0001377789-20-000098 | 10-Q | XBRL Viewer

Print Document View Excel Document

Cover - shares	3 Months Ended
Cover - shares	Oct. 02, 2020	Oct. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 02, 2020
Document Transition Report	false
Entity File Number	001-33278
Entity Registrant Name	AVIAT NETWORKS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5961564
Entity Address, Address Line One	200 Parker Drive, Suite C100A,
Entity Address, City or Town	Austin,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78728
City Area Code	408
Local Phone Number	941-7100
Title of 12(b) Security	Common Stock
Trading Symbol	AVNW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,461,438
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--07-02
Amendment Flag	false
Entity Central Index Key	0001377789

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 02, 2020	Jul. 03, 2020
Current Assets:
Cash and cash equivalents	$ 36,226	$ 41,618
Accounts receivable, net	45,027	44,661
Unbilled receivables	31,295	28,085
Inventories	14,356	13,997
Customer service inventories	1,303	1,234
Other current assets	9,751	10,355
Total current assets	137,958	139,950
Property, plant and equipment, net	16,562	16,911
Deferred income taxes	12,548	12,799
Right of use assets	2,912	3,474
Other assets	6,793	6,667
TOTAL ASSETS	176,773	179,801
Current Liabilities:
Accounts payable	31,720	31,995
Accrued expenses	24,262	26,920
Short-term lease liabilities	1,027	1,445
Advance payments and unearned revenue	25,233	21,872
Short-term debt	0	9,000
Restructuring liabilities	1,835	2,738
Total current liabilities	84,077	93,970
Unearned revenue	8,182	8,142
Long-term lease liabilities	2,147	2,303
Other long-term liabilities	316	401
Reserve for uncertain tax positions	5,644	5,759
Deferred income taxes	510	545
Total liabilities	100,876	111,120
Commitments and contingencies (Note 12)
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, 5,443,362 shares issued and outstanding at October 2, 2020; 5,400,487 shares issued and outstanding at July 3, 2020	54	54
Additional paid-in-capital	815,203	814,337
Accumulated deficit	(724,805)	(730,741)
Accumulated other comprehensive loss	(14,555)	(14,969)
Total equity	75,897	68,681
TOTAL LIABILITIES AND EQUITY	$ 176,773	$ 179,801

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares	Oct. 02, 2020	Jul. 03, 2020
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
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)	5,443,362	5,400,487
Common stock shares outstanding (in shares)	5,443,362	5,400,487

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019
Revenues:
Total revenues	$ 66,290	$ 58,614
Cost of revenues:
Total cost of revenues	42,041	36,058
Gross margin	24,249	22,556
Operating expenses:
Research and development expenses	4,847	5,216
Selling and administrative expenses	12,837	14,644
Restructuring charges	0	1,177
Total operating expenses	17,684	21,037
Operating income	6,565	1,519
Interest income	36	86
Interest expense	(1)	(3)
Income before income taxes	6,600	1,602
Provision for income taxes	664	1,548
Net income	$ 5,936	$ 54
Net income per share of common stock outstanding:
Basic (in dollars per share)	$ 1.10	$ 0.01
Diluted (in dollars per share)	$ 1.07	$ 0.01
Weighted-average shares outstanding:
Basic (in shares)	5,411	5,347
Diluted (in shares)	5,546	5,530
Product sales
Revenues:
Total revenues	$ 44,464	$ 36,594
Cost of revenues:
Total cost of revenues	27,909	20,822
Services
Revenues:
Total revenues	21,826	22,020
Cost of revenues:
Total cost of revenues	$ 14,132	$ 15,236

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 5,936	$ 54
Other comprehensive income (loss):
Net change in cumulative translation adjustments	414	(513)
Other comprehensive income (loss)	414	(513)
Comprehensive income (loss)	$ 6,350	$ (459)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019
Operating Activities
Net income	$ 5,936	$ 54
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, plant and equipment	1,254	1,038
Provision for (recovery from) uncollectible receivables	2	(35)
Share-based compensation	571	407
Deferred tax assets, net	216	(634)
Charges for inventory and customer service inventory write-downs	185	337
Loss on disposition of property, plant and equipment, net	6	3
Noncash lease expense	562	1,194
Changes in operating assets and liabilities:
Accounts receivable	(294)	8,570
Unbilled receivables	(3,185)	(2,594)
Inventories	(444)	(2,665)
Customer service inventories	(201)	(326)
Accounts payable	(135)	(3,779)
Accrued expenses	(2,406)	540
Advance payments and unearned revenue	3,350	3,152
Income taxes payable or receivable	101	1,803
Other assets and liabilities	(703)	(125)
Change in lease liabilities	(574)	(1,291)
Net cash provided by operating activities	4,241	5,649
Investing Activities
Payments for acquisition of property, plant and equipment	(1,018)	(1,302)
Net cash used in investing activities	(1,018)	(1,302)
Financing Activities
Proceeds from borrowings	0	9,000
Repayments of borrowings	(9,000)	(9,000)
Payments for repurchase of common stock	0	(748)
Payments for taxes related to net settlement of equity awards	(128)	(746)
Proceeds from issuance of common stock under employee stock plans	423	4
Net cash used in financing activities	(8,705)	(1,490)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	89	(318)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(5,393)	2,539
Cash, cash equivalents, and restricted cash, beginning of period	41,872	32,201
Cash, cash equivalents, and restricted cash, end of period	$ 36,479	$ 34,740

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income
Beginning Balance (in shares) at Jun. 28, 2019		5,359,695
Balance at Jun. 28, 2019	$ 71,516	$ 54	$ 815,196	$ (730,998)	$ (12,736)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	54			54
Other comprehensive income, net of tax	(513)				(513)
Issuance of common stock under employee stock plans (in shares)		192,812
Issuance of common stock under employee stock plans	4	$ 2	2
Shares withheld for taxes related to vesting of equity awards (in shares)		(52,384)
Shares withheld for taxes related to vesting of equity awards	(746)	$ (1)	(745)
Stock repurchase (in shares)		(55,452)
Stock repurchase	(748)	$ (1)	(747)
Share-based compensation	407		407
Ending Balance (in shares) at Sep. 27, 2019		5,444,671
Balance at Sep. 27, 2019	$ 69,974	$ 54	814,113	(730,944)	(13,249)
Beginning Balance (in shares) at Jul. 03, 2020	5,400,487	5,400,487
Balance at Jul. 03, 2020	$ 68,681	$ 54	814,337	(730,741)	(14,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,936			5,936
Other comprehensive income, net of tax	414				414
Issuance of common stock under employee stock plans (in shares)		48,491
Issuance of common stock under employee stock plans	423		423
Shares withheld for taxes related to vesting of equity awards (in shares)		(5,616)
Shares withheld for taxes related to vesting of equity awards	(128)		(128)
Share-based compensation	$ 571		571
Ending Balance (in shares) at Oct. 02, 2020	5,443,362	5,443,362
Balance at Oct. 02, 2020	$ 75,897	$ 54	$ 815,203	$ (724,805)	$ (14,555)

The Company and Basis of Presentation	3 Months Ended
The Company and Basis of Presentation	Oct. 02, 2020
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. 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, 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, and we have made estimates, assumptions and judgments affecting the amounts reported in our unaudited condensed consolidated financial statements and the accompanying notes, as discussed in greater detail below. 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 months ended October 2, 2020 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 the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 3, 2020. 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 three months ended October 2, 2020 and September 27, 2019 both consisted of 13 weeks. Fiscal year 2021 will be comprised of 52 weeks and will end on July 2, 2021. Fiscal year 2020 was comprised of 53 weeks and ended on July 3, 2020. 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, lease liabilities, restructuring obligations, product warranty obligations, share-based awards, contingencies, recoverability of long-lived assets and useful lives of property, plant and equipment. The actual results that we experience may differ materially from our estimates. Summary of Significant Accounting Policies There have been no material changes in our significant accounting policies as of and for the three months ended October 2, 2020, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 3, 2020. Accounting Standards Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. ASU 2018-15 became effective for us in our first quarter of fiscal 2021. We adopted this guidance during the first quarter of fiscal 2021. The adoption had no material impact on our unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. We adopted this update during the first quarter of fiscal 2021. The adoption had no material impact on our unaudited condensed consolidated financial statements. Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This guidance provides optional guidance related to reference rate reform, which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for our borrowing instruments, which use LIBOR as a reference rate, and was effective March 12, 2020 through December 31, 2022. We are currently evaluating the potential impact ASU 2020-04 will have on our unaudited condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). This guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles and also simplifies areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws and rate changes. ASU 2019-12 will be effective for us in our first quarter of fiscal 2022. We are currently evaluating the potential impact that adopting ASU 2019-12 will have on our unaudited condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, and ASU 2019-05 (collectively, Topic 326). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 will be effective for us in our first quarter of fiscal 2024 and earlier adoption is permitted. We are evaluating the impact adopting Topic 326 will have on our unaudited condensed consolidated financial statements.

Balance Sheet Components

3 Months Ended

Oct. 02, 2020

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 our unaudited condensed consolidated balance sheets that reconciles to the corresponding amount in our unaudited condensed consolidated statement of cash flows:


(In thousands)	October 2, 2020		July 3, 2020
Cash and cash equivalents	$	36,226	$	41,618

Restricted cash included in other assets	253		254
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	36,479	$	41,872

Accounts Receivable, net

Our net accounts receivable are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Accounts receivable	$	47,041	$	46,502
Less: Allowances for collection losses	(2,014)		(1,841)
Total accounts receivable, net	$	45,027	$	44,661

Inventories

Our inventories are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Finished products	$	8,686	$	9,055

Raw materials and supplies	5,670		4,942
Total inventories	$	14,356	$	13,997

Consigned inventories included within raw materials and supplies	$	3,056	$	1,324

We currently rely on a few vendors for substantially all of our inventory purchases.

We record charges to adjust our inventory and customer service inventory due to excess and obsolete inventory resulting from lower sales forecasts, product transitioning, or discontinuance. The charges during the three months ended October 2, 2020 and September 27, 2019 were classified in cost of product sales as follows:


	Three Months Ended
(In thousands)	October 2, 2020		September 27, 2019
Excess and obsolete inventory charges	$	63	$	146
Customer service inventory write-downs	122		191
Total inventory charges	$	185	$	337

Property, Plant and Equipment, net

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


(In thousands)	October 2, 2020		July 3, 2020
Land	$	710	$	710
Buildings and leasehold improvements	11,742		11,737
Software	21,205		17,887
Machinery and equipment	50,108		52,293
Total property, plant and equipment, gross	83,765		82,627
Less: Accumulated depreciation and amortization	(67,203)		(65,716)
Total property, plant and equipment, net	$	16,562	$	16,911

Included in the total plant, property and equipment above were $0.7 million and $3.5 million of assets in progress which have not been placed in service as of October 2, 2020 and July 3, 2020, respectively. Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows:


	Three Months Ended
(In thousands)		October 2, 2020		September 27, 2019
Depreciation and amortization		$	1,254	$	1,038

Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Accrued compensation and benefits	$	9,539	$	11,814
Accrued agent commissions	2,529		2,356
Accrued warranties	3,107		3,196
Other	9,087		9,554
Total accrued expenses	$	24,262	$	26,920

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 our unaudited condensed consolidated balance sheets were as follows:


	Three Months Ended
(In thousands)	October 2, 2020		September 27, 2019
Balance as of the beginning of the period	$	3,196	$	3,323
Warranty provision recorded during the period	284		504

Consumption during the period	(373)		(415)
Balance as of the end of the period	$	3,107	$	3,412

Advance Payments and Unearned Revenue

Our advance payments and unearned revenue are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Advance payments	$	2,812	$	2,529
Unearned revenue	22,421		19,343
Total advance payments and unearned revenue	$	25,233	$	21,872

Excluded from the balances above are $8.2 million and $8.1 million in long-term unearned revenue as of October 2, 2020 and July 3, 2020, respectively.

Fair Value Measurements of Assets and Liabilities

3 Months Ended

Oct. 02, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities

Fair Value Measurements of Assets and LiabilitiesFair 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 October 2, 2020 and July 3, 2020 were as follows:


	October 2, 2020				July 3, 2020				Valuation Inputs
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents:
Money market funds	$	18,920	$	18,920	$	18,189	$	18,189	Level 1
Bank certificates of deposit	$	2,538	$	2,538	$	3,250	$	3,250	Level 2


Liabilities:
Other accrued expenses:
Foreign exchange forward contracts	$	—	$	—	$	14	$	14	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 October 2, 2020 and July 3, 2020, 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.

As of October 2, 2020 and July 3, 2020, 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 three months of fiscal 2021 and 2020, 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

Leases

3 Months Ended

Oct. 02, 2020

Leases [Abstract]

Leases

The Company has facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 20 years and contain leasehold improvement incentives, rent holidays and escalation clauses.

We determine if an arrangement contains a lease at inception. These operating leases are included in "Right of use assets" (“ROU”) on our unaudited condensed consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligations to make lease payments are included in "Short-term lease liabilities" and "Long-term lease liabilities" on our unaudited condensed consolidated balance sheets. We did not enter into any finance leases during the three months ended October 2, 2020.

The following summarizes our lease costs (in thousands):


	Three Months Ended
	October 2, 2020		September 27, 2019
	(In thousands)
Operating lease costs	$	313	$	320
Short-term lease costs	458		484
Variable lease costs	68		63
Total lease costs	$	839	$	867

The following summarizes our lease term and discount rate for three months ended October 2, 2020:


Weighted average remaining lease term	7.3 years
Weighted average discount rate	6.9	%

As of October 2, 2020, our future minimum lease payments under all non-cancelable operating leases with an initial term in excess of one year were as follows (in thousands):


	Amount
	(In thousands)
Remainder of 2021	$	875
2022	623
2023	357
2024	230
2025	236
Thereafter	1,952
Total lease payments	4,273
Less: interest	(1,099)
Present value of lease liabilities	$	3,174

Credit Facility and Debt	3 Months Ended
Credit Facility and Debt	Oct. 02, 2020
Debt Disclosure [Abstract]
Credit Facility and Debt	Credit Facility and Debt On May 4, 2020, we entered into Amendment No. 3 to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank (the “SVB Credit Facility”) which extended the expiration date to June 28, 2021. The SVB Credit Facility provides for a $25.0 million accounts receivable formula-based revolving credit facility that can be borrowed by our U.S. company, with a $25.0 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 accounts receivable formula based revolving 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 October 2, 2020, available credit under the SVB Credit Facility was $23.5 million, reflecting the lower available limit of $25.0 million less outstanding letters of credit of $1.5 million. As of July 3, 2020, our outstanding debt balance under the SVB Credit Facility, classified as a current liability, was $9.0 million, and the interest rate was 3.75%. We repaid the outstanding debt balance during the quarter ended October 2, 2020. 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 three months of fiscal 2021, the weighted-average interest rate on our outstanding loan was 3.75%. 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 5.00% above the applicable interest rate. As of October 2, 2020, we were in compliance with the quarterly financial covenants contained in the SVB Credit Facility, as amended. We also obtained an uncommitted short-term line of credit $0.3 million from a bank in New Zealand to support the operations of our New Zealand subsidiary. This line of credit provides for up to $0.2 million in short-term advances at various interest rates, all of which was available as of October 2, 2020 and July 3, 2020. 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 October 2, 2020 and July 3, 2020. This line of credit may be terminated upon notice, is reviewed annually for renewal or modification, and is supported by a corporate guarantee.

Revenue Recognition

3 Months Ended

Oct. 02, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Contract Balances, Performance Obligations, and Backlog

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


	October 2, 2020		July 3, 2020
Contract Assets
Accounts receivable, net	$	45,027	$	44,661
Unbilled receivables	31,295		28,085
Capitalized commissions	1,328		1,157
Contract Liabilities
Advance payments and unearned revenue	25,233		21,872
Unearned revenue, long-term	8,182		8,142

Significant changes in contract balances may arise as a result of recognition over time for services, transfer of control for equipment, and periodic payments (both in arrears and in advance).

From time to time, we may experience unforeseen events that could result in a change to the scope or price associated with an arrangement. When such events occur, we update the transaction price and measure of progress for the performance obligation and recognize the change as a cumulative catch-up to revenue. Because of the nature and type of contracts we engage in, the timeframe to completion and satisfaction of current and future performance obligations can shift; however, this will have no impact on our future obligation to bill and collect.

As of October 2, 2020, we had $33.4 million in advance payments and unearned revenue and long-term unearned revenue, of which approximately 68% is expected to be recognized as revenue in the remainder of fiscal 2021 and the balance thereafter. During the three months ended October 2, 2020 we recognized approximately $11.4 million which was included in advance payments and unearned revenue at the beginning of the reporting period.

Remaining Performance Obligations

The aggregate amount of transaction price allocated to our unsatisfied (or partially unsatisfied) performance obligations was approximately $75.4 million at October 2, 2020. Of this amount, we expect to recognize approximately 60% as revenue during the next 12 months, with the remaining amount to be recognized as revenue within two to five years.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Segment and Geographic Information

3 Months Ended

Oct. 02, 2020

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. Our financial performance is regularly reviewed by our chief operating decision maker who is our chief executive officer.

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 months ended October 2, 2020 and September 27, 2019 was as follows:


	Three Months Ended
(In thousands)	October 2, 2020		September 27, 2019
North America	$	45,499	$	39,767
Africa and the Middle East	10,571		10,593
Europe and Russia	2,262		3,407
Latin America and Asia Pacific	7,958		4,847
Total revenue	$	66,290	$	58,614

The loss of a significant portion of business from any significant customers could adversely affect our unaudited condensed consolidated financial statements.

Customers accounting for 10% or more of our total revenue was as follows:

Three Months Ended

October 2, 2020

September 27, 2019

Mobile Telephone Networks Group (MTN Group)

•Less than 10%

Customers accounting for 10% or more of our accounts receivable was as follows:


	October 2, 2020		July 3, 2020
MTN Group	12	%	21	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Equity

3 Months Ended

Oct. 02, 2020

Share-based Payment Arrangement [Abstract]

Equity

Stock Repurchase Program

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

All repurchased shares were retired. As of October 2, 2020, $3.4 million remained available under our stock repurchase program. The repurchase program has been suspended temporarily since February 2020. Therefore, during the first three months of fiscal 2021, we did not repurchase any shares of our common stock in the open market.

Stock Incentive Programs

At October 2, 2020, we had one stock incentive plan for our employees and non-employee directors, the 2018 Incentive Plan (the “2018 Plan”). The 2018 Plan was approved by the stockholders at the fiscal year 2017 Annual Stockholders’ Meeting and it added 500,000 shares to the equity pool of shares available to grant to employees and non-

employee directors. The 2018 Plan also provides for the issuance of share-based awards in the form of stock options, stock appreciation rights, restricted stock awards and units, and performance share awards and units.

Under the 2018 Plan, option exercise prices are equal to the fair market value of our common stock on the date the options are granted using our closing stock price. After vesting, options generally may be exercised within seven years after the date of grant.

Restricted stock units are not transferable until vested and the restrictions lapse upon the achievement of continued employment or service over a specified time period. Restricted stock units issued to employees generally vest three years from the date of grant (three-year cliff or annually over three years). Restricted stock units issued to non-executive board members annually generally vest on the day before the annual stockholders’ meeting.

Vesting of performance share awards and units is subject to the achievement of predetermined financial performance criteria and continued employment through the end of the applicable period. Market-based stock units vest upon meeting certain predetermined share price performance criteria and continued employment through the end of the applicable period.

During the three months ended October 2, 2020, we granted 37,506 restricted stock units, 35,565 performance restricted stock units and 111,811 stock 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
(In thousands)	October 2, 2020		September 27, 2019
By Expense Category:
Cost of revenues	$	72	$	44
Research and development	40		27
Selling and administrative	459		336
Total share-based compensation expense	$	571	$	407
By Types of Award:
Options	$	167	$	110
Restricted and performance stock awards and units	404		297
Total share-based compensation expense	$	571	$	407

As of October 2, 2020, there was approximately $1.5 million of total unrecognized compensation expense related to non-vested stock options granted which are expected to be recognized over a weighted-average period of 2.3 years. As of October 2, 2020, there was $3.1 million of total unrecognized compensation expense related to non-vested stock awards which are expected to be recognized over a weighted-average period of 2.1 years.

On September 6, 2016, our Board of Directors authorized and declared a dividend distribution of one right (a “Right”) for each outstanding share of our common stock, par value $0.01 per share (the “Common Shares”), to our stockholders of record as of the close of business on September 16, 2016 (the “Record Date”). Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company at an exercise price of $35.00 (the “Exercise Price”) per one one-thousandth of a Preferred Share, subject to adjustment. Until the rights become exercisable, they will not be evidenced by separate certificates and will trade automatically with shares of the Company’s common stock. The Rights have a de minimis fair value. The complete terms of the Rights are set forth in a Tax Benefit Preservation Plan (the “Plan”), dated as of September 6, 2016, between the Company and Computershare Inc., as rights agent. By adopting the Plan, we are helping to preserve the value of certain deferred tax benefits, including those generated by net operating losses (collectively, the “Tax Benefits”), which could be lost in the event of an “ownership change” as defined under Section 382 of the Internal Revenue Code of 1986, as amended. The Plan reduces the likelihood that changes in our investor base have the unintended effect of limiting our use of the Tax Benefits. The Plan expired on September 6, 2019. On March 3, 2020, our Board of Directors reauthorized the Plan at the same term with a Record Date of March 13, 2020. On August 27, 2020, we entered into the Amended and Restated Tax Benefit Preservation Plan (the “Amended and Restated Plan”) with Computershare Inc. as Rights Agent.

The Amended and Restated Plan, reauthorized by our Board of Directors on March 3, 2020, will be subject to our shareholders approval at our upcoming Annual Shareholders’ Meeting to be held on November 11, 2020.

Restructuring Activities

3 Months Ended

Oct. 02, 2020

Restructuring and Related Activities [Abstract]

Restructuring Activities

The following table summarizes our restructuring-related activities during the three months ended October 2, 2020:


	Severance and Benefits										Facilities and Other		Total
(In thousands)	Q4 2020 Plan		Q3 2020 Plan		Fiscal 2020		Fiscal 2018-2019 Plan		Prior Years' Plan		Fiscal 2015-2016 Plan
Accrual balance, July 3, 2020	$	1,557	$	431	$	360	$	90	$	64	$	236	$	2,738

Cash payments	(345)		(170)		(269)		(90)		(39)		—		(913)
Foreign exchange impact	—		—		—		—		—		10		10
Accrual balance, October 2, 2020	$	1,212	$	261	$	91	$	—	$	25	$	246	$	1,835

As of October 2, 2020, the accrual balance of $1.8 million was in short-term restructuring liabilities on our unaudited condensed consolidated balance sheets.

Q4 2020 Plan

During the fourth quarter of fiscal 2020, our Board of Directors approved a restructuring plan (the “Q4 2020 Plan”) in order to continue to reduce our operating costs and improve profitability to optimize our business model and increase efficiencies. The Q4 2020 Plan is being implemented starting with our fourth fiscal quarter of 2020 through the second fiscal quarter of 2021. Payments related to the accrued restructuring liability balance for this plan are expected to be fully paid in fiscal 2021.

Q3 2020 Plan

During the third quarter of fiscal 2020, our Board of Directors approved a restructuring plan (the “Q3 2020 Plan”) in order to reduce our operating costs and improve profitability to optimize our business model and increase efficiencies. Payments related to the accrued restructuring liability balance for this plan are expected to be fully paid in fiscal 2021.

Fiscal 2020 Plan

During the fourth quarter of fiscal 2019, our Board of Directors approved a restructuring plan (the “Fiscal 2020 Plan”) to primarily consolidate product development, right size our resources to support our international business and other support functions. Payments related to the accrued restructuring liability balance for this plan are expected to be fully paid in fiscal 2021.

Fiscal 2018-2019 Plan

During the fourth quarter of fiscal 2018, our Board of Directors approved a restructuring plan (the “Fiscal 2018-2019 Plan”) to consolidate back-office support functions and align resources by geography to lower our expense structure. We completed the restructuring activities under the Fiscal 2018-2019 Plan at the end of fiscal 2019. Payments related to the accrued restructuring liability balance for this plan are expected to be fully paid in fiscal 2021.

Fiscal 2015-2016 Plan

In January 2018, we reached a settlement with certain foreign government for grant liabilities which allowed us to reduce our estimated payments relating to prior years’ restructuring plan by $0.3 million. During the third quarter of fiscal 2015, with the intent to bring our operational cost structure in line with the changing dynamics of the microwave radio and telecommunications markets, we initiated a restructuring plan (the “Fiscal 2015-2016 Plan”) to lower fixed overhead costs and operating expenses and to preserve cash flow. Activities under the Fiscal 2015-2016 Plan primarily included reductions in workforce across the Company, but primarily in operations outside the United States. We completed the restructuring

activities under the Fiscal 2015-2016 Plan as of July 1, 2016. Payments related to the accrued restructuring liability balance for this plan are expected to be paid in fiscal 2021.

For further information, see “Note 7. Restructuring Activities” in Part II, Item 8 of our 2020 Form 10-K.

Income Taxes	3 Months Ended
Income Taxes	Oct. 02, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate varies from the U.S. federal statutory rate of 21% primarily 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 partial valuation allowance against US federal and state deferred tax assets. During interim periods, we accrue tax expenses for jurisdictions that are anticipated to be profitable for fiscal 2021. The determination of our income taxes for the three months ended October 2, 2020 and September 27, 2019 was based on our estimated annual effective tax rate adjusted for losses in certain jurisdictions for which no tax benefit can be recognized. Our tax expense for the three months ended October 2, 2020 was primarily due to tax expense related to profitable subsidiaries. The tax expense for the three months ended September 27, 2019 was primarily due to tax expense related to profitable subsidiaries and $0.6 million increase in our reserves for uncertain tax positions. We continue to record a partial valuation allowance on our U.S. deferred tax assets which primarily represent future income tax benefits associated with our operating losses. Realization of our deferred tax assets is dependent on generating sufficient pre-tax book income in future periods. Although we believe it is more likely than not that future income will be sufficient to allow us to recover the value of a portion of our U.S. deferred tax assets, realization is not assured and future events could cause us to change our judgment. If future events cause us to conclude that it is not more likely than not that we will be able to recover more or less of the current anticipated portion of deferred tax assets, we would be required to either decrease or increase the valuation allowance on our deferred tax assets at that time, which would result in a charge to income tax expense and a material increase or decrease in net income in the period in which we change our judgment. During the first quarter of fiscal 2021, we did not record any adjustment to valuation allowance on our U.S. deferred tax assets. We entered into a tax sharing agreement with Harris Corporation (“Harris”) effective on January 26, 2007, the acquisition date of Stratex Networks, Inc. (“Stratex”). The tax 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 have been no settlement payments recorded since the acquisition date. We have a number of open income tax audits covering various tax years, which vary from jurisdiction to jurisdiction. Our major tax jurisdictions that are open and subject to potential audits include the U.S., Singapore, Nigeria, Saudi Arabia and the Ivory Coast. The earliest years for these jurisdictions are as follows: U.S. - 2003; Singapore - 2015; Nigeria - 2006: Saudi Arabia - 2014, and Ivory Coast - 2017. During the first quarter of 2021, we received a tax refund of $1.2 million from the Federal Revenue of Brazil related to our withholding tax refund claim and recorded minimal tax expense related to interest as a discrete item. 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 months ended October 2, 2020 and September 27, 2019. On March 27, 2020, the US enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act which provided certain tax relief measures including, but not limited to, (1) a five-year net operating loss carryback, (2) changes in the deduction of interest, (3) acceleration of alternative minimum tax credit (AMT) refunds, and (4) a technical correction to allow accelerated deductions for qualified improvement property. The Tax Cuts and Jobs Act repealed the corporate AMT credit and allowed taxpayers to claim any unused AMT credit over four tax years beginning in tax year 2018. The CARES Act allows for acceleration of the refundable AMT credit up to 100% of the AMT credit to be refunded in tax year 2018. During the third quarter of fiscal 2020, in connection with our analysis of the impact of the CARES Act, we reclassified the refundable AMT credit of $3.4 million from long-term to short-term receivable and recorded no income tax effects on the other tax relief measures of the CARES Act. We continue to examine the elements of CARES Act and the impact they may have on our future business.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Income Per Share of Common Stock

3 Months Ended

Oct. 02, 2020

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:


	Three Months Ended
(In thousands, except per share amounts)	October 2, 2020		September 27, 2019
Numerator:
Net income	$	5,936	$	54

Denominator:
Weighted-average shares outstanding, basic	5,411		5,347
Effect of potentially dilutive equivalent shares	135		183
Weighted-average shares outstanding, diluted	5,546		5,530

Net income per share of common stock outstanding:
Basic	$	1.10	$	0.01
Diluted	$	1.07	$	0.01

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
(In thousands)	October 2, 2020	September 27, 2019
Stock options	171	378
Restricted stock units and performance stock units	25	35
Total shares of common stock excluded	196	413

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Oct. 02, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 October 2, 2020, we had outstanding purchase obligations with our suppliers or contract manufacturers of $23.5 million. In addition, we had contractual obligations of approximately $1.4 million associated with software licenses as of October 2, 2020. 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 October 2, 2020, 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 October 2, 2020, we had commercial commitments of $58.7 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 these 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 October 2, 2020, 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 October 2, 2020, 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 damages from a customer alleging that certain of our products were defective. Although we believe that we have numerous contractual and legal defenses to these disputes, at this time we have accrued an immaterial amount representing the estimated probable loss for which we would settle the matter. We currently cannot form an estimate of the range of loss in excess of our amounts already accrued. If the outcome of this matter is greater than the current immaterial amount accrued, we intend to dispute it 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. In March 2016, an enforcement action by the Indian Department of Revenue, Ministry of Finance was brought against our subsidiary Aviat Networks (India) Private Limited (“Aviat India”) relating to the non-realization of intercompany receivables and non-payment of intercompany payables, which originated from 1999 to 2012, within the time frames dictated by the Indian regulations under the Foreign Exchange Management Act ("FEMA"). In November 2017, the Indian Department of Revenue, Ministry of Finance also initiated a similar action against Telsima Communications Private Limited (“Telsima India”), a subsidiary of the Company, relating to the non-realization of intercompany receivables and non-payment of intercompany payables which originated from the period prior to our acquisition of Telsima India in February 2009. In September 2019, our directors of Aviat India appeared before the Ministry of Finance Enforcement Directorate. No settlement offers were discussed at the meeting and the matter is still ongoing with no subsequent hearing date currently scheduled. We have accrued an immaterial amount representing the estimated probable loss for which we would settle the matter. We currently cannot form an estimate of the range of loss in excess of our amounts already accrued. If the outcome of this matter is greater than the current immaterial amount accrued, we intend to dispute it vigorously. 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. COVID-19 In March 2020, the World Health Organization characterized a recent pandemic of respiratory illness caused by novel coronavirus disease, known as COVID-19, as a pandemic. The pandemic has resulted in government authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place or stay-at-home orders, and business shutdowns. Our global operations expose us to risks associated with public health crises and epidemics/pandemics, such as the COVID-19 pandemic. The COVID-19 pandemic may have an impact on our operations, supply chains and distribution systems and increase our expenses, including as a result of impacts associated with preventive and precautionary measures that we, other businesses and governments are taking or requiring. The extent to which the COVID-19 pandemic impacts our business, prospects and results of operations will depend on future developments, which are highly uncertain and cannot be predicted with certainty, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating activities can resume. Management is actively monitoring the impact of COVID-19 pandemic on our financial condition, liquidity, operations, suppliers, industry, and workforce. Our first priority remains the health and safety of our employees and their families. Employees whose tasks can be done off-site have been instructed to work from home. Our manufacturing sites support essential businesses and remain operational. We are maintaining social distancing for workers on-site and have enhanced cleaning protocols and usage of personal protective equipment, where appropriate. The impact to our supply chain lead times and ability to fulfill orders was minimal for the three months ended October 2, 2020. However, depending on pandemic-related factors like the uncertain duration of temporary manufacturing restrictions as well as our ability to perform field services during shelter in place orders, we could experience constraints and delays in fulfilling customer orders in future periods. We continue to monitor, assess and adapt to the situation and prepare for implications to our business, supply chain and customer demand. We expect these challenges to continue until business and economic activities return to more normal levels. The financial results for the three months ended October 2, 2020 reflect some of the reduced activity experienced during the period in various locations around the world and are not necessarily indicative of the results for the full year.

The Company and Basis of Presentation (Policies)	3 Months Ended
The Company and Basis of Presentation (Policies)	Oct. 02, 2020
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, and we have made estimates, assumptions and judgments affecting the amounts reported in our unaudited condensed consolidated financial statements and the accompanying notes, as discussed in greater detail below. 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 months ended October 2, 2020 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 the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 3, 2020. 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 three months ended October 2, 2020 and September 27, 2019 both consisted of 13 weeks. Fiscal year 2021 will be comprised of 52 weeks and will end on July 2, 2021. Fiscal year 2020 was comprised of 53 weeks and ended on July 3, 2020.
Use of Estimates	Use of EstimatesThe 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, lease liabilities, restructuring obligations, product warranty obligations, share-based awards, contingencies, recoverability of long-lived assets and useful lives of property, plant and equipment. The actual results that we experience may differ materially from our estimates.
Accounting Standards Adopted and Accounting Standards Not Yet Adopted	Accounting Standards Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. ASU 2018-15 became effective for us in our first quarter of fiscal 2021. We adopted this guidance during the first quarter of fiscal 2021. The adoption had no material impact on our unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. We adopted this update during the first quarter of fiscal 2021. The adoption had no material impact on our unaudited condensed consolidated financial statements. Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This guidance provides optional guidance related to reference rate reform, which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for our borrowing instruments, which use LIBOR as a reference rate, and was effective March 12, 2020 through December 31, 2022. We are currently evaluating the potential impact ASU 2020-04 will have on our unaudited condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). This guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles and also simplifies areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws and rate changes. ASU 2019-12 will be effective for us in our first quarter of fiscal 2022. We are currently evaluating the potential impact that adopting ASU 2019-12 will have on our unaudited condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, and ASU 2019-05 (collectively, Topic 326). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 will be effective for us in our first quarter of fiscal 2024 and earlier adoption is permitted. We are evaluating the impact adopting Topic 326 will have on our unaudited condensed consolidated financial statements.
Net Income (Loss) 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.
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 October 2, 2020 and July 3, 2020, 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. 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 three months of fiscal 2021 and 2020, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

Balance Sheet Components (Tables)

3 Months Ended

Oct. 02, 2020

Balance Sheet Related Disclosures [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	October 2, 2020		July 3, 2020
Cash and cash equivalents	$	36,226	$	41,618

Restricted cash included in other assets	253		254
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	36,479	$	41,872

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	October 2, 2020		July 3, 2020
Cash and cash equivalents	$	36,226	$	41,618

Restricted cash included in other assets	253		254
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	36,479	$	41,872

Schedule of Accounts Receivable, Net

Our net accounts receivable are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Accounts receivable	$	47,041	$	46,502
Less: Allowances for collection losses	(2,014)		(1,841)
Total accounts receivable, net	$	45,027	$	44,661

Schedule of Inventories

Our inventories are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Finished products	$	8,686	$	9,055

Raw materials and supplies	5,670		4,942
Total inventories	$	14,356	$	13,997

Consigned inventories included within raw materials and supplies	$	3,056	$	1,324

Schedule of Adjustments to Inventory

The charges during the three months ended October 2, 2020 and September 27, 2019 were classified in cost of product sales as follows:


	Three Months Ended
(In thousands)	October 2, 2020		September 27, 2019
Excess and obsolete inventory charges	$	63	$	146
Customer service inventory write-downs	122		191
Total inventory charges	$	185	$	337

Property, Plant and Equipment, Net

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


(In thousands)	October 2, 2020		July 3, 2020
Land	$	710	$	710
Buildings and leasehold improvements	11,742		11,737
Software	21,205		17,887
Machinery and equipment	50,108		52,293
Total property, plant and equipment, gross	83,765		82,627
Less: Accumulated depreciation and amortization	(67,203)		(65,716)
Total property, plant and equipment, net	$	16,562	$	16,911

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


	Three Months Ended
(In thousands)		October 2, 2020		September 27, 2019
Depreciation and amortization		$	1,254	$	1,038

Schedule of Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Accrued compensation and benefits	$	9,539	$	11,814
Accrued agent commissions	2,529		2,356
Accrued warranties	3,107		3,196
Other	9,087		9,554
Total accrued expenses	$	24,262	$	26,920

Schedule of Changes in Warranty Liability

Changes in our warranty liability, which is included as a component of accrued expenses in our unaudited condensed consolidated balance sheets were as follows:


	Three Months Ended
(In thousands)	October 2, 2020		September 27, 2019
Balance as of the beginning of the period	$	3,196	$	3,323
Warranty provision recorded during the period	284		504

Consumption during the period	(373)		(415)
Balance as of the end of the period	$	3,107	$	3,412

Schedule of Advance Payments and Unearned Income

Our advance payments and unearned revenue are summarized below:


(In thousands)	October 2, 2020		July 3, 2020
Advance payments	$	2,812	$	2,529
Unearned revenue	22,421		19,343
Total advance payments and unearned revenue	$	25,233	$	21,872

Fair Value Measurements of Assets and Liabilities (Tables)

3 Months Ended

Oct. 02, 2020

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping


	October 2, 2020				July 3, 2020				Valuation Inputs
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents:
Money market funds	$	18,920	$	18,920	$	18,189	$	18,189	Level 1
Bank certificates of deposit	$	2,538	$	2,538	$	3,250	$	3,250	Level 2


Liabilities:
Other accrued expenses:
Foreign exchange forward contracts	$	—	$	—	$	14	$	14	Level 2

Leases (Tables)

3 Months Ended

Oct. 02, 2020

Leases [Abstract]

Lease, Cost

The following summarizes our lease costs (in thousands):


	Three Months Ended
	October 2, 2020		September 27, 2019
	(In thousands)
Operating lease costs	$	313	$	320
Short-term lease costs	458		484
Variable lease costs	68		63
Total lease costs	$	839	$	867

The following summarizes our lease term and discount rate for three months ended October 2, 2020:


Weighted average remaining lease term	7.3 years
Weighted average discount rate	6.9	%

Lessee, Operating Lease, Liability, Maturity

As of October 2, 2020, our future minimum lease payments under all non-cancelable operating leases with an initial term in excess of one year were as follows (in thousands):


	Amount
	(In thousands)
Remainder of 2021	$	875
2022	623
2023	357
2024	230
2025	236
Thereafter	1,952
Total lease payments	4,273
Less: interest	(1,099)
Present value of lease liabilities	$	3,174

Revenue Recognition (Tables)

3 Months Ended

Oct. 02, 2020

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):


	October 2, 2020		July 3, 2020
Contract Assets
Accounts receivable, net	$	45,027	$	44,661
Unbilled receivables	31,295		28,085
Capitalized commissions	1,328		1,157
Contract Liabilities
Advance payments and unearned revenue	25,233		21,872
Unearned revenue, long-term	8,182		8,142

Segment and Geographic Information (Tables)

3 Months Ended

Oct. 02, 2020

Segment Reporting [Abstract]

Revenue by Region

Revenue by region for the three months ended October 2, 2020 and September 27, 2019 was as follows:


	Three Months Ended
(In thousands)	October 2, 2020		September 27, 2019
North America	$	45,499	$	39,767
Africa and the Middle East	10,571		10,593
Europe and Russia	2,262		3,407
Latin America and Asia Pacific	7,958		4,847
Total revenue	$	66,290	$	58,614

Schedules of Concentration of Risk, by Risk Factor

Customers accounting for 10% or more of our total revenue was as follows:

Three Months Ended

October 2, 2020

September 27, 2019

Mobile Telephone Networks Group (MTN Group)

•Less than 10%

Customers accounting for 10% or more of our accounts receivable was as follows:


	October 2, 2020		July 3, 2020
MTN Group	12	%	21	%

Equity (Tables)

3 Months Ended

Oct. 02, 2020

Share-based Payment Arrangement [Abstract]

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
(In thousands)	October 2, 2020		September 27, 2019
By Expense Category:
Cost of revenues	$	72	$	44
Research and development	40		27
Selling and administrative	459		336
Total share-based compensation expense	$	571	$	407
By Types of Award:
Options	$	167	$	110
Restricted and performance stock awards and units	404		297
Total share-based compensation expense	$	571	$	407

Restructuring Activities (Tables)

3 Months Ended

Oct. 02, 2020

Restructuring and Related Activities [Abstract]

Schedule of Restructuring-Related Activities

The following table summarizes our restructuring-related activities during the three months ended October 2, 2020:


	Severance and Benefits										Facilities and Other		Total
(In thousands)	Q4 2020 Plan		Q3 2020 Plan		Fiscal 2020		Fiscal 2018-2019 Plan		Prior Years' Plan		Fiscal 2015-2016 Plan
Accrual balance, July 3, 2020	$	1,557	$	431	$	360	$	90	$	64	$	236	$	2,738

Cash payments	(345)		(170)		(269)		(90)		(39)		—		(913)
Foreign exchange impact	—		—		—		—		—		10		10
Accrual balance, October 2, 2020	$	1,212	$	261	$	91	$	—	$	25	$	246	$	1,835

Net Income Per Share of Common Stock (Tables)

3 Months Ended

Oct. 02, 2020

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:


	Three Months Ended
(In thousands, except per share amounts)	October 2, 2020		September 27, 2019
Numerator:
Net income	$	5,936	$	54

Denominator:
Weighted-average shares outstanding, basic	5,411		5,347
Effect of potentially dilutive equivalent shares	135		183
Weighted-average shares outstanding, diluted	5,546		5,530

Net income per share of common stock outstanding:
Basic	$	1.10	$	0.01
Diluted	$	1.07	$	0.01

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
(In thousands)	October 2, 2020	September 27, 2019
Stock options	171	378
Restricted stock units and performance stock units	25	35
Total shares of common stock excluded	196	413

Balance Sheet Components (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Oct. 02, 2020	Jul. 03, 2020	Sep. 27, 2019	Jun. 28, 2019
Balance Sheet Related Disclosures [Abstract]
Cash and cash equivalents	$ 36,226	$ 41,618
Restricted cash included in other assets	253	254
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$ 36,479	$ 41,872	$ 34,740	$ 32,201

Balance Sheet Components (Receivables) (Details) - USD ($) $ in Thousands	Oct. 02, 2020	Jul. 03, 2020
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 47,041	$ 46,502
Less: Allowances for collection losses	(2,014)	(1,841)
Total accounts receivable, net	$ 45,027	$ 44,661

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands	Oct. 02, 2020	Jul. 03, 2020
Balance Sheet Related Disclosures [Abstract]
Finished products	$ 8,686	$ 9,055
Raw materials and supplies	5,670	4,942
Total inventories	14,356	13,997
Consigned inventories included within raw materials and supplies	$ 3,056	$ 1,324

Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019
Balance Sheet Related Disclosures [Abstract]
Excess and obsolete inventory charges	$ 63	$ 146
Customer service inventory write-downs	122	191
Total inventory charges	$ 185	$ 337

Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019	Jul. 03, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 83,765		$ 82,627
Less: Accumulated depreciation and amortization	(67,203)		(65,716)
Total property, plant and equipment, net	16,562		16,911
Depreciation and amortization	1,254	$ 1,038
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	710		710
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	11,742		11,737
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	21,205		17,887
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	50,108		52,293
Asset under construction
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 700		$ 3,500

Balance Sheet Components (Accrued Expenses) (Details) - USD ($) $ in Thousands	Oct. 02, 2020	Jul. 03, 2020
Balance Sheet Related Disclosures [Abstract]
Accrued compensation and benefits	$ 9,539	$ 11,814
Accrued agent commissions	2,529	2,356
Accrued warranties	3,107	3,196
Other	9,087	9,554
Total accrued expenses	$ 24,262	$ 26,920

Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019
Warranty Liability Roll Forward
Balance as of the beginning of the period	$ 3,196	$ 3,323
Warranty provision recorded during the period	284	504
Consumption during the period	(373)	(415)
Balance as of the end of the period	$ 3,107	$ 3,412

Balance Sheet Components (Advance Payments and Unearned Revenue) (Details) - USD ($) $ in Thousands	Oct. 02, 2020	Jul. 03, 2020
Balance Sheet Related Disclosures [Abstract]
Advance payments	$ 2,812	$ 2,529
Unearned revenue	22,421	19,343
Total advance payments and unearned revenue	25,233	21,872
Unearned revenue, long-term	$ 8,182	$ 8,142

Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 02, 2020	Jul. 03, 2020
Level 1 \| Money market funds
Liabilities:
Money market, net asset value (in dollars per share)	$ 1.00	$ 1.00
Carrying Amount \| Recurring \| Level 1 \| Money market funds
Assets:
Cash equivalents	$ 18,920	$ 18,189
Carrying Amount \| Recurring \| Level 2 \| Foreign exchange forward contracts
Liabilities:
Foreign exchange forward contracts	0	14
Carrying Amount \| Recurring \| Level 2 \| Bank certificates of deposit
Assets:
Cash equivalents	2,538	3,250
Fair Value \| Recurring \| Level 1 \| Money market funds
Assets:
Cash equivalents	18,920	18,189
Fair Value \| Recurring \| Level 2 \| Foreign exchange forward contracts
Liabilities:
Foreign exchange forward contracts	0	14
Fair Value \| Recurring \| Level 2 \| Bank certificates of deposit
Assets:
Cash equivalents	$ 2,538	$ 3,250

Leases Narrative (Details)	Oct. 02, 2020
Minimum
Operating Leased Assets [Line Items]
Operating lease term (in years)	1 year
Maximum
Operating Leased Assets [Line Items]
Operating lease term (in years)	20 years

Leases Schedule of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019
Leases [Abstract]
Operating lease costs	$ 313	$ 320
Short-term lease costs	458	484
Variable lease costs	68	63
Total lease costs	$ 839	$ 867

Leases Rent Expense Terms (Details)	Oct. 02, 2020
Leases [Abstract]
Weighted average remaining lease term	7 years 3 months 18 days
Weighted average discount rate	6.90%

Leases Operating Leases, Future Minimum Payments Due (Details) $ in Thousands	Oct. 02, 2020 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of 2021	$ 875
2022	623
2023	357
2024	230
2025	236
Thereafter	1,952
Total lease payments	4,273
Less: interest	(1,099)
Present value of lease liabilities	$ 3,174

Credit Facility and Debt (Details) - USD ($)	3 Months Ended
Credit Facility and Debt (Details) - USD ($)	Oct. 02, 2020	Jul. 03, 2020	Jun. 10, 2019
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 0	$ 9,000,000
Silicon Valley Bank
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity			$ 25,000,000.0
Available credit under credit facility	23,500,000
Line of credit facility, current borrowing capacity	$ 25,000,000.0
Weighted-average interest rate	3.75%
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			25,000,000.0
Silicon Valley Bank \| Line of Credit
Line of Credit Facility [Line Items]
Outstanding borrowings		9,000,000.0
Interest rate at period end	3.75%
Silicon Valley Bank \| Letter of Credit
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity			$ 12,000,000.0
Letters of credit outstanding	$ 1,500,000
Bank of New Zealand \| New Zealand
Line of Credit Facility [Line Items]
Outstanding borrowings	100,000	100,000
Bank of New Zealand \| Line of Credit \| New Zealand
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	300,000
Bank of New Zealand \| Short-term Advances \| New Zealand
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 200,000	$ 200,000
Singapore subsidiary \| Silicon Valley Bank \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%

Revenue Recognition (Contracted Balances) (Details) - USD ($) $ in Thousands	Oct. 02, 2020	Jul. 03, 2020
Contract Assets
Accounts receivable, net	$ 45,027	$ 44,661
Unbilled receivables	31,295	28,085
Capitalized commissions	1,328	1,157
Contract Liabilities
Advance payments and unearned revenue	25,233	21,872
Unearned revenue, long-term	$ 8,182	$ 8,142

Revenue Recognition (Narrative) (Details) $ in Millions	3 Months Ended
Revenue Recognition (Narrative) (Details) $ in Millions	Oct. 02, 2020 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Advance payments and unearned income	$ 33.4
Revenue to be recognized, percentage	68.00%
Remaining performance obligation, amount	$ 75.4
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized	$ 11.4

Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions	Oct. 02, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 75.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	60.00%
Expected timing of satisfaction, period	12 months

Segment and Geographic Information (Schedule of Revenues by Geographic Region) (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Oct. 02, 2020 USD ($) segment	Sep. 27, 2019 USD ($)	Jul. 03, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment	1
Total revenues	$ 66,290	$ 58,614
Revenue \| Customer Concentration Risk \| MTN Group
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage		13.00%
Accounts receivable \| Customer Concentration Risk \| MTN Group
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	12.00%		21.00%
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 45,499	$ 39,767
Africa and the Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	10,571	10,593
Europe and Russia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	2,262	3,407
Latin America and Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 7,958	$ 4,847

Equity (Narrative) (Details)	3 Months Ended
Equity (Narrative) (Details)	Oct. 02, 2020 USD ($) plan $ / shares shares	Jul. 03, 2020 $ / shares	May 31, 2018 USD ($)	Sep. 06, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	111,811
Unrecognized compensation expense for non-vested stock options \| $	$ 1,500,000
Unrecognized compensation expense for non-vested stock awards \| $	$ 3,100,000
Common stock par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01		$ 0.01
Preferred stock par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01		0.01
Exercise price of right (in dollars per share) \| $ / shares				$ 35.00
Right
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of rights declared as dividend for each share of outstanding common stock				1
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, expense expected to be recognized, weighted average period	2 years 3 months 18 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	37,506
Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	35,565
Stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, expense expected to be recognized, weighted average period	2 years 1 month 6 days
2018 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans \| plan	1
Number of additional shares authorized (in shares)	500,000
2018 Stock Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration period	7 years
2018 Stock Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
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 \| $	$ 3,400,000

Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2020	Sep. 27, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 571	$ 407
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	167	110
Restricted and performance stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	404	297
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	72	44
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	40	27
Selling and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 459	$ 336

Restructuring Activities (Restructuring Related Activities) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2018	Oct. 02, 2020	Sep. 27, 2019	Jul. 03, 2020
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period		$ 2,738
Charges (recovery), net		0	$ 1,177
Cash payments		(913)
Foreign exchange impact		10
Accrued balance, end of period		1,835
Accrual balance in short-term restructuring liabilities		1,835		$ 2,738
Fiscal 2015-2016 Plan
Restructuring Reserve [Roll Forward]
Settled without cash	$ 300
Severance and Benefits \| Q4 2020 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period		1,557
Cash payments		(345)
Foreign exchange impact		0
Accrued balance, end of period		1,212
Severance and Benefits \| Q3 2020 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period		431
Cash payments		(170)
Foreign exchange impact		0
Accrued balance, end of period		261
Severance and Benefits \| Fiscal 2020
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period		360
Cash payments		(269)
Foreign exchange impact		0
Accrued balance, end of period		91
Severance and Benefits \| Fiscal 2018-2019 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period		90
Cash payments		(90)
Foreign exchange impact		0
Accrued balance, end of period		0
Severance and Benefits \| Prior Years' Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period		64
Cash payments		(39)
Foreign exchange impact		0
Accrued balance, end of period		25
Facilities and Other \| Fiscal 2015-2016 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period		236
Cash payments		0
Foreign exchange impact		10
Accrued balance, end of period		$ 246

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Sep. 27, 2019	Oct. 02, 2020
Income Tax Contingency [Line Items]
Increase in reserves for uncertain tax positions	$ 0.6
Income tax receivable, AMT credit, CARES Act		$ 3.4
Department of Federal Revenue of Brazil
Income Tax Contingency [Line Items]
Tax refund		$ 1.2

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
	Oct. 02, 2020	Sep. 27, 2019
Numerator:
Net income	$ 5,936	$ 54
Denominator:
Weighted average shares outstanding, basic (in shares)	5,411	5,347
Effect of potentially dilutive equivalent shares (in shares)	135	183
Weighted average shares outstanding, diluted (in shares)	5,546	5,530
Net income per share of common stock outstanding:
Basic (in dollars per share)	$ 1.10	$ 0.01
Diluted (in dollars per share)	$ 1.07	$ 0.01

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1448-109256

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e4984-109258

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e3842-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1252-109256

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ 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
	Oct. 02, 2020	Sep. 27, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	196	413
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	171	378
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)	25	35

Commitments and Contingencies (Narrative) (Details) $ in Millions	3 Months Ended
	Oct. 02, 2020 USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Commercial commitments outstanding	$ 58.7
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	$ 23.5
Licensing Agreements
Property Subject to or Available for Operating Lease [Line Items]
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding	$ 1.4