0001377789-23-000013 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-33278
Entity Registrant Name	AVIAT NETWORKS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5961564
Entity Address, Address Line One	200 Parker Drive, Suite C100A,
Entity Address, City or Town	Austin,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78728
City Area Code	408
Local Phone Number	941-7100
Title of 12(b) Security	Common Stock
Trading Symbol	AVNW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,440,689
Entity Central Index Key	0001377789
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022
Current Assets:
Cash and cash equivalents	$ 22,456	$ 36,877
Marketable securities	0	10,893
Accounts receivable, net	88,458	73,168
Unbilled receivables	63,344	45,857
Inventories	39,083	25,394
Customer service inventories	1,857	1,775
Other current assets	21,306	12,437
Total current assets	236,504	206,401
Property, plant and equipment, net	10,570	8,887
Goodwill	4,950	0
Intangible assets, net	6,918	0
Deferred income taxes	88,750	95,412
Right of use assets	2,669	2,759
Other assets	14,301	10,445
TOTAL ASSETS	364,662	323,904
Current Liabilities:
Short-term debt	6,200	0
Accounts payable	61,670	42,394
Accrued expenses	23,397	26,451
Short-term lease liabilities	721	513
Advance payments and unearned revenue	40,348	33,740
Restructuring liabilities	884	1,381
Total current liabilities	133,220	104,479
Unearned revenue	7,628	8,920
Long-term lease liabilities	2,255	2,412
Other long-term liabilities	279	273
Reserve for uncertain tax positions	5,363	5,504
Deferred income taxes	563	563
Total liabilities	149,308	122,151
Commitments and contingencies (Note 13)
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, 11,436,542 shares issued and outstanding at March 31, 2023; 11,160,160 shares issued and outstanding at July 1, 2022	114	112
Treasury stock	(6,147)	(6,147)
Additional paid-in-capital	828,411	823,259
Accumulated deficit	(591,253)	(599,442)
Accumulated other comprehensive loss	(15,771)	(16,029)
Total equity	215,354	201,753
TOTAL LIABILITIES AND EQUITY	$ 364,662	$ 323,904

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Jul. 01, 2022
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)	11,436,542	11,160,160
Common stock shares outstanding (in shares)	11,436,542	11,160,160

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Revenues:
Total revenues	$ 83,480	$ 74,516	$ 255,414	$ 225,538
Cost of revenues:
Total cost of revenues	53,647	46,980	163,907	143,765
Gross margin	29,833	27,536	91,507	81,773
Operating expenses:
Research and development expenses	6,518	5,259	18,652	17,338
Selling and administrative expenses	15,842	14,867	49,913	41,304
Restructuring (recovery) charges	(23)	(72)	2,855	(373)
Total operating expenses	22,337	20,054	71,420	58,269
Operating income	7,496	7,482	20,087	23,504
Other (income)/expense, net	428	175	2,750	387
Income before income taxes	7,068	7,307	17,337	23,117
Provision for income taxes	2,179	1,278	9,148	6,490
Net income, basic	4,889	6,029	8,189	16,627
Net income, diluted	$ 4,889	$ 6,029	$ 8,189	$ 16,627
Net income per share of common stock outstanding:
Basic (in dollars per share)	$ 0.43	$ 0.54	$ 0.72	$ 1.49
Diluted (in dollars per share)	$ 0.41	$ 0.51	$ 0.69	$ 1.40
Weighted-average shares outstanding:
Basic (in shares)	11,413	11,173	11,319	11,172
Diluted (in shares)	11,884	11,761	11,829	11,848
Product sales
Revenues:
Total revenues	$ 54,811	$ 52,047	$ 175,473	$ 156,361
Cost of revenues:
Total cost of revenues	35,745	31,850	111,567	97,789
Services
Revenues:
Total revenues	28,669	22,469	79,941	69,177
Cost of revenues:
Total cost of revenues	$ 17,902	$ 15,130	$ 52,340	$ 45,976

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 4,889	$ 6,029	$ 8,189	$ 16,627
Other comprehensive income (loss):
Net change in cumulative translation adjustments	370	(786)	258	(1,058)
Other comprehensive income (loss)	370	(786)	258	(1,058)
Comprehensive income	$ 5,259	$ 5,243	$ 8,447	$ 15,569

- 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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022
Operating Activities
Net income	$ 8,189	$ 16,627
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of property, plant and equipment	4,193	3,444
Amortization of intangible assets acquired	372	0
Provision for/(recovery from) uncollectible receivables	476	(56)
Share-based compensation	5,135	2,464
Deferred tax assets, net	5,189	5,437
Charges for inventory and customer service inventory write-downs	1,715	1,140
Loss (gain) on disposition of property, plant and equipment, net	34	(66)
Noncash lease expense	524	620
Net loss (gain) on marketable securities	1,730	(23)
Restructuring charges (recoveries)	0	(373)
Changes in operating assets and liabilities:
Accounts receivable	(12,212)	(28,252)
Unbilled receivables	(17,719)	(8,446)
Inventories	(8,961)	(5,634)
Customer service inventories	(958)	(1,061)
Accounts payable	16,344	7,934
Accrued expenses	(3,594)	(569)
Advance payments and unearned revenue	1,948	4,719
Income taxes payable or receivable	1,932	(1,400)
Other assets and liabilities	(12,814)	(6,652)
Change in lease liabilities	(528)	(641)
Net cash used in operating activities	(9,005)	(10,788)
Investing Activities
Payments for acquisition of property, plant and equipment	(5,055)	(1,028)
Proceeds from sale of marketable securities	9,163	0
Purchase of marketable securities	0	(2,492)
Proceeds from sale of asset held for sale	0	2,284
Acquisition, net of cash acquired and purchases of intangible assets	(15,769)	0
Net cash used in investing activities	(11,661)	(1,236)
Financing Activities
Proceeds from borrowings	50,200	0
Repayments of borrowings	(44,000)	0
Payments for repurchase of common stock - treasury shares	0	(4,611)
Payments for taxes related to net settlement of equity awards	(1,055)	(358)
Proceeds from issuance of common stock under employee stock plans	1,074	931
Net cash provided by (used in) financing activities	6,219	(4,038)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	9	(663)
Net decrease in cash, cash equivalents, and restricted cash	(14,438)	(16,725)
Cash, cash equivalents, and restricted cash, beginning of period	37,104	48,198
Cash, cash equivalents, and restricted cash, end of period	$ 22,666	$ 31,473

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jul. 02, 2021		11,153,445
Beginning balance at Jul. 02, 2021	$ 183,335	$ 112	$ (787)	$ 818,939	$ (620,602)	$ (14,327)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,627				16,627
Other comprehensive income (loss), net of tax	(1,058)					(1,058)
Issuance of common stock under employee stock plans (in shares)		172,996
Issuance of common stock under employee stock plans	933	$ 2		931
Shares withheld for taxes related to vesting of equity awards (in shares)		(10,134)
Shares withheld for taxes related to vesting of equity awards	(358)			(358)
Stock repurchase (in shares)		(149,389)
Stock repurchase	(4,613)	$ (2)	(4,611)
Share-based compensation	2,464			2,464
Ending balance (in shares) at Apr. 01, 2022		11,166,918
Ending balance at Apr. 01, 2022	197,330	$ 112	(5,398)	821,976	(603,975)	(15,385)
Beginning balance (in shares) at Dec. 31, 2021		11,195,542
Beginning balance at Dec. 31, 2021	192,892	$ 112	(3,408)	820,791	(610,004)	(14,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,029				6,029
Other comprehensive income (loss), net of tax	(786)					(786)
Issuance of common stock under employee stock plans (in shares)		37,327
Issuance of common stock under employee stock plans	346	$ 1		345
Shares withheld for taxes related to vesting of equity awards (in shares)		0
Shares withheld for taxes related to vesting of equity awards	0			0
Stock repurchase (in shares)		(65,951)
Stock repurchase	(1,991)	$ (1)	(1,990)
Share-based compensation	840			840
Ending balance (in shares) at Apr. 01, 2022		11,166,918
Ending balance at Apr. 01, 2022	$ 197,330	$ 112	(5,398)	821,976	(603,975)	(15,385)
Beginning balance (in shares) at Jul. 01, 2022	11,160,160	11,160,160
Beginning balance at Jul. 01, 2022	$ 201,753	$ 112	(6,147)	823,259	(599,442)	(16,029)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,189				8,189
Other comprehensive income (loss), net of tax	258					258
Issuance of common stock under employee stock plans (in shares)		310,355
Issuance of common stock under employee stock plans	1,074	$ 2		1,072
Shares withheld for taxes related to vesting of equity awards (in shares)		(33,973)
Shares withheld for taxes related to vesting of equity awards	(1,055)	$ 0		(1,055)
Stock repurchase (in shares)		0
Stock repurchase	0	$ 0	0
Share-based compensation	$ 5,135			5,135
Ending balance (in shares) at Mar. 31, 2023	11,436,542	11,436,542
Ending balance at Mar. 31, 2023	$ 215,354	$ 114	(6,147)	828,411	(591,253)	(15,771)
Beginning balance (in shares) at Dec. 30, 2022		11,377,066
Beginning balance at Dec. 30, 2022	208,496	$ 114	(6,147)	826,812	(596,142)	(16,141)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,889				4,889
Other comprehensive income (loss), net of tax	370					370
Issuance of common stock under employee stock plans (in shares)		71,281
Issuance of common stock under employee stock plans	327	$ (1)		328
Shares withheld for taxes related to vesting of equity awards (in shares)		(11,805)
Shares withheld for taxes related to vesting of equity awards	(366)	$ 1		(367)
Share-based compensation	$ 1,638			1,638
Ending balance (in shares) at Mar. 31, 2023	11,436,542	11,436,542
Ending balance at Mar. 31, 2023	$ 215,354	$ 114	$ (6,147)	$ 828,411	$ (591,253)	$ (15,771)

The Company and Basis of Presentation	9 Months Ended
The Company and Basis of Presentation	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation The Company Aviat Networks, Inc. (“Aviat,” the “Company,” “we,” “us,” and “our”) designs, manufactures, and sells a range of wireless networking solutions and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, public safety agencies, and broadcast system operators across the globe. Our products include broadband wireless access base stations and customer premises equipment for fixed and mobile, point-to-point digital microwave radio systems for access, backhaul, trunking, license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information, and we have made estimates, assumptions and judgments affecting the amounts reported in our unaudited condensed consolidated financial statements and the accompanying notes, as discussed in greater detail below. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of our management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the three and nine months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 1, 2022. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. We operate on a 52-week or 53-week year ending on the Friday closest to June 30. The three months ended March 31, 2023 and the three months ended April 1, 2022 both consisted of 13 weeks. Fiscal year 2023 will be comprised of 52 weeks and will end on June 30, 2023. Fiscal year 2022 was comprised of 52 weeks and ended on July 1, 2022. Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, business combinations, provision for uncollectible receivables, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, contingencies and recoverability of long-lived assets. The actual results that we experience may differ materially from our estimates. Summary of Significant Accounting Policies There have been no material changes in our significant accounting policies as of March 31, 2023 and for the nine months ended March 31, 2023, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 1, 2022. Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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, ASU 2019-05 and ASU 2022-02 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 became effective for us in our first quarter of fiscal 2023. The adoption had no material impact on our unaudited condensed consolidated financial statements.

Balance Sheet Components

9 Months Ended

Mar. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Cash, Cash Equivalents, and Restricted Cash

The following table provides a summary of the cash, cash equivalents, and restricted cash reported within our unaudited condensed consolidated balance sheets that reconciles to the corresponding amount in our unaudited condensed consolidated statement of cash flows:


(In thousands)	March 31, 2023		July 1, 2022
Cash and cash equivalents	$	22,456	$	36,877
Restricted cash included in other assets	210		227
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	22,666	$	37,104

Accounts Receivable, net

Our net accounts receivable are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Accounts receivable	$	89,174	$	74,102
Less: Allowances for collection losses	(716)		(934)
Total accounts receivable, net	$	88,458	$	73,168

Inventories

Our inventories are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Finished products	$	24,916	$	14,916
Raw materials and supplies	14,167		10,478
Total inventories	$	39,083	$	25,394
Consigned inventories included within raw materials and supplies	$	10,408	$	9,796

We record charges to adjust our inventory and customer service inventory due to excess and obsolete inventory resulting from lower sales forecasts, product transitioning, or discontinuance. The charges during the three and nine months ended March 31, 2023 and April 1, 2022, respectively, consisted of the following which were recorded in cost of product sales:


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Excess and obsolete inventory	$	275	$	196	$	856	$	436
Customer service inventory write-downs	302		286		859		704
Total inventory charges	$	577	$	482	$	1,715	$	1,140

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 our unaudited condensed consolidated 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 assets held for sale as of March 31, 2023 and July 1, 2022.

Property, Plant and Equipment, net

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


(In thousands)	March 31, 2023		July 1, 2022
Land	$	210	$	210
Buildings and leasehold improvements	5,889		5,796
Software	17,075		21,368
Machinery and equipment	47,144		49,584
Total property, plant and equipment, gross	70,318		76,958
Less: Accumulated depreciation and amortization	(59,748)		(68,071)
Total property, plant and equipment, net	$	10,570	$	8,887

Included in the total plant, property and equipment above there were $0.8 million of assets in progress which have not been placed in service as of March 31, 2023 and $1.2 million as of July 1, 2022.

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


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Depreciation and amortization	$	1,428	$	1,051	$	4,193	$	3,444

Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Accrued compensation and benefits	$	8,119	$	11,625
Accrued agent commissions	1,119		1,864
Accrued warranties	2,311		2,913
Other	11,848		10,049
Total accrued expenses	$	23,397	$	26,451

Accrued Warranties

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


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Balance as of the beginning of the period	$	2,549	$	3,198	$	2,913	$	3,228
Warranty provision recorded during the period	186		402		560		1,242
Assumed in Redline acquisition	—		—		55		—
Consumption during the period	(424)		(377)		(1,217)		(1,247)
Balance as of the end of the period	$	2,311	$	3,223	$	2,311	$	3,223

Advance Payments and Unearned Revenue

Our advance payments and unearned revenue are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Advance payments	$	1,425	$	1,870
Unearned revenue	38,923		31,870
Total advance payments and unearned revenue	$	40,348	$	33,740

Excluded from the balances above are $7.6 million and $8.9 million in long-term unearned revenue as of March 31, 2023 and July 1, 2022, respectively.

Fair Value Measurements of Assets and Liabilities

9 Months Ended

Mar. 31, 2023

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 fair values, and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2023 and July 1, 2022 were as follows:


	March 31, 2023		July 1, 2022		Valuation Inputs
(In thousands)	Fair Value		Fair Value
Assets:
Cash and cash equivalents:
Money market funds	$	—	$	5,367	Level 1
Bank certificates of deposit	$	3,690	$	3,682	Level 2
Marketable securities	$	—	$	10,893	Level 1

We classify items within Level 1 if quoted prices are available in active markets. Historically our Level 1 items mainly are money market funds. As of July 1, 2022, money market funds were valued at $1.00 net asset value per share.

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. For the nine months ended March 31, 2023 we recognized a loss of $1.7 million associated with the sales of our marketable securities recorded in Other (income)/expense, net.

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 are classified within Level 2.

As of March 31, 2023 and July 1, 2022, we did not have any recurring assets or liabilities that were valued using significant unobservable inputs.

Our policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the first nine months of fiscal 2023 and 2022, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

- Definition

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

+ References + Details

Leases

9 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

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

We determine if an arrangement contains a lease at inception. These operating leases are included in "Right of use assets" on our unaudited condensed consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligations to make lease payments are included in "Short-term lease liabilities" and "Long-term lease liabilities" on our unaudited condensed consolidated balance sheets. We did not enter into any finance leases during the nine months ended March 31, 2023.

The following summarizes our lease costs:


	Three Months Ended				Nine Months Ended
	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
	(In thousands)
Operating lease costs	$	270	$	251	$	817	$	813
Short-term lease costs	490		623		1,507		1,823
Variable lease costs	12		64		92		138
Total lease costs	$	772	$	938	$	2,416	$	2,774

The following summarizes our lease term and discount rate for the nine months ended March 31, 2023:


Weighted average remaining lease term	6.8 years
Weighted average discount rate	5.7	%

As of March 31, 2023, our future minimum lease payments under all non-cancelable operating leases with an initial term in excess of one year were as follows (in thousands):


	Amount
	(In thousands)
Remainder of 2023	$	331
2024	734
2025	633
2026	490
2027	169
Thereafter	1,385
Total lease payments	3,742
Less: interest	(766)
Present value of lease liabilities	$	2,976

Credit Facility and Debt	9 Months Ended
Credit Facility and Debt	Mar. 31, 2023
Debt Disclosure [Abstract]
Credit Facility and Debt	Credit Facility and Debt On May 17, 2021, 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. Under Federal Deposit Insurance Corporation (“FDIC”) receivership, SVB became SVB Bridge Bank as of March 13, 2023, but the Credit Facility remained in full force and effect. 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 sub-limit 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 March 31, 2023, available credit under the SVB Credit Facility was $15.8 million, reflecting the available limit of $25.0 million less outstanding letters of credit of $3.0 million. We borrowed $50.2 million and repaid $44.0 million against the SVB Credit Facility during the nine months ended March 31, 2023 at the weighted average interest rate was 6.96%. As of March 31, 2023 there was $6.2 million of borrowing outstanding. The SVB Credit Facility carries an interest rate computed, at our option, based on either (i) at the prime rate reported in the Wall Street Journal plus a spread of 0.50% to 1.50%, with such spread determined based on our adjusted quick ratio; or (ii) if we satisfy a minimum adjusted quick ratio, a LIBOR rate determined in accordance with the SVB Credit Facility, plus a spread of 2.75%. Any outstanding Singapore subsidiary borrowed loans shall bear interest at an additional 2.00% above the applicable prime or LIBOR rate. The SVB Credit Facility contains quarterly financial covenants including minimum adjusted quick ratio and minimum profitability (EBITDA) requirements. In the event our adjusted quick ratio falls below a certain level, cash received in our accounts with Silicon Valley Bank may be directly applied to reduce outstanding obligations under the SVB Credit Facility. The SVB Credit Facility also imposes certain restrictions on our ability to dispose of assets, permit a change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments, make certain restricted payments, and enter into transactions with affiliates under certain circumstances. Certain of our assets, including accounts receivable, inventory, and equipment, are pledged as collateral for the SVB Credit Facility. Upon an event of default, outstanding obligations would be immediately due and payable. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default at a per annum rate of interest equal to 5.00% above the applicable interest rate. As of March 31, 2023, we were not in compliance with the affirmative covenant in Section 6.8 of the SVB Credit Facility, as amended, which restricts Aviat from having domestic operating or depository accounts with banks other than SVB. We opened a non-SVB deposit account with Wells Fargo Bank, N.A. in the immediate aftermath of the SVB closure by regulatory authorities on March 10, 2023 so that we could continue receiving customer remittances. We subsequently requested and received a waiver from the lender for this noncompliance. We were in compliance with all other aspects of the credit agreement as of March 31, 2023. At March 31, 2023, the Company held cash and cash equivalents at Silicon Valley Bridge Bank, N.A. (“SVB Bridge Bank”) in excess of government insured limits. On March 10, 2023, Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation, and the FDIC was appointed as receiver and Silicon Valley Bank was subsequently transferred into a new entity, SVB Bridge Bank. On March 12, 2023, the U.S. Treasury Department, the Federal Reserve and the FDIC jointly announced enabling actions that fully protect all Silicon Valley Bank depositors’ insured and uninsured deposits, and that such depositors would have access to all of their funds starting March 13, 2023. On March 14, 2023, the Company was able to access its full deposits with SVB Bridge Bank.

- 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.

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+ Details

Revenue Recognition

9 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Contract Balances, Performance Obligations, and Backlog

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


	March 31, 2023		July 1, 2022
Contract Balances
Accounts receivable, net	$	88,458	$	73,168
Contract Assets	$	63,344	$	45,857
Capitalized commissions	$	2,231	$	2,341
Contract Liabilities
Advance payments and unearned revenue	$	40,348	$	33,740
Unearned revenue, long-term	$	7,628	$	8,920

Capitalized commissions are classified as current and long term and included in Other current assets and Other assets, respectively. Significant changes in contract balances may arise as a result of recognition over time for services, transfer of control for equipment, and periodic payments (both in arrears and in advance).

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

As of March 31, 2023, we had $48.0 million in advance payments and unearned revenue and long-term unearned revenue, of which approximately 20% is expected to be recognized as revenue in the remainder of fiscal 2023 and the balance thereafter. During the three and nine months ended March 31, 2023 we recognized $5.0 million and $16.9 million, respectively, of revenue which was included in advance payments and unearned revenue at July 1, 2022.

Remaining Performance Obligations

The aggregate amount of transaction price allocated to our unsatisfied (or partially unsatisfied) performance obligations was approximately $111.8 million at March 31, 2023. Of this amount, we expect to recognize approximately 50% as revenue during the next 12 months, with the remaining amount to be recognized as revenue within two to five years.

- Definition

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

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+ Details

Segment and Geographic Information

9 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic InformationWe operate in one reportable business segment: the design, manufacturing, and sale of a range of wireless networking products, solutions, and services. Our financial performance is regularly reviewed by our chief operating decision maker who is our Chief Executive Officer (“CEO”).

We report revenue by region and country based on the location where our customers accept delivery of our products and services. Revenue by region for the three and nine months ended March 31, 2023 and April 1, 2022 was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
North America	$	46,064	$	49,042	$	146,961	$	151,025
Africa and the Middle East	19,235		13,123		44,354		37,360
Europe	3,871		2,898		13,705		8,509
Latin America and Asia Pacific	14,310		9,453		50,394		28,644
Total revenue	$	83,480	$	74,516	$	255,414	$	225,538

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

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


	Three Months Ended				Nine Months Ended
	March 31, 2023		April 1, 2022		March 31, 2023	April 1, 2022
Motorola Solutions, Inc.	*		12.0	%	*	13.0	%

Mobile Telephone Networks Group (MTN Group)	12.0	%	13.0	%	*	10.0	%

*Less than 10.0%

Customer accounting for 10% or more of our accounts receivable were as follows:


	March 31, 2023		July 1, 2022
Mobile Telephone Networks Group (MTN Group)	16.0	%	17.0	%

- Definition

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

+ References

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+ Details

Equity

9 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Equity

Stock Repurchase Program

In November 2021 our Board of Directors approved a stock repurchase program to purchase up to $10.0 million of our common stock. As of March 31, 2023, $8.0 million remains available and we may choose to suspend or discontinue the repurchase program at any time.

During the first nine months of fiscal 2023, we did not repurchase any shares of our common stock in the open market.

Stock Incentive Programs

As of March 31, 2023, we have a stock incentive plan for our employees and non-employee directors, the 2018 Incentive Plan (the “2018 Plan”). The 2018 Plan 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 generally vest on the day before the next annual stockholders’ meeting.

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

During the nine months ended March 31, 2023, we granted 74,827 restricted stock units, 49,321 market-based stock units and 110,945 stock options to purchase shares of our common stock.

Total compensation expense for share-based awards included in our unaudited condensed consolidated statements of operations was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
By Expense Category:
Cost of revenues	$	125	$	101	$	463	$	271
Research and development	113		5		385		103
Selling and administrative	1,400		734		4,287		2,090
Total share-based compensation expense	$	1,638	$	840	$	5,135	$	2,464
By Types of Award:
Options	$	46	$	139	$	862	$	434
Restricted and performance stock awards and units	1,592		701		4,273		2,030
Total share-based compensation expense	$	1,638	$	840	$	5,135	$	2,464

As of March 31, 2023, there was approximately $2.0 million of total unrecognized compensation expense related to non-vested stock options granted which is expected to be recognized over a weighted-average period of 1.6 years. As of March 31, 2023, there was $9.2 million of total unrecognized compensation expense related to non-vested stock awards which is expected to be recognized over a weighted-average period of 1.6 years.

- 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

Restructuring Activities

9 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring Activities

The following table summarizes our restructuring-related activities:


	Severance and Benefits								Total
(In thousands)	Q2 2023 Plan		Q1 2023 Plan		Q4 2022 Plan		Fiscal 2021 Plan
Accrual balance, July 1, 2022	$	—	$	—	$	295	$	1,086	$	1,381
Charges, net	—		1,950		—		—		1,950
Cash payments	—		(1,437)		(272)		(100)		(1,809)

Accrual balance, September 30, 2022	—		513		23		986		1,522
Charges, net	928		—		—		—		928
Cash payments	(452)		(377)		—		(149)		(978)

Accrual balance, December 30, 2022	476		136		23		837		1,472
Charges, net	—		—		(23)		—		(23)
Cash payments	(75)		—		—		(490)		(565)

Accrual balance, March 31, 2023	$	401	$	136	$	—	$	347	$	884

As of March 31, 2023, the accrual balance of $0.9 million was in short-term restructuring liabilities on our unaudited condensed 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.

Q2 2023 Plan

During the second quarter of fiscal 2023, our Board of Directors approved a restructuring plan, (the “Q2 2023 Plan”) which is anticipated to generate cost savings from the elimination of six roles. The Q2 2023 plan is expected to be implemented through the end of first half of fiscal 2024.

Q1 2023 Plan

During the first quarter of fiscal 2023, our Board of Directors approved a restructuring plan, (the “Q1 2023 Plan”) from the acquisition of Redline Communications, Inc. (“Redline”). The Q1 2023 Plan, which is anticipated to generate cost saving on integration of Redline, entails a reduction in force of approximately 20 employees due to integrating work into existing Aviat teams. The Q1 2023 Plan is expected to be implemented through the end of fiscal 2023.

Q4 2022 Plan

During the fourth quarter of fiscal 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 completed during third quarter of fiscal 2023 with a reduction in force of approximately 11 employees 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 and will be completed through the end of fiscal 2023, with a certain number of positions being consolidated and/or relocated.

Acquisition

9 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisition

In the first quarter of fiscal 2023, we completed the acquisition of Redline, a leading provider of mission-critical data infrastructure. Acquiring 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.

The consideration paid by Aviat for this all-cash acquisition was $20.4 million. Cash acquired as part of acquisition was $4.6 million for total net consideration of $15.8 million. A summary of the preliminary allocation, pursuant to the completion of purchase price allocation, of the total purchase consideration is as follows:


(In thousands)	Purchase consideration		Net tangible assets acquired		Purchased intangible assets		Goodwill
Redline	$	20,411	$	8,171	$	7,290	$	4,950

The following table presents details of our intangible assets:


(In thousands except for useful life)
Goodwill						$	4,950

	Useful life in Years	Gross		Accumulate amortization		Net
Purchased intangible with finite lives:
Patents	11	$	630	$	(43)	$	587
Customer relationship	15	5,500		(275)		5,225
Trade names	16	1,160		(54)		1,106
Total purchased intangible assets with finite lives		$	7,290	$	(372)	$	6,918

Amortization of purchased intangible assets for the nine months ended March 31, 2023 was $0.4 million included in operating expenses. There were no impairment charges for the three or nine months ended March 31, 2023.

Pro forma results of operations for this acquisition have not been presented because the effects on revenue and net income were not material to our historic consolidated financial statements.

The estimated future amortization expense of intangible assets with finite lives as of March 31, 2023 is as follows:


	Amount
	(In thousands)
Remainder of 2023	$	124
2024	496
2025	496
2026	496
2027	496
Thereafter	4,810
Total	$	6,918

Income Taxes	9 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate varies from the U.S. federal statutory rate of 21% primarily due to results of foreign operations that are subject to income taxes at different statutory rates and certain jurisdictions where we cannot recognize tax benefit on current losses. During interim periods, we accrue tax expenses for jurisdictions that are anticipated to be profitable for fiscal 2023. The determination of our income taxes for the nine months ended March 31, 2023 and April 1, 2022 was based on our estimated annual effective tax rate adjusted for losses in certain jurisdictions for which no tax benefit can be recognized. Our tax expense for the nine months ended March 31, 2023 was primarily due to tax expense related to U.S. and profitable foreign subsidiaries, including tax expense associated with our acquisition of Redline in July 2022 and subsequent restructuring impact. The tax expense for the nine months ended April 1, 2022 was primarily due to tax expense related to U.S. and profitable foreign subsidiaries. We have a number of open income tax audits covering various tax years, which vary from jurisdiction to jurisdiction. Our major tax jurisdictions that are open and subject to potential audits include the U.S., Singapore, Ghana, Kenya, Nigeria, and Saudi Arabia. The earliest years for these jurisdictions are as follows: U.S. - 2003; Singapore - 2015; Ghana – 2016; Kenya - 2018: Nigeria - 2006; and Saudi Arabia - 2019. We account for interest and penalties related to unrecognized tax benefits as part of our provision for federal, foreign, and state income taxes. Such interest expense was not material for the nine months ended March 31, 2023 and April 1, 2022. On March 11, 2021, the U.S. 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 the ARPA and the impact they may have on our future business. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”) which includes a new corporate alternative minimum tax of 15% on adjusted financial statement income of corporations with profits greater than $1 billion, effective for taxable years beginning after December 31, 2022, and a 1% excise tax on stock repurchases by public corporations after December 31, 2022. We will continue to evaluate the applicability and effect of the IRA as more guidance is issued.

- 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.

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+ Details

Net Income Per Share of Common Stock

9 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Income Per Share of Common Stock

The following table presents the computation of basic and diluted net income per share:


	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Numerator:
Net income	$	4,889	$	6,029	$	8,189	$	16,627

Denominator:
Weighted-average shares outstanding, basic	11,413		11,173		11,319		11,172
Effect of potentially dilutive equivalent shares	471		588		510		676
Weighted-average shares outstanding, diluted	11,884		11,761		11,829		11,848

Net income per share of common stock outstanding:
Basic	$	0.43	$	0.54	$	0.72	$	1.49
Diluted	$	0.41	$	0.51	$	0.69	$	1.40

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


	Three Months Ended		Nine Months Ended
(Shares in thousands)	March 31, 2023	April 1, 2022	March 31, 2023	April 1, 2022
Stock options	211	121	189	112
Restricted stock units and performance stock units	25	53	20	45
Total shares of common stock excluded	236	174	209	157

Commitments and Contingencies

9 Months Ended

Mar. 31, 2023

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. We currently rely on a few vendors for substantially all of our inventory purchases. As of March 31, 2023, we had outstanding purchase obligations with our suppliers or contract manufacturers of $47.6 million. In addition, we had contractual obligations of approximately $3.9 million associated with software licenses as of March 31, 2023.

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 March 31, 2023, 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 March 31, 2023, we had commercial commitments of $62.8 million outstanding that were not recorded on our unaudited condensed consolidated balance sheets.

We do not believe, based on historical experience and information currently available, that it is probable that any significant amounts will be required to be paid on these performance guarantees in the future.

The following table presents details of our commercial commitments:


(In thousands)	March 31, 2023
Letters of credit	$	3,040
Bonds	59,760
	$	62,800

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 March 31, 2023, 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 March 31, 2023, 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. From time to time, we may be involved in various other legal claims and litigation that arise in the normal course of our operations. We are aggressively defending all current litigation matters. Although there can be no assurances and the outcome of these matters is currently not determinable, we currently believe that none of these claims or proceedings are likely to have a material adverse effect on our financial position. We expect to defend each of these disputes vigorously. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. As a result, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any.

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

Contingent Liabilities

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

In March 2016, an enforcement action by the Indian Department of Revenue, Ministry of Finance was brought against our subsidiary Aviat Networks (India) Private Limited (“Aviat India”) relating to the non-realization of intercompany receivables and non-payment of intercompany payables, which originated from 1999 to 2012, within the time frames dictated by the Indian regulations under the Foreign Exchange Management Act. 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 as of March 31, 2023. We have accrued an immaterial amount representing the estimated probable loss for which we would settle the matter. We currently cannot form an estimate of the range of loss in excess of our amounts already accrued. If the outcome of this matter is greater than the current immaterial amount accrued, we intend to dispute it vigorously.

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

The Company and Basis of Presentation (Policies)	9 Months Ended
The Company and Basis of Presentation (Policies)	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information, and we have made estimates, assumptions and judgments affecting the amounts reported in our unaudited condensed consolidated financial statements and the accompanying notes, as discussed in greater detail below. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of our management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the three and nine months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 1, 2022. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. We operate on a 52-week or 53-week year ending on the Friday closest to June 30. The three months ended March 31, 2023 and the three months ended April 1, 2022 both consisted of 13 weeks. Fiscal year 2023 will be comprised of 52 weeks and will end on June 30, 2023. Fiscal year 2022 was comprised of 52 weeks and ended on July 1, 2022.
Use of Estimates	Use of EstimatesThe preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, business combinations, provision for uncollectible receivables, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, contingencies and recoverability of long-lived assets. The actual results that we experience may differ materially from our estimates.
Accounting Standards Adopted	Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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, ASU 2019-05 and ASU 2022-02 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 became effective for us in our first quarter of fiscal 2023. The adoption had no material impact on our unaudited condensed consolidated financial statements.
Fair Value Measurements	We classify items within Level 1 if quoted prices are available in active markets. Historically our Level 1 items mainly are money market funds. As of July 1, 2022, money market funds were valued at $1.00 net asset value per share. 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. For the nine months ended March 31, 2023 we recognized a loss of $1.7 million associated with the sales of our marketable securities recorded in Other (income)/expense, net. 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 are classified within Level 2. Our policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the first nine months of fiscal 2023 and 2022, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

Balance Sheet Components (Tables)

9 Months Ended

Mar. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	March 31, 2023		July 1, 2022
Cash and cash equivalents	$	22,456	$	36,877
Restricted cash included in other assets	210		227
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	22,666	$	37,104

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	March 31, 2023		July 1, 2022
Cash and cash equivalents	$	22,456	$	36,877
Restricted cash included in other assets	210		227
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	22,666	$	37,104

Schedule of Accounts Receivable, Net

Our net accounts receivable are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Accounts receivable	$	89,174	$	74,102
Less: Allowances for collection losses	(716)		(934)
Total accounts receivable, net	$	88,458	$	73,168

Schedule of Inventories

Our inventories are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Finished products	$	24,916	$	14,916
Raw materials and supplies	14,167		10,478
Total inventories	$	39,083	$	25,394
Consigned inventories included within raw materials and supplies	$	10,408	$	9,796

Schedule of Adjustments to Inventory

The charges during the three and nine months ended March 31, 2023 and April 1, 2022, respectively, consisted of the following which were recorded in cost of product sales:


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Excess and obsolete inventory	$	275	$	196	$	856	$	436
Customer service inventory write-downs	302		286		859		704
Total inventory charges	$	577	$	482	$	1,715	$	1,140

Schedule of Property, Plant and Equipment, Net

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


(In thousands)	March 31, 2023		July 1, 2022
Land	$	210	$	210
Buildings and leasehold improvements	5,889		5,796
Software	17,075		21,368
Machinery and equipment	47,144		49,584
Total property, plant and equipment, gross	70,318		76,958
Less: Accumulated depreciation and amortization	(59,748)		(68,071)
Total property, plant and equipment, net	$	10,570	$	8,887

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


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Depreciation and amortization	$	1,428	$	1,051	$	4,193	$	3,444

Schedule of Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Accrued compensation and benefits	$	8,119	$	11,625
Accrued agent commissions	1,119		1,864
Accrued warranties	2,311		2,913
Other	11,848		10,049
Total accrued expenses	$	23,397	$	26,451

Schedule of Changes in Warranty Liability

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


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Balance as of the beginning of the period	$	2,549	$	3,198	$	2,913	$	3,228
Warranty provision recorded during the period	186		402		560		1,242
Assumed in Redline acquisition	—		—		55		—
Consumption during the period	(424)		(377)		(1,217)		(1,247)
Balance as of the end of the period	$	2,311	$	3,223	$	2,311	$	3,223

Schedule of Advance Payments and Unearned Income

Our advance payments and unearned revenue are summarized below:


(In thousands)	March 31, 2023		July 1, 2022
Advance payments	$	1,425	$	1,870
Unearned revenue	38,923		31,870
Total advance payments and unearned revenue	$	40,348	$	33,740

Fair Value Measurements of Assets and Liabilities (Tables)

9 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, by Balance Sheet Grouping

The fair values, and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2023 and July 1, 2022 were as follows:


	March 31, 2023		July 1, 2022		Valuation Inputs
(In thousands)	Fair Value		Fair Value
Assets:
Cash and cash equivalents:
Money market funds	$	—	$	5,367	Level 1
Bank certificates of deposit	$	3,690	$	3,682	Level 2
Marketable securities	$	—	$	10,893	Level 1

Leases (Tables)

9 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Lease, Cost

The following summarizes our lease costs:


	Three Months Ended				Nine Months Ended
	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
	(In thousands)
Operating lease costs	$	270	$	251	$	817	$	813
Short-term lease costs	490		623		1,507		1,823
Variable lease costs	12		64		92		138
Total lease costs	$	772	$	938	$	2,416	$	2,774

The following summarizes our lease term and discount rate for the nine months ended March 31, 2023:


Weighted average remaining lease term	6.8 years
Weighted average discount rate	5.7	%

Schedule of Lessee, Operating Lease, Liability, Maturity

As of March 31, 2023, our future minimum lease payments under all non-cancelable operating leases with an initial term in excess of one year were as follows (in thousands):


	Amount
	(In thousands)
Remainder of 2023	$	331
2024	734
2025	633
2026	490
2027	169
Thereafter	1,385
Total lease payments	3,742
Less: interest	(766)
Present value of lease liabilities	$	2,976

Revenue Recognition (Tables)

9 Months Ended

Mar. 31, 2023

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):


	March 31, 2023		July 1, 2022
Contract Balances
Accounts receivable, net	$	88,458	$	73,168
Contract Assets	$	63,344	$	45,857
Capitalized commissions	$	2,231	$	2,341
Contract Liabilities
Advance payments and unearned revenue	$	40,348	$	33,740
Unearned revenue, long-term	$	7,628	$	8,920

Segment and Geographic Information (Tables)

9 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Revenue by Region

Revenue by region for the three and nine months ended March 31, 2023 and April 1, 2022 was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
North America	$	46,064	$	49,042	$	146,961	$	151,025
Africa and the Middle East	19,235		13,123		44,354		37,360
Europe	3,871		2,898		13,705		8,509
Latin America and Asia Pacific	14,310		9,453		50,394		28,644
Total revenue	$	83,480	$	74,516	$	255,414	$	225,538

Schedules of Concentration of Risk, by Risk Factor

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


	Three Months Ended				Nine Months Ended
	March 31, 2023		April 1, 2022		March 31, 2023	April 1, 2022
Motorola Solutions, Inc.	*		12.0	%	*	13.0	%

Mobile Telephone Networks Group (MTN Group)	12.0	%	13.0	%	*	10.0	%

*Less than 10.0%

Customer accounting for 10% or more of our accounts receivable were as follows:


	March 31, 2023		July 1, 2022
Mobile Telephone Networks Group (MTN Group)	16.0	%	17.0	%

Equity (Tables)

9 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Compensation Expense for Share-based Compensation Awards

Total compensation expense for share-based awards included in our unaudited condensed consolidated statements of operations was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
By Expense Category:
Cost of revenues	$	125	$	101	$	463	$	271
Research and development	113		5		385		103
Selling and administrative	1,400		734		4,287		2,090
Total share-based compensation expense	$	1,638	$	840	$	5,135	$	2,464
By Types of Award:
Options	$	46	$	139	$	862	$	434
Restricted and performance stock awards and units	1,592		701		4,273		2,030
Total share-based compensation expense	$	1,638	$	840	$	5,135	$	2,464

Restructuring Activities (Tables)

9 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring-Related Activities

The following table summarizes our restructuring-related activities:


	Severance and Benefits								Total
(In thousands)	Q2 2023 Plan		Q1 2023 Plan		Q4 2022 Plan		Fiscal 2021 Plan
Accrual balance, July 1, 2022	$	—	$	—	$	295	$	1,086	$	1,381
Charges, net	—		1,950		—		—		1,950
Cash payments	—		(1,437)		(272)		(100)		(1,809)

Accrual balance, September 30, 2022	—		513		23		986		1,522
Charges, net	928		—		—		—		928
Cash payments	(452)		(377)		—		(149)		(978)

Accrual balance, December 30, 2022	476		136		23		837		1,472
Charges, net	—		—		(23)		—		(23)
Cash payments	(75)		—		—		(490)		(565)

Accrual balance, March 31, 2023	$	401	$	136	$	—	$	347	$	884

Acquisition (Tables)

9 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Total Purchase Consideration

A summary of the preliminary allocation, pursuant to the completion of purchase price allocation, of the total purchase consideration is as follows:


(In thousands)	Purchase consideration		Net tangible assets acquired		Purchased intangible assets		Goodwill
Redline	$	20,411	$	8,171	$	7,290	$	4,950

Schedule of Purchased Intangible Assets

The following table presents details of our intangible assets:


(In thousands except for useful life)
Goodwill						$	4,950

	Useful life in Years	Gross		Accumulate amortization		Net
Purchased intangible with finite lives:
Patents	11	$	630	$	(43)	$	587
Customer relationship	15	5,500		(275)		5,225
Trade names	16	1,160		(54)		1,106
Total purchased intangible assets with finite lives		$	7,290	$	(372)	$	6,918

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense of intangible assets with finite lives as of March 31, 2023 is as follows:


	Amount
	(In thousands)
Remainder of 2023	$	124
2024	496
2025	496
2026	496
2027	496
Thereafter	4,810
Total	$	6,918

Net Income Per Share of Common Stock (Tables)

9 Months Ended

Mar. 31, 2023

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:


	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	March 31, 2023		April 1, 2022		March 31, 2023		April 1, 2022
Numerator:
Net income	$	4,889	$	6,029	$	8,189	$	16,627

Denominator:
Weighted-average shares outstanding, basic	11,413		11,173		11,319		11,172
Effect of potentially dilutive equivalent shares	471		588		510		676
Weighted-average shares outstanding, diluted	11,884		11,761		11,829		11,848

Net income per share of common stock outstanding:
Basic	$	0.43	$	0.54	$	0.72	$	1.49
Diluted	$	0.41	$	0.51	$	0.69	$	1.40

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 anti-dilutive:


	Three Months Ended		Nine Months Ended
(Shares in thousands)	March 31, 2023	April 1, 2022	March 31, 2023	April 1, 2022
Stock options	211	121	189	112
Restricted stock units and performance stock units	25	53	20	45
Total shares of common stock excluded	236	174	209	157

Commitment and Contingencies (Tables)

9 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commercial Commitments

The following table presents details of our commercial commitments:


(In thousands)	March 31, 2023
Letters of credit	$	3,040
Bonds	59,760
	$	62,800

Balance Sheet Components (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022	Apr. 01, 2022	Jul. 02, 2021
Balance Sheet Related Disclosures [Abstract]
Cash and cash equivalents	$ 22,456	$ 36,877
Restricted cash included in other assets	210	227
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$ 22,666	$ 37,104	$ 31,473	$ 48,198

Balance Sheet Components (Receivables) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 89,174	$ 74,102
Less: Allowances for collection losses	(716)	(934)
Total accounts receivable, net	$ 88,458	$ 73,168

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Finished products	$ 24,916	$ 14,916
Raw materials and supplies	14,167	10,478
Total inventories	39,083	25,394
Consigned inventories included within raw materials and supplies	$ 10,408	$ 9,796

Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Excess and obsolete inventory	$ 275	$ 196	$ 856	$ 436
Customer service inventory write-downs	302	286	859	704
Total inventory charges	$ 577	$ 482	$ 1,715	$ 1,140

Balance Sheet Components (Assets Held for Sale) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Proceeds from sale of asset held for sale	$ 2,300	$ 0	$ 2,284
Gain on disposition of assets	$ 100	$ (34)	$ 66

Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022	Jul. 01, 2022
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 70,318		$ 70,318		$ 76,958
Less: Accumulated depreciation and amortization	(59,748)		(59,748)		(68,071)
Total property, plant and equipment, net	10,570		10,570		8,887
Depreciation and amortization	1,428	$ 1,051	4,193	$ 3,444
Land
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	210		210		210
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	5,889		5,889		5,796
Software
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	17,075		17,075		21,368
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	47,144		47,144		49,584
Asset under construction
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 800		$ 800		$ 1,200

Balance Sheet Components (Accrued Expenses) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Accrued compensation and benefits	$ 8,119	$ 11,625
Accrued agent commissions	1,119	1,864
Accrued warranties	2,311	2,913
Other	11,848	10,049
Total accrued expenses	$ 23,397	$ 26,451

Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Warranty Liability Roll Forward
Balance as of the beginning of the period	$ 2,549	$ 3,198	$ 2,913	$ 3,228
Warranty provision recorded during the period	186	402	560	1,242
Assumed in Redline acquisition	0	0	55	0
Consumption during the period	(424)	(377)	(1,217)	(1,247)
Balance as of the end of the period	$ 2,311	$ 3,223	$ 2,311	$ 3,223

Balance Sheet Components (Advance Payments and Unearned Revenue) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Advance payments	$ 1,425	$ 1,870
Unearned revenue	38,923	31,870
Total advance payments and unearned revenue	40,348	33,740
Unearned revenue, long-term	$ 7,628	$ 8,920

Fair Value Measurements of Assets and Liabilities (Details) - Recurring - Fair Value - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022
Level 1
Assets:
Marketable securities	$ 0	$ 10,893
Level 1 \| Money market funds
Assets:
Cash and cash equivalents:	0	5,367
Level 2 \| Bank certificates of deposit
Assets:
Cash and cash equivalents:	$ 3,690	$ 3,682

Fair Value Measurements of Assets and Liabilities (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Mar. 31, 2023	Jul. 01, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Realized loss on debt and equity securities	$ 1.7
Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market, net asset value (in dollars per share)		$ 1.00

Leases - Narrative (Details)	Mar. 31, 2023
Minimum
Operating Leased Assets [Line Items]
Operating lease term (in years)	1 year
Maximum
Operating Leased Assets [Line Items]
Operating lease term (in years)	20 years

Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Leases [Abstract]
Operating lease costs	$ 270	$ 251	$ 817	$ 813
Short-term lease costs	490	623	1,507	1,823
Variable lease costs	12	64	92	138
Total lease costs	$ 772	$ 938	$ 2,416	$ 2,774

Leases - Rent Expense Terms (Details)	Mar. 31, 2023
Leases [Abstract]
Weighted average remaining lease term	6 years 9 months 18 days
Weighted average discount rate	5.70%

Leases - Operating Leases, Future Minimum Payments Due (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of 2023	$ 331
2024	734
2025	633
2026	490
2027	169
Thereafter	1,385
Total lease payments	3,742
Less: interest	(766)
Present value of lease liabilities	$ 2,976

Credit Facility and Debt (Details) - USD ($)	9 Months Ended
Credit Facility and Debt (Details) - USD ($)	Mar. 31, 2023	May 17, 2021
Line of Credit Facility [Line Items]
Letters of credit	$ 3,040,000
SVB Credit Facility
Line of Credit Facility [Line Items]
Weighted-average interest rate	6.96%
Short-term Advances \| SVB Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 25,000,000
Domestic Line of Credit \| SVB Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		25,000,000
Domestic Line of Credit \| SVB Credit Facility \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Letter of Credit \| SVB Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 12,000,000
Letters of credit	$ 3,000,000
Line of Credit \| SVB Credit Facility
Line of Credit Facility [Line Items]
Available credit under credit facility	15,800,000
Line of credit facility, current borrowing capacity	25,000,000
Proceeds from lines of credit	50,200,000
Repayments of lines of credit	44,000,000
Borrowings outstanding	$ 6,200,000
Default interest rate	5.00%
Line of Credit \| SVB Credit Facility \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%
Line of Credit \| SVB Credit Facility \| Minimum \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Line of Credit \| SVB Credit Facility \| Maximum \| Prime Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%

Revenue Recognition (Contracted Balances) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jul. 01, 2022
Contract Balances
Accounts receivable, net	$ 88,458	$ 73,168
Contract Assets	63,344	45,857
Capitalized commissions	2,231	2,341
Contract Liabilities
Advance payments and unearned revenue	40,348	33,740
Unearned revenue, long-term	$ 7,628	$ 8,920

Revenue Recognition (Narrative) (Details) $ in Millions	3 Months Ended	9 Months Ended
Revenue Recognition (Narrative) (Details) $ in Millions	Mar. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Advance payments and unearned income	$ 48.0	$ 48.0
Revenue to be recognized, percentage	20.00%	20.00%
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue recognized	$ 5.0	$ 16.9

Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 111.8
Remaining performance obligation, percentage	50.00%
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	5 years

Segment and Geographic Information (Schedule of Revenues by Geographic Region) (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($)	Apr. 01, 2022 USD ($)	Mar. 31, 2023 USD ($) segment	Apr. 01, 2022 USD ($)	Jul. 01, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment			1
Total revenue	$ 83,480	$ 74,516	$ 255,414	$ 225,538
Revenue \| Customer Concentration Risk \| Motorola Solutions, Inc.
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage		12.00%		13.00%
Revenue \| Customer Concentration Risk \| Mobile Telephone Networks Group (MTN Group)
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	12.00%	13.00%		10.00%
Accounts receivable \| Customer Concentration Risk \| Mobile Telephone Networks Group (MTN Group)
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage			16.00%		17.00%
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 46,064	$ 49,042	$ 146,961	$ 151,025
Africa and the Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	19,235	13,123	44,354	37,360
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	3,871	2,898	13,705	8,509
Latin America and Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 14,310	$ 9,453	$ 50,394	$ 28,644

Equity (Narrative) (Details) - USD ($)	9 Months Ended
Equity (Narrative) (Details) - USD ($)	Mar. 31, 2023	Nov. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount		$ 10,000,000
Remaining value available under stock repurchase program	$ 8,000,000
Stock options granted (in shares)	110,945
Unrecognized compensation expense for non-vested stock options	$ 2,000,000
Unrecognized compensation expense for non-vested stock awards	$ 9,200,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, expense expected to be recognized, weighted average period	1 year 7 months 6 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	74,827
Market-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	49,321
Restricted stock units and performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, expense expected to be recognized, weighted average period	1 year 7 months 6 days
2018 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration period	7 years
2018 Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,638	$ 840	$ 5,135	$ 2,464
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	46	139	862	434
Restricted and performance stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,592	701	4,273	2,030
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	125	101	463	271
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	113	5	385	103
Selling and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,400	$ 734	$ 4,287	$ 2,090

Restructuring Activities (Restructuring Related Activities) (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2023	Dec. 30, 2022	Sep. 30, 2022	Jul. 02, 2021
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	$ 1,472	$ 1,522	$ 1,381
Charges, net	(23)	928	1,950
Cash payments	(565)	(978)	(1,809)
Accrued balance, end of period	884	1,472	1,522
Severance and Benefits \| Q2 2023 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	476	0	0
Charges, net	0	928	0
Cash payments	(75)	(452)	0
Accrued balance, end of period	401	476	0
Severance and Benefits \| Q1 2023 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	136	513	0
Charges, net	0	0	1,950
Cash payments	0	(377)	(1,437)
Accrued balance, end of period	136	136	513
Severance and Benefits \| Q4 2022 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	23	23	295
Charges, net	(23)	0	0
Cash payments	0	0	(272)
Accrued balance, end of period	0	23	23
Severance and Benefits \| Fiscal 2021 Plan
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	837	986	1,086
Charges, net	0	0	0	$ 2,400
Cash payments	(490)	(149)	(100)
Accrued balance, end of period	$ 347	$ 837	$ 986

Restructuring Activities (Narrative) (Details) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2023 USD ($) employee	Dec. 30, 2022 USD ($) employee	Sep. 30, 2022 USD ($) employee	Jul. 02, 2021 USD ($) employee	Jul. 01, 2022 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring liabilities	$ 884				$ 1,381
Restructuring charges	(23)	$ 928	$ 1,950
Q2 2023 Plan
Restructuring Cost and Reserve [Line Items]
Expected reduction in workforce, number of employees \| employee		6
Q2 2023 Plan \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	$ 928	$ 0
Q1 2023 Plan
Restructuring Cost and Reserve [Line Items]
Expected reduction in workforce, number of employees \| employee			20
Q1 2023 Plan \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	0	$ 1,950
Q4 2022 Plan
Restructuring Cost and Reserve [Line Items]
Expected reduction in workforce, number of employees \| employee	11
Q4 2022 Plan \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ (23)	0	0
Fiscal 2021 Plan
Restructuring Cost and Reserve [Line Items]
Expected reduction in workforce, number of employees \| employee				30
Fiscal 2021 Plan \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 0	$ 0	$ 2,400

Acquisition (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
Acquisition (Narrative) (Details) - USD ($)	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2023	Apr. 01, 2022
Business Acquisition [Line Items]
Amortization of intangible assets acquired			$ 372,000	$ 0
Redline Communications Group Inc
Business Acquisition [Line Items]
Purchase consideration		$ 20,411,000
Cash acquired from acquisition		4,600,000
Total net consideration		$ 15,800,000
Amortization of intangible assets acquired			400,000
Goodwill and intangible asset impairment	$ 0		$ 0

Acquisition (Total Purchase Consideration) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022	Jul. 01, 2022
Business Acquisition [Line Items]
Goodwill	$ 4,950		$ 0
Redline Communications Group Inc
Business Acquisition [Line Items]
Purchase consideration		$ 20,411
Net tangible assets acquired		8,171
Purchased intangible assets		7,290
Goodwill	$ 4,950	$ 4,950

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Acquisition (Purchased Intangible Assets) (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Jul. 01, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 4,950		$ 0
Total	6,918
Redline Communications Group Inc
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill	4,950	$ 4,950
Gross	7,290
Accumulate amortization	(372)
Total	$ 6,918
Redline Communications Group Inc \| Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in Years	11 years
Gross	$ 630
Accumulate amortization	(43)
Total	$ 587
Redline Communications Group Inc \| Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in Years	15 years
Gross	$ 5,500
Accumulate amortization	(275)
Total	$ 5,225
Redline Communications Group Inc \| Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in Years	16 years
Gross	$ 1,160
Accumulate amortization	(54)
Total	$ 1,106

Acquisition (Estimated Future Amortization Expense) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Business Combination and Asset Acquisition [Abstract]
Remainder of 2023	$ 124
2024	496
2025	496
2026	496
2027	496
Thereafter	4,810
Total	$ 6,918

Net Income Per Share of Common Stock (Schedule of Basic and Diluted Net Income per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Numerator:
Net income, basic	$ 4,889	$ 6,029	$ 8,189	$ 16,627
Net income, diluted	$ 4,889	$ 6,029	$ 8,189	$ 16,627
Denominator:
Weighted-average shares outstanding, basic (in shares)	11,413	11,173	11,319	11,172
Effect of potentially dilutive equivalent shares (in shares)	471	588	510	676
Weighted-average shares outstanding, diluted (in shares)	11,884	11,761	11,829	11,848
Net income per share of common stock outstanding:
Basic (in dollars per share)	$ 0.43	$ 0.54	$ 0.72	$ 1.49
Diluted (in dollars per share)	$ 0.41	$ 0.51	$ 0.69	$ 1.40

Net Income Per Share of Common Stock (Schedule of Common Stock Excluded Because they were Antidilutive) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 01, 2022	Mar. 31, 2023	Apr. 01, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	236	174	209	157
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	211	121	189	112
Restricted stock units and performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	25	53	20	45

Commitments and Contingencies (Details) $ in Thousands	9 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Commercial commitments outstanding	$ 62,800
Maximum
Property Subject to or Available for Operating Lease [Line Items]
Guarantee term	2 years
Inventories
Property Subject to or Available for Operating Lease [Line Items]
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding	$ 47,600
Licensing Agreements
Property Subject to or Available for Operating Lease [Line Items]
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding	$ 3,900

Commitments and Contingencies (Commercial Commitments) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Letters of credit	$ 3,040
Bonds	59,760
Commercial commitments outstanding	$ 62,800