0001377789-22-000137 | 10-K | XBRL Viewer

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Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Jul. 01, 2022	Sep. 02, 2022	Dec. 31, 2021
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jul. 01, 2022
Current Fiscal Year End Date	--07-01
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
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 349.7
Entity Common Stock, Shares Outstanding		11,186,477
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement for its fiscal 2022 Annual Meeting of Stockholders (“Proxy Statement”), which will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended July 1, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K.
Entity Central Index Key	0001377789
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock, par value $0.01 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	AVNW
Security Exchange Name	NASDAQ
Preferred Share Purchase Rights
Document Information [Line Items]
Title of 12(b) Security	Preferred Share Purchase Rights
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ

Audit Information	12 Months Ended
Audit Information	Jul. 01, 2022
Audit Information [Abstract]
Auditor Name	BDO USA, LLP
Auditor Location	San Jose, California
Auditor Firm ID	243

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Revenues:
Total revenues	$ 302,959	$ 274,911	$ 238,642
Cost of revenues:
Total cost of revenues	193,724	172,296	153,946
Gross margin	109,235	102,615	84,696
Operating expenses:
Research and development expenses	22,596	21,810	19,284
Selling and administrative expenses	57,656	56,324	57,985
Restructuring charges	238	2,271	4,049
Total operating expenses	80,490	80,405	81,318
Operating income	28,745	22,210	3,378
Other income, net	1,690	230	331
Income before income taxes	30,435	22,440	3,709
Provision for (benefit from) income taxes	9,275	(87,699)	3,452
Net income	$ 21,160	$ 110,139	$ 257
Net income per share:
Basic (in dollars per share)	$ 1.89	$ 9.98	$ 0.02
Diluted (in dollars per share)	$ 1.79	$ 9.42	$ 0.02
Weighted average shares outstanding:
Basic (in shares)	11,167	11,036	10,782
Diluted (in shares)	11,820	11,688	10,936
Product sales
Revenues:
Total revenues	$ 208,100	$ 185,787	$ 153,793
Cost of revenues:
Total cost of revenues	132,404	113,055	95,321
Services
Revenues:
Total revenues	94,859	89,124	84,849
Cost of revenues:
Total cost of revenues	$ 61,320	$ 59,241	$ 58,625

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 21,160	$ 110,139	$ 257
Other comprehensive (loss) income:
Net change in cumulative translation adjustment, net of tax	(1,702)	642	(2,233)
Other comprehensive (loss) income	(1,702)	642	(2,233)
Comprehensive income (loss)	$ 19,458	$ 110,781	$ (1,976)

- Definition

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

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+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Current Assets:
Cash and cash equivalents	$ 36,877	$ 47,942
Marketable securities	10,893	0
Accounts receivable, net	73,168	48,135
Unbilled receivables	45,857	37,521
Inventories	25,394	23,436
Customer service inventories	1,775	1,431
Asset held for sale	0	2,218
Other current assets	12,437	9,556
Total current assets	206,401	170,239
Property, plant and equipment, net	8,887	11,701
Deferred income taxes	95,412	103,467
Right of use assets	2,759	3,816
Other assets	10,445	8,430
TOTAL ASSETS	323,904	297,653
Current Liabilities:
Accounts payable	42,394	32,405
Accrued expenses	26,451	28,154
Short-term lease liabilities	513	769
Advance payments and unearned revenue	33,740	32,304
Restructuring liabilities	1,381	2,737
Total current liabilities	104,479	96,369
Unearned revenue	8,920	8,592
Long-term lease liabilities	2,412	3,223
Other long-term liabilities	273	356
Reserve for uncertain tax positions	5,504	5,164
Deferred income taxes	563	614
Total liabilities	122,151	114,318
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; 11,160,160 and 11,153,445 shares issued and outstanding as of July 1, 2022 and July 2, 2021, respectively	112	112
Treasury stock 194,943 and 19,587 shares as of July 1, 2022 and July 2, 2021, respectively	(6,147)	(787)
Additional paid-in-capital	823,259	818,939
Accumulated deficit	(599,442)	(620,602)
Accumulated other comprehensive loss	(16,029)	(14,327)
Total equity	201,753	183,335
TOTAL LIABILITIES AND EQUITY	$ 323,904	$ 297,653

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 01, 2022	Jul. 02, 2021
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)	11,160,160	11,153,445
Common stock, shares outstanding (in shares)	11,160,160	11,153,445
Treasury stock (in shares)	194,943	19,587

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Operating Activities
Net income	$ 21,160	$ 110,139	$ 257
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, plant and equipment	4,463	5,383	4,387
Provision for (recovery from) uncollectible receivables	(23)	171	23
Share-based compensation	3,834	2,921	1,686
Deferred tax assets, net	8,004	(90,599)	(172)
Charges for inventory and customer service inventory write-downs	1,735	1,452	945
Loss on disposition of property, plant and equipment, net	11	6	56
Noncash lease expense	1,057	(342)	4,416
Net gain on marketable securities	(2,614)	0	0
Gains on sale of assets held for sale	(66)	0	0
Changes in operating assets and liabilities:
Accounts receivable	(25,719)	(4,232)	7,043
Unbilled receivables	(8,725)	(8,579)	(304)
Inventories	(2,508)	(9,987)	(5,651)
Customer service inventories	(1,393)	(1,104)	(1,023)
Accounts payable	10,503	580	(3,122)
Accrued expenses	876	1,767	4,285
Advance payments and unearned revenue	1,713	10,560	6,304
Income taxes payable or receivable	(1,620)	159	1,978
Other assets and liabilities	(6,832)	(997)	(3,615)
Change in lease liabilities	(1,067)	0	0
Net cash provided by operating activities	2,789	17,298	17,493
Investing Activities
Payments for acquisition of property, plant and equipment	(1,792)	(2,847)	(4,608)
Purchase of marketable securities	(8,279)	0	0
Proceeds from sale of asset held for sale	2,284	0	0
Net cash used in investing activities	(7,787)	(2,847)	(4,608)
Financing Activities
Proceeds from borrowings	0	0	41,911
Repayments of borrowings	0	(9,000)	(41,911)
Payments for repurchase of common stock	0	0	(1,772)
Payments for repurchase of common stock - treasury shares	(5,362)	(787)	0
Payments for taxes related to net settlement of equity awards	(541)	(167)	(802)
Proceeds from issuance of common stock under employee stock plans and exercises of stock options	1,029	1,906	29
Net cash used in financing activities	(4,874)	(8,048)	(2,545)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1,222)	(77)	(669)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(11,094)	6,326	9,671
Cash, cash equivalents, and restricted cash, beginning of year	48,198	41,872	32,201
Cash, cash equivalents, and restricted cash, end of year	37,104	48,198	41,872
Non-cash investing activities:
Unpaid property, plant and equipment	95	228	277
Supplemental disclosures of cash flow information:
Cash paid for interest	0	4	60
Cash (received) paid for income taxes, net	$ 1,241	$ (2,119)	$ 1,057

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jun. 28, 2019		10,719,390
Beginning balance of treasury stock (in shares) at Jun. 28, 2019			0
Beginning balance at Jun. 28, 2019	$ 71,516	$ 108	$ 0	$ 815,142	$ (730,998)	$ (12,736)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	257				257
Other comprehensive income (loss), net of tax	(2,233)					(2,233)
Issuance of common stock under employee stock plans (in shares)		450,112
Issuance of common stock under employee stock plans	29	$ 4		25
Shares withheld for taxes related to vesting of equity awards (in shares)		(112,482)
Shares withheld for taxes related to vesting of equity awards	(802)	$ (2)		(800)
Stock repurchase (in shares)		(256,046)
Stock repurchase	(1,772)	$ (2)		(1,770)
Share-based compensation	1,686			1,686
Ending balance (in shares) at Jul. 03, 2020		10,800,974
Ending balance of treasury stock (in shares) at Jul. 03, 2020			0
Ending balance at Jul. 03, 2020	68,681	$ 108	$ 0	814,283	(730,741)	(14,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	110,139				110,139
Other comprehensive income (loss), net of tax	642					642
Issuance of common stock under employee stock plans (in shares)		393,724
Issuance of common stock under employee stock plans	1,906	$ 4		1,902
Shares withheld for taxes related to vesting of equity awards (in shares)		(13,366)
Shares withheld for taxes related to vesting of equity awards	(167)			(167)
Stock repurchase (in shares)		(27,887)	(19,587)
Stock repurchase	(787)		$ (787)
Share-based compensation	$ 2,921			2,921
Ending balance (in shares) at Jul. 02, 2021	11,153,445	11,153,445
Ending balance of treasury stock (in shares) at Jul. 02, 2021	19,587		19,587
Ending balance at Jul. 02, 2021	$ 183,335	$ 112	$ (787)	818,939	(620,602)	(14,327)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,160				21,160
Other comprehensive income (loss), net of tax	(1,702)					(1,702)
Issuance of common stock under employee stock plans (in shares)		198,143
Issuance of common stock under employee stock plans	1,031	$ 2		1,029
Shares withheld for taxes related to vesting of equity awards (in shares)		(16,072)
Shares withheld for taxes related to vesting of equity awards	(543)			(543)
Stock repurchase (in shares)		(175,356)	(175,356)
Stock repurchase	(5,362)	$ (2)	$ (5,360)
Share-based compensation	$ 3,834			3,834
Ending balance (in shares) at Jul. 01, 2022	11,160,160	11,160,160
Ending balance of treasury stock (in shares) at Jul. 01, 2022	194,943		194,943
Ending balance at Jul. 01, 2022	$ 201,753	$ 112	$ (6,147)	$ 823,259	$ (599,442)	$ (16,029)

The Company and Summary of Significant Accounting Policies

12 Months Ended

Jul. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies

The Company

We design, manufacture and sell 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 and license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades.

We were incorporated in Delaware in 2006 to combine the businesses of Harris Corporation’s Microwave Communications Division (“MCD”) and Stratex Networks, Inc. (“Stratex”). On January 28, 2010, we changed our corporate name from Harris Stratex Networks, Inc. to Aviat Networks, Inc. (“the Company”, “Aviat Networks,” “Aviat”, “we,” “us,” and “our”) to more effectively reflect our business and communicate our brand identity to customers. Additionally, the change of our corporate name was to comply with the termination of the Harris Corporation (“Harris”) trademark licensing agreement resulting from the spin-off by Harris of its interest in our stock to its stockholders in May 2009.

Basis of Presentation

The consolidated financial statements include the accounts of Aviat Networks and its wholly-owned and majority owned subsidiaries. Significant intercompany transactions and accounts have been eliminated.

Our fiscal year ends on the Friday nearest June 30. This was July 1, for fiscal 2022, July 2, for fiscal 2021 and July 3, for fiscal 2020. Fiscal 2022 and 2021 presented 52 weeks while fiscal 2020 included 53 weeks . In these notes to consolidated financial statements, we refer to our fiscal years as “fiscal 2022”, “fiscal 2021” and “fiscal 2020.”

Stock Split

On April 7, 2021 we effected a two-for-one stock split in the form of a stock dividend to shareholders of record as of April 1, 2021. Common stock, Additional paid-in-capital, per share and equity award amounts for all periods presented have been retrospectively reclassified to reflect the two-for-one stock split in the form of a stock dividend.

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“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 and uncertainties in income taxes.

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are carried at amortized cost, which approximates fair value due to the short-term nature of these investments. Investments with an original maturity of greater than three months are accounted for as short-term investments and are classified as such at the time of purchase.

We hold cash and cash equivalents at several major financial institutions, which often significantly exceed Federal Deposit Insurance Corporation insured limits. However, a substantial portion of the cash equivalents is invested in prime money market funds which are backed by the securities in the fund.

As of July 1, 2022 and July 2, 2021, all of our high-quality marketable debt securities were invested in prime money market funds.

Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of contractual agreements are recorded as restricted cash. Our long-term restricted cash included the cash balance in our disability insurance voluntary plan account that cannot be used by us for any operating purposes other than to pay benefits to the insured employees and was recorded in other assets on our consolidated balance sheets and the corresponding liabilities were included in other long-term liabilities on our consolidated balance sheets.

Significant Concentrations

We typically invoice our customers for the sales order (or contract) value of the related products delivered at various milestones, including order receipt, shipment, installation and acceptance and for services when rendered. Our trade receivables are derived from sales to customers located in North America, Africa, Europe, the Middle East, Asia-Pacific and Latin America.

Accounts receivable is presented net of allowance for estimated uncollectible accounts to reflect any loss anticipated on the collection of accounts receivable balances. We calculate the allowance based on our history of write-offs, level of past due accounts and the economic status of the customers. The fair value of our accounts receivable approximates their net realizable value.

We regularly require letters of credit from certain customers and, from time to time, we discount these letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Under these arrangements, collection risk is fully transferred to the financial institutions. We record the financing charges on discounting these letters of credit as interest expense.

During fiscal 2022, Motorola accounted for 13% of our total revenue. During fiscal 2021 and 2020 there were no customers that accounted for more than 10% of our total revenue. As of July 1, 2022 and July 2, 2021, MTN Group accounted for approximately 17% and 14%, respectively, of our accounts receivable.

Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash equivalents, marketable debt securities, trade accounts receivable and financial instruments used in foreign currency hedging activities. We invest our excess cash primarily in prime money market funds and certificates of deposit. We are exposed to credit risks related to such instruments in the event of default or decrease in credit-worthiness of the issuers of the investments. Risks associated with cash and cash equivalents, and investments are mitigated by banking with, and investing in, creditworthy institutions.

We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable, as the majority of our customers are large, well-established companies. However, in certain circumstances, we may require letters of credit, additional guarantees or advance payments. We maintain allowances for collection losses, but historically have not experienced any significant losses related to any particular geographic area. Our customers are primarily in the telecommunications industry, so our accounts receivable are concentrated within one industry and exposed to concentrations of credit risk within that industry. Accounts receivable are written off when attempts to collect outstanding amounts have been exhausted or there are other indicators that the amounts are no longer collectible.

We rely on third parties to manufacture our products and we purchase raw materials from third-party vendors. In addition, we purchase certain strategic component inventory which is consigned to our third-party manufacturers. Other components included in our products are sourced from various suppliers and are principally industry standard parts and components that are available from multiple vendors. The inability of a contract manufacturer or supplier to fulfill our supply requirements or changes in their financial or business condition could disrupt our ability to supply quality products to our customers, and thereby may have a material adverse effect on our business and operating results.

We have entered into agreements relating to our foreign currency contracts with Silicon Valley Bank, a multinational financial institution. The amounts subject to credit risk arising from the possible inability of any such parties to meet the terms of their contracts are generally limited to the amounts, if any, by which such party’s obligations exceed our obligations to that party.

Inventories

Inventories are valued at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Cost is determined using standard cost, which approximates actual cost on a weighted-average first-in-

first-out basis. We regularly review inventory quantities on hand and record adjustments to reduce the cost of inventory for excess and obsolete inventory based primarily on our estimated forecast of product demand and production requirements. Inventory adjustments are measured as the difference between the cost of the inventory and net realizable value based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Customer Service Inventories

Our customer service inventories are stated at the lower of cost and net realizable value. We carry service parts because we generally provide product warranty for 12 to 36 months and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Customer service inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. We record adjustments to reduce the carrying value of customer service inventories to their net realizable value. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates.

Property, Plant and Equipment

Property, plant and equipment are stated on the basis of cost less accumulated depreciation and amortization. We capitalize costs of software, consulting services, hardware and other related costs incurred to purchase or develop internal-use software. We expense costs incurred during preliminary project assessment, re-engineering, training and application maintenance.

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvements. The useful lives of the assets are generally as follows:


Buildings			40 years
Leasehold improvements			2 to 10 years
Software			3 to 5 years
Machinery and equipment			2 to 5 years

Expenditures for maintenance and repairs are charged to expense as incurred. Cost and accumulated depreciation of assets sold or retired are removed from the respective property accounts, and any gain or loss is reflected in the consolidated statements of operations.

Impairment of Long-Lived Assets

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups.

Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The actual cash flows realized from these assets may vary significantly from our estimates due to increased competition, changes in technology, fluctuations in demand, consolidation of our customers, reductions in average selling prices and other factors. Assumptions underlying future cash flow estimates are therefore subject to significant risks and uncertainties.

Warranties

On product sales, we provide for future warranty costs upon product delivery. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which we do business. In the case of

products sold by us, our warranties generally start from the delivery date and continue for one to three years, depending on the terms.

Many of our products are manufactured to customer specifications and their acceptance is based on meeting those specifications. Factors that affect our warranty liabilities include the number of product units subject to warranty protection, historical experience and management’s judgment regarding anticipated rates of warranty claims and cost per claim. We assess the adequacy of our recorded warranty liabilities every quarter and make adjustments to the liabilities as necessary.

Leases

We lease 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. In addition, some of these leases have renewal options for up to 3 years.

We determine if an arrangement contains a lease at inception. These operating leases are included in Right of use assets (ROU assets) on our July 1, 2022 consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments are included in "Short-term lease liabilities" and "Long-term lease liabilities" on our July 1, 2022 consolidated balance sheets. We have not entered into any financing leases during fiscal 2022.

Operating lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we used the incremental borrowing rate based on the remaining lease term at commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives and initial direct costs incurred. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Certain of our lease arrangements include non-lease components and we account for non-lease components together with lease components for all such lease arrangements.

Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the lease term.

Foreign Currency Translation

The functional currency of our subsidiaries located in the United Kingdom, Singapore, Mexico, Algeria and New Zealand is the United States (“U.S.”) dollar. Determination of the functional currency is dependent upon the economic environment in which an entity operates as well as the customers and suppliers the entity conducts business with. Changes in facts and circumstances may occur which could lead to a change in the functional currency of that entity. Accordingly, all of the monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars at the current exchange rate as of the applicable balance sheet date, and all non-monetary assets and liabilities are re-measured at historical rates. Income and expenses are re-measured at the average exchange rate prevailing during the period. Gains and losses resulting from the re-measurement of these subsidiaries’ financial statements are included in the consolidated statements of operations.

Our other international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of these subsidiaries are translated at the local current exchange rates in effect at the balance sheet date, and income and expense accounts are translated at the average exchange rates during the period. The resulting translation adjustments are included in accumulated other comprehensive loss.

Gains and losses resulting from foreign exchange transactions and revaluation of monetary assets and liabilities in non-functional currencies are included in other income, net in the accompanying consolidated statements of operations, based on the nature of the transactions. Net foreign exchange (loss) gains recorded in our consolidated statements of operations during fiscal 2022, 2021 and 2020 were $(1.1) million, $(1.0) million, and $0.4 million, respectively.

Retirement Benefits

As of July 1, 2022, we provided retirement benefits to substantially all employees primarily through our defined contribution retirement plans. These plans have matching and savings elements. Contributions by us to these retirement plans are based on profits and employees’ savings with no other funding requirements. Contributions to retirement plans are expensed as incurred. Retirement plan expense amounted to $1.9 million, $1.8 million and $1.7 million in fiscal 2022, 2021 and 2020, respectively.

Revenue Recognition

Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, we recognize revenue by applying the following five-step approach: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. See Note 3 for additional discussion on revenue recognition.

Cost of Product Sales and Services

Cost of sales consists primarily of materials, labor and overhead costs incurred internally and amounts incurred for contract manufacturers to produce our products, personnel and other implementation costs incurred to install our products and train customer personnel, and customer service and third party original equipment manufacturer costs to provide continuing support to our customers.

Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because they are also included in revenue that we bill our customers.

Advertising Costs

We expense all advertising costs as incurred. Advertising costs were immaterial during fiscal 2022, 2021 and 2020.

Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities

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

Research and Development Costs

Our research and development costs, which include costs in connection with new product development, improvement of existing products, process improvement, and product use technologies, are generally charged to operations in the period in which they are incurred. For certain software projects under development, we capitalize the development costs during the period between determining technological feasibility of the product and commercial release and are included in Other assets on the consolidated balance sheet. We amortize the capitalized development cost upon commercial release, generally over three years. To date, the amount of development costs capitalized and amount amortized have not been material.

Share-Based Compensation

We estimate the grant date fair value of our share-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. To estimate the fair value of our stock option awards, we use the Black-Scholes option pricing model. The determination of the fair value of stock option awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. Due to the inherent limitations of option valuation models, including consideration of future events that are unpredictable and the estimation process utilized in determining the valuation of the share-based awards, the ultimate value realized by our employees may vary significantly from the amounts expensed in our financial statements. For restricted stock awards and units and performance share awards and units, we measure the grant date fair value based upon the market price of our common stock on the date of the grant. The fair value of each market-based stock unit with market conditions was estimated using the Monte-Carlo simulation model. We elected to account for forfeitures as they occur.

For awards with a performance condition vesting feature, we recognize share-based compensation costs for the performance awards and units when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved. For awards with a market condition vesting feature, we recognize share-based compensation costs over the period the requisite service is rendered, regardless of when, if ever, the market condition is satisfied.

Restructuring Charges

Our restructuring charges represent expenses incurred in connection with certain cost reduction programs that we have implemented, and consisted of the costs of employee termination costs, lease and other contract termination charges and other costs of exiting activities or geographies. A liability for costs associated with an exit or disposal activity is measured at its fair value when the liability is incurred. Expenses for one-time termination benefits are recognized at the date we notify the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. We recognize severance benefits provided as part of an ongoing benefit arrangement when the payment is probable, and the amounts can be reasonably estimated. Liabilities related to termination of an operating lease or contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates include anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. We expense all other costs related to an exit or disposal activity as incurred.

Income Taxes and Related Uncertainties

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by tax rates at which temporary differences are expected to reverse as well as operating loss and tax credit carry forwards. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. A valuation allowance is established to offset any deferred tax assets if, based upon the available information, it is more likely than not that some or all of the deferred tax assets will not be realized.

We are required to compute our income taxes in each federal, state, and foreign jurisdiction in which we operate. This process requires that we estimate the current tax exposure as well as assess temporary differences between the accounting and tax treatment of assets and liabilities, including items such as accruals and allowances not currently deductible for tax purposes as well as operating loss and tax credit carry forwards. The income tax effects of the differences we identify are classified as current or long-term deferred tax assets and liabilities in our consolidated balance sheets. Our judgments, assumptions, and estimates relative to the current provision for income taxes take into account current tax laws, our interpretation of current tax laws, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. Changes in tax laws or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our consolidated balance sheets and consolidated statements of operations. We must also assess the likelihood that deferred tax assets will be realized from future taxable income and, based on this assessment, establish a valuation allowance, if required. Our determination of our valuation allowance is based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic and international jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation allowance in a period, we reflect the change with a corresponding increase or decrease to our tax provision in our consolidated statements of operations.

We use a two-step process to determine the amount of tax benefit to be recognized for uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such

amounts, as this requires us to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

Accounting Standards Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 of goodwill, separate entity financial statements and interim recognition of enactment of tax laws and rate changes. ASU 2019-12 became effective for us in our first quarter of fiscal 2022. 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 will be effective through December 31, 2022. We are currently evaluating the potential impact of ASU 2020-04 will have on our 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 2023, and earlier adoption is permitted. We are evaluating the impact adopting Topic 326 will have on our consolidated financial statements.

Net Income per Share of Common Stock

12 Months Ended

Jul. 01, 2022

Earnings Per Share [Abstract]

Net Income per Share of Common Stock

Net Income per Share of Common StockNet 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.

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


	Fiscal Year
(In thousands, except per share amounts)	2022		2021		2020
Numerator:
Net income	$	21,160	$	110,139	$	257

Denominator:
Weighted average shares outstanding, basic	11,167		11,036		10,782
Effect of potentially dilutive equivalent shares	653		652		154
Weighted average shares outstanding, diluted	11,820		11,688		10,936

Net income per share:
Basic	$	1.89	$	9.98	$	0.02
Diluted	$	1.79	$	9.42	$	0.02

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


	Fiscal Year
(In thousands)	2022	2021	2020
Stock options	114	8	356
Restricted stock units and performance stock units	72	4	2
Total shares of common stock excluded	186	12	358

Revenue Recognition

12 Months Ended

Jul. 01, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

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

Contracts and customer purchase orders are used to determine the existence of an arrangement.

Many of the Company’s arrangements with customers contain multiple performance obligations and therefore promises to provide multiple goods and services. The Company evaluates each promised good and service in a contract to determine whether it represents a distinct performance obligation or should be accounted for as a combined performance obligation. For goods and services determined to be distinct we have concluded that they provide a benefit to the customer either on their own or together with other resources that are readily available to the customer, without having the need for significant integration or customization.

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

Revenue from services includes certain network planning and design, engineering, installation and commissioning (“field services”), extended warranty, customer support, consulting, training, and education. Maintenance and support services are generally offered to our customers and recognized over a specified period of time and from sales and subsequent renewals of maintenance and support contracts. The network planning and design, engineering and installation related services noted are recognized based on an over-time recognition model using the cost-input method. Certain judgment is required when estimating total contract costs and progress to completion on the over-time arrangements, as well as whether a loss is expected to be incurred on the contract. The cost estimation process for these

contracts is based on the knowledge and experience of the Company’s project managers, engineers, and financial professionals. Changes in job performance and job conditions are factors that influence estimates of the total costs to complete those contracts and the Company’s revenue recognition. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made in a timely manner. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in income in the period in which the circumstances that gave rise to the revision become known to us. We perform ongoing profitability analysis of our service contracts accounted for under this method to determine whether the latest estimates of revenues, costs, and profits require updating. In rare circumstances if these estimates indicate that the contract will be unprofitable, the entire estimated loss for the remainder of the contract is recorded immediately. We establish billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled receivables and if invoicing is ahead of revenue recognized it is classified as an unearned liability on the consolidated balance sheets.

In addition, shipping documents and customer acceptances, when applicable, are used to verify delivery and transfer of control. We typically satisfy our performance obligations upon shipment or delivery of product depending on the contractual terms. Payment terms to customers generally range from net 30 to 120 days from invoice, which are considered to be standard payment terms. Revenue recognition does not necessarily follow payment terms as there are a number of scenarios where they would be different. Recognition follows contractual terms and those vary depending on the nature of the performance obligation being satisfied. These timing differences result in contract assets and liabilities as discussed below. We assess our ability to collect from our customers based primarily on the creditworthiness and past payment history of the customer.

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

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

Bill-and-Hold Sales

Certain customer arrangements consist of bill-and-hold characteristics under which transfer of control has been met (including the passing of title and significant risk and reward of ownership to the customers). Therefore, the customers can direct the use of the bill-and-hold inventory while we retain physical possession of the product until it is installed at a customer site at a point in time in the future.

Termination Rights

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

Variable Consideration

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

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

Stand-alone Selling Price

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

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

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

Shipping and Handling

Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because they are also included in revenue that we bill our customers.

Costs to Obtain a Contract

We have assessed the treatment of costs to obtain or fulfill a contract with a customer. Under ASC 606, we capitalize sales commissions related to multi-year service contracts, and amortize the asset over the period of benefit, which is the estimated service period. Sales commissions paid on contract renewals, including service contract renewals, is commensurate with the sales commissions paid on the initial contracts. The capitalized sales commissions are included in Other Current Assets and Other Assets on the consolidated balance sheets. We have not identified any impairments during the periods presented.

We elected the practical expedient to expense sales commissions as incurred when the amortization period of the related asset is one year or less. These costs are recorded as sales and marketing expense and included in our consolidated balance sheet as accrued expenses until paid. Our amortization expense was not material for the fiscal years ended July 1, 2022, July 2, 2021 and July 3, 2020.

Contract Balances, Performance Obligations, and Backlog

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


	July 1, 2022		July 2, 2021
Contract Assets
Accounts receivable, net	$	73,168	$	48,135
Unbilled receivables	$	45,857	$	37,521
Capitalized commissions	$	2,341	$	1,720
Contract Liabilities
Advance payments and unearned revenue	$	33,740	$	32,304
Unearned revenue, long-term	$	8,920	$	8,592

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). The Contract Asset balance has continued to grow as we continue to execute on large North American over time projects and International projects that carry notably longer payment terms.

From time to time, we may experience unforeseen events that could result in a change to the scope or price associated with an arrangement. We would 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 July 1, 2022, we had $42.7 million in advance payments and unearned revenue and long-term unearned revenue, of which approximately 60% is expected to be recognized as revenue in fiscal 2023 and the remainder thereafter. During fiscal years 2022 and 2021, we recognized approximately $23.3 million and $21.9 million respectively, that was included in advance payments and unearned revenue at the beginning of each reporting period.

Remaining Performance Obligations

We elect the practical consideration to exclude performance obligations that relate to contracts with original expected durations of one year or less. As our product purchase orders are generally delivered within one year or less and our maintenance and support service contracts can be terminated without substantive termination penalties resulting in contracts with less than one year of duration, these performance obligations have been excluded from the remaining performance obligation amounts. The aggregate amount of transaction price allocated to the remaining unsatisfied performance obligations (or partially unsatisfied) was approximately $97.0 million at July 1, 2022 relating to our long-term field service projects. Of this amount, we expect to recognize approximately 50% as revenue during fiscal 2023, with the remaining amount to be recognized as revenue beyond 12 months.

- 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 https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (b)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Leases

12 Months Ended

Jul. 01, 2022

Leases [Abstract]

Leases

We lease facilities under non-cancelable operating lease agreements. These leases have original terms that range from one to 20 years and may contain leasehold improvement incentives, rent holidays and escalation clauses. In addition, some of these leases have renewal options for up to 3 years. We lease office space in Austin, Texas as our corporate headquarters with an original term of 36 months.

We determine if an arrangement contains a lease at inception. These operating leases are included in "Right of use assets" (ROU assets) on our July 1, 2022 consolidated balance sheet and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments are included in "Short-term lease liabilities" and "Long-term lease liabilities" on our July 1, 2022 consolidated balance sheet. We have not entered into any financing leases during fiscal 2022.

Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the lease term.

As of July 1, 2022, total ROU assets were approximately $2.8 million, and short-term lease liabilities and long-term lease liabilities were approximately $0.5 million and $2.4 million, respectively. Cash paid for lease liabilities was $0.7 million for fiscal 2022.

The following summarizes our lease costs, lease term and discount rate for fiscal 2022 and 2021 (in thousands):


	Fiscal
	2022		2021
Operating lease costs	$	1,061	$	1,213
Short-term lease costs	2,252		1,639
Variable lease costs	171		324
Total lease costs	$	3,484	$	3,176

Other information related to our operating leases for fiscal 2022 and 2021 (in thousands, except for weighted average):


	Fiscal
	2022			2021
Weighted average remaining lease term	7.9 years			7.8 years
Weighted average discount rate	5.6		%	5.7		%
Operating lease assets obtained in exchange for operating lease liabilities	$	104		$	1,772

Rental expense for operating leases, including rentals on a month-to-month basis was $3.6 million for fiscal 2022 and $3.3 million for each of fiscal 2021 and 2020.

As of July 1, 2022, 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):


Fiscal years	Amount
2023	$	667
2024	553
2025	570
2026	476
2027	169
Thereafter	1,386
Total lease payments	3,821
Less: interest	(896)
Present value of lease liabilities	$	2,925

Balance Sheet Components

12 Months Ended

Jul. 01, 2022

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Cash, Cash Equivalents, and Restricted Cash

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


(In thousands)	July 1, 2022		July 2, 2021
Cash and cash equivalents	$	36,877	$	47,942
Restricted cash included in Other assets	227		256
Total cash, cash equivalents, and restricted cash	$	37,104	$	48,198

Accounts Receivable, net

Our net accounts receivable are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Accounts receivable	$	74,102	$	50,276
Less: Allowances for collection losses	(934)		(2,141)
Total accounts receivable, net	$	73,168	$	48,135

Inventories

Our inventories are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Finished products	$	14,916	$	15,409
Raw materials and supplies	10,478		8,027
Total inventories	$	25,394	$	23,436
Consigned inventories included within raw materials	$	9,796	$	6,570

During fiscal 2022, 2021 and 2020, we recorded charges to adjust our inventory and customer service inventory due to excess and obsolete inventory resulting from lower sales forecasts, product transitioning or discontinuance. Such charges incurred during fiscal 2022, 2021 and 2020 were classified in cost of product sales as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
Excess and obsolete inventory charges (recovery)	$	647	$	544	$	233
Customer service inventory write-downs	1,088		908		712
Total charges	$	1,735	$	1,452	$	945

Assets Held for Sale

We consider properties to be Assets held for sale when management approves and commits to a plan to dispose of a property or group of properties. The property held for sale prior to the sale date is separately presented on the balance sheet as Assets held for sale.

During the second quarter of fiscal 2021 management initiated the sale of our facility located in the United Kingdom. We completed the sale during the third quarter of fiscal 2022 with proceeds of $2.3 million, reflecting a gain of $0.1 million. We have no additional assets held for sale.

Property, Plant and Equipment, net

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


(In thousands)	July 1, 2022		July 2, 2021
Land	$	210	$	210
Buildings and leasehold improvements	5,796		6,914
Software	21,368		21,370
Machinery and equipment	49,584		51,244
	76,958		79,738
Less accumulated depreciation and amortization	(68,071)		(68,037)
Total Property, Plant and Equipment, net	$	8,887	$	11,701

Included in the total plant, property and equipment above were $1.2 million and $0.3 million of assets in progress which have not been placed in service as of July 1, 2022 and July 2, 2021, respectively. Depreciation and amortization expense related to property, plant and equipment, including amortization of internal use software was $4.5 million, $5.4 million and $4.4 million in fiscal 2022, 2021 and 2020, respectively.

Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Accrued compensation and benefits	$	11,625	$	13,455
Accrued agent commissions	1,864		2,348
Accrued warranties	2,913		3,228
Other	10,049		9,123
	$	26,451	$	28,154

We accrue for the estimated cost to repair or replace products under warranty. Changes in our warranty liability, which is included as a component of accrued expenses in the consolidated balance sheets, were as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
Balance as of the beginning of the fiscal year	$	3,228	$	3,196	$	3,323
Warranty provision recorded during the period	1,328		1,679		1,564
Consumption during the period	(1,643)		(1,647)		(1,691)
Balance as of the end of the period	$	2,913	$	3,228	$	3,196

Advance payments and Unearned Revenue

Our advance payments and unearned revenue are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Advance payments	$	1,870	$	2,445
Unearned revenue	31,870		29,859
	$	33,740	$	32,304

Fair Value Measurements of Assets and Liabilities

12 Months Ended

Jul. 01, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities

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

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

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

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

The carrying amounts, estimated fair values and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of July 1, 2022 and July 2, 2021 were as follows:


	July 1, 2022				July 2, 2021
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Cash and cash equivalents:
Money market funds	$	5,367	$	5,367	$	26,847	$	26,847	Level 1
Bank certificates of deposit	$	3,682	$	3,682	$	3,288	$	3,288	Level 2
Marketable securities	$	10,893	$	10,893	$	—	$	—	Level 1




Liabilities:
Other accrued expenses:
Foreign exchange forward contracts	$	114	$	114	$	14	$	14	Level 2

We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. The assets and liabilities related to our foreign currency forward contracts were not material as of July 1, 2022 and July 2, 2021. 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 fiscal 2022, 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

Credit Facility and Debt	12 Months Ended
Credit Facility and Debt	Jul. 01, 2022
Debt Disclosure [Abstract]
Credit Facility and Debt	Credit Facility and Debt On May 17, 2020, we entered into Amendment No. 4 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, 2024. 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 U.S. and Singapore entities. 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 sub limit. We may prepay loans under the SVB Credit Facility in whole or in part at any time without premium or penalty. As of July 1, 2022, available credit under the SVB Credit Facility was $21.7 million reflecting the calculated borrowing base of $25.0 million less outstanding letters of credit of $3.3 million. We did not borrow against the SVB Credit Facility during fiscal 2022 or 2021 and there was no borrowing outstanding as of July 1, 2022. The SVB Credit Facility carries an interest rate, at our option, computed (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. The SVB Credit Facility contains monthly and 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 July 1, 2022, we were in compliance with the quarterly financial covenants, as amended, contained in the SVB Credit Facility. During fiscal 2022, we terminated an uncommitted short-term line of credit from a bank in New Zealand to support the operations of our subsidiary located there.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Restructuring Activities

12 Months Ended

Jul. 01, 2022

Restructuring and Related Activities [Abstract]

Restructuring Activities

The following table summarizes our restructuring related activities during fiscal year 2022, 2021 and 2020:


(In thousands)	Severance and Benefits						Facilities and Other
	Q4 2022 Plan		Fiscal 2021 Plan		Prior Years Plans		Prior Years Plans		Total
Balance as of June 28, 2019	$	—	$	—	$	1,089	$	238	$	1,327
Charges, net	—		—		4,049		—		4,049
Cash payments	—		—		(2,636)		—		(2,636)
Foreign currency translation (gain) loss	—		—		—		(2)		(2)
Balance as of July 3, 2020	—		—		2,502		236		2,738
Charges, net	—		2,414		(143)		—		2,271
Cash payments	—		(205)		(2,086)		—		(2,291)
Foreign currency translation (gain) loss	—		—		7		12		19
Balance as of July 2, 2021	—		2,209		280		248		2,737
Charges, net	434		271		(231)		(236)		238
Cash payments	(139)		(1,371)		(49)		—		(1,559)
Foreign currency translation (gain) loss	—		(23)		—		(12)		(35)
Balance as of July 1, 2022	$	295	$	1,086	$	—	$	—	$	1,381

As of July 1, 2022, the sum of the accrual balance of $1.4 million was in short-term restructuring liabilities on the consolidated balance sheets. Included in the above plans for which we were carrying a provision were positions identified for termination that have not been executed from a restructuring perspective.

Q4 2022 Plan

During the fourth quarter of Q4 2022, our Board of Directors approved a restructuring plan (the “Q4 2022 Plan”) to restructure specific groups to optimize skill sets and align structure to execute on strategic deliverables. The Q4 2022 Plan was anticipated to entail a reduction in force of approximately 11 employees to be implemented through early fiscal year 2023, with a certain number of positions being consolidated.

Fiscal 2021 Plan

During the third quarter of fiscal 2021, our Board of Directors approved restructuring plans (the “Fiscal 2021 Plan”) to continue to reduce our operating costs and improve profitability as part of our transformational initiative to optimize our business model and increase efficiencies. We recorded restructuring charges of $2.4 million related to the Fiscal 2021 Plan in fiscal 2021. The Fiscal 2021 Plan was anticipated to entail a reduction in force of approximately 30 employees to be implemented through the end of fiscal year 2022, with a certain number of positions being consolidated and/or relocated.

Q4 2020 Plan

During the fourth quarter of fiscal 2020, our Board of Directors approved a restructuring plan (the “Q4 2020 Plan”) to continue 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 was completed in the second quarter of fiscal 2022.

Prior Years’ Plan

Activities under the Fiscal 2015-2016 Plan primarily included reductions in workforce across the Company, but primarily in operations outside the United States. Payments related to the accrued restructuring liability balance for this plan are complete.

Stockholders’ Equity

12 Months Ended

Jul. 01, 2022

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Repurchase Program

During the second quarter of fiscal 2022 we completed the $7.5 million stock repurchase program approved by our board of directors in May 2018. This repurchase program was temporarily suspended from February 2020 to February 2021. In November 2021 our board of directors approved a stock repurchase program to purchase up to $10.0 million of our common stock. During fiscal 2022, 2021 and 2020 we repurchased $5.4 million, $0.8 million and $1.8 million of our common stock in the open market respectively. As of July 1, 2022, $7.3 million remained available for repurchase under our November 2021 stock repurchase program.

The following table summarizes the repurchase of our common stock:


(In thousands, except share and per-share amounts)	Shares	Weighted-Average Price Paid per Share		Aggregate purchase price
Fiscal 2022 Treasury Shares	175,356	$	30.57	$	5,361
Fiscal 2021 Treasury Shares	19,587	$	40.16	$	787
Fiscal 2020	256,046	$	6.91	$	1,769

Starting in February 2021, repurchased shares were recorded as treasury stock and we do not anticipate retiring them. Treasury stock did not participate in the two-for-one stock split in the form of a stock dividend paid on April 7, 2021. All repurchased shares prior to February 2021 were retired and reflected the two-for-one stock split. As of July 1, 2022, $7.3 million remained available for repurchase under our November 2021 stock repurchase program.

Stock Incentive Programs

Stock Equity Plan

At July 1, 2022, 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 replaced the 2007 Plan as our primary long-term incentive program (“LTIP”). The 2007 Plan was discontinued following stockholder approval of the 2018 Plan, but the outstanding awards under the 2007 Plan will continue to remain in effect in accordance with their terms; provided that, as shares are returned under the 2007 Plan upon cancellation, termination or otherwise of awards outstanding under the 2007 Plan, such shares will be available for grant under the 2018 Plan. 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.

We issue new shares of our common stock to our employees upon the exercise of stock options, vesting of restricted stock awards and units or vesting of performance share awards and units. All awards that are canceled prior to vesting or expire unexercised are returned to the approved pool of reserved shares and made available for future grants under the 2018 Plan. Shares of our common stock remaining available for future issuance under the 2018 Plan totaled 932,752 as of July 1, 2022.

On March 3, 2020, 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, to our stockholders of record as of the close of business on March 3, 2020, (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 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 The Plan, dated as of March 3, 2020, and amended as of August 27, 2020, 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 Code. We submitted the Plan to a stockholder vote and our stockholders voted to approve the Plan at the 2020 Annual Meeting of Stockholders.

Also, on September 6, 2016, our Board of Directors adopted certain amendments to our Amended and Restated Certificate of Incorporation, as amended (the “Charter Amendments”) The Charter Amendments are designed to preserve the Tax Benefits by restricting certain transfers of our common stock.

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), employees are entitled to purchase shares of our common stock at a 5% discount from the fair market value at the end of a three-month purchase period. As of July 1, 2022, 110,123 shares were reserved for future issuances under the ESPP. We issued 2,329 shares under the ESPP during fiscal 2022.

Share-Based Compensation

Total following table presents the compensation expense for share-based awards included in our consolidated statements of operations for fiscal 2022, 2021 and 2020:


	Fiscal Year
(In thousands)	2022		2021		2020
By Expense Category:
Cost of product sales and services	$	440	$	372	$	182
Research and development	246		250		112
Selling and administrative	3,148		2,299		1,392
Total share-based compensation expense	$	3,834	$	2,921	$	1,686
By Types of Award:
Options	$	582	$	757	$	588
Restricted stock awards and units	1,482		857		743
Performance share awards and units and market-based stock units	1,770		1,307		355
Total share-based compensation expense	$	3,834	$	2,921	$	1,686

The following table summarizes the unamortized compensation expense and the remaining years over which such expense would be expected to be recognized, on a weighted-average basis, by type of award:


	July 1, 2022
	Unamortized Expense		Weighted-Average Remaining Recognition Period
	(In thousands)		(Years)
Options	$	839	1.11
Restricted stock awards and units	$	7,736	2.02
Performance share awards and units	$	2,243	1.10

Stock Options

A summary of the combined stock option activity under our equity plans during fiscal 2022 is as follows:


	Shares	Weighted-Average Exercise Price-		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
				(Years)	(In thousands)
Options outstanding as of July 2, 2021	540,790	$	9.55	5.38	$	12,090
Granted	114,012	$	33.84
Exercised	(103,088)	$	9.33
Forfeited	(81,998)	$	11.35
Expired	—	$	—
Options outstanding as of July 1, 2022	469,716	$	15.15	4.68	$	5,599
Options vested and expected to vest as of July 1, 2022	469,716	$	15.15	4.68	$	5,599
Options exercisable as of July 1, 2022	111,505	$	9.97	3.3	$	1,693

The aggregate intrinsic value represents the total pre-tax intrinsic value or the aggregate difference between the closing price of our common stock on July 1, 2022 of $25.09, and the exercise price for in-the-money options that would have been received by the optionees if all options had been exercised on July 1, 2022.

Additional information related to our stock options is summarized below:


	Fiscal Year
(In thousands)	2022		2021		2020
Intrinsic value of options exercised	$	1,624	$	2,208	$	3
Fair value of options vested	$	608	$	484	$	499

The fair value of each option grant under our 2018 Stock Plan was estimated using the Black-Scholes option pricing model on the date of grant. A summary of the significant weighted-average assumptions we used in the Black-Scholes valuation model is as follows:


	Fiscal Year
	2022		2021		2020
Expected dividends	—	%	—	%	—	%
Expected volatility	61.9	%	48.5	%	51.7	%
Risk-free interest rate	0.4	%	0.2	%	1.7	%
Expected term (in years)	3.0		3.0		4.6

The following summarizes all of our stock options outstanding and exercisable as of July 1, 2022:


			Options Outstanding				Options Exercisable
Actual Range of Exercise Prices			Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Exercise Price
				(Years)
$6.42	—	$6.42	9,826	4.88	$	6.42	6,552	$	6.42
$7.23	—	$7.23	145,554	3.76	$	7.23	18,668	$	7.23
$8.90	—	$8.90	40,204	2.52	$	8.90	40,204	$	8.90
$11.00	—	$11.00	150,956	5.06	$	11.00	40,708	$	11.00
$17.25	—	$35.97	123,176	6.01	$	32.32	5,373	$	24.00
			469,716	4.68	$	15.15	111,505	$	9.97

Restricted Stock Awards and Units

A summary of the status of our restricted stock as of July 1, 2022 and changes during fiscal 2022 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Restricted stock outstanding as of July 2, 2021	189,244	$	10.46
Granted	279,588	$	32.26
Vested and released	(46,788)	$	11.57
Forfeited	(38,787)	$	16.73
Restricted stock outstanding as of July 1, 2022	383,257	$	25.59

The fair value of each restricted stock grant is based on the closing price of our common stock on the date of grant. The total grant date fair value of restricted stock that vested during fiscal 2022, 2021 and 2020 was $0.5 million, $0.5 million and $1.7 million, respectively.

Market-Based Stock Units

A summary of the status of our market-based stock units as of July 1, 2022 and changes during fiscal 2022 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Market-based stock units outstanding as of July 2, 2021	165,000	$	11.51
Granted	46,533	38.91
Vested and released	—	—
Forfeited	(3,474)	35.97
Market-based stock units outstanding as of July 1, 2022	208,059	$	14.54

The fair value for each market-based stock units with market condition was estimated using the Monte-Carlo simulation model. A summary of the significant weighted-average assumptions we used in the Monte-Carlo simulation model is as follows:


	Fiscal Year
	2022	2021
Expected dividends	—	—
Expected volatility	62.2% - 60.0%	53.2% - 48.9%
Risk-free interest rate	0.37% - 0.45%	0.13% - 0.19%
Weighted-average grant date fair value per share granted	$35.56 - $31.88	$	14.07

Performance Share Awards and Units

A summary of the status of our performance shares awards and units as of July 1, 2022 and changes during fiscal 2022 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Performance share awards and units outstanding as of July 2, 2021	103,328	$	14.58
Granted	—	$	—
Vested and released	(45,938)	$	8.66
Forfeited/Cancelled	(40,346)	$	9.38
Performance share awards and units outstanding as of July 1, 2022	17,044	$	42.85

The total grant date fair value of performance share units that vested during fiscal 2022, 2021 and 2020 was $0.4 million, $0.4 million and $0.5 million, respectively.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Segment and Geographic Information

12 Months Ended

Jul. 01, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

We operate in one reportable business segment: the design, manufacturing and sale of a range of wireless networking products, solutions and services. We conduct business globally and our sales and support activities are managed on a geographic basis. Our Chief Executive Officer is the Chief Operating Decision Maker (the “CODM”). Our CODM manages our business primarily by function globally and reviews financial information on a consolidated basis, accompanied by disaggregated information about revenues by geographic region, for purposes of allocating resources and evaluating financial performance. The profitability of our geographic regions is not a determining factor in allocating resources and the CODM does not evaluate profitability below the level of the consolidated company.

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 2022, 2021 and 2020 were as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
North America	$	199,801	$	183,071	$	151,709
Africa and Middle East	47,527		44,023		37,595
Europe	12,973		8,826		11,157
Latin America and Asia Pacific	42,658		38,991		38,181
Total Revenue	$	302,959	$	274,911	$	238,642

Revenue by country comprising more than 5% of our total revenue for fiscal 2022, 2021 and 2020 was as follows:


(In thousands, except percentages)	Revenue		% of Total Revenue
Fiscal 2022:
United States	$	198,824	65.6	%
Philippines	16,327		5.4	%
Fiscal 2021:
United States	$	181,842	66.1	%
Fiscal 2020:
United States	$	147,795	61.9	%
Philippines	$	12,550	5.3	%

Our long-lived assets, consisting primarily of net property, plant and equipment, by geographic areas based on the physical location of the assets as of July 1, 2022 and July 2, 2021 were as follows:


(In thousands)	July 1, 2022		July 2, 2021
New Zealand	$	5,149	$	6,840
United States	2,972		3,434
Slovenia	433		1,122
Other countries	333		305
Total	$	8,887	$	11,701

- 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.

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+ Details

Income Taxes

12 Months Ended

Jul. 01, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income before provision for income taxes during fiscal year 2022, 2021 and 2020 consisted of the following:


	Fiscal Year
(In thousands)	2022		2021		2020
United States	$	31,923	$	26,325	$	9,497
Foreign	(1,488)		(3,885)		(5,788)
Total income before income taxes	$	30,435	$	22,440	$	3,709

Provision for (benefit from) income taxes for fiscal year 2022, 2021 and 2020 were summarized as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
Current provision (benefit):
Federal	$	15	$	(60)	$	(10)
Foreign	1,234		2,128		3,589
State and local	333		221		45
	1,582		2,289		3,624
Deferred provision (benefit):
Federal	6,348		(75,587)		(744)
Foreign	161		983		572
State and local	1,184		(15,384)		—
	7,693		(89,988)		(172)
Total provision for (benefit from) income taxes	$	9,275	$	(87,699)	$	3,452

The provision for (benefit from) income taxes differed from the amount computed by applying the federal statutory rate of 21.0%, to our income before provision for (benefit from) income taxes as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
Tax provision at statutory rate	$	6,344	$	4,713	$	779
Valuation allowances	220		(95,796)		(6,577)
Permanent differences	242		(346)		(347)
State and local taxes, net of U.S. federal tax benefit	1,534		1,436		542
Foreign income taxed at rates different than the U.S. statutory rate	439		209		764
Executive compensation limitation	439		—		—
Stock-based compensation excess tax benefits	(580)		(482)		—
Tax credit/deductions - generated and expired	113		108		99

Foreign withholding taxes	267		1,184		303
Brazil withholding tax receivable	—		72		—

Change in uncertain tax positions	644		102		2,674


Return-to-provision/Deferred true-up adjustments	(269)		—		5,634
Other	(118)		1,101		(419)
Total provision for (benefit from) income taxes	$	9,275	$	(87,699)	$	3,452

Our provision for (benefit from) income taxes was $9.3 million of expense for fiscal 2022, $87.7 million of benefit for fiscal 2021 and $3.5 million of expense for fiscal 2020. Our tax expense for fiscal 2022 was primarily due to tax expense related to U.S. and profitable foreign subsidiaries.

Our tax benefit for fiscal 2021 was primarily due to the release of $92.2 million in valuation allowance on our U.S. federal and state deferred tax assets, offset by tax expenses related to profitable foreign subsidiaries and an increase in our reserve for uncertain tax positions.

The components of deferred tax assets and liabilities were as follows:


(In thousands)	July 1, 2022		July 2, 2021
Deferred tax assets:
Inventory	$	4,065	$	5,279
Accruals and reserves	3,248		3,437
Bad debts	157		392
Amortization	2,274		1,530
Stock compensation	807		552
Deferred revenue	1,913		1,960
Unrealized exchange gain/loss	374		197
Other	2,888		3,433
Tax credit carryforwards	4,926		5,447
Tax loss carryforwards	114,048		119,287
Total deferred tax assets before valuation allowance	134,700		141,514
Valuation allowance	(37,529)		(37,447)
Total deferred tax assets	97,171		104,067
Deferred tax liabilities:
Branch undistributed earnings reserve	176		130
Depreciation	948		450

Right of use assets	548		634
Other	650		—
Total deferred tax liabilities	2,322		1,214
Net deferred tax assets	$	94,849	$	102,853

As Reported on the Consolidated Balance Sheets
Deferred income tax assets	$	95,412	$	103,467
Deferred income tax liabilities	563		614
Total net deferred income tax assets	$	94,849	$	102,853

Our valuation allowance related to deferred income taxes, as reflected in our consolidated balance sheets, was $37.5 million as of July 1, 2022 and $37.4 million as of July 2, 2021. The change in valuation allowance for the fiscal years ended July 1, 2022 and July 2, 2021 was an increase of $0.1 million and a decrease of $98.7 million, respectively. The increase in the valuation allowance in fiscal 2022 was primarily due to losses in tax jurisdictions in which we cannot recognize tax benefits, partially offset by the release of certain U.S. federal, state, and foreign valuation allowances. The decrease in the valuation allowance in fiscal 2021 was primarily due to the release of certain U.S. federal, state, and foreign valuation allowances, partially offset by losses in tax jurisdictions in which we cannot recognize tax benefits. During the third quarter of fiscal 2021, we recorded a valuation allowance release of $92.2 million as a discrete item based on management’s reassessment of the amount of its U.S. federal and state deferred tax assets that are more likely than not to be realized, primarily as a result of increases in U.S. profitability in the current period and expectations of continued profitability in future periods. In performing our analysis, we used the most updated plans and estimates that we currently use to manage the underlying business and calculated the utilization of our deferred tax assets. As of July 1, 2022, we continue to maintain a valuation allowance of $1.1 million on certain U.S. federal and state deferred tax assets that we believe is not more likely than not to be realized in future periods.

Tax loss and credit carryforwards as of July 1, 2022 have expiration dates ranging between one year and no expiration in certain instances. The amounts of U.S. federal tax loss carryforwards as of July 1, 2022 was $358.9 million and begin to expire in fiscal 2023. The amount of U.S. federal and state tax credit carryforwards as of July 1, 2022 was $7.0 million, and certain credits began to expire in fiscal 2023. The amount of foreign tax loss carryforwards as of July 1, 2022 was $188.0 million and certain losses began to expire in fiscal 2023. The amount of foreign tax credit carryforwards as of July 1, 2022 was $2.8 million, and certain credits will begin to expire in fiscal 2026.

We use the flow-through method to account for investment tax credits generated on eligible scientific research and development expenditures. Under this method, the investment tax credits are recognized as a benefit to income tax in the year they are generated.

United States income taxes have not been provided on basis differences in foreign subsidiaries of $3.2 million as of July 1, 2022 because of our intention to reinvest these earnings indefinitely. Additionally, no foreign withholding taxes, federal or state taxes have been provided if these unremitted earnings of the Company’s foreign subsidiaries were distributed, as such amounts are considered permanently reinvested.

It is not practicable to estimate the additional income taxes, including applicable foreign withholding taxes, that would be due upon the repatriation of these earnings.

As of July 1, 2022, we had unrecognized tax benefits of $17.7 million for various federal, foreign, and state income tax matters. Unrecognized tax benefits increased by $0.4 million during fiscal 2022. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate was $9.7 million as of July 1, 2022. These unrecognized tax benefits are presented on the accompanying consolidated balance sheets net of the tax effects of net operating loss carryforwards.

We account for interest and penalties related to unrecognized tax benefits as part of our provision for income taxes. The interest accrued was $0.7 million as of July 1, 2022. As of July 2, 2021, an immaterial amount of penalties have been accrued.

Our unrecognized tax benefit activity for fiscal 2022, 2021 and 2020 was as follows:


(In thousands)	Amount
Unrecognized tax benefit as of June 28, 2019	$	12,987
Additions for tax positions in prior periods	7,023
Additions for tax positions in current periods	3,094
Decreases for tax positions in prior periods	(4,692)
Decreases related to change of foreign exchange rate	(365)
Unrecognized tax benefit as of July 3, 2020	18,047
Additions for tax positions in prior periods	184
Additions for tax positions in current periods	869
Decreases for tax positions in prior periods	(1,788)
Decreases related to change of foreign exchange rate	(57)
Unrecognized tax benefit as of July 2, 2021	17,255
Additions for tax positions in prior periods	54
Additions for tax positions in current periods	704
Decreases for tax positions in prior periods	(104)
Decreases related to change of foreign exchange rate	(202)
Unrecognized tax benefit as of July 1, 2022	$	17,707

There was no change in our unrecognized tax benefit for tax positions in prior periods for fiscal year 2022 related to settlements with tax authorities in the table above. Our unrecognized tax benefit decreased for tax positions in prior periods by $0.9 million and $3.8 million for fiscal year 2021 and 2020, respectively, related to settlements with tax authorities in the table above.

We have a number of years with open tax audits which vary from jurisdiction to jurisdiction. Our major tax jurisdictions that are open and subject to potential audits include the U.S., Singapore, Nigeria, and Saudi Arabia. The earliest years for these jurisdictions are as follows: U.S. - 2003; Singapore - 2015; Nigeria – 2006; and Saudi Arabia - 2019.

On December 27, 2020, the US enacted the Consolidated Appropriations Act of 2021 (CAA) which extended and expanded certain tax relief measures created by the CARES Act, including, but not limited to, (1) second round of Payroll Protection Program loans, and (2) the Employer Retention Credit for 2021.

On March 11, 2021, the US enacted the American Rescue Plan Act of 2021 (ARPA) which expands Section 162(m) to cover the next five most highly compensated employees for the taxable year, in addition to the “covered employees” effective for taxable years beginning after December 31, 2026. We continue to examine the elements of CAA and ARPA 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: 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(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Commitments and Contingencies

12 Months Ended

Jul. 01, 2022

Commitments and Contingencies Disclosure [Abstract]

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 July 1, 2022, we had outstanding purchase obligations and other commitments as follows:


	Payments due by period
	2023		2024		2025		2026		2027		Total
Purchase obligations with suppliers of contract manufacturers	$	45,378	$	4,530	$	2,909	$	—	$	—	$	52,817
Contractual obligations associated with software as a service and software maintenance support	2,895		922		124		—		—		3,941
Total obligations	$	48,273	$	5,452	$	3,033	$	—	$	—	$	56,758

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 July 1, 2022, 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 July 1, 2022, we had commercial commitments of $65.4 million outstanding that were not recorded on our consolidated balance sheets.

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 July 1, 2022, 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 July 1, 2022, 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 which we settled for an immaterial amount during the third quarter of 2021.

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. 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.

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 significant 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 financial statements; and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both those conditions if there is a reasonable possibility that a loss may have been incurred. Gain contingencies are not recorded until realized. We expense all legal costs incurred to resolve regulatory, legal and tax matters as incurred.

Periodically, we review the status of each significant matter to assess the potential financial exposure. If a potential loss is considered probable and the amount can be reasonably estimated, we reflect the estimated loss in our results 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 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.

Subsequent Event	12 Months Ended
Subsequent Event	Jul. 01, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn April 13, 2022, Aviat and Redline Communications, Inc. (“Redline”), a leading provider of mission-critical data infrastructure, signed a definitive agreement for Aviat to acquire all outstanding common stock of Redline. The transaction closed on July 5, 2022, subsequent to the balance sheet date. Redline allows Aviat to expand its Private Networks Offering with Private LTE/5G, Unlicensed Wireless Access Solutions, by creating an integrated end-to-end offering for wireless access and transport in the Private Networks segment, leveraging Aviat's sales channel to address a large dollar Private LTE/5G addressable market and increasing Aviat’s reach in mission-critical industrial Private Networks. Redline shareholders received $0.69 ($0.90 CAD) per share in cash. The total transaction value was approximately $12.9 million USD and the implied enterprise value was approximately $15.0 million after adding back Redline’s net debt as of July 5, 2022. Aviat is continuing to integrate Redline and additional disclosures are not available as of the time of this filing as we are in the process of determining the fair value of the assets and liabilities assumed.

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Jul. 01, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

AVIAT NETWORKS, INC.

Years Ended July 1, 2022, July 2, 2021 and July 3, 2020


(In thousands)	Balance at Beginning of Period		Charged to (Credit from) Costs and Expenses		Deductions			Balance at End of Period
Allowances for collection losses:
Year ended July 1, 2022	$	2,141	$	(1,206)	$	—		$	935
Year ended July 2, 2021	$	1,841	$	300	$	—		$	2,141
Year ended July 3, 2020	$	1,602	$	248	$	9	(1)	$	1,841

____________________________

(1) - Consisted of changes to allowance for collection losses of $0 for foreign currency translation gain and $9 thousand for uncollectible accounts charged off, net of recoveries on accounts previously charged off.

The Company and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jul. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Use of Estimates

Cash, Cash Equivalents and Restricted Cash

As of July 1, 2022 and July 2, 2021, all of our high-quality marketable debt securities were invested in prime money market funds.

Significant Concentrations

Inventories

Customer Service Inventories

Property, Plant and Equipment


Buildings			40 years
Leasehold improvements			2 to 10 years
Software			3 to 5 years
Machinery and equipment			2 to 5 years

Impairment of Long-Lived Assets

Warranties

products sold by us, our warranties generally start from the delivery date and continue for one to three years, depending on the terms.

Leases

Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the lease term.

Foreign Currency Translation

Retirement Benefits

Retirement BenefitsAs of July 1, 2022, we provided retirement benefits to substantially all employees primarily through our defined contribution retirement plans. These plans have matching and savings elements. Contributions by us to these retirement plans are based on profits and employees’ savings with no other funding requirements. Contributions to retirement plans are expensed as incurred.

Revenue Recognition

Revenue RecognitionUnder Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, we recognize revenue by applying the following five-step approach: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation.

Contracts and customer purchase orders are used to determine the existence of an arrangement.

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

Bill-and-Hold Sales

Termination Rights

Variable Consideration

Stand-alone Selling Price

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

Shipping and Handling

Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because they are also included in revenue that we bill our customers.

Costs to Obtain a Contract

Cost of Product Sales and Services

Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because they are also included in revenue that we bill our customers.

Advertising Costs

Advertising Costs We expense all advertising costs as incurred.

Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities

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

Research and Development Costs

Share-Based Compensation

We generally recognize compensation cost for share-based payment awards on a straight-line basis over the requisite service period. For an award that has a graded vesting schedule, compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. The amount of compensation cost recognized at any date must at least equal the portion of the grant-date value of the award that is vested at that date. For awards with a performance condition vesting feature, we recognize share-based compensation costs for the performance awards and units when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved. For awards with a market condition vesting feature, we recognize share-based compensation costs over the period the requisite service is rendered, regardless of when, if ever, the market condition is satisfied.

Restructuring Charges

Restructuring ChargesOur restructuring charges represent expenses incurred in connection with certain cost reduction programs that we have implemented, and consisted of the costs of employee termination costs, lease and other contract termination charges and other costs of exiting activities or geographies. A liability for costs associated with an exit or disposal activity is measured at its fair value when the liability is incurred. Expenses for one-time termination benefits are recognized at the date we notify the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. We recognize severance benefits provided as part of an ongoing benefit arrangement when the payment is probable, and the amounts can be reasonably estimated. Liabilities related to termination of an operating lease or contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates include anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. We expense all other costs related to an exit or disposal activity as incurred.

Income Taxes and Related Uncertainties

Accounting Standards Adopted and Accounting Standards Not Yet Adopted

Accounting Standards Adopted

Accounting Standards Not Yet Adopted

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.

Fair Value Measurements

We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items mainly are marketable securities and money market funds purchased from major financial institutions. Our marketable securities are included in current assets on our balance sheet as they are available to be converted into cash to fund current operations. These marketable securities are publicly traded stock measured at fair value and classified within Level 1. As of July 1, 2022, these money market funds were valued at $1.00 net asset value per share by these financial institutions.We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. The assets and liabilities related to our foreign currency forward contracts were not material as of July 1, 2022 and July 2, 2021.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 fiscal 2022, 2021 and 2020, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

The Company and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jul. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Property, Plant and Equipment

The useful lives of the assets are generally as follows:


Buildings			40 years
Leasehold improvements			2 to 10 years
Software			3 to 5 years
Machinery and equipment			2 to 5 years

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


(In thousands)	July 1, 2022		July 2, 2021
Land	$	210	$	210
Buildings and leasehold improvements	5,796		6,914
Software	21,368		21,370
Machinery and equipment	49,584		51,244
	76,958		79,738
Less accumulated depreciation and amortization	(68,071)		(68,037)
Total Property, Plant and Equipment, net	$	8,887	$	11,701

Net Income per Share of Common Stock (Tables)

12 Months Ended

Jul. 01, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income per Share

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


	Fiscal Year
(In thousands, except per share amounts)	2022		2021		2020
Numerator:
Net income	$	21,160	$	110,139	$	257

Denominator:
Weighted average shares outstanding, basic	11,167		11,036		10,782
Effect of potentially dilutive equivalent shares	653		652		154
Weighted average shares outstanding, diluted	11,820		11,688		10,936

Net income per share:
Basic	$	1.89	$	9.98	$	0.02
Diluted	$	1.79	$	9.42	$	0.02

Schedule of Antidilutive Securities Excluded from Computation of Net Income 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 antidilutive:


	Fiscal Year
(In thousands)	2022	2021	2020
Stock options	114	8	356
Restricted stock units and performance stock units	72	4	2
Total shares of common stock excluded	186	12	358

Revenue Recognition (Tables)

12 Months Ended

Jul. 01, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Contract with Customer, Asset and Liability

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


	July 1, 2022		July 2, 2021
Contract Assets
Accounts receivable, net	$	73,168	$	48,135
Unbilled receivables	$	45,857	$	37,521
Capitalized commissions	$	2,341	$	1,720
Contract Liabilities
Advance payments and unearned revenue	$	33,740	$	32,304
Unearned revenue, long-term	$	8,920	$	8,592

Leases (Tables)

12 Months Ended

Jul. 01, 2022

Leases [Abstract]

Schedule of Lease, Cost

The following summarizes our lease costs, lease term and discount rate for fiscal 2022 and 2021 (in thousands):


	Fiscal
	2022		2021
Operating lease costs	$	1,061	$	1,213
Short-term lease costs	2,252		1,639
Variable lease costs	171		324
Total lease costs	$	3,484	$	3,176

Other information related to our operating leases for fiscal 2022 and 2021 (in thousands, except for weighted average):


	Fiscal
	2022			2021
Weighted average remaining lease term	7.9 years			7.8 years
Weighted average discount rate	5.6		%	5.7		%
Operating lease assets obtained in exchange for operating lease liabilities	$	104		$	1,772

Schedule of Lessee, Operating Lease, Liability, Maturity

As of July 1, 2022, 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):


Fiscal years	Amount
2023	$	667
2024	553
2025	570
2026	476
2027	169
Thereafter	1,386
Total lease payments	3,821
Less: interest	(896)
Present value of lease liabilities	$	2,925

Balance Sheet Components (Tables)

12 Months Ended

Jul. 01, 2022

Balance Sheet Related Disclosures [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	July 1, 2022		July 2, 2021
Cash and cash equivalents	$	36,877	$	47,942
Restricted cash included in Other assets	227		256
Total cash, cash equivalents, and restricted cash	$	37,104	$	48,198

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	July 1, 2022		July 2, 2021
Cash and cash equivalents	$	36,877	$	47,942
Restricted cash included in Other assets	227		256
Total cash, cash equivalents, and restricted cash	$	37,104	$	48,198

Schedule of Accounts Receivable, Net

Our net accounts receivable are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Accounts receivable	$	74,102	$	50,276
Less: Allowances for collection losses	(934)		(2,141)
Total accounts receivable, net	$	73,168	$	48,135

Schedule of Inventories

Our inventories are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Finished products	$	14,916	$	15,409
Raw materials and supplies	10,478		8,027
Total inventories	$	25,394	$	23,436
Consigned inventories included within raw materials	$	9,796	$	6,570

Schedule of Adjustments to Inventory

Such charges incurred during fiscal 2022, 2021 and 2020 were classified in cost of product sales as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
Excess and obsolete inventory charges (recovery)	$	647	$	544	$	233
Customer service inventory write-downs	1,088		908		712
Total charges	$	1,735	$	1,452	$	945

Schedule of Property, Plant and Equipment, Net

The useful lives of the assets are generally as follows:


Buildings			40 years
Leasehold improvements			2 to 10 years
Software			3 to 5 years
Machinery and equipment			2 to 5 years

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


(In thousands)	July 1, 2022		July 2, 2021
Land	$	210	$	210
Buildings and leasehold improvements	5,796		6,914
Software	21,368		21,370
Machinery and equipment	49,584		51,244
	76,958		79,738
Less accumulated depreciation and amortization	(68,071)		(68,037)
Total Property, Plant and Equipment, net	$	8,887	$	11,701

Schedule of Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Accrued compensation and benefits	$	11,625	$	13,455
Accrued agent commissions	1,864		2,348
Accrued warranties	2,913		3,228
Other	10,049		9,123
	$	26,451	$	28,154

Schedule of Changes in Warranty Liability

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


	Fiscal Year
(In thousands)	2022		2021		2020
Balance as of the beginning of the fiscal year	$	3,228	$	3,196	$	3,323
Warranty provision recorded during the period	1,328		1,679		1,564
Consumption during the period	(1,643)		(1,647)		(1,691)
Balance as of the end of the period	$	2,913	$	3,228	$	3,196

Schedule of Advance Payments and Unearned Income

Our advance payments and unearned revenue are summarized below:


(In thousands)	July 1, 2022		July 2, 2021
Advance payments	$	1,870	$	2,445
Unearned revenue	31,870		29,859
	$	33,740	$	32,304

Fair Value Measurements of Assets and Liabilities (Tables)

12 Months Ended

Jul. 01, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, by Balance Sheet Grouping


	July 1, 2022				July 2, 2021
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Cash and cash equivalents:
Money market funds	$	5,367	$	5,367	$	26,847	$	26,847	Level 1
Bank certificates of deposit	$	3,682	$	3,682	$	3,288	$	3,288	Level 2
Marketable securities	$	10,893	$	10,893	$	—	$	—	Level 1




Liabilities:
Other accrued expenses:
Foreign exchange forward contracts	$	114	$	114	$	14	$	14	Level 2

Restructuring Activities (Tables)

12 Months Ended

Jul. 01, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Related Activities

The following table summarizes our restructuring related activities during fiscal year 2022, 2021 and 2020:


(In thousands)	Severance and Benefits						Facilities and Other
	Q4 2022 Plan		Fiscal 2021 Plan		Prior Years Plans		Prior Years Plans		Total
Balance as of June 28, 2019	$	—	$	—	$	1,089	$	238	$	1,327
Charges, net	—		—		4,049		—		4,049
Cash payments	—		—		(2,636)		—		(2,636)
Foreign currency translation (gain) loss	—		—		—		(2)		(2)
Balance as of July 3, 2020	—		—		2,502		236		2,738
Charges, net	—		2,414		(143)		—		2,271
Cash payments	—		(205)		(2,086)		—		(2,291)
Foreign currency translation (gain) loss	—		—		7		12		19
Balance as of July 2, 2021	—		2,209		280		248		2,737
Charges, net	434		271		(231)		(236)		238
Cash payments	(139)		(1,371)		(49)		—		(1,559)
Foreign currency translation (gain) loss	—		(23)		—		(12)		(35)
Balance as of July 1, 2022	$	295	$	1,086	$	—	$	—	$	1,381

Stockholders’ Equity (Tables)

12 Months Ended

Jul. 01, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Repurchase of Common Stock

The following table summarizes the repurchase of our common stock:


(In thousands, except share and per-share amounts)	Shares	Weighted-Average Price Paid per Share		Aggregate purchase price
Fiscal 2022 Treasury Shares	175,356	$	30.57	$	5,361
Fiscal 2021 Treasury Shares	19,587	$	40.16	$	787
Fiscal 2020	256,046	$	6.91	$	1,769

Schedule of Compensation Expense for Share-based Compensation Awards

Total following table presents the compensation expense for share-based awards included in our consolidated statements of operations for fiscal 2022, 2021 and 2020:


	Fiscal Year
(In thousands)	2022		2021		2020
By Expense Category:
Cost of product sales and services	$	440	$	372	$	182
Research and development	246		250		112
Selling and administrative	3,148		2,299		1,392
Total share-based compensation expense	$	3,834	$	2,921	$	1,686
By Types of Award:
Options	$	582	$	757	$	588
Restricted stock awards and units	1,482		857		743
Performance share awards and units and market-based stock units	1,770		1,307		355
Total share-based compensation expense	$	3,834	$	2,921	$	1,686

The following table summarizes the unamortized compensation expense and the remaining years over which such expense would be expected to be recognized, on a weighted-average basis, by type of award:


	July 1, 2022
	Unamortized Expense		Weighted-Average Remaining Recognition Period
	(In thousands)		(Years)
Options	$	839	1.11
Restricted stock awards and units	$	7,736	2.02
Performance share awards and units	$	2,243	1.10

Schedule of Stock Options Activities

A summary of the combined stock option activity under our equity plans during fiscal 2022 is as follows:


	Shares	Weighted-Average Exercise Price-		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
				(Years)	(In thousands)
Options outstanding as of July 2, 2021	540,790	$	9.55	5.38	$	12,090
Granted	114,012	$	33.84
Exercised	(103,088)	$	9.33
Forfeited	(81,998)	$	11.35
Expired	—	$	—
Options outstanding as of July 1, 2022	469,716	$	15.15	4.68	$	5,599
Options vested and expected to vest as of July 1, 2022	469,716	$	15.15	4.68	$	5,599
Options exercisable as of July 1, 2022	111,505	$	9.97	3.3	$	1,693

Additional Information of Stock Options

Additional information related to our stock options is summarized below:


	Fiscal Year
(In thousands)	2022		2021		2020
Intrinsic value of options exercised	$	1,624	$	2,208	$	3
Fair value of options vested	$	608	$	484	$	499

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

A summary of the significant weighted-average assumptions we used in the Black-Scholes valuation model is as follows:


	Fiscal Year
	2022		2021		2020
Expected dividends	—	%	—	%	—	%
Expected volatility	61.9	%	48.5	%	51.7	%
Risk-free interest rate	0.4	%	0.2	%	1.7	%
Expected term (in years)	3.0		3.0		4.6

Stock Options Outstanding and Exercisable

The following summarizes all of our stock options outstanding and exercisable as of July 1, 2022:


			Options Outstanding				Options Exercisable
Actual Range of Exercise Prices			Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Exercise Price
				(Years)
$6.42	—	$6.42	9,826	4.88	$	6.42	6,552	$	6.42
$7.23	—	$7.23	145,554	3.76	$	7.23	18,668	$	7.23
$8.90	—	$8.90	40,204	2.52	$	8.90	40,204	$	8.90
$11.00	—	$11.00	150,956	5.06	$	11.00	40,708	$	11.00
$17.25	—	$35.97	123,176	6.01	$	32.32	5,373	$	24.00
			469,716	4.68	$	15.15	111,505	$	9.97

Status of Restricted Stock

A summary of the status of our restricted stock as of July 1, 2022 and changes during fiscal 2022 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Restricted stock outstanding as of July 2, 2021	189,244	$	10.46
Granted	279,588	$	32.26
Vested and released	(46,788)	$	11.57
Forfeited	(38,787)	$	16.73
Restricted stock outstanding as of July 1, 2022	383,257	$	25.59

A summary of the status of our market-based stock units as of July 1, 2022 and changes during fiscal 2022 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Market-based stock units outstanding as of July 2, 2021	165,000	$	11.51
Granted	46,533	38.91
Vested and released	—	—
Forfeited	(3,474)	35.97
Market-based stock units outstanding as of July 1, 2022	208,059	$	14.54

Schedule of Market Condition Award Valuation Assumptions

A summary of the significant weighted-average assumptions we used in the Monte-Carlo simulation model is as follows:


	Fiscal Year
	2022	2021
Expected dividends	—	—
Expected volatility	62.2% - 60.0%	53.2% - 48.9%
Risk-free interest rate	0.37% - 0.45%	0.13% - 0.19%
Weighted-average grant date fair value per share granted	$35.56 - $31.88	$	14.07

Status of Performance-based Shares

A summary of the status of our performance shares awards and units as of July 1, 2022 and changes during fiscal 2022 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Performance share awards and units outstanding as of July 2, 2021	103,328	$	14.58
Granted	—	$	—
Vested and released	(45,938)	$	8.66
Forfeited/Cancelled	(40,346)	$	9.38
Performance share awards and units outstanding as of July 1, 2022	17,044	$	42.85

Segment and Geographic Information (Tables)

12 Months Ended

Jul. 01, 2022

Segment Reporting [Abstract]

Schedule of Revenue by Region

Revenue by region for 2022, 2021 and 2020 were as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
North America	$	199,801	$	183,071	$	151,709
Africa and Middle East	47,527		44,023		37,595
Europe	12,973		8,826		11,157
Latin America and Asia Pacific	42,658		38,991		38,181
Total Revenue	$	302,959	$	274,911	$	238,642

Schedule of Revenue by Country

Revenue by country comprising more than 5% of our total revenue for fiscal 2022, 2021 and 2020 was as follows:


(In thousands, except percentages)	Revenue		% of Total Revenue
Fiscal 2022:
United States	$	198,824	65.6	%
Philippines	16,327		5.4	%
Fiscal 2021:
United States	$	181,842	66.1	%
Fiscal 2020:
United States	$	147,795	61.9	%
Philippines	$	12,550	5.3	%

Schedule of Long-Lived Assets by Country

Our long-lived assets, consisting primarily of net property, plant and equipment, by geographic areas based on the physical location of the assets as of July 1, 2022 and July 2, 2021 were as follows:


(In thousands)	July 1, 2022		July 2, 2021
New Zealand	$	5,149	$	6,840
United States	2,972		3,434
Slovenia	433		1,122
Other countries	333		305
Total	$	8,887	$	11,701

Income Taxes (Tables)

12 Months Ended

Jul. 01, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before provision for income taxes during fiscal year 2022, 2021 and 2020 consisted of the following:


	Fiscal Year
(In thousands)	2022		2021		2020
United States	$	31,923	$	26,325	$	9,497
Foreign	(1,488)		(3,885)		(5,788)
Total income before income taxes	$	30,435	$	22,440	$	3,709

Schedule of Components of Income Tax Expense (Benefit)

Provision for (benefit from) income taxes for fiscal year 2022, 2021 and 2020 were summarized as follows:


	Fiscal Year
(In thousands)	2022		2021		2020
Current provision (benefit):
Federal	$	15	$	(60)	$	(10)
Foreign	1,234		2,128		3,589
State and local	333		221		45
	1,582		2,289		3,624
Deferred provision (benefit):
Federal	6,348		(75,587)		(744)
Foreign	161		983		572
State and local	1,184		(15,384)		—
	7,693		(89,988)		(172)
Total provision for (benefit from) income taxes	$	9,275	$	(87,699)	$	3,452

Schedule of Effective Income Tax Rate Reconciliation


	Fiscal Year
(In thousands)	2022		2021		2020
Tax provision at statutory rate	$	6,344	$	4,713	$	779
Valuation allowances	220		(95,796)		(6,577)
Permanent differences	242		(346)		(347)
State and local taxes, net of U.S. federal tax benefit	1,534		1,436		542
Foreign income taxed at rates different than the U.S. statutory rate	439		209		764
Executive compensation limitation	439		—		—
Stock-based compensation excess tax benefits	(580)		(482)		—
Tax credit/deductions - generated and expired	113		108		99

Foreign withholding taxes	267		1,184		303
Brazil withholding tax receivable	—		72		—

Change in uncertain tax positions	644		102		2,674


Return-to-provision/Deferred true-up adjustments	(269)		—		5,634
Other	(118)		1,101		(419)
Total provision for (benefit from) income taxes	$	9,275	$	(87,699)	$	3,452

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:


(In thousands)	July 1, 2022		July 2, 2021
Deferred tax assets:
Inventory	$	4,065	$	5,279
Accruals and reserves	3,248		3,437
Bad debts	157		392
Amortization	2,274		1,530
Stock compensation	807		552
Deferred revenue	1,913		1,960
Unrealized exchange gain/loss	374		197
Other	2,888		3,433
Tax credit carryforwards	4,926		5,447
Tax loss carryforwards	114,048		119,287
Total deferred tax assets before valuation allowance	134,700		141,514
Valuation allowance	(37,529)		(37,447)
Total deferred tax assets	97,171		104,067
Deferred tax liabilities:
Branch undistributed earnings reserve	176		130
Depreciation	948		450

Right of use assets	548		634
Other	650		—
Total deferred tax liabilities	2,322		1,214
Net deferred tax assets	$	94,849	$	102,853

As Reported on the Consolidated Balance Sheets
Deferred income tax assets	$	95,412	$	103,467
Deferred income tax liabilities	563		614
Total net deferred income tax assets	$	94,849	$	102,853

Schedule of Unrecognized Tax Benefits Roll Forward

Our unrecognized tax benefit activity for fiscal 2022, 2021 and 2020 was as follows:


(In thousands)	Amount
Unrecognized tax benefit as of June 28, 2019	$	12,987
Additions for tax positions in prior periods	7,023
Additions for tax positions in current periods	3,094
Decreases for tax positions in prior periods	(4,692)
Decreases related to change of foreign exchange rate	(365)
Unrecognized tax benefit as of July 3, 2020	18,047
Additions for tax positions in prior periods	184
Additions for tax positions in current periods	869
Decreases for tax positions in prior periods	(1,788)
Decreases related to change of foreign exchange rate	(57)
Unrecognized tax benefit as of July 2, 2021	17,255
Additions for tax positions in prior periods	54
Additions for tax positions in current periods	704
Decreases for tax positions in prior periods	(104)
Decreases related to change of foreign exchange rate	(202)
Unrecognized tax benefit as of July 1, 2022	$	17,707

Commitments and Contingencies (Tables)

12 Months Ended

Jul. 01, 2022

Commitments and Contingencies Disclosure [Abstract]

Long-Term Purchase Commitment

As of July 1, 2022, we had outstanding purchase obligations and other commitments as follows:


	Payments due by period
	2023		2024		2025		2026		2027		Total
Purchase obligations with suppliers of contract manufacturers	$	45,378	$	4,530	$	2,909	$	—	$	—	$	52,817
Contractual obligations associated with software as a service and software maintenance support	2,895		922		124		—		—		3,941
Total obligations	$	48,273	$	5,452	$	3,033	$	—	$	—	$	56,758

The Company and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions		12 Months Ended
	Apr. 07, 2021	Jul. 01, 2022 USD ($)	Jul. 02, 2021 USD ($)	Jul. 03, 2020 USD ($)
Concentration Risk [Line Items]
Stock split, conversion ratio	2
Lessee renewal term		3 years
Net foreign exchange (loss) gains		$ (1.1)	$ (1.0)	$ 0.4
Retirement plan expense		$ 1.9	$ 1.8	$ 1.7
Capitalized development cost, amortization period (over)		3 years
Minimum
Concentration Risk [Line Items]
Product warranty period		1 year
Lessee term		1 year
Maximum
Concentration Risk [Line Items]
Product warranty period		3 years
Lessee term		20 years
Customer Services Inventories \| Minimum
Concentration Risk [Line Items]
Product warranty period		12 months
Customer Services Inventories \| Maximum
Concentration Risk [Line Items]
Product warranty period		36 months
Customer Concentration Risk \| Total Revenue \| Motorola Solutions Inc
Concentration Risk [Line Items]
Concentration risk, percentage		13.00%
Customer Concentration Risk \| Accounts Receivable Benchmark \| Mobile Telephone Networks
Concentration Risk [Line Items]
Concentration risk, percentage		17.00%	14.00%

The Company and Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details)	12 Months Ended
	Jul. 01, 2022
Buildings
Property, Plant and Equipment [Line Items]
Useful life	40 years
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	10 years
Software \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years

Net Income per Share of Common Stock (Schedule of Basic and Diluted Net (Loss) Income per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Numerator:
Net income, basic	$ 21,160	$ 110,139	$ 257
Net income, diluted	$ 21,160	$ 110,139	$ 257
Denominator:
Weighted average shares outstanding, basic (in shares)	11,167	11,036	10,782
Effect of potentially dilutive equivalent shares (in shares)	653	652	154
Weighted average shares outstanding, diluted (in shares)	11,820	11,688	10,936
Net income per share:
Basic (in dollars per share)	$ 1.89	$ 9.98	$ 0.02
Diluted (in dollars per share)	$ 1.79	$ 9.42	$ 0.02

Net Income per Share of Common Stock (Schedule of Common Stock Excluded Because they were Antidilutive) (Details) - shares shares in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock excluded (in shares)	186	12	358
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock excluded (in shares)	114	8	356
Restricted stock units and performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock excluded (in shares)	72	4	2

Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021
Disaggregation of Revenue [Line Items]
Advance payments and unearned income	$ 42.7
Revenue to be recognized, percentage	60.00%
Services
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 23.3	$ 21.9
Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms	120 days

Revenue Recognition (Contracted Balances) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Contract Assets
Accounts receivable, net	$ 73,168	$ 48,135
Unbilled receivables	45,857	37,521
Capitalized commissions	2,341	1,720
Contract Liabilities
Advance payments and unearned revenue	33,740	32,304
Unearned revenue, long-term	$ 8,920	$ 8,592

Revenue Recognition (Remaining Performance Obligations) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-02 $ in Millions	Jul. 01, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 97.0
Remaining performance obligation, percentage	50.00%
Expected timing of satisfaction, period	12 months

Leases (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Operating Leased Assets [Line Items]
Lessee renewal term	3 years
Right of use assets	$ 2,759	$ 3,816
Short-term lease liabilities	513	769
Long-term lease liabilities	2,412	3,223
Cash paid for lease liabilities	700
Rental expense for operating leases	$ 3,600	$ 3,300	$ 3,300
Office Building In Austin, Texas
Operating Leased Assets [Line Items]
Operating lease term (in years)	36 months
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	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021
Leases [Abstract]
Operating lease costs	$ 1,061	$ 1,213
Short-term lease costs	2,252	1,639
Variable lease costs	171	324
Total lease costs	$ 3,484	$ 3,176

Leases (Other Information Related to Operating Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021
Leases [Abstract]
Weighted average remaining lease term	7 years 10 months 24 days	7 years 9 months 18 days
Weighted average discount rate	5.60%	5.70%
Operating lease assets obtained in exchange for operating lease liabilities	$ 104	$ 1,772

Leases (Operating Leases, Future Minimum Payments Due) (Details) $ in Thousands	Jul. 01, 2022 USD ($)
Leases [Abstract]
2023	$ 667
2024	553
2025	570
2026	476
2027	169
Thereafter	1,386
Total lease payments	3,821
Less: interest	(896)
Present value of lease liabilities	$ 2,925

Balance Sheet Components (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020	Jun. 28, 2019
Balance Sheet Related Disclosures [Abstract]
Cash and cash equivalents	$ 36,877	$ 47,942
Restricted cash included in Other assets	227	256
Total cash, cash equivalents, and restricted cash	$ 37,104	$ 48,198	$ 41,872	$ 32,201

Balance Sheet Components (Receivables) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 74,102	$ 50,276
Less: Allowances for collection losses	(934)	(2,141)
Total accounts receivable, net	$ 73,168	$ 48,135

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Balance Sheet Related Disclosures [Abstract]
Finished products	$ 14,916	$ 15,409
Raw materials and supplies	10,478	8,027
Total inventories	25,394	23,436
Consigned inventories included within raw materials	$ 9,796	$ 6,570

Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Balance Sheet Related Disclosures [Abstract]
Excess and obsolete inventory charges (recovery)	$ 647	$ 544	$ 233
Customer service inventory write-downs	1,088	908	712
Total charges	$ 1,735	$ 1,452	$ 945

Balance Sheet Components (Assets Held for Sale) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 01, 2022	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Balance Sheet Related Disclosures [Abstract]
Proceeds from sale of asset held for sale	$ 2,300	$ 2,284	$ 0	$ 0
Gain on disposition of property plant equipment	$ 100	$ (11)	$ (6)	$ (56)

Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 76,958	$ 79,738
Less accumulated depreciation and amortization	(68,071)	(68,037)
Total Property, Plant and Equipment, net	8,887	11,701
Depreciation and amortization of property, plant and equipment	4,463	5,383	$ 4,387
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	210	210
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,796	6,914
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	21,368	21,370
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	49,584	51,244
Asset under construction
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,200	$ 300

Balance Sheet Components (Accrued Expenses) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Balance Sheet Related Disclosures [Abstract]
Accrued compensation and benefits	$ 11,625	$ 13,455
Accrued agent commissions	1,864	2,348
Accrued warranties	2,913	3,228
Other	10,049	9,123
Accrued expenses	$ 26,451	$ 28,154

Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Warranty Liability Roll Forward
Balance as of the beginning of the fiscal year	$ 3,228	$ 3,196	$ 3,323
Warranty provision recorded during the period	1,328	1,679	1,564
Consumption during the period	(1,643)	(1,647)	(1,691)
Balance as of the end of the period	$ 2,913	$ 3,228	$ 3,196

Balance Sheet Components (Advance Payments and Unearned Revenue) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Balance Sheet Related Disclosures [Abstract]
Advance payments	$ 1,870	$ 2,445
Unearned revenue	31,870	29,859
Advance payments and unearned revenue	$ 33,740	$ 32,304

Fair Value Measurements of Assets and Liabilities (Details) - Recurring - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Level 1 \| Carrying Amount
Assets:
Marketable securities	$ 10,893	$ 0
Level 1 \| Carrying Amount \| Money market funds
Assets:
Cash and cash equivalents	5,367	26,847
Level 1 \| Fair Value
Assets:
Marketable securities	10,893	0
Level 1 \| Fair Value \| Money market funds
Assets:
Cash and cash equivalents	5,367	26,847
Level 2 \| Carrying Amount
Liabilities:
Foreign exchange forward contracts	114	14
Level 2 \| Carrying Amount \| Bank certificates of deposit
Assets:
Cash and cash equivalents	3,682	3,288
Level 2 \| Fair Value
Liabilities:
Foreign exchange forward contracts	114	14
Level 2 \| Fair Value \| Bank certificates of deposit
Assets:
Cash and cash equivalents	$ 3,682	$ 3,288

Credit Facility and Debt (Details) - SVB Credit Facility - USD ($)	12 Months Ended
	Jul. 01, 2022	May 17, 2020
Short-term Advances
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 25,000,000
Line of credit outstanding	$ 0
Domestic Line of Credit
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		25,000,000
Domestic Line of Credit \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Letter of Credit
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 12,000,000
Letters of credit outstanding	$ 3,300,000
Line of Credit
Line of Credit Facility [Line Items]
Available credit under credit facility	$ 21,700,000
Additional spread on applicable rate in event of default	5.00%
Line of Credit \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%
Line of Credit \| Minimum \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Line of Credit \| Maximum \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%

Restructuring Activities (Restructuring Related Activities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	$ 2,737	$ 2,738	$ 1,327
Charges, net	238	2,271	4,049
Cash payments	(1,559)	(2,291)	(2,636)
Foreign currency translation (gain) loss	(35)	19	(2)
Restructuring liability, end of period	1,381	2,737	2,738
Severance and Benefits \| Q4 2022 Plan
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	0	0	0
Charges, net	434	0	0
Cash payments	(139)	0	0
Foreign currency translation (gain) loss	0	0	0
Restructuring liability, end of period	295	0	0
Severance and Benefits \| Fiscal 2021 Plan
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	2,209	0	0
Charges, net	271	2,414	0
Cash payments	(1,371)	(205)	0
Foreign currency translation (gain) loss	(23)	0	0
Restructuring liability, end of period	1,086	2,209	0
Severance and Benefits \| Prior Years Plans
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	280	2,502	1,089
Charges, net	(231)	(143)	4,049
Cash payments	(49)	(2,086)	(2,636)
Foreign currency translation (gain) loss	0	7	0
Restructuring liability, end of period	0	280	2,502
Facilities and Other \| Prior Years Plans
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	248	236	238
Charges, net	(236)	0	0
Cash payments	0	0	0
Foreign currency translation (gain) loss	(12)	12	(2)
Restructuring liability, end of period	$ 0	$ 248	$ 236

Restructuring Activities (Narrative) (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Jul. 01, 2022 USD ($) employee	Apr. 02, 2021 employee	Jul. 01, 2022 USD ($)	Jul. 02, 2021 USD ($)	Jul. 03, 2020 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring liabilities	$ 1,381		$ 1,381	$ 2,737
Restructuring charges			238	2,271	$ 4,049
Q4 2022 Plan
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated \| employee	11
Q4 2022 Plan \| Severance and Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges			434	0	0
Fiscal 2021 Plan
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated \| employee		30
Fiscal 2021 Plan \| Severance and Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 271	$ 2,414	$ 0

Stockholders’ Equity (Narrative) (Details)		12 Months Ended
Stockholders’ Equity (Narrative) (Details)	Apr. 07, 2021	Jul. 01, 2022 USD ($) plan $ / shares shares	Jul. 02, 2021 USD ($) $ / shares	Jul. 03, 2020 USD ($)	Nov. 30, 2021 USD ($)	Mar. 03, 2020 $ / shares shares	May 31, 2018 USD ($)	Sep. 06, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock split, conversion ratio	2
Number of rights declared as dividend for each share of outstanding common stock \| shares						1
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
Closing price of common stock (in dollars per share) \| $ / shares		$ 25.09
Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of preferred stocks to be purchased with each right \| shares								0.001
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares) \| shares		110,123
Employee stock purchase plan, percentage discount from fair market value		5.00%
Employee stock purchase plan, purchase period		3 months
Number of shares issued (in shares) \| shares		2,329
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of awards vested \| $		$ 500,000	$ 500,000	$ 1,700,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of awards vested \| $		$ 400,000	400,000	500,000
2018 Incentive 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) \| shares		500,000
Number of shares available for grant (in shares) \| shares		932,752
2018 Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration period		7 years
2018 Incentive Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
May 2018 Stock Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount \| $							$ 7,500,000
November 2021 Stock Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount \| $					$ 10,000,000
Aggregate purchase price \| $		$ 5,361,000	$ 787,000	$ 1,769,000
Remaining value available under stock repurchase program \| $		$ 7,300,000

Stockholders’ Equity (Repurchase of Common Stock) (Details) - November 2021 Stock Repurchase Program - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Equity, Class of Treasury Stock [Line Items]
Shares (in shares)	175,356	19,587	256,046
Weighted-Average Price Paid per Share (in dollars per share)	$ 30.57	$ 40.16	$ 6.91
Aggregate purchase price	$ 5,361	$ 787	$ 1,769

Stockholders’ Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,834	$ 2,921	$ 1,686
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	582	757	588
Restricted stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,482	857	743
Performance share awards and units and market-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,770	1,307	355
Cost of product sales and services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	440	372	182
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	246	250	112
Selling and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,148	$ 2,299	$ 1,392

Stockholders’ Equity (Unamortized Expenses) (Details) $ in Thousands	12 Months Ended
	Jul. 01, 2022 USD ($)
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Expense	$ 839
Weighted-Average Remaining Recognition Period	1 year 1 month 9 days
Restricted stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Expense	$ 7,736
Weighted-Average Remaining Recognition Period	2 years 7 days
Performance share awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Expense	$ 2,243
Weighted-Average Remaining Recognition Period	1 year 1 month 6 days

Stockholders’ Equity (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021
Shares
Options outstanding beginning of the period (in shares)	540,790
Granted (in shares)	114,012
Exercised (in shares)	(103,088)
Forfeited (in shares)	(81,998)
Expired (in shares)	0
Options outstanding at the end of the period (in shares)	469,716	540,790
Options vested and expected to vest at the end of the period (in shares)	469,716
Options exercisable at the end of the period (in shares)	111,505
Weighted-Average Exercise Price-
Options outstanding, beginning (in dollars per share)	$ 9.55
Granted (in dollars per share)	33.84
Exercised (in dollars per share)	9.33
Forfeited (in dollars per share)	11.35
Expired (in dollars per share)	0
Options outstanding, at the end of the period (in dollars per share)	15.15	$ 9.55
Options vested and expected to vest at the end of the period (in dollars per share)	15.15
Options exercisable at the end of the period (in dollars per share)	$ 9.97
Weighted-average remaining contractual life, options outstanding	4 years 8 months 4 days	5 years 4 months 17 days
Weighted-average remaining contractual life, options vested and expected to vest	4 years 8 months 4 days
Weighted-average remaining contractual life, options exercisable	3 years 3 months 18 days
Aggregate intrinsic value, options outstanding	$ 5,599	$ 12,090
Aggregate intrinsic value, options vested and expected to vest	5,599
Aggregate intrinsic value, options exercisable	$ 1,693

Stockholders’ Equity (Additional Option Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Share-Based Payment Arrangement [Abstract]
Intrinsic value of options exercised	$ 1,624	$ 2,208	$ 3
Fair value of options vested	$ 608	$ 484	$ 499

Stockholders’ Equity (Weighted Average Assumptions) (Details) - $ / shares	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividends	0.00%	0.00%	0.00%
Expected volatility	61.90%	48.50%	51.70%
Risk-free interest rate	0.40%	0.20%	1.70%
Expected term (in years)	3 years	3 years	4 years 7 months 6 days
Market Based Stock Units (MSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividends	0.00%	0.00%
Expected volatility, minimum	62.20%	53.20%
Expected volatility, maximum	60.00%	48.90%
Risk-free interest rate, minimum	0.37%	0.13%
Risk-free interest rate, maximum	0.45%	0.19%
Weighted-average grant date fair value per share granted (in dollars per share)		$ 14.07
Market Based Stock Units (MSU) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value per share granted (in dollars per share)	$ 35.56
Market Based Stock Units (MSU) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value per share granted (in dollars per share)	$ 31.88

Stockholders’ Equity (Options by Exercise Price Range) (Details)	12 Months Ended
	Jul. 01, 2022 $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number Outstanding (in shares) \| shares	469,716
Weighted-Average Remaining Contractual Life	4 years 8 months 4 days
Weighted-Average Exercise Price (in dollars per share)	$ 15.15
Number Exercisable (in shares) \| shares	111,505
Weighted-Average Exercise Price (in dollars per share)	$ 9.97
6.42-6.42
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (in dollars per share)	6.42
Actual Range of Exercise Prices, Upper Limit (in dollars per share)	$ 6.42
Number Outstanding (in shares) \| shares	9,826
Weighted-Average Remaining Contractual Life	4 years 10 months 17 days
Weighted-Average Exercise Price (in dollars per share)	$ 6.42
Number Exercisable (in shares) \| shares	6,552
Weighted-Average Exercise Price (in dollars per share)	$ 6.42
7.23-7.23
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (in dollars per share)	7.23
Actual Range of Exercise Prices, Upper Limit (in dollars per share)	$ 7.23
Number Outstanding (in shares) \| shares	145,554
Weighted-Average Remaining Contractual Life	3 years 9 months 3 days
Weighted-Average Exercise Price (in dollars per share)	$ 7.23
Number Exercisable (in shares) \| shares	18,668
Weighted-Average Exercise Price (in dollars per share)	$ 7.23
8.90-8.90
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (in dollars per share)	8.90
Actual Range of Exercise Prices, Upper Limit (in dollars per share)	$ 8.90
Number Outstanding (in shares) \| shares	40,204
Weighted-Average Remaining Contractual Life	2 years 6 months 7 days
Weighted-Average Exercise Price (in dollars per share)	$ 8.90
Number Exercisable (in shares) \| shares	40,204
Weighted-Average Exercise Price (in dollars per share)	$ 8.90
11.00-11.00
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (in dollars per share)	11.00
Actual Range of Exercise Prices, Upper Limit (in dollars per share)	$ 11.00
Number Outstanding (in shares) \| shares	150,956
Weighted-Average Remaining Contractual Life	5 years 21 days
Weighted-Average Exercise Price (in dollars per share)	$ 11.00
Number Exercisable (in shares) \| shares	40,708
Weighted-Average Exercise Price (in dollars per share)	$ 11.00
17.25-35.97
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (in dollars per share)	17.25
Actual Range of Exercise Prices, Upper Limit (in dollars per share)	$ 35.97
Number Outstanding (in shares) \| shares	123,176
Weighted-Average Remaining Contractual Life	6 years 3 days
Weighted-Average Exercise Price (in dollars per share)	$ 32.32
Number Exercisable (in shares) \| shares	5,373
Weighted-Average Exercise Price (in dollars per share)	$ 24.00

Stockholders’ Equity (Restricted Stock Activity) (Details) - Restricted Stock	12 Months Ended
	Jul. 01, 2022 $ / shares shares
Shares
Shares outstanding, beginning balance (in shares) \| shares	189,244
Granted (in shares) \| shares	279,588
Vested and released (in shares) \| shares	(46,788)
Forfeited (in shares) \| shares	(38,787)
Shares outstanding, ending balance (in shares) \| shares	383,257
Weighted-Average Grant Date Fair Value
Shares outstanding, beginning (in dollars per share) \| $ / shares	$ 10.46
Granted (in dollars per share) \| $ / shares	32.26
Vested and released (in dollars per share) \| $ / shares	11.57
Forfeited (in dollars per share) \| $ / shares	16.73
Shares outstanding, end (in dollars per share) \| $ / shares	$ 25.59

Stockholders’ Equity (Market Based Awards) (Details) - Market Based Stock Units (MSU)	12 Months Ended
	Jul. 01, 2022 $ / shares shares
Shares
Shares outstanding, beginning balance (in shares) \| shares	165,000
Granted (in shares) \| shares	46,533
Vested and released (in shares) \| shares	0
Forfeited (in shares) \| shares	(3,474)
Shares outstanding, ending balance (in shares) \| shares	208,059
Weighted-Average Grant Date Fair Value
Shares outstanding, beginning (in dollars per share) \| $ / shares	$ 11.51
Granted (in dollars per share) \| $ / shares	38.91
Vested and released (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	35.97
Shares outstanding, end (in dollars per share) \| $ / shares	$ 14.54

Stockholders’ Equity (Performance Share Activity) (Details) - Performance Shares	12 Months Ended
	Jul. 01, 2022 $ / shares shares
Shares
Shares outstanding, beginning balance (in shares) \| shares	103,328
Granted (in shares) \| shares	0
Vested and released (in shares) \| shares	(45,938)
Forfeited/Cancelled (in shares) \| shares	(40,346)
Shares outstanding, ending balance (in shares) \| shares	17,044
Weighted-Average Grant Date Fair Value
Shares outstanding, beginning (in dollars per share) \| $ / shares	$ 14.58
Granted (in dollars per share) \| $ / shares	0
Vested and released (in dollars per share) \| $ / shares	8.66
Forfeited/Cancelled (in dollars per share) \| $ / shares	9.38
Shares outstanding, end (in dollars per share) \| $ / shares	$ 42.85

Segment and Geographic Information (Narrative) (Details)	12 Months Ended
	Jul. 01, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	1

Segment and Geographic Information (Revenue by Region) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 302,959	$ 274,911	$ 238,642
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	199,801	183,071	151,709
Africa and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	47,527	44,023	37,595
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	12,973	8,826	11,157
Latin America and Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 42,658	$ 38,991	$ 38,181

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Segment and Geographic Information (Revenue by Country) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 302,959	$ 274,911	$ 238,642
Revenue by Country \| Total Revenue \| United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 198,824	$ 181,842	$ 147,795
% of Total Revenue	65.60%	66.10%	61.90%
Revenue by Country \| Total Revenue \| Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 16,327		$ 12,550
% of Total Revenue	5.40%		5.30%

- Definition

+ References

+ Details

Segment and Geographic Information (Long-Lived Assets by Country) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 8,887	$ 11,701
New Zealand
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	5,149	6,840
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	2,972	3,434
Slovenia
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	433	1,122
Other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 333	$ 305

Income Taxes (Income before Provision for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Income Tax Disclosure [Abstract]
United States	$ 31,923	$ 26,325	$ 9,497
Foreign	(1,488)	(3,885)	(5,788)
Income before income taxes	$ 30,435	$ 22,440	$ 3,709

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
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+ Details

Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Current provision (benefit):
Federal	$ 15	$ (60)	$ (10)
Foreign	1,234	2,128	3,589
State and local	333	221	45
Total current provision	1,582	2,289	3,624
Deferred provision (benefit):
Federal	6,348	(75,587)	(744)
Foreign	161	983	572
State and local	1,184	(15,384)	0
Total deferred provision (benefit)	7,693	(89,988)	(172)
Total provision for (benefit from) income taxes	$ 9,275	$ (87,699)	$ 3,452

Income Taxes (Effective Income Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Income Tax Disclosure [Abstract]
Tax provision at statutory rate	$ 6,344	$ 4,713	$ 779
Valuation allowances	220	(95,796)	(6,577)
Permanent differences	242	(346)	(347)
State and local taxes, net of U.S. federal tax benefit	1,534	1,436	542
Foreign income taxed at rates different than the U.S. statutory rate	439	209	764
Executive compensation limitation	439	0	0
Stock-based compensation excess tax benefits	(580)	(482)	0
Tax credit/deductions - generated and expired	113	108	99
Foreign withholding taxes	267	1,184	303
Brazil withholding tax receivable	0	72	0
Change in uncertain tax positions	644	102	2,674
Return-to-provision/Deferred true-up adjustments	(269)	0	5,634
Other	(118)	1,101	(419)
Total provision for (benefit from) income taxes	$ 9,275	$ (87,699)	$ 3,452

Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($)	Apr. 02, 2021	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020	Jun. 28, 2019
Income Tax Examination [Line Items]
Income tax expense (benefit)		$ 9,275,000	$ (87,699,000)	$ 3,452,000
Increase (decrease) of valuation allowance		100,000	(98,700,000)
Valuation allowance		37,529,000	37,447,000
Undistributed earnings of foreign subsidiaries		3,200,000
Unrecognized tax benefits		17,707,000	17,255,000	18,047,000	$ 12,987,000
Increase (decrease) in unrecognized tax benefits		400,000
Unrecognized tax benefits that would impact effective tax rate		9,700,000
Interest accrued on unrecognized tax benefits		700,000
Unrecognized tax benefits, decrease resulting from settlements with tax authorities		0	900,000	$ 3,800,000
U. S. federal and state
Income Tax Examination [Line Items]
Increase (decrease) of valuation allowance	$ (92,200,000)		$ (92,200,000)
Valuation allowance		1,100,000
Tax credit carryforward, amount		7,000,000
U. S. Federal
Income Tax Examination [Line Items]
Tax loss carryforward amount		358,900,000
Foreign Tax
Income Tax Examination [Line Items]
Tax loss carryforward amount		188,000,000
Tax credit carryforward, amount		$ 2,800,000

Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Jul. 02, 2021
Deferred tax assets:
Inventory	$ 4,065	$ 5,279
Accruals and reserves	3,248	3,437
Bad debts	157	392
Amortization	2,274	1,530
Stock compensation	807	552
Deferred revenue	1,913	1,960
Unrealized exchange gain/loss	374	197
Other	2,888	3,433
Tax credit carryforwards	4,926	5,447
Tax loss carryforwards	114,048	119,287
Total deferred tax assets before valuation allowance	134,700	141,514
Valuation allowance	(37,529)	(37,447)
Total deferred tax assets	97,171	104,067
Deferred tax liabilities:
Branch undistributed earnings reserve	176	130
Depreciation	948	450
Right of use assets	548	634
Other	650	0
Total deferred tax liabilities	2,322	1,214
Net deferred tax assets	94,849	102,853
Deferred income tax assets	95,412	103,467
Deferred income tax liabilities	$ 563	$ 614

Income Taxes (Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning of period	$ 17,255	$ 18,047	$ 12,987
Additions for tax positions in prior periods	54	184	7,023
Additions for tax positions in current periods	704	869	3,094
Decreases for tax positions in prior periods	(104)	(1,788)	(4,692)
Decreases related to change of foreign exchange rate	(202)	(57)	(365)
Unrecognized tax benefit, end of period	$ 17,707	$ 17,255	$ 18,047

Commitments and Contingencies - Outstanding Purchase Obligations and Other Commitments (Details) $ in Thousands	Jul. 01, 2022 USD ($)
Long-Term Purchase Commitment [Line Items]
2023	$ 48,273
2024	5,452
2025	3,033
2026	0
2027	0
Total	56,758
Purchase obligations with suppliers of contract manufacturers
Long-Term Purchase Commitment [Line Items]
2023	45,378
2024	4,530
2025	2,909
2026	0
2027	0
Total	52,817
Contractual obligations associated with software as a service and software maintenance support
Long-Term Purchase Commitment [Line Items]
2023	2,895
2024	922
2025	124
2026	0
2027	0
Total	$ 3,941

Commitments and Contingencies - Additional Information (Details) $ in Millions	12 Months Ended
	Jul. 01, 2022 USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Commercial commitments outstanding	$ 65.4
Maximum
Property Subject to or Available for Operating Lease [Line Items]
Guarantee term	2 years

Subsequent Event (Details) - Redline Communications Group, Inc $ / shares in Units, $ in Millions	Jul. 05, 2022 USD ($)	Apr. 13, 2022 $ / shares	Apr. 13, 2022 $ / shares
Subsequent Event [Line Items]
Business acquisition, share price (in dollars per share) \| (per share)		$ 0.69	$ 0.90
Subsequent Event
Subsequent Event [Line Items]
Business combination, consideration transferred	$ 12.9
Implied enterprise value	$ 15.0

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowances for collection losses - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 2,141	$ 1,841	$ 1,602
Charged to (Credit from) Costs and Expenses	(1,206)	300	248
Deductions	0	0	9
Balance at End of Period	$ 935	$ 2,141	1,841
Foreign currency translation loss			0
Uncollectible accounts charged off, net of recoveries			$ 9