0001377789-23-000023 | 10-K | XBRL Viewer

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Acquisitions (Estimated Future Amortization Expense) (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Business Combination and Asset Acquisition [Abstract]
2024	$ 704
2025	704
2026	704
2027	704
2028	704
Thereafter	5,526
Total	$ 9,046

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Finished products	$ 18,502	$ 14,916
Raw materials and supplies	12,794	10,478
Customer service inventories	1,761	1,775
Total inventories	33,057	27,169
Consigned inventories included within raw materials	$ 11,224	$ 9,796

Revenue Recognition (Contracted Balances) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Contract Assets
Accounts receivable, net	$ 101,653	$ 73,168
Unbilled receivables	58,588	45,857
Capitalized commissions	3,492	2,341
Contract Liabilities
Advance payments and unearned revenue	44,268	33,740
Unearned revenue, long-term	$ 7,416	$ 8,920

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jul. 03, 2020		10,801
Beginning balance of treasury stock (in shares) at Jul. 03, 2020			0
Beginning balance at Jul. 03, 2020	$ 68,681	$ 108	$ 0	$ 814,283	$ (730,741)	$ (14,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	110,139				110,139
Other comprehensive (loss) income	642					642
Issuance of common stock under employee stock plans (in shares)		394
Issuance of common stock under employee stock plans	1,906	$ 4		1,902
Shares withheld for taxes related to vesting of equity awards (in shares)		(13)
Shares withheld for taxes related to vesting of equity awards	(167)			(167)
Stock repurchase (in shares)		28	20
Stock repurchase	(787)		$ (787)
Share-based compensation	2,921			2,921
Ending balance (in shares) at Jul. 02, 2021		11,154
Ending balance of treasury stock (in shares) at Jul. 02, 2021			20
Ending balance at Jul. 02, 2021	183,335	$ 112	$ (787)	818,939	(620,602)	(14,327)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,160				21,160
Other comprehensive (loss) income	(1,702)					(1,702)
Issuance of common stock under employee stock plans (in shares)		198
Issuance of common stock under employee stock plans	1,031	$ 2		1,029
Shares withheld for taxes related to vesting of equity awards (in shares)		(16)
Shares withheld for taxes related to vesting of equity awards	(543)			(543)
Stock repurchase (in shares)		175	175
Stock repurchase	(5,362)	$ (2)	$ (5,360)
Share-based compensation	$ 3,834			3,834
Ending balance (in shares) at Jul. 01, 2022	11,200	11,161
Ending balance of treasury stock (in shares) at Jul. 01, 2022	200		195
Ending 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	11,528				11,528
Other comprehensive (loss) income	25					25
Issuance of common stock under employee stock plans (in shares)		396
Issuance of common stock under employee stock plans	1,270	$ 3		1,267
Shares withheld for taxes related to vesting of equity awards (in shares)		(39)
Shares withheld for taxes related to vesting of equity awards	(1,198)			(1,198)
Stock repurchase	0		$ 0
Share-based compensation	$ 6,720			6,720
Ending balance (in shares) at Jun. 30, 2023	11,500	11,518
Ending balance of treasury stock (in shares) at Jun. 30, 2023	200		195
Ending balance at Jun. 30, 2023	$ 220,098	$ 115	$ (6,147)	$ 830,048	$ (587,914)	$ (16,004)

Commitments and Contingencies - Outstanding Purchase Obligations and Other Commitments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Long-Term Purchase Commitment [Line Items]
2024	$ 34,975
2025	4,797
2026	896
2027	164
2028	0
Total	40,832
Purchase obligations with suppliers of contract manufacturers
Long-Term Purchase Commitment [Line Items]
2024	34,004
2025	3,089
2026	0
2027	0
2028	0
Total	37,093
Contractual obligations associated with software as a service and software maintenance support
Long-Term Purchase Commitment [Line Items]
2024	971
2025	1,708
2026	896
2027	164
2028	0
Total	$ 3,739

Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	May 09, 2023	Jul. 05, 2022
Redline Communications Group, Inc
Asset Acquisition [Line Items]
Purchase price		$ 20,411
Cash acquired		4,600
Payments to acquire businesses, net of cash acquired		15,800
Finite-lived intangible assets, period increase (decrease)		2,500
Business combination, increase (decrease) in identifiable assets acquired, tangible assets		$ (2,600)
NEC Corporation
Asset Acquisition [Line Items]
Asset acquisitions in cash	$ 45,000
Consideration transferred, equity interest issued and issuable	25,000
Aggregate consideration transferred	$ 70,000

Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Deferred tax assets:
Inventory	$ 4,363	$ 4,065
Accruals and reserves	1,848	3,248
Bad debts	125	157
Amortization	86	2,274
Share-based compensation	858	807
Deferred revenue	3,678	1,913
Unrealized exchange gain/loss	3,229	374
Other	144	2,888
Capitalized research expenses	5,119	0
Tax credit carryforwards	4,274	4,926
Tax loss carryforwards	100,791	114,048
Total deferred tax assets before valuation allowance	124,515	134,700
Valuation allowance	(37,032)	(37,529)
Total deferred tax assets	87,483	97,171
Deferred tax liabilities:
Branch undistributed earnings reserve	90	176
Depreciation	520	948
Right of use assets	488	548
Other	227	650
Total deferred tax liabilities	1,325	2,322
Net deferred tax assets	86,158	94,849
Deferred income tax assets	86,650	95,412
Deferred income tax liabilities	$ 492	$ 563

Fair Value Measurements of Assets and Liabilities

12 Months Ended

Jun. 30, 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 carrying amounts, estimated fair values and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2023 and July 1, 2022 were as follows:


	June 30, 2023				July 1, 2022
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Cash and cash equivalents:
Money market funds	$	571	$	571	$	5,367	$	5,367	Level 1
Bank certificates of deposit	$	3,793	$	3,793	$	3,682	$	3,682	Level 2
Marketable securities	$	2	$	2	$	10,893	$	10,893	Level 1




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

We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items mainly are marketable securities and money market funds purchased from major financial institutions. Our marketable securities are included in current assets on our balance sheet as they are available to be converted into cash to fund current operations. These marketable securities are publicly traded stock measured at fair value and classified within Level 1. As of June 30, 2023, these money market funds were valued at $1.00 net asset value per share by these financial institutions.

We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank

certificates of deposit and foreign exchange forward contracts are classified within Level 2. The carrying value of bank certificates of deposit approximates their fair value. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. We did not have any foreign currency forward contracts outstanding as of June 30, 2023. We did not have any recurring assets or liabilities that were valued using significant unobservable inputs.

Our policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During fiscal 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

Stockholders’ Equity (Additional Option Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Share-Based Payment Arrangement [Abstract]
Intrinsic value of options exercised	$ 3,725	$ 1,624	$ 2,208
Fair value of options vested	$ 1,142	$ 608	$ 484

Segment and Geographic Information (Long-Lived Assets by Country) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 9,452	$ 8,887
New Zealand
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	3,619	5,149
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	5,048	2,972
Other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 785	$ 766

Commitments and Contingencies - Additional Information (Details) $ in Millions	12 Months Ended
	Jun. 30, 2023 USD ($)
Other Commitments [Line Items]
Commercial commitments outstanding	$ 61.0
Maximum
Other Commitments [Line Items]
Guarantee term	2 years

Balance Sheet Components

12 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Cash, Cash Equivalents, and Restricted Cash

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


(In thousands)	June 30, 2023		July 1, 2022
Cash and cash equivalents	$	22,242	$	36,877
Restricted cash included in other assets	279		227
Total cash, cash equivalents, and restricted cash	$	22,521	$	37,104

Cash and cash equivalents includes $2.6 million of collateralized cash for certain commercial commitments as of June 30, 2023.

Accounts Receivable, net

Our net accounts receivable are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Accounts receivable	$	102,372	$	74,102
Less: allowances for collection losses	(719)		(934)
Total accounts receivable, net	$	101,653	$	73,168

Inventories

Our inventories are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Finished products	$	18,502	$	14,916
Raw materials and supplies	12,794		10,478
Customer service inventories	$	1,761	$	1,775
Total inventories	$	33,057	$	27,169
Consigned inventories included within raw materials	$	11,224	$	9,796

During fiscal 2023, 2022 and 2021, we recorded charges to adjust our inventories due to excess and obsolete inventory resulting from lower sales forecasts, product transitioning or discontinuance. Such charges incurred during

fiscal 2023, 2022 and 2021 were classified in cost of product sales as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
Excess and obsolete inventory charges	$	1,109	$	647	$	544
Customer service inventory write-downs	1,029		1,088		908
Total charges	$	2,138	$	1,735	$	1,452

Other Current Assets

Our other current assets are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Contract manufacturing assets	$	6,487	$	1,621
Prepaids and other current assets	15,675		10,816
Total other current assets	$	22,162	$	12,437

Property, Plant and Equipment, net

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


(In thousands)	June 30, 2023		July 1, 2022
Land	$	210	$	210
Buildings and leasehold improvements	5,889		5,796
Software	16,989		21,368
Machinery and equipment	47,150		49,584
	70,238		76,958
Less accumulated depreciation	(60,786)		(68,071)
Total property, plant and equipment, net	$	9,452	$	8,887

Included in the total plant, property and equipment above were $0.4 million and $1.2 million of assets in progress which have not been placed in service as of June 30, 2023 and July 1, 2022, respectively. Depreciation expense related to property, plant and equipment was $5.5 million, $4.5 million and $5.4 million in fiscal 2023, 2022 and 2021, respectively.

Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Compensation and benefits	$	10,368	$	11,625
Taxes	4,553		5,286
Professional fees	2,104		944
Warranties	2,100		2,913
Commissions	1,453		1,864
Other	3,864		3,819
Total accrued expenses	$	24,442	$	26,451

We accrue for the estimated cost to repair or replace products under warranty. Changes in our accrued warranty liability, were as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
Balance as of the beginning of the fiscal year	$	2,913	$	3,228	$	3,196
Warranty provision recorded during the period	768		1,328		1,679
Acquisition	55		—		—
Consumption during the period	(1,636)		(1,643)		(1,647)
Balance as of the end of the fiscal year	$	2,100	$	2,913	$	3,228

Advance payments and Unearned Revenue

Our advance payments and unearned revenue are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Advance payments	$	1,607	$	1,870
Unearned revenue	42,661		31,870
	$	44,268	$	33,740

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Jun. 30, 2023	Aug. 23, 2023	Dec. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--06-30
Document Transition Report	false
Entity File Number	001-33278
Entity Registrant Name	AVIAT NETWORKS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5961564
Entity Address, Address Line One	200 Parker Drive, Suite C100A,
Entity Address, City or Town	Austin,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78728
City Area Code	408
Local Phone Number	941-7100
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 340.4
Entity Common Stock, Shares Outstanding		11,528,714
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement for its fiscal 2023 Annual Meeting of Stockholders (“Proxy Statement”), which will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended June 30, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K.
Entity Central Index Key	0001377789
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock, par value $0.01 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	AVNW
Security Exchange Name	NASDAQ
Preferred Share Purchase Rights
Document Information [Line Items]
Title of 12(b) Security	Preferred Share Purchase Rights
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ

Commitments and Contingencies (Tables)

12 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Long-Term Purchase Commitment

As of June 30, 2023, we had outstanding purchase obligations and other commitments as follows:


	Payments due by period
	2024		2025		2026		2027		2028		Total
Purchase obligations with suppliers of contract manufacturers	$	34,004	$	3,089	$	—	$	—	$	—	$	37,093
Contractual obligations associated with software as a service and software maintenance support	971		1,708		896		164		—		3,739
Total obligations	$	34,975	$	4,797	$	896	$	164	$	—	$	40,832

Stockholders’ Equity (Options by Exercise Price Range) (Details)	12 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Actual Range of Exercise Prices, Lower Limit (in dollars per share)	$ 7.23
Actual Range of Exercise Prices, Upper Limit (in dollars per share)	$ 35.97
Number Outstanding (in shares) \| shares	414,092
Weighted-Average Remaining Contractual Life	4 years 7 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 21.77
Number Exercisable (in shares) \| shares	188,254
Weighted-Average Exercise Price (in dollars per share)	$ 14.41

Net Income per Share of Common Stock (Schedule of Common Stock Excluded Because they were Antidilutive) (Details) - shares shares in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock excluded (in shares)	215	186	12
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock excluded (in shares)	194	114	8
Restricted stock units and performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock excluded (in shares)	21	72	4

Acquisitions (Tables)

12 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

A summary of the final purchase price allocation is as follows:


(In thousands)
Cash and cash equivalents	$	4,642
Accounts receivable, net	4,281
Inventories	3,379
Property, plant and equipment, net	688
Identifiable finite-lived intangible assets:
Patents	690
Customer relationships	7,730
Trade names	1,330
Other assets	1,921
Accounts payable	(2,113)
Advance payments and unearned revenue	(3,301)
Other liabilities	(3,948)
Goodwill	5,112
Total consideration	$	20,411

Schedule of Purchased Intangible Assets

The following table presents details of the acquired identifiable finite-lived intangible assets:


	Useful life in Years	Gross		Accumulated amortization		Net
Identifiable intangible assets:
Patents	10	$	690	$	(69)	$	621
Customer relationships	14	7,730		(552)		7,178
Trade names	16	1,330		(83)		1,247
Total identifiable intangible assets		$	9,750	$	(704)	$	9,046

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Amortization of finite-lived intangibles is included in selling and administrative expenses. As of June 30, 2023, the estimated future amortization expense of intangible assets with finite lives is as follows:


	Amount
	(In thousands)
2024	$	704
2025	704
2026	704
2027	704
2028	704
Thereafter	5,526
Total	$	9,046

Revenue Recognition (Remaining Performance Obligations) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 $ in Millions	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 151.8
Remaining performance obligation, percentage	70.00%
Expected timing of satisfaction, period	12 months

Net Income per Share of Common Stock (Schedule of Basic and Diluted Net (Loss) Income per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Numerator:
Net income, basic	$ 11,528	$ 21,160	$ 110,139
Net income, diluted	$ 11,528	$ 21,160	$ 110,139
Denominator:
Weighted average shares outstanding, basic (in shares)	11,358	11,167	11,036
Effect of potentially dilutive equivalent shares (in shares)	497	653	652
Weighted average shares outstanding, diluted (in shares)	11,855	11,820	11,688
Net income per share:
Basic (in dollars per share)	$ 1.01	$ 1.89	$ 9.98
Diluted (in dollars per share)	$ 0.97	$ 1.79	$ 9.42

Income Taxes (Income before Provision for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Income Tax Disclosure [Abstract]
United States	$ 20,531	$ 31,923	$ 26,325
Foreign	2,572	(1,488)	(3,885)
Income before income taxes	$ 23,103	$ 30,435	$ 22,440

- Definition

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

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-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Revenues:
Total revenues	$ 346,593	$ 302,959	$ 274,911
Cost of revenues:
Total cost of revenues	222,422	193,724	172,296
Gross margin	124,171	109,235	102,615
Operating expenses:
Research and development	24,908	22,596	21,810
Selling and administrative	69,842	57,656	56,324
Restructuring charges	3,012	238	2,271
Total operating expenses	97,762	80,490	80,405
Operating income	26,409	28,745	22,210
Other (expense) income, net	(3,306)	1,690	230
Income before income taxes	23,103	30,435	22,440
Provision for (benefit from) income taxes	11,575	9,275	(87,699)
Net income, basic	11,528	21,160	110,139
Net income, diluted	$ 11,528	$ 21,160	$ 110,139
Earnings Per Share [Abstract]
Basic (in dollars per share)	$ 1.01	$ 1.89	$ 9.98
Diluted (in dollars per share)	$ 0.97	$ 1.79	$ 9.42
Weighted average shares outstanding:
Basic (in shares)	11,358	11,167	11,036
Diluted (in shares)	11,855	11,820	11,688
Product sales
Revenues:
Total revenues	$ 239,321	$ 208,100	$ 185,787
Cost of revenues:
Total cost of revenues	151,008	132,404	113,055
Services
Revenues:
Total revenues	107,272	94,859	89,124
Cost of revenues:
Total cost of revenues	$ 71,414	$ 61,320	$ 59,241

Balance Sheet Components (Tables)

12 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	June 30, 2023		July 1, 2022
Cash and cash equivalents	$	22,242	$	36,877
Restricted cash included in other assets	279		227
Total cash, cash equivalents, and restricted cash	$	22,521	$	37,104

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	June 30, 2023		July 1, 2022
Cash and cash equivalents	$	22,242	$	36,877
Restricted cash included in other assets	279		227
Total cash, cash equivalents, and restricted cash	$	22,521	$	37,104

Schedule of Accounts Receivable, Net

Our net accounts receivable are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Accounts receivable	$	102,372	$	74,102
Less: allowances for collection losses	(719)		(934)
Total accounts receivable, net	$	101,653	$	73,168

Schedule of Inventories

Our inventories are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Finished products	$	18,502	$	14,916
Raw materials and supplies	12,794		10,478
Customer service inventories	$	1,761	$	1,775
Total inventories	$	33,057	$	27,169
Consigned inventories included within raw materials	$	11,224	$	9,796

Schedule of Adjustments to Inventory

Such charges incurred during

fiscal 2023, 2022 and 2021 were classified in cost of product sales as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
Excess and obsolete inventory charges	$	1,109	$	647	$	544
Customer service inventory write-downs	1,029		1,088		908
Total charges	$	2,138	$	1,735	$	1,452

Schedule of Other Current Assets

Our other current assets are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Contract manufacturing assets	$	6,487	$	1,621
Prepaids and other current assets	15,675		10,816
Total other current assets	$	22,162	$	12,437

Schedule of Property, Plant and Equipment, Net

The useful lives of the assets are generally as follows:


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

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


(In thousands)	June 30, 2023		July 1, 2022
Land	$	210	$	210
Buildings and leasehold improvements	5,889		5,796
Software	16,989		21,368
Machinery and equipment	47,150		49,584
	70,238		76,958
Less accumulated depreciation	(60,786)		(68,071)
Total property, plant and equipment, net	$	9,452	$	8,887

Schedule of Accrued Expenses

Our accrued expenses are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Compensation and benefits	$	10,368	$	11,625
Taxes	4,553		5,286
Professional fees	2,104		944
Warranties	2,100		2,913
Commissions	1,453		1,864
Other	3,864		3,819
Total accrued expenses	$	24,442	$	26,451

Schedule of Changes in Warranty Liability

Changes in our accrued warranty liability, were as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
Balance as of the beginning of the fiscal year	$	2,913	$	3,228	$	3,196
Warranty provision recorded during the period	768		1,328		1,679
Acquisition	55		—		—
Consumption during the period	(1,636)		(1,643)		(1,647)
Balance as of the end of the fiscal year	$	2,100	$	2,913	$	3,228

Schedule of Advance Payments and Unearned Income

Our advance payments and unearned revenue are summarized below:


(In thousands)	June 30, 2023		July 1, 2022
Advance payments	$	1,607	$	1,870
Unearned revenue	42,661		31,870
	$	44,268	$	33,740

Stockholders’ Equity (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022
Shares
Options outstanding beginning of the period (in shares)	469,716
Granted (in shares)	110,945
Exercised (in shares)	(148,674)
Forfeited (in shares)	(16,705)
Expired (in shares)	(1,190)
Options outstanding at the end of the period (in shares)	414,092	469,716
Options vested and expected to vest at the end of the period (in shares)	414,092
Options exercisable at the end of the period (in shares)	188,254
Weighted-Average Exercise Price-
Options outstanding, beginning (in dollars per share)	$ 15.15
Granted (in dollars per share)	32.10
Exercised (in dollars per share)	8.31
Forfeited (in dollars per share)	22.97
Expired (in dollars per share)	35.97
Options outstanding, at the end of the period (in dollars per share)	21.77	$ 15.15
Options vested and expected to vest at the end of the period (in dollars per share)	21.77
Options exercisable at the end of the period (in dollars per share)	$ 14.41
Weighted-average remaining contractual life, options outstanding	4 years 7 months 24 days	4 years 8 months 4 days
Weighted-average remaining contractual life, options vested and expected to vest	4 years 7 months 24 days
Weighted-average remaining contractual life, options exercisable	3 years 9 months 10 days
Aggregate intrinsic value, options outstanding	$ 4,911	$ 5,599
Aggregate intrinsic value, options vested and expected to vest	4,911
Aggregate intrinsic value, options exercisable	$ 3,607

Segment and Geographic Information (Narrative) (Details)	12 Months Ended
	Jun. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	1

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 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)	11,500,000	11,200,000
Common stock, shares outstanding (in shares)	11,500,000	11,200,000
Treasury stock (in shares)	200,000	200,000

Restructuring Activities

12 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Activities

The following table summarizes our restructuring related activities during fiscal 2023, 2022 and 2021:


(In thousands)	Employee Severance and Benefits				Facilities and Other
	Fiscal 2023 Plans		Prior Years Plans		Prior Years Plans		Total
Balance as of July 3, 2020	$	—	$	2,502	$	236	$	2,738
Charges, net	—		2,271		—		2,271
Cash payments	—		(2,291)		—		(2,291)
Foreign currency translation (gain) loss	—		7		12		19
Balance as of July 2, 2021	—		2,489		248		2,737
Charges (reversals), net	—		474		(236)		238
Cash payments	—		(1,559)		—		(1,559)
Foreign currency translation (gain) loss	—		(23)		(12)		(35)
Balance as of July 1, 2022	—		1,381		—		1,381
Charges, net	2,947		—		—		2,947
Cash payments	(2,347)		(1,381)		—		(3,728)

Balance as of June 30, 2023	$	600	$	—	$	—	$	600

As of June 30, 2023, the accrued restructuring balance of $0.6 million was in restructuring liabilities on the consolidated balance sheets. Included in the above were positions identified for termination that have not been executed from a restructuring perspective.

Fiscal 2023 Plans

During fiscal 2023, our Board of Directors approved restructuring plans, primarily associated with the acquisition of Redline and reductions in workforce in our operations outside the United States. The fiscal 2023 plans are expected to be completed through the end of first half of fiscal 2024.

Prior Years’ Plans

Activities under the prior years’ plans primarily included reductions in workforce across the Company, primarily in our operations outside the United States. Payments related to the accrued restructuring balance for these plans are complete.

Balance Sheet Components (Advance Payments and Unearned Revenue) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Advance payments	$ 1,607	$ 1,870
Unearned revenue	42,661	31,870
Advance payments and unearned revenue	$ 44,268	$ 33,740

Revenue Recognition (Tables)

12 Months Ended

Jun. 30, 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):


	June 30, 2023		July 1, 2022
Contract Assets
Accounts receivable, net	$	101,653	$	73,168
Unbilled receivables	$	58,588	$	45,857
Capitalized commissions	$	3,492	$	2,341
Contract Liabilities
Advance payments and unearned revenue	$	44,268	$	33,740
Unearned revenue, long-term	$	7,416	$	8,920

Stockholders’ Equity (Tables)

12 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Repurchase of Common Stock

The following table summarizes the repurchase of our common stock:


(In thousands, except share and per-share amounts)	Shares	Weighted-Average Price Paid per Share		Aggregate purchase price
Fiscal 2023 Treasury Shares	—	$	—	$	—
Fiscal 2022 Treasury Shares	175,356	$	30.57	$	5,360
Fiscal 2021 Treasury Shares	19,587	$	40.16	$	787

Schedule of Compensation Expense for Share-based Compensation Awards

The following table presents the compensation expense for share-based awards included in our consolidated statements of operations for fiscal 2023, 2022 and 2021:


	Fiscal Year
(In thousands)	2023		2022		2021
By Expense Category:
Cost of product sales and services	$	627	$	440	$	372
Research and development	514		246		250
Selling and administrative	5,579		3,148		2,299
Total share-based compensation expense	$	6,720	$	3,834	$	2,921
By Types of Award:
Options	$	1,394	$	582	$	757
Restricted stock awards and units	3,565		1,482		857
Performance share awards and units	1,761		1,770		1,307
Total share-based compensation expense	$	6,720	$	3,834	$	2,921

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


	June 30, 2023
	Unamortized Expense		Weighted-Average Remaining Recognition Period
	(In thousands)		(Years)
Options	$	1,637	1.38
Restricted stock awards and units	$	5,426	1.38
Performance share awards and units	$	2,096	0.98

Schedule of Stock Options Activities

A summary of the combined stock option activity under our equity plans during fiscal 2023 is as follows:


	Shares	Weighted-Average Exercise Price-		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
				(Years)	(In thousands)
Options outstanding as of July 1, 2022	469,716	$	15.15	4.68	$	5,599
Granted	110,945	$	32.10
Exercised	(148,674)	$	8.31
Forfeited	(16,705)	$	22.97
Expired	(1,190)	$	35.97
Options outstanding as of June 30, 2023	414,092	$	21.77	4.65	$	4,911
Options vested and expected to vest as of June 30, 2023	414,092	$	21.77	4.65	$	4,911
Options exercisable as of June 30, 2023	188,254	$	14.41	3.78	$	3,607

Schedule of Additional Information of Stock Options

Additional information related to our stock options is summarized below:


	Fiscal Year
(In thousands)	2023		2022		2021
Intrinsic value of options exercised	$	3,725	$	1,624	$	2,208
Fair value of options vested	$	1,142	$	608	$	484

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

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


	Fiscal Year
	2023		2022		2021
Expected dividends	—	%	—	%	—	%
Expected volatility	62.9	%	61.9	%	48.5	%
Risk-free interest rate	3.5	%	0.4	%	0.2	%
Expected term (in years)	3.0		3.0		3.0

Schedule of Stock Options Outstanding and Exercisable

The following summarizes all of our stock options outstanding and exercisable as of June 30, 2023:


	Options Outstanding				Options Exercisable
Actual Range of Exercise Prices	Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Exercise Price
		(Years)
$7.23 — $35.97	414,092	4.65	$	21.77	188,254	$	14.41

Schedule of Status of Restricted Stock

A summary of the status of our restricted stock as of June 30, 2023 and changes during fiscal 2023 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Restricted stock outstanding as of July 1, 2022	383,257	$	25.59
Granted	74,827	$	31.67
Vested and released	(146,226)	$	22.92
Forfeited	(38,407)	$	29.32
Restricted stock outstanding as of June 30, 2023	273,451	$	28.16

A summary of the status of our performance shares as of June 30, 2023 and changes during fiscal 2023 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Performance shares outstanding as of July 1, 2022	225,103	$	16.69
Granted	66,649	30.01
Vested and released	(99,348)	9.56
Forfeited	(12,350)	21.71
Performance shares outstanding as of June 30, 2023	180,054	$	25.20

Schedule of Market Condition Award Valuation Assumptions

A summary of the significant weighted-average assumptions is as follows:


	Fiscal Year
	2023		2022
Expected dividends	—		—
Expected volatility	63.7	%	62.2% - 60.0%
Risk-free interest rate	3.5	%	0.45% - 0.37%
Weighted-average grant date fair value per share granted	$32.10		$35.56 - $31.38

Fair Value Measurements of Assets and Liabilities (Schedule of Fair Value, by Balance Sheet Grouping) (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Level 1 \| Carrying Amount
Assets:
Marketable securities	$ 2	$ 10,893
Level 1 \| Carrying Amount \| Money market funds
Assets:
Cash and cash equivalents	571	5,367
Level 1 \| Fair Value
Assets:
Marketable securities	2	10,893
Level 1 \| Fair Value \| Money market funds
Assets:
Cash and cash equivalents	571	5,367
Level 2 \| Carrying Amount
Liabilities:
Foreign exchange forward contracts	0	114
Level 2 \| Carrying Amount \| Bank certificates of deposit
Assets:
Cash and cash equivalents	3,793	3,682
Level 2 \| Fair Value
Liabilities:
Foreign exchange forward contracts	0	114
Level 2 \| Fair Value \| Bank certificates of deposit
Assets:
Cash and cash equivalents	$ 3,793	$ 3,682

Balance Sheet Components (Receivables) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 102,372	$ 74,102
Less: allowances for collection losses	(719)	(934)
Total accounts receivable, net	$ 101,653	$ 73,168

Acquisitions

12 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

NEC’s Wireless Transport Business

On May 9, 2023, the Company entered into a Master Sale of Business Agreement (the “Purchase Agreement”), with NEC Corporation. Pursuant to the Purchase Agreement, the Company will purchase certain assets and liabilities from NEC relating to NEC’s wireless backhaul business (the “NEC Transaction”). Initial consideration due at the closing of the NEC Transaction will be comprised of (i) an amount in cash equal to $45.0 million, subject to certain post-closing adjustments, and (ii) the issuance of $25 million in Company common stock. Aggregate consideration will be approximately $70 million. The Company has obtained permanent financing to fund the cash portion of the NEC Transaction. See Note 7. Credit Facility and Debt for further information.

The Purchase Agreement contains certain customary termination rights, including, among others, (i) the right of the Company or NEC to terminate if all the conditions to closing have not been either waived or satisfied on or before February 9, 2024 and (ii) there is a final non-appealable order of a government entity prohibiting the consummation of the NEC Transaction. The NEC Transaction remains subject to, among other things, regulatory approvals and satisfaction of other customary closing conditions.

The Company expects to complete the NEC Transaction in the fourth quarter of calendar year 2023.

NEC is a leader in wireless backhaul networks with an extensive installed base of their Pasolink series products.

Redline Communications Group Inc.

On July 5, 2022, the Company acquired all of the issued and outstanding shares of Redline Communications Group Inc. (“Redline”), for a purchase price of $20.4 million. Redline is a leading provider of mission-critical data infrastructure. Acquiring Redline allows Aviat to expand its Private Networks Offering with Private LTE/5G and 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.

Cash acquired as part of the all-cash acquisition was $4.6 million for total net consideration of $15.8 million. The acquisition was accounted for as a business combination using the acquisition method of accounting. The assets acquired and the liabilities assumed have been recorded at their respective fair values as of the acquisition date. The recognized goodwill is attributable to the workforce of the acquired business and expected synergies. The goodwill from this acquisition is expected to be deductible for tax purposes. Transaction costs related to the acquisition were expensed as incurred and are included in selling and administrative expenses in the consolidated statements of operations.

The preliminary purchase price allocation has been updated for certain measurement period adjustments based on the final valuation resulting in a $2.5 million increase in identifiable finite-lived intangible assets and a $2.6 million decrease in net tangible assets acquired. These adjustments resulted in corresponding increase to goodwill.

The results of operations of Redline have been included in our consolidated financial statements since the date of acquisition. The Company determined that the impact of this acquisition was not material to our consolidated financial statements; therefore, revenue and earnings since the acquisition date and pro forma information are not required or presented.

A summary of the final purchase price allocation is as follows:


(In thousands)
Cash and cash equivalents	$	4,642
Accounts receivable, net	4,281
Inventories	3,379
Property, plant and equipment, net	688
Identifiable finite-lived intangible assets:
Patents	690
Customer relationships	7,730
Trade names	1,330
Other assets	1,921
Accounts payable	(2,113)
Advance payments and unearned revenue	(3,301)
Other liabilities	(3,948)
Goodwill	5,112
Total consideration	$	20,411

The following table presents details of the acquired identifiable finite-lived intangible assets:


	Useful life in Years	Gross		Accumulated amortization		Net
Identifiable intangible assets:
Patents	10	$	690	$	(69)	$	621
Customer relationships	14	7,730		(552)		7,178
Trade names	16	1,330		(83)		1,247
Total identifiable intangible assets		$	9,750	$	(704)	$	9,046


	Amount
	(In thousands)
2024	$	704
2025	704
2026	704
2027	704
2028	704
Thereafter	5,526
Total	$	9,046

Stockholders’ Equity (Repurchase of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price	$ 0	$ 5,362	$ 787
Treasury Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares)	0	175,356	19,587
Weighted-Average Price Paid per Share (in dollars per share)	$ 0	$ 30.57	$ 40.16
Aggregate purchase price	$ 0	$ 5,360	$ 787

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

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-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
-SubTopic 10
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-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
-SubTopic 10
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-Topic 718
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-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stockholders’ Equity

12 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Repurchase Program

During the second quarter of fiscal 2022 we completed the $7.5 million stock repurchase program approved by our Board of Directors in May 2018. This repurchase program was temporarily suspended from February 2020 to February 2021. In November 2021, our Board of Directors approved a stock repurchase program to purchase up to $10.0 million of our common stock. During fiscal 2023 we did not repurchase any shares of our common stock. In fiscal 2022 and 2021 we repurchased $5.4 million and $0.8 million, respectively. As of June 30, 2023, $7.3 million remained available for repurchase.

The following table summarizes the repurchase of our common stock:


(In thousands, except share and per-share amounts)	Shares	Weighted-Average Price Paid per Share		Aggregate purchase price
Fiscal 2023 Treasury Shares	—	$	—	$	—
Fiscal 2022 Treasury Shares	175,356	$	30.57	$	5,360
Fiscal 2021 Treasury Shares	19,587	$	40.16	$	787

Starting in February 2021, repurchased shares were recorded as treasury stock and we do not anticipate retiring them. Treasury stock did not participate in the two-for-one stock split in the form of a stock dividend paid on April 7, 2021. All repurchased shares prior to February 2021 were retired and reflected the two-for-one stock split.

Stock Incentive Programs

Stock Equity Plan

As of June 30, 2023, we had one stock incentive plan for our employees and non-employee directors, the 2018 Incentive Plan (the “2018 Plan”). The 2018 Plan was approved by the Company’s stockholders in March 2018. An increase of 1,250,000 shares available to grant to employees and non-employee directors was approved at the Annual Meeting of Stockholders in November 2021. The 2018 Plan replaced the 2007 Plan as our primary long-term incentive program (“LTIP”). The 2007 Plan was discontinued following stockholder approval of the 2018 Plan, but the outstanding awards under the 2007 Plan will continue to remain in effect in accordance with their terms; provided that, as shares are returned under the 2007 Plan upon cancellation, termination or otherwise of awards outstanding under the 2007 Plan, such shares will be available for grant under the 2018 Plan. The 2018 Plan provides for the issuance of share-based awards in the form of stock options, stock appreciation rights, restricted stock awards and units, and performance share awards and units.

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

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

Vesting of performance share awards and units is subject to the achievement of predetermined financial performance and share price criteria, and continued employment through the end of the applicable period.

We issue new shares of our common stock to our employees upon the exercise of stock options, vesting of restricted stock awards and units or vesting of performance share awards and units. All awards that are canceled prior to vesting or expire unexercised are returned to the approved pool of reserved shares and made available for future grants under the 2018 Plan. Shares of our common stock remaining available for future issuance under the 2018 Plan totaled 1,822,810 as of June 30, 2023.

On March 3, 2020, our Board of Directors authorized and declared a dividend distribution of one right (a “Right”) for each outstanding share of our common stock, par value $0.01 per share, to our stockholders of record as of the close of business on March 3, 2020, (the “Record Date”). Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company at an exercise price of $35.00 per one one-thousandth of a Preferred Share, subject to adjustment. Until the rights become exercisable, they will not be evidenced by separate certificates and will trade automatically with shares of the Company’s common stock. The Rights have a de minimis fair value. The complete terms of the Rights are set forth in the Amended and Restated Tax Benefit Preservation Plan (the “Plan”), dated as of August 27, 2020, and amended as of February 28, 2023, between the Company and Computershare Inc., as rights agent. By adopting the Plan, we are helping to preserve the value of certain deferred tax benefits, including those generated by net operating losses (collectively, the “Tax Benefits”), which could be lost in the event of an “ownership change” as defined under Section 382 Code. The amended Plan will be submitted to the Company’s stockholders for ratification at the Company’s 2023 annual meeting (the “Annual Meeting”), which extends the final expiration date of the Plan until March 3, 2026.

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

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), employees are entitled to purchase shares of our common stock at a 5% discount from the fair market value at the end of a three-month purchase period. We issued 1,254 shares under the ESPP during fiscal 2023. The ESPP was terminated at the end of calendar year 2022 and the remaining shares reserved for future issuance expired.

Share-Based Compensation

The following table presents the compensation expense for share-based awards included in our consolidated statements of operations for fiscal 2023, 2022 and 2021:


	Fiscal Year
(In thousands)	2023		2022		2021
By Expense Category:
Cost of product sales and services	$	627	$	440	$	372
Research and development	514		246		250
Selling and administrative	5,579		3,148		2,299
Total share-based compensation expense	$	6,720	$	3,834	$	2,921
By Types of Award:
Options	$	1,394	$	582	$	757
Restricted stock awards and units	3,565		1,482		857
Performance share awards and units	1,761		1,770		1,307
Total share-based compensation expense	$	6,720	$	3,834	$	2,921

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


	June 30, 2023
	Unamortized Expense		Weighted-Average Remaining Recognition Period
	(In thousands)		(Years)
Options	$	1,637	1.38
Restricted stock awards and units	$	5,426	1.38
Performance share awards and units	$	2,096	0.98

Stock Options

A summary of the combined stock option activity under our equity plans during fiscal 2023 is as follows:


	Shares	Weighted-Average Exercise Price-		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
				(Years)	(In thousands)
Options outstanding as of July 1, 2022	469,716	$	15.15	4.68	$	5,599
Granted	110,945	$	32.10
Exercised	(148,674)	$	8.31
Forfeited	(16,705)	$	22.97
Expired	(1,190)	$	35.97
Options outstanding as of June 30, 2023	414,092	$	21.77	4.65	$	4,911
Options vested and expected to vest as of June 30, 2023	414,092	$	21.77	4.65	$	4,911
Options exercisable as of June 30, 2023	188,254	$	14.41	3.78	$	3,607

The aggregate intrinsic value represents the total pre-tax intrinsic value or the aggregate difference between the closing price of our common stock on June 30, 2023 of $33.37, and the exercise price for in-the-money options that would have been received by the optionees if all options had been exercised on June 30, 2023.

Additional information related to our stock options is summarized below:


	Fiscal Year
(In thousands)	2023		2022		2021
Intrinsic value of options exercised	$	3,725	$	1,624	$	2,208
Fair value of options vested	$	1,142	$	608	$	484

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


	Fiscal Year
	2023		2022		2021
Expected dividends	—	%	—	%	—	%
Expected volatility	62.9	%	61.9	%	48.5	%
Risk-free interest rate	3.5	%	0.4	%	0.2	%
Expected term (in years)	3.0		3.0		3.0

The following summarizes all of our stock options outstanding and exercisable as of June 30, 2023:


	Options Outstanding				Options Exercisable
Actual Range of Exercise Prices	Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Exercise Price
		(Years)
$7.23 — $35.97	414,092	4.65	$	21.77	188,254	$	14.41

Restricted Stock Awards and Units

A summary of the status of our restricted stock as of June 30, 2023 and changes during fiscal 2023 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Restricted stock outstanding as of July 1, 2022	383,257	$	25.59
Granted	74,827	$	31.67
Vested and released	(146,226)	$	22.92
Forfeited	(38,407)	$	29.32
Restricted stock outstanding as of June 30, 2023	273,451	$	28.16

The fair value of each restricted stock grant is based on the closing price of our common stock on the date of grant. The total grant date fair value of restricted stock that vested during fiscal 2023, 2022 and 2021 was $3.4 million, $0.5 million and $0.5 million, respectively.

Performance Share Awards and Units

A summary of the status of our performance shares as of June 30, 2023 and changes during fiscal 2023 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Performance shares outstanding as of July 1, 2022	225,103	$	16.69
Granted	66,649	30.01
Vested and released	(99,348)	9.56
Forfeited	(12,350)	21.71
Performance shares outstanding as of June 30, 2023	180,054	$	25.20

The fair value of performance shares was estimated using the Monte-Carlo simulation model. A summary of the significant weighted-average assumptions is as follows:


	Fiscal Year
	2023		2022
Expected dividends	—		—
Expected volatility	63.7	%	62.2% - 60.0%
Risk-free interest rate	3.5	%	0.45% - 0.37%
Weighted-average grant date fair value per share granted	$32.10		$35.56 - $31.38

The total grant date fair value of performance share units that vested during fiscal 2023, 2022 and 2021 was $1.0 million, $0.4 million and $0.4 million, respectively.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

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-Topic 505
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022
Disaggregation of Revenue [Line Items]
Advance payments and unearned income	$ 51.7
Revenue to be recognized, percentage	72.00%
Services
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 47.2	$ 23.3
Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms	120 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

The Company and Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details)	Jun. 30, 2023
Buildings
Property, Plant and Equipment [Line Items]
Useful life	40 years
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	10 years
Software \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years

The Company and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The 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. Certain amounts in the financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. Our fiscal year includes 52 or 53 weeks and ends on the Friday nearest June 30. This was June 30, 2023 for fiscal 2023, July 1, 2022 for fiscal 2022 and July 2, 2021 for fiscal 2021. Fiscal 2023, 2022 and 2021 includes 52 weeks. In these notes to consolidated financial statements, we refer to our fiscal years as “fiscal 2023”, “fiscal 2022” and “fiscal 2021.”
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for uncollectible receivables, inventory valuation, goodwill and identified intangible assets in business combinations, valuation allowances for deferred tax assets and uncertainties in income taxes. The actual results that we experience may differ materially from our estimates.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are carried at amortized cost, which approximates fair value due to the short-term nature of these investments. Investments with an original maturity of greater than three months are accounted for as short-term investments and are classified as such at the time of purchase. We hold cash and cash equivalents at several major financial institutions, which often significantly exceed Federal Deposit Insurance Corporation insured limits. However, a substantial portion of the cash equivalents is invested in prime money market funds which are backed by the securities in the fund. As of June 30, 2023 and July 1, 2022, all of our high-quality marketable securities were invested in prime money market funds. Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of contractual agreements are recorded as restricted cash. Our restricted cash is included in other assets on our consolidated balance sheets and represents the cash balance on our disability insurance voluntary plan account that cannot be used by us for any operating purposes other than to pay benefits to the insured employees. See Note 5. Balance Sheet Components for further information.
Significant Concentrations	Significant Concentrations We typically invoice our customers for the sales order (or contract) value of the related products delivered at various milestones, including order receipt, shipment, installation and acceptance and for services when rendered. Our trade receivables are derived from sales to customers located in North America, Africa, Europe, the Middle East, Asia-Pacific and Latin America. Accounts receivable is presented net of allowance for estimated uncollectible accounts to reflect any loss anticipated on the collection of accounts receivable balances. We calculate the allowance based on our history of write-offs, level of past due accounts and the economic status of the customers. The fair value of our accounts receivable approximates their net realizable value. We regularly require letters of credit from certain customers and, from time to time, we discount these letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Under these arrangements, collection risk is fully transferred to the financial institutions. We record the financing charges on discounting these letters of credit as interest expense. During fiscal 2023 and 2021, no customer accounted for more than 10% of our total revenue. During fiscal 2022 there was one customer that accounted for 13% of our total revenue. As of June 30, 2023 and July 1, 2022, a group of related entities accounted for approximately 14% and 17%, respectively, of our accounts receivable. Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash equivalents, marketable securities, trade accounts receivable and financial instruments used in foreign currency hedging activities. We invest our excess cash primarily in prime money market funds and certificates of deposit. We are exposed to credit risks related to such instruments in the event of default or decrease in credit-worthiness of the issuers of the investments. Risks associated with cash and cash equivalents, and investments are mitigated by banking with, and investing in, creditworthy institutions. We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable, as the majority of our customers are large, well-established companies. However, in certain circumstances, we may require letters of credit, additional guarantees or advance payments. We maintain allowances for collection losses, but historically have not experienced any significant losses related to any particular geographic area. Our customers are primarily in the telecommunications industry, so our accounts receivable are concentrated within one industry and exposed to concentrations of credit risk within that industry. Accounts receivable are written off when attempts to collect outstanding amounts have been exhausted or there are other indicators that the amounts are no longer collectible. We rely on third parties to manufacture our products and we purchase raw materials from third-party vendors. In addition, we purchase certain strategic component inventory which is consigned to our third-party manufacturers. Other components included in our products are sourced from various suppliers and are principally industry standard parts and components that are available from multiple vendors. The inability of a contract manufacturer or supplier to fulfill our supply requirements or changes in their financial or business condition could disrupt our ability to supply quality products to our customers, and thereby may have a material adverse effect on our business and operating results.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Cost is determined using standard cost, which approximates actual cost on a weighted-average first-in-first-out basis. We regularly review inventory quantities on hand and record adjustments to reduce the cost of inventory for excess and obsolete inventory based primarily on our estimated forecast of product demand and production requirements. Inventory adjustments are measured as the difference between the cost of the inventory and net realizable value based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis. We carry customer service related inventories such as service parts because we generally provide product warranty for 12 to 36 months and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Customer service related inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. We record adjustments to reduce the carrying value of customer service inventories to their net realizable value. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates. See Note 5. Balance Sheet Components for further information.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated on the basis of cost less accumulated depreciation. We capitalize costs of software, consulting services, hardware and other related costs incurred to purchase or develop internal-use software. We expense costs incurred during preliminary project assessment, re-engineering, training and application maintenance. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvements.Expenditures for maintenance and repairs are charged to expense as incurred and are included in cost of revenues and selling and administrative expenses on our consolidated statements of operations. Cost and accumulated depreciation of assets sold or retired are removed from the respective property accounts, and any gain or loss is reflected in the consolidated statements of operations.
Business Combinations	Business Combinations The Company accounts for acquisitions as required by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). The assets and liabilities of acquired businesses are recorded at their estimated fair values at the date of acquisition. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of estimates and assumptions. If our assumptions or estimates in the fair value calculation change based on information that becomes available during the one-year period from the acquisition date, we may record adjustments to the net assets acquired with a corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.
Goodwill	Goodwill The Company accounts for goodwill as required by FASB ASC Topic 350, Intangibles - Goodwill and Other (“ASC 350”). We test goodwill for impairment on an annual basis and when events occur that may suggest that the fair value of such assets cannot support the carrying value. ASC 350 gives an entity the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative impairment test is unnecessary. However, if an entity concludes otherwise, then the quantitative impairment test shall be used to identify the impairment and measure the amount of an impairment loss to be recognized (if applicable).
Valuation of Long-Lived Assets	Valuation of Long-Lived Assets The Company periodically reviews the carrying value of its long-lived assets, including finite-lived intangibles, and property, plant and equipment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the assigned useful lives may not longer be appropriate. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups. Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The actual cash flows realized from these assets may vary significantly from our estimates. There were no impairment losses recorded for fiscal 2023, 2022 or 2021. The Company amortizes the cost of finite-lived intangible assets on a straight-line basis over their estimated useful lives, which approximates the pattern of economic benefit.
Warranties	Warranties On product sales, we provide for future warranty costs upon product delivery. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which we do business. In the case of products sold by us, our warranties generally start from the delivery date and continue for one to three years, depending on the terms. Many of our products are manufactured to customer specifications and their acceptance is based on meeting those specifications. Factors that affect our warranty liabilities include the number of product units subject to warranty protection, historical experience and management’s judgment regarding anticipated rates of warranty claims and cost per claim. We assess the adequacy of our recorded warranty liabilities every quarter and make adjustments to the liabilities as necessary. See Note 5. Balance Sheet Components for further information.
Leases	Leases We lease facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 20 years and contain leasehold improvement incentives, rent holidays and escalation clauses. In addition, some of these leases have renewal options for up to 3 years. We determine if an arrangement contains a lease at inception. These operating leases are included in right of use assets (ROU assets) on our June 30, 2023 consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments are included in short-term lease liabilities and long-term lease liabilities on our June 30, 2023 consolidated balance sheets. We have not entered into any financing leases during fiscal 2023. Operating lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we used the incremental borrowing rate based on the remaining lease term at commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives and initial direct costs incurred. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Certain of our lease arrangements include non-lease components and we account for non-lease components together with lease components for all such lease arrangements. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the lease term.
Foreign Currency Translation	Foreign Currency Translation The functional currency of our subsidiaries located in the United Kingdom, Singapore, Mexico, Algeria, Lebanon and New Zealand is the United States (“U.S.”) dollar. Determination of the functional currency is dependent upon the economic environment in which an entity operates as well as the customers and suppliers the entity conducts business with. Changes in facts and circumstances may occur which could lead to a change in the functional currency of that entity. Accordingly, all non-functional currency denominated monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars at the current exchange rate as of the applicable balance sheet date. Non-monetary assets and liabilities are measured at historical rates. Our other international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of these subsidiaries are translated at the current exchange rates in effect at the balance sheet date, and income and expense accounts are translated at average exchange rates during the period. The resulting translation adjustments are included in accumulated other comprehensive loss. Gains and losses resulting from foreign exchange transactions and re-measurement of monetary assets and liabilities in non-functional currencies are included in other (expense) income, net in the accompanying consolidated statements of operations, based on the nature of the transactions.
Retirement Benefits	Retirement BenefitsAs of June 30, 2023, we provided retirement benefits to substantially all employees primarily through our defined contribution retirement plans. These plans have matching and savings elements. Contributions by us to these retirement plans are based on profits and employees’ savings with no other funding requirements. Contributions to retirement plans are expensed as incurred.
Revenue Recognition	Revenue RecognitionWe recognize revenue by applying the following five-step approach: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. We recognize revenue by applying the following five-step approach: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Contracts and customer purchase orders are used to determine the existence of an arrangement. Many of the Company’s arrangements with customers contain multiple performance obligations and therefore promises to provide multiple goods and services. The Company evaluates each promised good and service in a contract to determine whether it represents a distinct performance obligation or should be accounted for as a combined performance obligation. For goods and services determined to be distinct we have concluded that they provide a benefit to the customer either on their own or together with other resources that are readily available to the customer, without having the need for significant integration or customization. Revenue from product sales, recognized at a point-in-time, is generated predominately from the sales of products manufactured by third-party manufacturers to whom we have outsourced our manufacturing processes. Printed circuit assemblies, mechanical housings, and packaged modules are manufactured by contract manufacturing partners, with periodic business reviews of material levels and obsolescence. Product assembly, product testing, complete system integration, and system testing may either be performed within our own facilities or at the locations of our third-party manufacturers. Revenue from services includes certain network planning and design, engineering, installation and commissioning (“field services”), extended warranty, hosted software-as-a-service (“SaaS”), customer support, consulting, training, and education. Maintenance and support services are generally offered to our customers and recognized over a specified period of time and from sales and subsequent renewals of maintenance and support contracts. The network planning and design, engineering and installation related services noted are recognized based on an over-time recognition model using the cost-input method. Certain judgment is required when estimating total contract costs and progress to completion on the over-time arrangements, as well as whether a loss is expected to be incurred on the contract. The cost estimation process for these contracts is based on the knowledge and experience of the Company’s project managers, engineers, and financial professionals. Changes in job performance and job conditions are factors that influence estimates of the total costs to complete those contracts and the Company’s revenue recognition. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made in a timely manner. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in income in the period in which the circumstances that gave rise to the revision become known to us. We perform ongoing profitability analysis of our service contracts accounted for under this method to determine whether the latest estimates of revenues, costs, and profits require updating. In rare circumstances if these estimates indicate that the contract will be unprofitable, the entire estimated loss for the remainder of the contract is recorded immediately. We establish billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled receivables and if invoicing is ahead of revenue recognized it is classified as an unearned liability on the consolidated balance sheets. In addition, shipping documents and customer acceptances, when applicable, are used to verify delivery and transfer of control. We typically satisfy our performance obligations upon shipment or delivery of product depending on the contractual terms. Payment terms to customers generally range from net 30 to 120 days from invoice, which are considered to be standard payment terms. Revenue recognition does not necessarily follow payment terms as there are a number of scenarios where they would be different. Recognition follows contractual terms and those vary depending on the nature of the performance obligation being satisfied. These timing differences result in contract assets and liabilities as discussed below. We assess our ability to collect from our customers based primarily on the creditworthiness and past payment history of the customer. While our customers do not have the right of return, we reserve for estimated product returns as an offset to revenue based primarily on historical trends. Actual product returns may be different than what was estimated. These factors and unanticipated changes in economic and industry condition could make actual results differ from our return estimates. We present transactional taxes such as sales and use tax collected from customers and remitted to government authorities on a net basis. Bill-and-Hold Sales Certain customer arrangements consist of bill-and-hold characteristics under which control has been transferred to the customer, while we retain physical possession of the product. We evaluate bill-and-hold arrangement criteria to determine when the customer has obtained control. Once control has been obtained by the customer, they can direct or determine the use of the bill-and-hold inventory while we retain physical possession of the product until it is installed at a customer site at a point in time in the future. Termination Rights The contract term is determined on the basis of the period over which the parties to the contract have present enforceable rights and obligations. Certain customer contracts include a termination for convenience clause that allows the customer to terminate services without penalty, upon advance notification. We concluded that the duration of support contracts does not extend beyond the non-cancellable portion of the contract. Variable Consideration The consideration associated with customer contracts is generally fixed. Variable consideration includes discounts, rebates, refunds, credits, incentives, penalties, or other similar items. The amount of consideration that can vary is not a substantial portion of total consideration. Variable consideration estimates are re-assessed at each reporting period until a final outcome is determined. The changes to the original transaction price due to a change in estimated variable consideration are applied on a retrospective basis, with the adjustment recorded in the period in which the change occurs. Changes to variable consideration are tracked and material changes disclosed. Stand-alone Selling Price Stand-alone selling price is the price at which an entity would sell a good or service on a stand-alone (or separate) basis at contract inception. Under the model, the observable price of a good or service sold separately provides the best evidence of stand-alone selling price. However, in certain situations, stand-alone selling prices will not be readily observable and the entity must estimate the stand-alone selling price. When allocating on a relative stand-alone selling price basis, any discount provided in the contract is allocated proportionately to all of the performance obligations in the contract. The majority of products and services that we offer have readily observable selling prices. For products and services that do not, we estimate stand-alone selling price using the market assessment approach based on expected selling price and adjust those prices as necessary to reflect our costs and margins. As part of our stand-alone selling price policy, we review product pricing on a periodic basis to identify any significant changes and revise our expected selling price assumptions as appropriate. Shipping and Handling Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because they are also included in revenue that we bill our customers. Costs to Obtain a Contract We have assessed the treatment of costs to obtain or fulfill a contract with a customer. We capitalize sales commissions related to multi-year service contracts, and amortize the asset over the period of benefit, which is the estimated service period. Sales commissions paid on contract renewals, including service contract renewals, is commensurate with the sales commissions paid on the initial contracts. The capitalized sales commissions are included in other current assets and other assets on the consolidated balance sheets. We have not identified any impairments during the periods presented. We elected the practical expedient to expense sales commissions as incurred when the amortization period of the related asset is one year or less. These costs are recorded as selling and administrative expense and included in our consolidated balance sheet as accrued expenses until paid.
Cost of Product Sales and Services	Cost of Product Sales and Services Cost of sales consists primarily of materials, labor and overhead costs incurred internally and amounts incurred for contract manufacturers to produce our products, personnel and other implementation costs incurred to install our products and train customer personnel, and customer service and third party original equipment manufacturer costs to provide continuing support to our customers. Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because they are also included in revenue that we bill our customers.
Advertising Costs	Advertising Costs We expense all advertising costs as incurred.
Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities	Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities We present transactional taxes such as sales and use tax collected from customers and remitted to governmental authorities on a net basis.
Research and Development Costs	Research and Development Costs Our research and development costs, which include costs in connection with new product development, improvement of existing products, process improvement, and product use technologies, are generally charged to operations in the period in which they are incurred. For certain software projects under development, we capitalize the development costs during the period between determining technological feasibility of the product and commercial release and are included in Other assets on the consolidated balance sheet. We amortize the capitalized development cost upon commercial release, generally over three years. To date, the amount of development costs capitalized and amount amortized have not been material.
Share-Based Compensation	Share-Based Compensation The Company has a share-based compensation plan which includes non-qualified stock options, restricted stock units and performance share awards. We estimate the grant date fair value of our share-based awards and amortize the fair value over the requisite service period or vesting term. To estimate the fair value of our stock option awards, we use the Black-Scholes option pricing model. The determination of the fair value of stock option awards on the date of grant is affected by our stock price as well as assumptions regarding a number variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, the risk-free interest rate and expected dividend yield. Due to the inherent limitations of option valuation models, including consideration of future events that are unpredictable and the estimation process utilized in determining the valuation of the share-based awards, the ultimate value realized by our employees may vary significantly from the amounts expensed in our financial statements. For restricted stock awards and units, we measure the grant date fair value based upon the market price of our common stock on the date of the grant. The fair value of each performance share award with market conditions is estimated using a Monte-Carlo simulation model on the date of the grant. We account for forfeitures as they occur. We generally recognize compensation cost for share-based payment awards on a straight-line basis over the requisite service period. For an award that has a graded vesting schedule, compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. The amount of compensation cost recognized at any date must at least equal the portion of the grant-date value of the award that is vested at that date. For awards with a performance condition vesting feature, we recognize share-based compensation costs for the performance awards and units when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved. For awards with a market condition vesting feature, we recognize share-based compensation costs over the period the requisite service is rendered, regardless of when, if ever, the market condition is satisfied.
Restructuring Charges	Restructuring ChargesOur restructuring charges represent expenses incurred in connection with certain cost reduction programs that we have implemented, and consisted of the costs of employee termination costs, lease and other contract termination charges and other costs of exiting activities or geographies. A liability for costs associated with an exit or disposal activity is measured at its fair value when the liability is incurred. Expenses for one-time termination benefits are recognized at the date we notify the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. We recognize severance benefits provided as part of an ongoing benefit arrangement when the payment is probable, and the amounts can be reasonably estimated. Liabilities related to termination of an operating lease or contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates include anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. We expense all other costs related to an exit or disposal activity as incurred.
Income Taxes and Related Uncertainties	Income Taxes and Related Uncertainties We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by tax rates at which temporary differences are expected to reverse as well as operating loss and tax credit carry forwards. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. A valuation allowance is established to offset any deferred tax assets if, based upon the available information, it is more likely than not that some or all of the deferred tax assets will not be realized. We are required to compute our income taxes in each federal, state, and foreign jurisdiction in which we operate. This process requires that we estimate the current tax exposure as well as assess temporary differences between the accounting and tax treatment of assets and liabilities, including items such as accruals and allowances not currently deductible for tax purposes as well as operating loss and tax credit carry forwards. The income tax effects of the differences we identify are classified as current or long-term deferred tax assets and liabilities in our consolidated balance sheets. Our judgments, assumptions, and estimates relative to the current provision for income taxes take into account current tax laws, our interpretation of current tax laws, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. Changes in tax laws or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our consolidated balance sheets and consolidated statements of operations. We must also assess the likelihood that deferred tax assets will be realized from future taxable income and, based on this assessment, establish a valuation allowance, if required. Our determination of our valuation allowance is based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic and international jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation allowance in a period, we reflect the change with a corresponding increase or decrease to our tax provision in our consolidated statements of operations. We use a two-step process to determine the amount of tax benefit to be recognized for uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period.
Accounting Standards Adopted and Accounting Standards Not Yet Adopted	Accounting Standards Adopted In June 2016, the 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 our first quarter of fiscal 2023. The adoption had no material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 became effective for our first quarter of fiscal 2023. The adoption had no material impact on the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted The Company considers the applicability and impact of all ASUs issued by the FASB. The Company determined at this time that all other ASUs issued but not yet adopted are either not applicable or are expected to have a minimal impact on its financial position and results of operations.
Net Income per Share of Common Stock	Net income per share is computed by dividing net income attributable to us by the weighted average number of shares of our outstanding common stock.
Fair Value Measurements	We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items mainly are marketable securities and money market funds purchased from major financial institutions. Our marketable securities are included in current assets on our balance sheet as they are available to be converted into cash to fund current operations. These marketable securities are publicly traded stock measured at fair value and classified within Level 1. As of June 30, 2023, these money market funds were valued at $1.00 net asset value per share by these financial institutions. We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. The carrying value of bank certificates of deposit approximates their fair value. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. We did not have any foreign currency forward contracts outstanding as of June 30, 2023.Our policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During fiscal 2023 and 2022, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

Stockholders’ Equity (Performance Share Activity) (Details) - Performance Shares	12 Months Ended
	Jun. 30, 2023 $ / shares shares
Shares
Shares outstanding, beginning balance (in shares) \| shares	225,103
Granted (in shares) \| shares	66,649
Vested and released (in shares) \| shares	(99,348)
Forfeited/Cancelled (in shares) \| shares	(12,350)
Shares outstanding, ending balance (in shares) \| shares	180,054
Weighted-Average Grant Date Fair Value
Shares outstanding, beginning (in dollars per share) \| $ / shares	$ 16.69
Granted (in dollars per share) \| $ / shares	30.01
Vested and released (in dollars per share) \| $ / shares	9.56
Forfeited/Cancelled (in dollars per share) \| $ / shares	21.71
Shares outstanding, end (in dollars per share) \| $ / shares	$ 25.20

Acquisitions (Total Purchase Consideration) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 05, 2022	Jul. 01, 2022
Business Acquisition [Line Items]
Goodwill	$ 5,112		$ 0
Redline Communications Group, Inc
Business Acquisition [Line Items]
Cash and cash equivalents		$ 4,642
Accounts receivable, net		4,281
Inventories		3,379
Property, plant and equipment, net		688
Other assets		1,921
Accounts payable		(2,113)
Advance payments and unearned revenue		(3,301)
Other liabilities		(3,948)
Goodwill		5,112
Total consideration		20,411
Redline Communications Group, Inc \| Patents
Business Acquisition [Line Items]
Identifiable finite-lived intangible assets:		690
Redline Communications Group, Inc \| Customer relationships
Business Acquisition [Line Items]
Identifiable finite-lived intangible assets:		7,730
Redline Communications Group, Inc \| Trade names
Business Acquisition [Line Items]
Identifiable finite-lived intangible assets:		$ 1,330

Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 70,238	$ 76,958
Less accumulated depreciation	(60,786)	(68,071)
Total property, plant and equipment, net	9,452	8,887
Depreciation of property, plant and equipment	5,475	4,463	$ 5,383
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	210	210
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,889	5,796
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	16,989	21,368
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	47,150	49,584
Asset under construction
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 400	$ 1,200

Income Taxes (Narrative) (Details) - USD ($)	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($)	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Income Tax Examination [Line Items]
Income tax expense (benefit)	$ 11,575,000	$ 9,275,000	$ (87,699,000)
Valuation allowance	37,032,000	37,529,000
(Decrease) increase of valuation allowance	(500,000)	100,000
Undistributed earnings of foreign subsidiaries	2,800,000
Unrecognized tax benefits	16,086,000	17,707,000	17,255,000	$ 18,047,000
Increase (decrease) in unrecognized tax benefits	(1,600,000)
Unrecognized tax benefits that would impact effective tax rate	8,100,000
Interest accrued on unrecognized tax benefits	700,000
Unrecognized tax benefits, decrease resulting from settlements with tax authorities	0	$ 0	$ 900,000
U. S. Federal and State
Income Tax Examination [Line Items]
Valuation allowance	1,200,000
Tax loss carryforward amount	303,500,000
Tax credit carryforward, amount	6,900,000
Foreign Tax
Income Tax Examination [Line Items]
Tax loss carryforward amount	186,000,000
Tax credit carryforward, amount	$ 3,100,000

The Company and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Property, Plant and Equipment

The useful lives of the assets are generally as follows:


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

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


(In thousands)	June 30, 2023		July 1, 2022
Land	$	210	$	210
Buildings and leasehold improvements	5,889		5,796
Software	16,989		21,368
Machinery and equipment	47,150		49,584
	70,238		76,958
Less accumulated depreciation	(60,786)		(68,071)
Total property, plant and equipment, net	$	9,452	$	8,887

Schedule of Useful Lives of the Finite-Lived Purchased Intangible Assets

The useful lives of the finite-lived purchased intangible assets are as follows:


			Years
Patents			10
Customer relationships			14
Trade names			16

Stockholders’ Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 6,720	$ 3,834	$ 2,921
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,394	582	757
Restricted stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	3,565	1,482	857
Performance share awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,761	1,770	1,307
Cost of product sales and services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	627	440	372
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	514	246	250
Selling and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 5,579	$ 3,148	$ 2,299

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Stockholders’ Equity (Narrative) (Details)		1 Months Ended	12 Months Ended
Stockholders’ Equity (Narrative) (Details)	Apr. 07, 2021	Nov. 30, 2021 USD ($) shares	Jun. 30, 2023 USD ($) plan $ / shares shares	Jul. 01, 2022 USD ($) $ / shares	Jul. 02, 2021 USD ($)	Mar. 03, 2020 $ / shares shares	May 31, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price			$ 0	$ 5,362,000	$ 787,000
Stock split, conversion ratio	2
Number of rights declared as dividend for each share of outstanding common stock \| shares						1
Common stock par value (in dollars per share) \| $ / shares			$ 0.01	$ 0.01		$ 0.01
Preferred stock par value (in dollars per share) \| $ / shares			0.01	$ 0.01		0.01
Exercise price of right (in dollars per share) \| $ / shares						$ 35,000
Closing price of common stock (in dollars per share) \| $ / shares			$ 33.37
Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of preferred stocks to be purchased with each right (in shares) \| shares						0.001
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plan, percentage discount from fair market value			5.00%
Employee stock purchase plan, purchase period			3 months
Number of shares issued (in shares) \| shares			1,254
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of awards vested			$ 3,400,000	$ 500,000	500,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of awards vested			$ 1,000,000	400,000	400,000
2018 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans \| plan			1
Number of additional shares authorized (in shares) \| shares		1,250,000
Number of shares available for grant (in shares) \| shares			1,822,810
2018 Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration period			7 years
2018 Incentive Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
May 2018 Stock Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount							$ 7,500,000
November 2021 Stock Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount		$ 10,000,000
Aggregate purchase price			$ 0	$ 5,400,000	$ 800,000
Remaining value available under stock repurchase program			$ 7,300,000

Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Warranty Liability Roll Forward
Balance as of the beginning of the fiscal year	$ 2,913	$ 3,228	$ 3,196
Warranty provision recorded during the period	768	1,328	1,679
Acquisition	55	0	0
Consumption during the period	(1,636)	(1,643)	(1,647)
Balance as of the end of the fiscal year	$ 2,100	$ 2,913	$ 3,228

Net Income per Share of Common Stock

12 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Income per Share of Common Stock

Net income per share is computed by dividing net income attributable to us by the weighted average number of shares of our outstanding common stock.

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


	Fiscal Year
(In thousands, except per share amounts)	2023		2022		2021
Numerator:
Net income	$	11,528	$	21,160	$	110,139

Denominator:
Weighted average shares outstanding, basic	11,358		11,167		11,036
Effect of potentially dilutive equivalent shares	497		653		652
Weighted average shares outstanding, diluted	11,855		11,820		11,688

Net income per share:
Basic	$	1.01	$	1.89	$	9.98
Diluted	$	0.97	$	1.79	$	9.42

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:


	Fiscal Year
(In thousands)	2023	2022	2021
Stock options	194	114	8
Restricted stock units and performance stock units	21	72	4
Total shares of common stock excluded	215	186	12

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Income (loss) Before Provision for (Benefit) Income Taxes, Domestic and Foreign

Income (loss) before provision for (benefit from) income taxes during fiscal 2023, 2022 and 2021 consisted of the following:


	Fiscal Year
(In thousands)	2023		2022		2021
United States	$	20,531	$	31,923	$	26,325
Foreign	2,572		(1,488)		(3,885)
Total income before income taxes	$	23,103	$	30,435	$	22,440

Schedule of Components of Income Tax Expense (Benefit)

Provision for (benefit from) income taxes for fiscal 2023, 2022 and 2021 were summarized as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
Current provision (benefit):
Federal	$	—	$	15	$	(60)
Foreign	1,493		1,234		2,128
State and local	637		333		221
	2,130		1,582		2,289
Deferred provision (benefit):
Federal	8,826		6,348		(75,587)
Foreign	(522)		161		983
State and local	1,141		1,184		(15,384)
	9,445		7,693		(89,988)
Total provision for (benefit from) income taxes	$	11,575	$	9,275	$	(87,699)

Schedule of Effective Income Tax Rate Reconciliation

The provision for (benefit from) income taxes differed from the amount computed by applying the federal statutory rate of 21%, to our income before provision for (benefit from) income taxes as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
Tax provision at statutory rate	$	4,852	$	6,344	$	4,713
Valuation allowances	239		220		(95,796)
Permanent differences	19		7		(346)
Foreign income inclusions	397		—		—
Effect of flow-through entities	409		58		101
Transaction costs	746		235		—
State and local taxes, net of U.S. federal tax benefit	1,034		1,534		1,436
Foreign income taxed at rates different than the U.S. statutory rate	218		439		209
Executive compensation limitation	663		439		—
Share-based compensation	(728)		(580)		(482)
Tax credit - generated and expired	(140)		113		108
Foreign withholding taxes	88		267		1,184
Brazil withholding tax receivable	—		—		72
Change in uncertain tax positions	406		644		102
Return-to-provision/Deferred true-up adjustments	359		(269)		—
Acquisition restructuring and integration	3,022		—		—
Other	(9)		(176)		1,000
Total provision for (benefit from) income taxes	$	11,575	$	9,275	$	(87,699)

Schedule of Deferred Tax Assets and Liabilities

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


(In thousands)	June 30, 2023		July 1, 2022
Deferred tax assets:
Inventory	$	4,363	$	4,065
Accruals and reserves	1,848		3,248
Bad debts	125		157
Amortization	86		2,274
Share-based compensation	858		807
Deferred revenue	3,678		1,913
Unrealized exchange gain/loss	3,229		374
Other	144		2,888
Capitalized research expenses	5,119		—
Tax credit carryforwards	4,274		4,926
Tax loss carryforwards	100,791		114,048
Total deferred tax assets before valuation allowance	124,515		134,700
Valuation allowance	(37,032)		(37,529)
Total deferred tax assets	87,483		97,171
Deferred tax liabilities:
Branch undistributed earnings reserve	90		176
Depreciation	520		948

Right of use assets	488		548
Other	227		650
Total deferred tax liabilities	1,325		2,322
Net deferred tax assets	$	86,158	$	94,849

As reported on the consolidated balance sheets
Deferred income tax assets	$	86,650	$	95,412
Deferred income tax liabilities	492		563
Total net deferred income tax assets	$	86,158	$	94,849

Schedule of Unrecognized Tax Benefits Roll Forward

Our unrecognized tax benefit activity for fiscal 2023, 2022 and 2021 was as follows:


(In thousands)	Amount
Unrecognized tax benefit as of July 3, 2020	$	18,047
Additions for tax positions in prior periods	184
Additions for tax positions in current periods	869
Decreases for tax positions in prior periods	(1,788)
Decreases related to change of foreign exchange rate	(57)
Unrecognized tax benefit as of July 2, 2021	17,255
Additions for tax positions in prior periods	54
Additions for tax positions in current periods	704
Decreases for tax positions in prior periods	(104)
Decreases related to change of foreign exchange rate	(202)
Unrecognized tax benefit as of July 1, 2022	17,707
Additions for tax positions in prior periods	19
Additions for tax positions in current periods	770
Decreases for tax positions in prior periods	(457)
Decreases related to change of foreign exchange rate	(1,953)
Unrecognized tax benefit as of June 30, 2023	$	16,086

Segment and Geographic Information (Revenue by Country) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 346,593	$ 302,959	$ 274,911
Revenue by Country \| Total Revenue \| United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 198,435	$ 198,824	$ 181,842
% of Total Revenue	57.30%	65.60%	66.10%

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 22
-Subparagraph (b)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 4
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Net Income per Share of Common Stock (Tables)

12 Months Ended

Jun. 30, 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 attributable to our common stockholders:


	Fiscal Year
(In thousands, except per share amounts)	2023		2022		2021
Numerator:
Net income	$	11,528	$	21,160	$	110,139

Denominator:
Weighted average shares outstanding, basic	11,358		11,167		11,036
Effect of potentially dilutive equivalent shares	497		653		652
Weighted average shares outstanding, diluted	11,855		11,820		11,688

Net income per share:
Basic	$	1.01	$	1.89	$	9.98
Diluted	$	0.97	$	1.79	$	9.42

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:


	Fiscal Year
(In thousands)	2023	2022	2021
Stock options	194	114	8
Restricted stock units and performance stock units	21	72	4
Total shares of common stock excluded	215	186	12

Audit Information	12 Months Ended
Audit Information	Jun. 30, 2023	Jul. 01, 2022
Audit Information [Abstract]
Auditor Name	Deloitte & Touche LLP	BDO USA, LLP
Auditor Location	Austin, Texas	San Jose, California
Auditor Firm ID	34	243

Leases

12 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

As of June 30, 2023, total ROU assets were approximately $2.6 million, and short-term lease liabilities and long-term lease liabilities were approximately $0.6 million and $2.1 million, respectively. Cash paid for lease liabilities was $0.9 million for fiscal 2023. As of July 1, 2022, total ROU assets were approximately $2.8 million, and short-term lease liabilities and long-term lease liabilities were approximately $0.5 million and $2.4 million, respectively. Cash paid for lease liabilities was $0.7 million for fiscal 2022.

The following summarizes our lease costs, lease term and discount rate for fiscal 2023 and 2022 (in thousands):


	Fiscal
	2023		2022
Operating lease costs	$	1,288	$	1,061
Short-term lease costs	1,999		2,252
Variable lease costs	107		171
Total lease costs	$	3,394	$	3,484

Other information related to our operating leases for fiscal 2023 and 2022 (in thousands, except for weighted average):


	Fiscal
	2023			2022
Weighted average remaining lease term	6.9 years			7.9 years
Weighted average discount rate	5.8		%	5.6		%
Operating lease assets obtained in exchange for operating lease liabilities	$	95		$	104

Rental expense for operating leases, including rentals on a month-to-month basis was $3.4 million, $3.6 million, and $3.3 million for fiscal 2023, 2022 and 2021, respectively.

As of June 30, 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):


Fiscal years	Amount
2024	$	837
2025	634
2026	490
2027	169
2028	175
Thereafter	1,211
Total lease payments	3,516
Less: interest	(766)
Present value of lease liabilities	$	2,750

Fair Value Measurements of Assets and Liabilities (Narrative) (Details)	Jun. 30, 2023 $ / shares
Money market funds \| Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market, net asset value (in dollars per share)	$ 1.00

Segment and Geographic Information

12 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

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

We report revenue by region and country based on the location where our customers accept delivery of our products and services. Revenue by region for 2023, 2022 and 2021 were as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
North America	$	202,096	$	199,801	$	183,071
Africa and Middle East	60,416		47,527		44,023
Europe	18,772		12,973		8,826
Latin America and Asia Pacific	65,309		42,658		38,991
Total Revenue	$	346,593	$	302,959	$	274,911

Revenue by country comprising more than 10% of our total revenue for fiscal 2023, 2022 and 2021 was as follows:


(In thousands, except percentages)	Revenue		% of Total Revenue
Fiscal 2023
United States	$	198,435	57.3	%
Fiscal 2022
United States	$	198,824	65.6	%
Fiscal 2021
United States	$	181,842	66.1	%

Our long-lived assets, consisting primarily of net property, plant and equipment, by geographic areas based on the physical location of the assets as of June 30, 2023 and July 1, 2022 were as follows:


(In thousands)	June 30, 2023		July 1, 2022
New Zealand	$	3,619	$	5,149
United States	5,048		2,972
Other countries	785		766
Total	$	9,452	$	8,887

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 280
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-Topic 280
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Stockholders’ Equity (Unamortized Expenses) (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2023 USD ($)
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Expense	$ 1,637
Weighted-Average Remaining Recognition Period	1 year 4 months 17 days
Restricted stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Expense	$ 5,426
Weighted-Average Remaining Recognition Period	1 year 4 months 17 days
Performance share awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Expense	$ 2,096
Weighted-Average Remaining Recognition Period	11 months 23 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

The Company and Summary of Significant Accounting Policies (Useful Lives of the Finite-Lived Purchased Intangible Assets) (Details) - Redline Communications Group, Inc	Jul. 05, 2022
Patents
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	10 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	14 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	16 years

Credit Facility and Debt	12 Months Ended
Credit Facility and Debt	Jun. 30, 2023
Debt Disclosure [Abstract]
Credit Facility and Debt	Credit Facility and Debt On May 9, 2023, we entered into a Secured Credit Facility Agreement (the “Credit Facility” or “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, swingline lender and issuing lender and Wells Fargo Securities LLC, Citigroup Global Markets Inc., and Regions Capital Markets as lenders. The Credit Facility provides for a $40.0 million revolving credit facility (the “Revolver”) and a $50.0 million Delayed Draw Term Loan Facility (the “Term Loan”) with a maturity date of May 8, 2028. The $40.0 million Revolver can be borrowed with a $10.0 million sublimit for letters of credit, and a $10.0 million swingline loan sublimit. The Term Loan has a funding date on or prior to the closing date of the previously announced NEC Transaction with the proceeds used to settle the cash portion of the consideration and related expense. See Note 12. Acquisitions for further information. As of June 30, 2023, available credit under the Revolver was $40.0 million. Available credit under the Term Loan was $50.0 million. We borrowed $36.5 million and repaid $36.5 million against the Revolver during fiscal 2023. As of June 30, 2023 there was no borrowing outstanding for either the Revolver or Term Loan. Deferred financing costs of $0.8 million were paid in association with entering into the Credit Facility. Outstanding borrowings under the Credit Facility bear interest at either: (a) Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus the applicable margin; or (b) the Base Rate plus the applicable margin. The pricing levels for interest rate margins are determined based on the Consolidated Total Leverage Ratio as determined and adjusted quarterly. The Credit Facility requires the Company and its subsidiaries to maintain a fixed charge coverage ratio to be greater than 1.25 to 1.00 as of the last day of any fiscal quarter of the Company. The Credit Facility also requires that the Company maintain a maximum leverage ratio of 3.00 times EBITDA, with a step-down to 2.75 times EBITDA after four full quarters, and 2.50 times EBITDA after eight full quarters. The Credit Facility contains customary affirmative and negative covenants, including, among others, covenants limiting the ability of the Company and its subsidiaries 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, in each case subject to customary exceptions. As of June 30, 2023, we were in compliance with all financial covenants contained in the Credit Agreement. On May 9, 2023, the Company and Silicon Valley Bank (“SVB”) terminated the Third Amended and Restated Loan and Security Agreement dated June 29, 2018, and as amended May 17, 2021 (the “SVB Credit Facility”), by and between the Company, as borrower, and SVB, as lender. We borrowed $65.7 million and repaid $65.7 million against the SVB Credit Facility during fiscal 2023. As of June 30, 2023, we had $2.6 million of collateralized cash on deposit with SVB associated with certain commercial commitments. During fiscal 2023, the weighted-average interest rate under our available credit facilities was 7.6%.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Restructuring Activities (Restructuring Related Activities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	$ 1,381	$ 2,737	$ 2,738
Charges (reversals), net	2,947	238	2,271
Cash payments	(3,728)	(1,559)	(2,291)
Foreign currency translation (gain) loss		(35)	19
Restructuring liability, end of period	600	1,381	2,737
Employee Severance and Benefits \| Fiscal 2023 Plan
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	0	0	0
Charges (reversals), net	2,947	0	0
Cash payments	(2,347)	0	0
Foreign currency translation (gain) loss		0	0
Restructuring liability, end of period	600	0	0
Employee Severance and Benefits \| Prior Years Plans
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	1,381	2,489	2,502
Charges (reversals), net	0	474	2,271
Cash payments	(1,381)	(1,559)	(2,291)
Foreign currency translation (gain) loss		(23)	7
Restructuring liability, end of period	0	1,381	2,489
Facilities and Other \| Prior Years Plans
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period	0	248	236
Charges (reversals), net	0	(236)	0
Cash payments	0	0	0
Foreign currency translation (gain) loss		(12)	12
Restructuring liability, end of period	$ 0	$ 0	$ 248

Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Current provision (benefit):
Federal	$ 0	$ 15	$ (60)
Foreign	1,493	1,234	2,128
State and local	637	333	221
Total current provision	2,130	1,582	2,289
Deferred provision (benefit):
Federal	8,826	6,348	(75,587)
Foreign	(522)	161	983
State and local	1,141	1,184	(15,384)
Total deferred provision (benefit)	9,445	7,693	(89,988)
Total provision for (benefit from) income taxes	$ 11,575	$ 9,275	$ (87,699)

Stockholders’ Equity (Restricted Stock Activity) (Details) - Restricted Stock	12 Months Ended
	Jun. 30, 2023 $ / shares shares
Shares
Shares outstanding, beginning balance (in shares) \| shares	383,257
Granted (in shares) \| shares	74,827
Vested and released (in shares) \| shares	(146,226)
Forfeited (in shares) \| shares	(38,407)
Shares outstanding, ending balance (in shares) \| shares	273,451
Weighted-Average Grant Date Fair Value
Shares outstanding, beginning (in dollars per share) \| $ / shares	$ 25.59
Granted (in dollars per share) \| $ / shares	31.67
Vested and released (in dollars per share) \| $ / shares	22.92
Forfeited (in dollars per share) \| $ / shares	29.32
Shares outstanding, end (in dollars per share) \| $ / shares	$ 28.16

Income Taxes

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income (loss) before provision for (benefit from) income taxes during fiscal 2023, 2022 and 2021 consisted of the following:


	Fiscal Year
(In thousands)	2023		2022		2021
United States	$	20,531	$	31,923	$	26,325
Foreign	2,572		(1,488)		(3,885)
Total income before income taxes	$	23,103	$	30,435	$	22,440

Provision for (benefit from) income taxes for fiscal 2023, 2022 and 2021 were summarized as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
Current provision (benefit):
Federal	$	—	$	15	$	(60)
Foreign	1,493		1,234		2,128
State and local	637		333		221
	2,130		1,582		2,289
Deferred provision (benefit):
Federal	8,826		6,348		(75,587)
Foreign	(522)		161		983
State and local	1,141		1,184		(15,384)
	9,445		7,693		(89,988)
Total provision for (benefit from) income taxes	$	11,575	$	9,275	$	(87,699)


	Fiscal Year
(In thousands)	2023		2022		2021
Tax provision at statutory rate	$	4,852	$	6,344	$	4,713
Valuation allowances	239		220		(95,796)
Permanent differences	19		7		(346)
Foreign income inclusions	397		—		—
Effect of flow-through entities	409		58		101
Transaction costs	746		235		—
State and local taxes, net of U.S. federal tax benefit	1,034		1,534		1,436
Foreign income taxed at rates different than the U.S. statutory rate	218		439		209
Executive compensation limitation	663		439		—
Share-based compensation	(728)		(580)		(482)
Tax credit - generated and expired	(140)		113		108
Foreign withholding taxes	88		267		1,184
Brazil withholding tax receivable	—		—		72
Change in uncertain tax positions	406		644		102
Return-to-provision/Deferred true-up adjustments	359		(269)		—
Acquisition restructuring and integration	3,022		—		—
Other	(9)		(176)		1,000
Total provision for (benefit from) income taxes	$	11,575	$	9,275	$	(87,699)

Our provision for (benefit from) income taxes was $11.6 million of expense for fiscal 2023, $9.3 million of expense fiscal 2022 and $87.7 million of benefit for fiscal 2021. Our tax expense for fiscal 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 and integration impact. See Note 12. Acquisitions.

Our tax expense for fiscal 2022 was primarily due to tax expenses related to U.S. and profitable foreign subsidiaries.

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


(In thousands)	June 30, 2023		July 1, 2022
Deferred tax assets:
Inventory	$	4,363	$	4,065
Accruals and reserves	1,848		3,248
Bad debts	125		157
Amortization	86		2,274
Share-based compensation	858		807
Deferred revenue	3,678		1,913
Unrealized exchange gain/loss	3,229		374
Other	144		2,888
Capitalized research expenses	5,119		—
Tax credit carryforwards	4,274		4,926
Tax loss carryforwards	100,791		114,048
Total deferred tax assets before valuation allowance	124,515		134,700
Valuation allowance	(37,032)		(37,529)
Total deferred tax assets	87,483		97,171
Deferred tax liabilities:
Branch undistributed earnings reserve	90		176
Depreciation	520		948

Right of use assets	488		548
Other	227		650
Total deferred tax liabilities	1,325		2,322
Net deferred tax assets	$	86,158	$	94,849

As reported on the consolidated balance sheets
Deferred income tax assets	$	86,650	$	95,412
Deferred income tax liabilities	492		563
Total net deferred income tax assets	$	86,158	$	94,849

Our valuation allowance related to deferred income taxes, as reflected in our consolidated balance sheets, was $37.0 million as of June 30, 2023 and $37.5 million as of July 1, 2022. The change in valuation allowance for the fiscal years ended June 30, 2023 and July 1, 2022 was an decrease of $0.5 million and an increase of $0.1 million, respectively.

The decrease in the valuation allowance in fiscal 2023 was primarily due to the release of certain U.S. federal, state, and foreign valuation allowances, partially offset by losses in tax jurisdictions in which we cannot recognize tax benefits. The increase in the valuation allowance in fiscal 2022 was primarily due to losses in tax jurisdictions in which we cannot recognize tax benefits, partially offset by the release of certain U.S. federal, state, and foreign valuation allowances. As of June 30, 2023, we continue to maintain a valuation allowance of $1.2 million on certain U.S. federal and state deferred tax assets that we believe is not more likely than not to be realized in future periods.

Tax loss and credit carryforwards as of June 30, 2023 have expiration dates ranging between one year and no expiration in certain instances. The amounts of U.S. federal tax loss carryforwards as of June 30, 2023 was $303.5 million and begin to expire in fiscal 2024. The amount of U.S. federal and state tax credit carryforwards as of June 30, 2023 was $6.9 million, and certain credits begin to expire in fiscal 2024. The amount of foreign tax loss carryforwards as of June 30, 2023 was $186.0 million and certain losses begin to expire in fiscal 2024. The amount of foreign tax credit carryforwards as of June 30, 2023 was $3.1 million, and certain credits will begin to expire in fiscal 2026.

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

United States income taxes have not been provided on basis differences in foreign subsidiaries of $2.8 million as of June 30, 2023 because of our intention to reinvest these earnings indefinitely. Additionally, no foreign withholding taxes, federal or state taxes have been provided if these unremitted earnings of the Company’s foreign subsidiaries were distributed, as such amounts are considered permanently reinvested.

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

As of June 30, 2023, we had unrecognized tax benefits of $16.1 million for various federal, foreign, and state income tax matters. Unrecognized tax benefits decreased by $1.6 million during fiscal 2023. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate was $8.1 million as of June 30, 2023. These unrecognized tax benefits are presented on the accompanying consolidated balance sheets net of the tax effects of net operating loss carryforwards.

We account for interest and penalties related to unrecognized tax benefits as part of our provision for income taxes. The interest accrued was $0.7 million as of June 30, 2023. As of June 30, 2023, an immaterial amount of penalties have been accrued.

Our unrecognized tax benefit activity for fiscal 2023, 2022 and 2021 was as follows:


(In thousands)	Amount
Unrecognized tax benefit as of July 3, 2020	$	18,047
Additions for tax positions in prior periods	184
Additions for tax positions in current periods	869
Decreases for tax positions in prior periods	(1,788)
Decreases related to change of foreign exchange rate	(57)
Unrecognized tax benefit as of July 2, 2021	17,255
Additions for tax positions in prior periods	54
Additions for tax positions in current periods	704
Decreases for tax positions in prior periods	(104)
Decreases related to change of foreign exchange rate	(202)
Unrecognized tax benefit as of July 1, 2022	17,707
Additions for tax positions in prior periods	19
Additions for tax positions in current periods	770
Decreases for tax positions in prior periods	(457)
Decreases related to change of foreign exchange rate	(1,953)
Unrecognized tax benefit as of June 30, 2023	$	16,086

There was an immaterial change in our unrecognized tax benefit for tax positions in prior periods for fiscal 2023 related to settlements with tax authorities in the table above. Our unrecognized tax benefit decreased for tax positions in prior periods by $0.0 million and $0.9 million for fiscal 2022 and 2021, respectively, related to settlements with tax authorities in the table above.

We have a number of years with open tax audits which vary from jurisdiction to jurisdiction. Our major tax jurisdictions that are open and subject to potential audits include the U.S., Singapore, Ghana, Kenya, Nigeria, Saudi Arabia and Tanzania. The earliest years for these jurisdictions are as follows: U.S. - 2003; Singapore - 2015; Ghana – 2016; Kenya – 2018; Nigeria – 2006; Saudi Arabia – 2019 and Tanzania - 2017.

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Leases (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Leases [Abstract]
Right of use assets	$ 2,554	$ 2,759
Short-term lease liabilities	610	513
Long-term lease liabilities	2,140	2,412
Cash paid for lease liabilities	900	700
Rental expense for operating leases	$ 3,400	$ 3,600	$ 3,300

Stockholders’ Equity (Weighted Average Assumptions) (Details) - $ / shares	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividends	0.00%	0.00%	0.00%
Expected volatility	62.90%	61.90%	48.50%
Risk-free interest rate	3.50%	0.40%	0.20%
Expected term (in years)	3 years	3 years	3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividends	0.00%	0.00%
Expected volatility	63.70%
Expected volatility, maximum		62.20%
Expected volatility, minimum		60.00%
Risk-free interest rate	3.50%
Risk-free interest rate, maximum		0.45%
Risk-free interest rate, minimum		0.37%
Weighted-average grant date fair value per share granted (in dollars per share)	$ 32.10
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value per share granted (in dollars per share)		$ 35.56
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value per share granted (in dollars per share)		$ 31.38

Leases (Other Information Related to Operating Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022
Leases [Abstract]
Weighted average remaining lease term	6 years 10 months 24 days	7 years 10 months 24 days
Weighted average discount rate	5.80%	5.60%
Operating lease assets obtained in exchange for operating lease liabilities	$ 95	$ 104

Balance Sheet Components (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Balance Sheet Related Disclosures [Abstract]
Cash and cash equivalents	$ 22,242	$ 36,877
Restricted cash included in other assets	279	227
Total cash, cash equivalents, and restricted cash	22,521	$ 37,104	$ 48,198	$ 41,872
SVB Credit Facility
Cash and Cash Equivalents [Line Items]
Debt instrument, collateral amount	$ 2,600

Leases (Schedule of Lease Costs) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022
Leases [Abstract]
Operating lease costs	$ 1,288	$ 1,061
Short-term lease costs	1,999	2,252
Variable lease costs	107	171
Total lease costs	$ 3,394	$ 3,484

Balance Sheet Components (Other Current Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Contract manufacturing assets	$ 6,487	$ 1,621
Prepaids and other current assets	15,675	10,816
Other current assets	$ 22,162	$ 12,437

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Current Assets:
Cash and cash equivalents	$ 22,242	$ 36,877
Marketable securities	2	10,893
Accounts receivable, net	101,653	73,168
Unbilled receivables	58,588	45,857
Inventories	33,057	27,169
Other current assets	22,162	12,437
Total current assets	237,704	206,401
Property, plant and equipment, net	9,452	8,887
Goodwill	5,112	0
Intangible assets, net	9,046	0
Deferred income taxes	86,650	95,412
Right of use assets	2,554	2,759
Other assets	13,978	10,445
TOTAL ASSETS	364,496	323,904
Current Liabilities:
Accounts payable	60,141	42,394
Accrued expenses	24,442	26,451
Short-term lease liabilities	610	513
Advance payments and unearned revenue	44,268	33,740
Restructuring liabilities	600	1,381
Total current liabilities	130,061	104,479
Unearned revenue	7,416	8,920
Long-term lease liabilities	2,140	2,412
Other long-term liabilities	314	273
Reserve for uncertain tax positions	3,975	5,504
Deferred income taxes	492	563
Total liabilities	144,398	122,151
Commitments and contingencies (Note 13)
Equity:
Preferred stock, $0.01 par value; 50.0 million shares authorized; none issued	0	0
Common stock, $0.01 par value; 300.0 million shares authorized; 11.5 million and 11.2 million shares issued and outstanding as of June 30, 2023 and July 1, 2022, respectively	115	112
Treasury stock 0.2 million and 0.2 million shares as of June 30, 2023 and July 1, 2022, respectively	(6,147)	(6,147)
Additional paid-in-capital	830,048	823,259
Accumulated deficit	(587,914)	(599,442)
Accumulated other comprehensive loss	(16,004)	(16,029)
Total equity	220,098	201,753
TOTAL LIABILITIES AND EQUITY	$ 364,496	$ 323,904

Segment and Geographic Information (Tables)

12 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Revenue by Region

Revenue by region for 2023, 2022 and 2021 were as follows:


	Fiscal Year
(In thousands)	2023		2022		2021
North America	$	202,096	$	199,801	$	183,071
Africa and Middle East	60,416		47,527		44,023
Europe	18,772		12,973		8,826
Latin America and Asia Pacific	65,309		42,658		38,991
Total Revenue	$	346,593	$	302,959	$	274,911

Schedule of Revenue by Country

Revenue by country comprising more than 10% of our total revenue for fiscal 2023, 2022 and 2021 was as follows:


(In thousands, except percentages)	Revenue		% of Total Revenue
Fiscal 2023
United States	$	198,435	57.3	%
Fiscal 2022
United States	$	198,824	65.6	%
Fiscal 2021
United States	$	181,842	66.1	%

Schedule of Long-Lived Assets by Country


(In thousands)	June 30, 2023		July 1, 2022
New Zealand	$	3,619	$	5,149
United States	5,048		2,972
Other countries	785		766
Total	$	9,452	$	8,887

Fair Value Measurements of Assets and Liabilities (Tables)

12 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, by Balance Sheet Grouping


	June 30, 2023				July 1, 2022
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Cash and cash equivalents:
Money market funds	$	571	$	571	$	5,367	$	5,367	Level 1
Bank certificates of deposit	$	3,793	$	3,793	$	3,682	$	3,682	Level 2
Marketable securities	$	2	$	2	$	10,893	$	10,893	Level 1




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

Commitments and Contingencies

12 Months Ended

Jun. 30, 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.

As of June 30, 2023, we had outstanding purchase obligations and other commitments as follows:


	Payments due by period
	2024		2025		2026		2027		2028		Total
Purchase obligations with suppliers of contract manufacturers	$	34,004	$	3,089	$	—	$	—	$	—	$	37,093
Contractual obligations associated with software as a service and software maintenance support	971		1,708		896		164		—		3,739
Total obligations	$	34,975	$	4,797	$	896	$	164	$	—	$	40,832

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 June 30, 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 June 30, 2023, we had commercial commitments of $61.0 million outstanding that were not recorded on our consolidated balance sheets.

Indemnifications

Under the terms of substantially all of our license agreements, we have agreed to defend and pay any final judgment against our customers arising from claims against such customers that our products infringe the intellectual property rights of a third party. As of June 30, 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 June 30, 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. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. As a result, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any.

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

Contingent Liabilities

We record a loss contingency as a charge to operations when (i) it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements; and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both 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 June 30, 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 results of operations. Significant judgment is required to determine the probability that a liability has been incurred or an asset impaired and whether such loss is reasonably estimable. Further, estimates of this nature are highly subjective, and the final outcome of these matters could vary significantly from the amounts that have been included in our consolidated financial statements. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise estimates accordingly. Such revisions in the estimates of the potential liabilities could have a material impact on our results of operations and financial position.

Acquisitions (Purchased Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 05, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Total	$ 9,046
Redline Communications Group, Inc
Acquired Finite-Lived Intangible Assets [Line Items]
Gross		$ 9,750
Accumulated amortization		(704)
Total		$ 9,046
Redline Communications Group, Inc \| Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in Years		10 years
Gross		$ 690
Accumulated amortization		(69)
Total		$ 621
Redline Communications Group, Inc \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in Years		14 years
Gross		$ 7,730
Accumulated amortization		(552)
Total		$ 7,178
Redline Communications Group, Inc \| Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life in Years		16 years
Gross		$ 1,330
Accumulated amortization		(83)
Total		$ 1,247

Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Balance Sheet Related Disclosures [Abstract]
Excess and obsolete inventory charges	$ 1,109	$ 647	$ 544
Customer service inventory write-downs	1,029	1,088	908
Total charges	$ 2,138	$ 1,735	$ 1,452

Balance Sheet Components (Accrued Expenses) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Compensation and benefits	$ 10,368	$ 11,625
Taxes	4,553	5,286
Professional fees	2,104	944
Warranties	2,100	2,913
Commissions	1,453	1,864
Other	3,864	3,819
Accrued expenses	$ 24,442	$ 26,451

Leases (Tables)

12 Months Ended

Jun. 30, 2023

Leases [Abstract]

Schedule of Lease, Cost

The following summarizes our lease costs, lease term and discount rate for fiscal 2023 and 2022 (in thousands):


	Fiscal
	2023		2022
Operating lease costs	$	1,288	$	1,061
Short-term lease costs	1,999		2,252
Variable lease costs	107		171
Total lease costs	$	3,394	$	3,484

Other information related to our operating leases for fiscal 2023 and 2022 (in thousands, except for weighted average):


	Fiscal
	2023			2022
Weighted average remaining lease term	6.9 years			7.9 years
Weighted average discount rate	5.8		%	5.6		%
Operating lease assets obtained in exchange for operating lease liabilities	$	95		$	104

Schedule of Lessee, Operating Lease, Liability, Maturity

As of June 30, 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):


Fiscal years	Amount
2024	$	837
2025	634
2026	490
2027	169
2028	175
Thereafter	1,211
Total lease payments	3,516
Less: interest	(766)
Present value of lease liabilities	$	2,750

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Operating Activities
Net income	$ 11,528	$ 21,160	$ 110,139
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property, plant and equipment	5,475	4,463	5,383
Amortization of intangible assets	704	0	0
Provision for (recovery from) uncollectible receivables	467	(23)	171
Share-based compensation	6,720	3,834	2,921
Deferred income taxes	9,442	8,004	(90,599)
Charges for inventory and customer service inventory write-downs	2,138	1,735	1,452
Noncash lease expense	639	1,057	(342)
Net loss (gain) on marketable securities	1,734	(2,614)	0
Other non-cash operating activities, net	67	(55)	6
Changes in operating assets and liabilities:
Accounts receivable	(25,496)	(25,719)	(4,232)
Unbilled receivables	(13,816)	(8,725)	(8,579)
Inventories	(4,521)	(3,901)	(11,091)
Accounts payable	16,040	10,503	580
Accrued expenses	(4,306)	876	1,767
Advance payments and unearned revenue	6,254	1,713	10,560
Income taxes payable or receivable	710	(1,620)	159
Other assets and liabilities	(15,423)	(7,899)	(997)
Net cash (used in) provided by operating activities	(1,644)	2,789	17,298
Investing Activities
Payments for acquisition of property, plant and equipment	(5,335)	(1,792)	(2,847)
Purchases of marketable securities	0	(8,279)	0
Proceeds from sale of marketable securities	9,157	0	0
Proceeds from sale of asset held for sale	0	2,284	0
Acquisition, net of cash acquired and purchases of intangible assets	(15,769)	0	0
Net cash used in investing activities	(11,947)	(7,787)	(2,847)
Financing Activities
Proceeds from borrowings	102,200	0	0
Repayments of borrowings	(102,200)	0	(9,000)
Payments of deferred financing costs	(753)	0	0
Payments for repurchase of common stock - treasury shares	0	(5,362)	(787)
Payments for taxes related to net settlement of equity awards	(1,198)	(541)	(167)
Proceeds from issuance of common stock under employee stock plans and exercises of stock options	1,270	1,029	1,906
Net cash used in financing activities	(681)	(4,874)	(8,048)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(311)	(1,222)	(77)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(14,583)	(11,094)	6,326
Cash, cash equivalents, and restricted cash, beginning of year	37,104	48,198	41,872
Cash, cash equivalents, and restricted cash, end of year	22,521	37,104	48,198
Non-cash investing activities:
Unpaid property, plant and equipment	168	95	228
Supplemental disclosures of cash flow information:
Cash paid for interest	880	0	4
Cash paid (received) for income taxes, net	$ 1,613	$ 1,241	$ (2,119)

The Company and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands		12 Months Ended
	Apr. 07, 2021	Jun. 30, 2023 USD ($) segment	Jul. 01, 2022 USD ($)	Jul. 02, 2021 USD ($)
Concentration Risk [Line Items]
Stock split, conversion ratio	2
Goodwill		$ 5,112	$ 0
Number of reporting unit \| segment		1
Lessee renewal term		3 years
Net foreign exchange (loss) gains		$ (1,000)	(1,100)	$ (1,000)
Retirement plan expense		$ 2,100	$ 1,900	$ 1,800
Capitalized development cost, amortization period (over)		3 years
Minimum
Concentration Risk [Line Items]
Product warranty period		1 year
Lessee term		1 year
Maximum
Concentration Risk [Line Items]
Product warranty period		3 years
Lessee term		20 years
Customer Services Inventories \| Minimum
Concentration Risk [Line Items]
Product warranty period		12 months
Customer Services Inventories \| Maximum
Concentration Risk [Line Items]
Product warranty period		36 months
Customer Concentration Risk \| Total Revenue \| One Customer
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%
Customer Concentration Risk \| Accounts Receivable Benchmark \| Related Entities
Concentration Risk [Line Items]
Concentration risk, percentage		14.00%	17.00%

Income Taxes (Effective Income Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Income Tax Disclosure [Abstract]
Tax provision at statutory rate	$ 4,852	$ 6,344	$ 4,713
Valuation allowances	239	220	(95,796)
Permanent differences	19	7	(346)
Foreign income inclusions	397	0	0
Effect of flow-through entities	409	58	101
Transaction costs	746	235	0
State and local taxes, net of U.S. federal tax benefit	1,034	1,534	1,436
Foreign income taxed at rates different than the U.S. statutory rate	218	439	209
Executive compensation limitation	663	439	0
Share-based compensation	(728)	(580)	(482)
Tax credit - generated and expired	(140)	113	108
Foreign withholding taxes	88	267	1,184
Brazil withholding tax receivable	0	0	72
Change in uncertain tax positions	406	644	102
Return-to-provision/Deferred true-up adjustments	359	(269)	0
Acquisition restructuring and integration	3,022	0	0
Other	(9)	(176)	1,000
Total provision for (benefit from) income taxes	$ 11,575	$ 9,275	$ (87,699)

Segment and Geographic Information (Revenue by Region) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 346,593	$ 302,959	$ 274,911
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	202,096	199,801	183,071
Africa and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	60,416	47,527	44,023
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	18,772	12,973	8,826
Latin America and Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 65,309	$ 42,658	$ 38,991

- Definition

+ References

+ Details

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Jun. 30, 2023

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

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

AVIAT NETWORKS, INC.

Years Ended June 30, 2023, July 1, 2022 and July 2, 2021


(In thousands)	Balance at Beginning of Period		Charged to (Credit from) Costs and Expenses		Write-offs		Balance at End of Period
Allowances for collection losses:
Year ended June 30, 2023	$	934	$	467	$	(682)	$	719
Year ended July 1, 2022	$	2,141	$	(1,207)	$	—	$	934
Year ended July 2, 2021	$	1,841	$	300	$	—	$	2,141

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 11,528	$ 21,160	$ 110,139
Other comprehensive income (loss):
Net change in cumulative translation adjustment	25	(1,702)	642
Other comprehensive income (loss)	25	(1,702)	642
Comprehensive income	$ 11,553	$ 19,458	$ 110,781

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
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-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 28
-Subparagraph (f)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 40
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 7
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Credit Facility and Debt (Details)	12 Months Ended
Credit Facility and Debt (Details)	Jun. 30, 2023 USD ($) quarter	Jul. 01, 2022 USD ($)	Jul. 02, 2021 USD ($)	May 09, 2023 USD ($)
Line of Credit Facility [Line Items]
Payments of deferred financing costs	$ 753,000	$ 0	$ 0
Leverage Ratio 2.75
Line of Credit Facility [Line Items]
Term in quarters \| quarter	4
Leverage Ratio 2.50
Line of Credit Facility [Line Items]
Term in quarters \| quarter	8
SVB Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, collateral amount	$ 2,600,000
Revolving Credit Facility \| Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity				$ 40,000,000
Delayed Draw Term Loan Facility \| Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity				50,000,000
Letter of Credit \| Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity				10,000,000
Swing Line Loan \| Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity				$ 10,000,000
Line of Credit \| Credit Facility
Line of Credit Facility [Line Items]
Available credit under credit facility	40,000,000
Letters of credit outstanding	50,000,000
Proceeds from lines of credit	36,500,000
Repayments of lines of credit	$ 36,500,000
Fixed charge coverage ratio	1.25
Line of Credit \| Credit Facility \| Measurement Input, EBITDA Multiple
Line of Credit Facility [Line Items]
Maximum leverage ratio, period 1	3.00
Maximum leverage ratio, period 2	2.75
Maximum leverage ratio, period 3	2.50
Line of Credit \| SVB Credit Facility
Line of Credit Facility [Line Items]
Proceeds from lines of credit	$ 65,700,000
Repayments of lines of credit	$ 65,700,000
Weight average interest rate during reporting period	7.60%

Revenue Recognition

12 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

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

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

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

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

Revenue from services includes certain network planning and design, engineering, installation and commissioning (“field services”), extended warranty, hosted software-as-a-service (“SaaS”), customer support, consulting, training, and

education. Maintenance and support services are generally offered to our customers and recognized over a specified period of time and from sales and subsequent renewals of maintenance and support contracts. The network planning and design, engineering and installation related services noted are recognized based on an over-time recognition model using the cost-input method. Certain judgment is required when estimating total contract costs and progress to completion on the over-time arrangements, as well as whether a loss is expected to be incurred on the contract. The cost estimation process for these contracts is based on the knowledge and experience of the Company’s project managers, engineers, and financial professionals. Changes in job performance and job conditions are factors that influence estimates of the total costs to complete those contracts and the Company’s revenue recognition. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made in a timely manner. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in income in the period in which the circumstances that gave rise to the revision become known to us. We perform ongoing profitability analysis of our service contracts accounted for under this method to determine whether the latest estimates of revenues, costs, and profits require updating. In rare circumstances if these estimates indicate that the contract will be unprofitable, the entire estimated loss for the remainder of the contract is recorded immediately. We establish billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled receivables and if invoicing is ahead of revenue recognized it is classified as an unearned liability on the consolidated balance sheets.

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

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

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

Bill-and-Hold Sales

Certain customer arrangements consist of bill-and-hold characteristics under which control has been transferred to the customer, while we retain physical possession of the product. We evaluate bill-and-hold arrangement criteria to determine when the customer has obtained control. Once control has been obtained by the customer, they can direct or determine the use of the bill-and-hold inventory while we retain physical possession of the product until it is installed at a customer site at a point in time in the future.

Termination Rights

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

Variable Consideration

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

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

Stand-alone Selling Price

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

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

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

Shipping and Handling

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

Costs to Obtain a Contract

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

We elected the practical expedient to expense sales commissions as incurred when the amortization period of the related asset is one year or less. These costs are recorded as selling and administrative expense and included in our consolidated balance sheet as accrued expenses until paid. Our amortization expense was not material for the fiscal years ended June 30, 2023, July 1, 2022 and July 2, 2021.

Contract Balances, Performance Obligations, and Backlog

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


	June 30, 2023		July 1, 2022
Contract Assets
Accounts receivable, net	$	101,653	$	73,168
Unbilled receivables	$	58,588	$	45,857
Capitalized commissions	$	3,492	$	2,341
Contract Liabilities
Advance payments and unearned revenue	$	44,268	$	33,740
Unearned revenue, long-term	$	7,416	$	8,920

Significant changes in contract balances may arise as a result of recognition over time for services, transfer of control for equipment, and periodic payments (both in arrears and in advance). The contract balances have continued to grow as we continue to execute on large North American over time projects and International projects that carry notably longer payment terms.

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

As of June 30, 2023, we had $51.7 million in advance payments and unearned revenue and long-term unearned revenue, of which approximately 72% is expected to be recognized as revenue in fiscal 2024 and the remainder thereafter. During fiscal 2023 and 2022, we recognized approximately $47.2 million and $23.3 million respectively, that was included in advance payments and unearned revenue at the beginning of each reporting period.

Remaining Performance Obligations

We elect the practical consideration to exclude performance obligations that relate to contracts with original expected durations of one year or less. As our product purchase orders are generally delivered within one year or less and our maintenance and support service contracts can be terminated without substantive termination penalties resulting in contracts with less than one year of duration, these performance obligations have been excluded from the remaining performance obligation amounts. The aggregate amount of transaction price allocated to the remaining unsatisfied performance obligations (or partially unsatisfied) was approximately $151.8 million at June 30, 2023 relating to our long-term field service projects. Of this amount, we expect to recognize approximately 70% as revenue during fiscal 2024, with the remaining amount to be recognized as revenue beyond 12 months.

- Definition

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

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+ Details

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowances for collection losses - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 934	$ 2,141	$ 1,841
Charged to (Credit from) Costs and Expenses	467	(1,207)	300
Write-offs	(682)	0	0
Balance at End of Period	$ 719	$ 934	$ 2,141

Leases (Operating Leases, Future Minimum Payments Due) (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Leases [Abstract]
2024	$ 837
2025	634
2026	490
2027	169
2028	175
Thereafter	1,211
Total lease payments	3,516
Less: interest	(766)
Present value of lease liabilities	$ 2,750

The Company and Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies

The Company

Aviat Networks, Inc. (“Aviat,” the “Company,” “we,” “us,” and “our”) designs, manufactures, and sells a range of wireless networking and access networking solutions and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast system operators across the globe. Our products include broadband wireless access base stations and customer premises equipment for fixed and mobile, point-to-point digital microwave radio systems for access, backhaul, trunking and license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades.

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

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly-owned and majority owned subsidiaries. All intercompany transactions and accounts have been eliminated. Certain amounts in the financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation.

Our fiscal year includes 52 or 53 weeks and ends on the Friday nearest June 30. This was June 30, 2023 for fiscal 2023, July 1, 2022 for fiscal 2022 and July 2, 2021 for fiscal 2021. Fiscal 2023, 2022 and 2021 includes 52 weeks. In these notes to consolidated financial statements, we refer to our fiscal years as “fiscal 2023”, “fiscal 2022” and “fiscal 2021.”

Stock Split

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

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for uncollectible receivables, inventory valuation, goodwill and identified intangible assets in business combinations, valuation allowances for deferred tax assets and uncertainties in income taxes. The actual results that we experience may differ materially from our estimates.

Cash, Cash Equivalents and Restricted Cash

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

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

As of June 30, 2023 and July 1, 2022, all of our high-quality marketable securities were invested in prime money market funds.

Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of contractual agreements are recorded as restricted cash. Our restricted cash is included in other assets on our consolidated balance sheets and represents the cash balance on our disability insurance voluntary plan account that cannot be used by us for any operating purposes other than to pay benefits to the insured employees. See Note 5. Balance Sheet Components for further information.

Significant Concentrations

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

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

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

During fiscal 2023 and 2021, no customer accounted for more than 10% of our total revenue. During fiscal 2022 there was one customer that accounted for 13% of our total revenue. As of June 30, 2023 and July 1, 2022, a group of related entities accounted for approximately 14% and 17%, respectively, of our accounts receivable.

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

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

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

Inventories

Inventories are valued at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Cost is determined using standard cost, which approximates actual cost on a weighted-average first-in-first-out basis. We regularly review inventory quantities on hand and record adjustments to reduce the cost of inventory for excess and obsolete inventory based primarily on our estimated forecast of product demand and production

requirements. Inventory adjustments are measured as the difference between the cost of the inventory and net realizable value based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

We carry customer service related inventories such as service parts because we generally provide product warranty for 12 to 36 months and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Customer service related inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. We record adjustments to reduce the carrying value of customer service inventories to their net realizable value. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates. See Note 5. Balance Sheet Components for further information.

Property, Plant and Equipment

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

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


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

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

Business Combinations

The Company accounts for acquisitions as required by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). The assets and liabilities of acquired businesses are recorded at their estimated fair values at the date of acquisition. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of estimates and assumptions. If our assumptions or estimates in the fair value calculation change based on information that becomes available during the one-year period from the acquisition date, we may record adjustments to the net assets acquired with a corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Goodwill

The Company accounts for goodwill as required by FASB ASC Topic 350, Intangibles - Goodwill and Other (“ASC 350”). We test goodwill for impairment on an annual basis and when events occur that may suggest that the fair value of such assets cannot support the carrying value. ASC 350 gives an entity the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative impairment test is unnecessary. However, if an entity concludes otherwise, then the quantitative impairment test shall be used to identify the impairment and measure the amount of an impairment loss to be recognized (if applicable).

As of June 30, 2023, we had recorded goodwill in the amount of $5.1 million, related to the Redline acquisition completed in the first quarter of fiscal 2023. We did not have any recorded goodwill as of July 1, 2022. We test our goodwill for impairment on an annual basis on the first day of our fourth fiscal quarter. We have determined that we have one reporting unit. We performed a qualitative assessment in fiscal 2023. This assessment considered changes in our projected future cash flows and discount rates, recent market transactions and overall macroeconomic conditions. Based on this assessment, we concluded that it was more likely than not that the estimated fair value of our reporting unit was higher than its carrying value and that the performance of a quantitative impairment test was not required. See Note 10. Segment and Geographic Information and Note 12. Acquisitions for further information.

Valuation of Long-Lived Assets

The Company periodically reviews the carrying value of its long-lived assets, including finite-lived intangibles, and property, plant and equipment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the assigned useful lives may not longer be appropriate. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups. Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The actual cash flows realized from these assets may vary significantly from our estimates. There were no impairment losses recorded for fiscal 2023, 2022 or 2021.

The Company amortizes the cost of finite-lived intangible assets on a straight-line basis over their estimated useful lives, which approximates the pattern of economic benefit.

The useful lives of the finite-lived purchased intangible assets are as follows:


			Years
Patents			10
Customer relationships			14
Trade names			16

Warranties

On product sales, we provide for future warranty costs upon product delivery. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which we do business. In the case of products sold by us, our warranties generally start from the delivery date and continue for one to three years, depending on the terms.

Many of our products are manufactured to customer specifications and their acceptance is based on meeting those specifications. Factors that affect our warranty liabilities include the number of product units subject to warranty protection, historical experience and management’s judgment regarding anticipated rates of warranty claims and cost per claim. We assess the adequacy of our recorded warranty liabilities every quarter and make adjustments to the liabilities as necessary. See Note 5. Balance Sheet Components for further information.

Leases

We lease facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 20 years and contain leasehold improvement incentives, rent holidays and escalation clauses. In addition, some of these leases have renewal options for up to 3 years.

We determine if an arrangement contains a lease at inception. These operating leases are included in right of use assets (ROU assets) on our June 30, 2023 consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments are included in short-term lease liabilities and long-term lease liabilities on our June 30, 2023 consolidated balance sheets. We have not entered into any financing leases during fiscal 2023.

Operating lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we used

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

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

Foreign Currency Translation

The functional currency of our subsidiaries located in the United Kingdom, Singapore, Mexico, Algeria, Lebanon and New Zealand is the United States (“U.S.”) dollar. Determination of the functional currency is dependent upon the economic environment in which an entity operates as well as the customers and suppliers the entity conducts business with. Changes in facts and circumstances may occur which could lead to a change in the functional currency of that entity. Accordingly, all non-functional currency denominated monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars at the current exchange rate as of the applicable balance sheet date. Non-monetary assets and liabilities are measured at historical rates.

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

Gains and losses resulting from foreign exchange transactions and re-measurement of monetary assets and liabilities in non-functional currencies are included in other (expense) income, net in the accompanying consolidated statements of operations, based on the nature of the transactions. Net foreign exchange (losses) gains recorded in our consolidated statements of operations during fiscal 2023, 2022 and 2021 were $(1.0) million, $(1.1) million, and $(1.0) million, respectively.

Retirement Benefits

As of June 30, 2023, we provided retirement benefits to substantially all employees primarily through our defined contribution retirement plans. These plans have matching and savings elements. Contributions by us to these retirement plans are based on profits and employees’ savings with no other funding requirements. Contributions to retirement plans are expensed as incurred. Retirement plan expense amounted to $2.1 million, $1.9 million and $1.8 million in fiscal 2023, 2022 and 2021, respectively. Retirement plan expenses are included in cost of revenues, research and development, and selling and administrative expenses on our consolidated statements of operations.

Revenue Recognition

Cost of Product Sales and Services

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

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

Advertising Costs

We expense all advertising costs as incurred. Advertising costs were immaterial during fiscal 2023, 2022 and 2021.

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

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

Research and Development Costs

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

Share-Based Compensation

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

We generally recognize compensation cost for share-based payment awards on a straight-line basis over the requisite service period. For an award that has a graded vesting schedule, compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. The amount of compensation cost recognized at any date must at least equal the portion of the grant-date value of the award that is vested at that date.

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

Restructuring Charges

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

Income Taxes and Related Uncertainties

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

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

We use a two-step process to determine the amount of tax benefit to be recognized for uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

Accounting Standards Adopted

In June 2016, the 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 our first quarter of fiscal 2023. The adoption had no material impact on the Company’s consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 became effective for our first quarter of fiscal 2023. The adoption had no material impact on the Company’s consolidated financial statements.

Accounting Standards Not Yet Adopted

The Company considers the applicability and impact of all ASUs issued by the FASB. The Company determined at this time that all other ASUs issued but not yet adopted are either not applicable or are expected to have a minimal impact on its financial position and results of operations.

Restructuring Activities (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jul. 01, 2022
Restructuring and Related Activities [Abstract]
Restructuring liabilities	$ 600	$ 1,381

Restructuring Activities (Tables)

12 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Related Activities

The following table summarizes our restructuring related activities during fiscal 2023, 2022 and 2021:


(In thousands)	Employee Severance and Benefits				Facilities and Other
	Fiscal 2023 Plans		Prior Years Plans		Prior Years Plans		Total
Balance as of July 3, 2020	$	—	$	2,502	$	236	$	2,738
Charges, net	—		2,271		—		2,271
Cash payments	—		(2,291)		—		(2,291)
Foreign currency translation (gain) loss	—		7		12		19
Balance as of July 2, 2021	—		2,489		248		2,737
Charges (reversals), net	—		474		(236)		238
Cash payments	—		(1,559)		—		(1,559)
Foreign currency translation (gain) loss	—		(23)		(12)		(35)
Balance as of July 1, 2022	—		1,381		—		1,381
Charges, net	2,947		—		—		2,947
Cash payments	(2,347)		(1,381)		—		(3,728)

Balance as of June 30, 2023	$	600	$	—	$	—	$	600

Income Taxes (Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jul. 01, 2022	Jul. 02, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning of period	$ 17,707	$ 17,255	$ 18,047
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	19	54	184
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	770	704	869
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	(457)	(104)	(1,788)
Unrecognized Tax Benefits, Increase (Decrease) Resulting from Foreign Currency Translation	(1,953)	(202)	(57)
Unrecognized tax benefit, end of period	$ 16,086	$ 17,707	$ 17,255