years 8 months 9 days
Stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, unrecognized compensation expense \| $	$ 1,400,000		$ 1,400,000
Nonvested awards, expense expected to be recognized, weighted average period			1 year 29 days
2018 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares available to grant to employees (in shares) \| shares				500,000
2018 Incentive Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued under stock incentive plan (in shares) \| shares	15,584
2018 Incentive Plan \| Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued under stock incentive plan (in shares) \| shares		78,236
2018 Incentive Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued under stock incentive plan (in shares) \| shares		156,466
Share Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount \| $					$ 7,500,000
Remaining value available under stock repurchase program \| $	$ 6,100,000		$ 6,100,000

Equity (Schedule of Stock Repurchase) (Details) - Share Repurchase Program - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 28, 2018	Dec. 28, 2018
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased	68,006	91,585
Aggregate purchase price, including commissions	$ 1,049	$ 1,439

Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 502	$ 580	$ 938	$ 1,154
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	116	34	155	68
Restricted and performance stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	386	546	783	1,086
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	52	55	100	99
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	45	39	81	78
Selling and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 405	$ 486	$ 757	$ 977

Segment and Geographic Information (Schedule of Revenues by Geographic Region) (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 28, 2018 USD ($) segment	Dec. 29, 2017 USD ($)	Jun. 29, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment			1
Total revenues	$ 65,088	$ 61,723	$ 125,592	$ 117,905
Revenue \| Customer Concentration Risk \| MTN
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	12.00%	11.00%	12.00%	13.00%
Accounts receivable \| Customer Concentration Risk \| MTN
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage			20.00%		13.00%
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 37,316	$ 36,985	$ 65,079	$ 67,987
Africa and the Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	13,832	12,682	27,979	26,144
Europe and Russia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	3,233	3,814	6,945	8,260
Latin America and Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 10,707	$ 8,242	$ 25,589	$ 15,514

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Dec. 28, 2018	Sep. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 540		$ (2,564)	$ (178)	$ (3,203)
Foreign Tax Authority
Income Tax Contingency [Line Items]
Income tax expense (benefit)	100	$ (1,600)
Release of Valuation Allowance, Foreign Tax Credit, Income Tax Expense (Benefit)	$ (1,800)	(1,900)
Current income tax expense		$ (300)

Commitments and Contingencies (Narrative) (Details) ft² in Thousands, $ in Millions	1 Months Ended	6 Months Ended
	May 31, 2016 USD ($)	Dec. 28, 2018 USD ($) ft²
Property Subject to or Available for Operating Lease [Line Items]
Operating leases, future minimum sublease receivable		$ 0.1
Commercial commitments outstanding		$ 55.8
Austria
Property Subject to or Available for Operating Lease [Line Items]
Damages sought by plaintiff	$ 1.0
Maximum
Property Subject to or Available for Operating Lease [Line Items]
Guarantee term		2 years
Inventories
Property Subject to or Available for Operating Lease [Line Items]
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding		$ 19.4
Licensing Agreements
Property Subject to or Available for Operating Lease [Line Items]
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding		$ 1.8
Office building at Milpitas, California
Property Subject to or Available for Operating Lease [Line Items]
Office space (in sq ft) \| ft²		19

Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands	Dec. 28, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019 (two quarters remaining)	$ 1,040
2020	1,323
2021	926
2022	196
2023	150
Thereafter	1,873
Total	$ 5,508

Commitments and Contingencies (Rent Expense for Operating Leases) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 1,008	$ 959	$ 1,921	$ 1,898