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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 3,418	$ 4,889	$ 10,313	$ 8,189
Other comprehensive (loss) income:
Net change in cumulative translation adjustments	(341)	370	237	258
Other comprehensive (loss) income	(341)	370	237	258
Comprehensive income	$ 3,077	$ 5,259	$ 10,550	$ 8,447

- Definition

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

+ References

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+ Details

Credit Facility and Debt

9 Months Ended

Mar. 29, 2024

Debt Disclosure [Abstract]

Credit Facility and Debt

The Company entered into a Secured Credit Facility Agreement (the “Credit Facility”), dated May 9, 2023, amended as of November 22, 2023, 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 sub-limit for letters of credit, and a $10.0 million swingline loan sub-limit.

In November 2023, the Company borrowed $50.0 million against the Term Loan to primarily settle the cash portion of the consideration associated with the NEC Transaction (as defined below). See Note 12. Acquisitions for further information.

As of March 29, 2024, the available credit under the Revolver was $35.2 million, reflecting the available limit of $40.0 million less outstanding letters of credit of $4.8 million. The Company borrowed $33.2 million and repaid $33.2 million against the Revolver during the nine months ended March 29, 2024. As of March 29, 2024, the Company had $49.4 million outstanding under its Term Loan and no borrowings under its Revolver.

The following summarizes the Company’s outstanding long-term debt as of March 29, 2024:


(In thousands)
Term loan	$	49,375
Less: unamortized deferred financing costs	(428)
Total debt	48,947
Less: current portion of long-term debt	(2,395)
Total long-term debt	$	46,552

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. As of March 29, 2024, the applicable margin on Adjusted Term SOFR and Base Rate borrowings was 2.50% and 1.50%, respectively. The effective rate of interest on the outstanding Term Loan borrowings as of March 29, 2024 was 7.9%.

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 March 29, 2024, the Company was in compliance with all financial covenants contained in the Credit Facility.

As of March 29, 2024, scheduled maturities of outstanding long-term debt are as follows:


(In thousands)
Remainder of 2024	$	625
2025	2,500
2026	3,750
2027	6,250
2028	36,250
Total	$	49,375

- 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

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+ Details

Credit Facility and Debt (Narrative) (Details)	1 Months Ended	9 Months Ended
Credit Facility and Debt (Narrative) (Details)	Nov. 30, 2023 USD ($)	Mar. 29, 2024 USD ($) quarter	May 09, 2023 USD ($)
Line of Credit Facility [Line Items]
Letters of credit		$ 4,786,000
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
Revolving Credit Facility \| Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity			$ 40,000,000
Borrowings outstanding		$ 0
Debt instrument, interest r, effective percentage		7.90%
Revolving Credit Facility \| Credit Facility \| Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.50%
Revolving Credit Facility \| Credit Facility \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.50%
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
Letters of credit		$ 4,800,000
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]
Proceeds from lines of credit		33,200,000
Available credit under credit facility		35,200,000
Line of credit facility, current borrowing capacity		40,000,000
Repayments of lines of credit		$ 33,200,000
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 \| Delayed Draw Term Loan Facility
Line of Credit Facility [Line Items]
Proceeds from lines of credit	$ 50,000,000
Borrowings outstanding		$ 49,400,000

Acquisitions

9 Months Ended

Mar. 29, 2024

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 (as amended on November 30, 2023, the “Purchase Agreement”) with NEC Corporation (“NEC”), to acquire NEC’s wireless transport business (the “NEC Transaction”). The Company completed the NEC Transaction on November 30, 2023 (the “Closing Date”).

Prior to the Closing Date, NEC was a leader in wireless backhaul networks with an extensive installed base of their Pasolink series products. The completion of the NEC Transaction increases the scale of Aviat, enhances the Company’s product portfolio with a greater capability to innovate, and creates a more diversified business. The results of operations of the NEC Transaction have been included in the consolidated financial statements since the Closing Date.

The fair value of the consideration transferred at the closing of the NEC Transaction was comprised of (i) cash of $32.2 million, and (ii) the issuance of 736,750 shares or $22.3 million of common stock of the Company. The fair value of the shares issued was determined based on the closing market price of the Company’s common stock on the Closing Date. Aggregate consideration transferred at closing was approximately $54.5 million, which is subject to certain post-closing adjustments. The Company estimates additional cash consideration of approximately $22.4 million will be transferred to NEC in the first quarter of fiscal 2025, primarily related to settlement of the post-closing working capital adjustment. As of March 29, 2024, the accrual balance related to the estimated additional consideration was included in other current liabilities on the unaudited condensed consolidated balance sheets. The Company funded the cash portion of the consideration with Term Loan borrowings under its Credit Facility. See Note 7. Credit Facility and Debt for further information.

The NEC Transaction was accounted for as a business combination using the acquisition method of accounting. The Company is in the process of identifying the amounts assigned to certain assets, including the acquired intangible assets and goodwill for the acquisition. The Company is in the process of obtaining independent third-party valuations of certain intangible and tangible assets acquired. The fair values of the acquired intangible assets are based on estimates and assumptions that are considered reasonable by the Company. As of the acquisition date, the Company has recorded the assets acquired and the liabilities assumed at their respective estimated fair values. The recognized goodwill is attributable to the workforce of the acquired business and expected synergies. The goodwill from this acquisition is expected to be fully 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. For the three and nine months ended March 29, 2024, the Company incurred transaction costs of $1.3 million and $7.7 million, respectively.

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


(In thousands)
Accounts receivable, net	$	51,787
Inventories	34,175
Property, plant and equipment, net	539
Identifiable finite-lived intangible assets:
Customer relationships	3,800
Technology	1,800
Other assets	243
Accounts payable	(13,182)
Advance payments and unearned revenue	(3,192)
Other liabilities	(2,187)
Goodwill	3,106
Net assets acquired	$	76,889

The preliminary purchase price allocation has been updated for certain measurement period adjustments based on revised estimates of fair value, which primarily resulted in a $1.4 million decrease in inventories and a $1.5 million decrease in identifiable finite-lived intangible assets acquired. The adjustments resulted in corresponding increases to goodwill. The preliminary purchase price allocation is subject to adjustment based on the Company obtaining final independent third-party valuations, determining fair value and allocations of purchase price to the identifiable assets acquired and liabilities assumed, and determining the final consideration, including adjustments related to settlement of the final post-closing working capital adjustment.

Revenue and operating loss associated with the NEC Transaction included in the consolidated statements of operations for the three months ended March 29, 2024 were $22.5 million and $(0.4) million, respectively. Revenue and operating loss associated with the NEC Transaction included in the consolidated statements of operations from the acquisition date to the period ending March 29, 2024 were $29.8 million and $(1.2) million, respectively.

The following unaudited supplemental pro forma information has been presented as if the NEC Transaction occurred at the beginning of fiscal 2023 and includes certain pro forma adjustments for interest expense, depreciation and amortization expense, the fair value of acquired inventory, and transaction costs, net of income tax:


	Three Months Ended				Nine Months Ended
	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Revenue	$	111,613	$	139,094	$	379,128	$	408,358
Net income (loss)	4,393		7,812		18,765		(1,214)

The unaudited pro forma information presented above is for informational purposes only and is not necessarily indicative of the operating results that would have occurred if the NEC Transaction occurred at the beginning of fiscal 2023, nor is it necessarily indicative of future operating results.

Redline Communications Group Inc.

In the first quarter of fiscal 2023, the Company acquired all of the issued and outstanding shares of Redline Communications Group Inc. (“Redline”), a leading provider of mission-critical data infrastructure, for a purchase price of $20.4 million.

See Note 12. Acquisitions to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 for the final purchase price allocation, valuation methodology, and other information related to the completion of the Redline acquisition.

Stockholders’ Equity (Narrative) (Details)	9 Months Ended
Stockholders’ Equity (Narrative) (Details)	Mar. 29, 2024 USD ($) plan shares	Nov. 30, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount		$ 10,000,000
Remaining value available under stock repurchase program	$ 6,900,000
Stock repurchased during period (in shares) \| shares	11,208
Stock repurchase	$ 300,000
Stock options granted (in shares) \| shares	151,094
Unrecognized compensation expense for non-vested stock options	$ 2,700,000
Unrecognized compensation expense for non-vested stock awards	$ 8,200,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, expense expected to be recognized, weighted average period	1 year 10 months 24 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares) \| shares	100,689
Market-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares) \| shares	64,643
Restricted and performance stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, expense expected to be recognized, weighted average period	1 year 6 months
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans \| plan	1
2018 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration period	7 years
2018 Plan \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

Balance Sheet Components (Schedule of Advance Payments and Unearned Revenue) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Advance payments	$ 2,557	$ 1,607
Unearned revenue	39,587	42,661
Total advance payments and unearned revenue	42,144	44,268
Unearned revenue, long-term	$ 7,676	$ 7,416

Credit Facility and Debt - (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Debt Disclosure [Abstract]
Term loan	$ 49,375
Less: unamortized deferred financing costs	(428)
Total	48,947
Less: current portion of long-term debt	(2,395)	$ 0
Total long-term debt	$ 46,552	$ 0

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Segment and Geographic Information (Schedule of Revenues by Geographic Region) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 29, 2024 USD ($) segment	Mar. 31, 2023 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment			1
Total revenue	$ 111,613	$ 83,480	$ 294,215	$ 255,414
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	44,409	46,064	151,243	146,961
Africa and the Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	11,401	19,235	35,856	44,354
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	6,549	3,871	17,379	13,705
Latin America and Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 49,254	$ 14,310	$ 89,737	$ 50,394

- 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
-SubTopic 10
-Name Accounting Standards Codification
-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
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-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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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 32
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Section 50
-Paragraph 22
-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Leases (Tables)

9 Months Ended

Mar. 29, 2024

Leases [Abstract]

Schedule of Lease, Cost


	Three Months Ended				Nine Months Ended
	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
(In thousands)
Operating lease costs	$	280	$	270	$	765	$	817
Short-term lease costs	1,204		490		2,667		1,507
Variable lease costs	21		12		51		92
Total lease costs	$	1,505	$	772	$	3,483	$	2,416

The weighted average lease term and discount rate as of March 29, 2024 were as follows:


Weighted average remaining lease term	6.2 years
Weighted average discount rate	5.4	%

Schedule of Lessee, Operating Lease, Liability, Maturity

As of March 29, 2024, future minimum lease payments under all non-cancelable operating leases with an initial term in excess of one year were as follows (in thousands):


Remainder of fiscal 2024	$	206
2025	921
2026	799
2027	348
2028	318
Thereafter	1,235
Total lease payments	3,827
Less: interest	(677)
Present value of lease liabilities	$	3,150

Credit Facility and Debt - (Schedule of Maturities of Long-Term Debt) (Details) $ in Thousands	Mar. 29, 2024 USD ($)
Debt Disclosure [Abstract]
Remainder of 2024	$ 625
2025	2,500
2026	3,750
2027	6,250
2028	36,250
Total	$ 49,375

Segment and Geographic Information (Tables)

9 Months Ended

Mar. 29, 2024

Segment Reporting [Abstract]

Schedule of Revenue by Region

Revenue by region for the three and nine months ended March 29, 2024 and March 31, 2023 was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
North America	$	44,409	$	46,064	$	151,243	$	146,961
Africa and the Middle East	11,401		19,235		35,856		44,354
Europe	6,549		3,871		17,379		13,705
Latin America and Asia Pacific	49,254		14,310		89,737		50,394
Total revenue	$	111,613	$	83,480	$	294,215	$	255,414

Restructuring (Tables)

9 Months Ended

Mar. 29, 2024

Restructuring and Related Activities [Abstract]

Schedule of Restructuring-Related Activities


	Employee Severance and Benefits
(In thousands)	Fiscal 2024 Plans		Prior Years’ Plans		Total
Accrual balance, June 30, 2023	$	—	$	600	$	600
Charges, net	333		348		681
Cash payments	(221)		(948)		(1,169)
Accrual balance, September 29, 2023	112		—		112
Charges, net	2,000		—		2,000
Cash payments	(580)		—		(580)
Accrual balance, December 29, 2023	$	1,532	$	—	$	1,532
Charges (recoveries), net	(635)		214		(421)
Cash payments	(547)		(214)		(761)
Accrual balance, March 29, 2024	350		—		350

Revenue Recognition (Schedule of Contracted Balances) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Contract assets
Accounts receivable, net	$ 138,366	$ 101,653
Unbilled receivables	74,650	58,588
Capitalized commissions	3,095	3,492
Contract liabilities
Advance payments and unearned revenue	42,144	44,268
Unearned revenue, long-term	$ 7,676	$ 7,416

Income Taxes	9 Months Ended
Income Taxes	Mar. 29, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate varies from the U.S. federal statutory rate of 21% primarily due to non-deductible transaction costs, global intangible low-taxed income inclusion (GILTI) in the U.S., state taxes and certain jurisdictions where the tax benefit on prior year losses were not recognized. During interim periods, tax expenses are accrued for jurisdictions that are anticipated to be profitable for fiscal 2024. The determination of income taxes for the nine months ended March 29, 2024 and March 31, 2023 was based on the Company’s estimated annual effective tax rate adjusted for losses in certain jurisdictions for which no tax benefit can be recognized. Tax expense for the nine months ended March 29, 2024 was primarily due to tax expense related to U.S. and profitable foreign subsidiaries. Tax expense for the nine months ended March 31, 2023 was primarily due to tax expense related to U.S. and profitable foreign subsidiaries, including deferred tax expense associated with the acquisition of Redline in July 2022 and the subsequent multi-step restructuring plan in which two Canadian Redline corporations converted to unlimited liability companies and then amalgamated by the end of September 2022. The Company has a number of years with open tax audits which vary from jurisdiction to jurisdiction. The 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. Interest and penalties related to unrecognized tax benefits are accounted for as part of the provision for federal, foreign, and state income taxes. Such interest expense was not material for the nine months ended March 29, 2024 and March 31, 2023. 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. The Company will continue to examine the elements of the ARPA and the impact it may have on 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. The Company 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
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-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
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-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
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-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
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
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-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
-Subparagraph (SAB Topic 11.C)
-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

Acquisitions (Narrative) (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended			9 Months Ended
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Nov. 30, 2023	Sep. 27, 2024	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Revenues				$ 111,613	$ 83,480	$ 294,215	$ 255,414
Operating income (loss)				5,028	$ 7,496	15,569	$ 20,087
NEC Corporation
Business Acquisition [Line Items]
Payments to acquire businesses		$ 32,200
Consideration transferred, equity interest issued and issuable, number of shares (in shares)	736,750
Consideration transferred, equity interest issued and issuable	$ 22,300	22,300
Business combination, consideration transferred		54,500
Transaction costs				1,300		7,700
Inventories	$ (34,175)	$ (34,175)		(1,400)		(1,400)
Finite-lived intangible assets				(1,500)		(1,500)
Revenues				22,500		29,800
Operating income (loss)				$ (400)		$ (1,200)
NEC Corporation \| Forecast
Business Acquisition [Line Items]
Payments to acquire businesses			$ 22,400
Redline Communications Group Inc
Business Acquisition [Line Items]
Net assets acquired								$ 20,400

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Current Assets:
Cash and cash equivalents	$ 58,201	$ 22,242
Marketable securities	988	2
Accounts receivable, net of allowances of $1,250 and $719	138,366	101,653
Unbilled receivables	74,650	58,588
Inventories	56,812	33,057
Assets held for sale	2,720	0
Other current assets	30,721	22,162
Total current assets	362,458	237,704
Property, plant and equipment, net	6,398	9,452
Goodwill	8,217	5,112
Intangible assets, net	13,995	9,046
Deferred income taxes	84,578	86,650
Right of use assets	2,985	2,554
Other assets	11,712	13,978
Total assets	490,343	364,496
Current Liabilities:
Accounts payable	64,557	60,141
Accrued expenses	38,516	24,442
Short-term lease liabilities	780	610
Advance payments and unearned revenue	42,144	44,268
Restructuring liabilities	350	600
Other current liabilities	22,396	0
Current portion of long-term debt	2,395	0
Total current liabilities	171,138	130,061
Long-term debt	46,552	0
Unearned revenue	7,676	7,416
Long-term lease liabilities	2,370	2,140
Other long-term liabilities	405	314
Reserve for uncertain tax positions	3,222	3,975
Deferred income taxes	473	492
Total liabilities	231,836	144,398
Commitments and contingencies (Note 13)
Stockholders’ 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, 12.6 million shares issued and outstanding at March 29, 2024; 11.5 million shares issued and outstanding at June 30, 2023	126	115
Treasury stock	(6,479)	(6,147)
Additional paid-in-capital	858,228	830,048
Accumulated deficit	(577,601)	(587,914)
Accumulated other comprehensive loss	(15,767)	(16,004)
Total stockholders’ equity	258,507	220,098
Total liabilities and stockholders’ equity	$ 490,343	$ 364,496

Revenue Recognition (Narrative) (Details) $ in Millions	3 Months Ended	9 Months Ended
Revenue Recognition (Narrative) (Details) $ in Millions	Mar. 29, 2024 USD ($)	Mar. 29, 2024 USD ($)
Disaggregation of Revenue [Line Items]
Advance payments and unearned income	$ 49.8	$ 49.8
Revenue to be recognized, percentage	64.00%	64.00%
Services
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 9.2	$ 29.1

- 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

Balance Sheet Components (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Project costs	$ 10,342	$ 1,319
Compensation and benefits	8,690	10,368
Taxes	6,233	4,616
Warranties	2,796	2,100
Commissions	1,376	1,453
Professional fees	994	2,104
Other	3,782	2,482
Total accrued expenses	38,516	24,442
Related Party
Related Party Transaction [Line Items]
Other	$ 4,303	$ 0

Restructuring

9 Months Ended

Mar. 29, 2024

Restructuring and Related Activities [Abstract]

Restructuring


	Employee Severance and Benefits
(In thousands)	Fiscal 2024 Plans		Prior Years’ Plans		Total
Accrual balance, June 30, 2023	$	—	$	600	$	600
Charges, net	333		348		681
Cash payments	(221)		(948)		(1,169)
Accrual balance, September 29, 2023	112		—		112
Charges, net	2,000		—		2,000
Cash payments	(580)		—		(580)
Accrual balance, December 29, 2023	$	1,532	$	—	$	1,532
Charges (recoveries), net	(635)		214		(421)
Cash payments	(547)		(214)		(761)
Accrual balance, March 29, 2024	350		—		350

As of March 29, 2024, the accrual balance of $0.4 million was classified as current.

Fiscal 2024 Plans

During fiscal 2024, the Company’s Board of Directors approved restructuring plans, primarily associated with the NEC Transaction (as defined below) and reductions in workforce in certain of the Company’s operations to optimize skill sets and align cost structure. The fiscal 2024 plans are expected to be completed through the end of calendar 2024.

Prior Years’ Plans

Activities under the prior years’ plans primarily included reductions in workforce across the Company, associated with the acquisition of Redline (as defined below) and certain of the Company’s operations outside the United States. Payments related to the accrued restructuring balance for these plans are complete.

Goodwill and Intangible Assets (Tables)

9 Months Ended

Mar. 29, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following presents details of goodwill and intangible assets:


(In thousands)	March 29, 2024		June 30, 2023
Goodwill	$	8,217	$	5,112

Schedule of Goodwill Impairment


(In thousands except useful life)	Useful life in Years	March 29, 2024		June 30, 2023
Intangible assets:
Technology	5	$	1,800	$	—
Patents	10	690		690
Customer relationships	14 — 15	11,530		7,730
Trade names	16	1,330		1,330
Total gross intangible assets		$	15,350	$	9,750
Accumulated amortization		(1,355)		(704)
Total net intangible assets		$	13,995	$	9,046

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of March 29, 2024, the estimated future amortization expense of finite-lived intangible assets is as follows (in thousands):


Remainder of 2024	$	304
2025	1,215
2026	1,215
2027	1,215
2028	1,215
Thereafter	8,831
Total	$	13,995

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - 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. 01, 2022		11,161
Beginning balance at Jul. 01, 2022	$ 201,753	$ 112	$ (6,147)	$ 823,259	$ (599,442)	$ (16,029)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,189				8,189
Other comprehensive income (loss)	258					258
Issuance of common stock under employee stock plans (in shares)		310
Issuance of common stock under employee stock plans	1,074	$ 2		1,072
Shares withheld for taxes related to vesting of equity awards (in shares)		(34)
Shares withheld for taxes related to vesting of equity awards	(1,055)			(1,055)
Share-based compensation	5,135			5,135
Ending balance (in shares) at Mar. 31, 2023		11,437
Ending balance at Mar. 31, 2023	215,354	$ 114	(6,147)	828,411	(591,253)	(15,771)
Beginning balance (in shares) at Dec. 30, 2022		11,378
Beginning balance at Dec. 30, 2022	208,496	$ 114	(6,147)	826,812	(596,142)	(16,141)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,889				4,889
Other comprehensive income (loss)	370					370
Issuance of common stock under employee stock plans (in shares)		71
Issuance of common stock under employee stock plans	327	$ (1)		328
Shares withheld for taxes related to vesting of equity awards (in shares)		(12)
Shares withheld for taxes related to vesting of equity awards	(366)	$ 1		(367)
Share-based compensation	1,638			1,638
Ending balance (in shares) at Mar. 31, 2023		11,437
Ending balance at Mar. 31, 2023	$ 215,354	$ 114	(6,147)	828,411	(591,253)	(15,771)
Beginning balance (in shares) at Jun. 30, 2023	11,500	11,518
Beginning balance at Jun. 30, 2023	$ 220,098	$ 115	(6,147)	830,048	(587,914)	(16,004)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,313				10,313
Other comprehensive income (loss)	237					237
Issuance of common stock under employee stock plans (in shares)		339
Issuance of common stock under employee stock plans	1,005	$ 4		1,001
Shares withheld for taxes related to vesting of equity awards (in shares)		(21)
Shares withheld for taxes related to vesting of equity awards	(690)			(690)
Stock repurchase (in shares)		(11)
Stock repurchase	(332)		(332)
Share-based compensation	5,545			5,545
Common stock issued in connection with acquisition (in shares)		737
Common stock issued in connection with acquisition	$ 22,331	$ 7		22,324
Ending balance (in shares) at Mar. 29, 2024	12,600	12,562
Ending balance at Mar. 29, 2024	$ 258,507	$ 126	(6,479)	858,228	(577,601)	(15,767)
Beginning balance (in shares) at Dec. 29, 2023		12,521
Beginning balance at Dec. 29, 2023	253,936	$ 125	(6,479)	856,735	(581,019)	(15,426)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,418				3,418
Other comprehensive income (loss)	(341)					(341)
Issuance of common stock under employee stock plans (in shares)		58
Issuance of common stock under employee stock plans	175	$ 1		174
Shares withheld for taxes related to vesting of equity awards (in shares)		(17)
Shares withheld for taxes related to vesting of equity awards	(567)			(567)
Stock repurchase	0
Share-based compensation	1,886			1,886
Common stock issued in connection with acquisition	$ 0
Ending balance (in shares) at Mar. 29, 2024	12,600	12,562
Ending balance at Mar. 29, 2024	$ 258,507	$ 126	$ (6,479)	$ 858,228	$ (577,601)	$ (15,767)

Balance Sheet Components (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Finished products	$ 37,780	$ 18,502
Raw materials and supplies	17,407	12,794
Customer service inventories	1,625	1,761
Total inventories	56,812	33,057
Consigned inventories included within raw materials and supplies	$ 13,670	$ 11,224

Related Party Transactions	9 Months Ended
Related Party Transactions	Mar. 29, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions NEC Corporation On November 30, 2023, the Company completed the NEC Transaction. See Note 12. Acquisitions for further information.. A portion of the total consideration in the NEC Transaction included the issuance of 736,750 shares in Company common stock to NEC. On the Closing Date, the Company and NEC entered into a Registration Rights and Lock-Up Agreement, restricting NEC’s ability to transfer shares (the “Lock-Up”), except for certain limited exceptions as provided in the Registration Rights and Lock-Up Agreement, until one day after the one-year anniversary of the Closing Date (the “Initial Lock-Up Expiration Date”). Starting one day after the Initial Lock-Up Expiration Date, one-twelfth of the issued shares shall be released from the Lock-Up each month, such that all issued shares shall be released from Lock-Up by the two-year anniversary of the Closing Date. Pursuant to the Purchase Agreement, NEC will have the right to nominate a director to the Company’s Board of Directors from the Closing Date and for a period of two years thereafter. As of March 29, 2024, NEC holds approximately 5.9% of the Company’s outstanding common stock. In connection with the closing of the NEC Transaction and as of the Closing Date, the Company and NEC entered into agreements covering the performance of certain post-closing services and licensing arrangements. The agreements include arrangements covering manufacturing services and product supply, transition services, distribution services, research and development services, and licensing of trademark and intellectual property (“IP”). The Manufacturing and Supply Agreement includes arrangements for NEC to manufacture and supply Pasolink products on behalf of and to the Company and its customers. The transition services agreements include arrangements for the Company and NEC to provide and receive certain transition services, primarily associated with administrative functions. The distribution services agreements includes arrangements where NEC will provide distribution services on behalf of and to the Company and its customers in certain international markets and territories. The Research and Development Cooperating Agreement for Existing Products includes arrangements for NEC to provide the Company certain services relating to development work to maintain existing products of the NEC business. The licensing agreements include arrangements where the Company will grant NEC a non-exclusive license to certain Pasolink trademarks in Japan, and NEC will grant the Company a non-exclusive, worldwide (excluding Japan) license to certain NEC IP, including mobile backhaul-related patents. The licensing agreements are royalty-free and perpetual. For the three and nine months ended March 29, 2024, the Company made aggregate inventory purchases from NEC of $4.8 million. For the three months ended March 29, 2024, the Company incurred expenses of $1.2 million for transition services and $3.2 million for research and development services. For the nine months ended March 29, 2024, the Company incurred expenses of $2.2 million for transition services and $4.3 million for research and development services. As of March 29, 2024, the Company had outstanding related party receivable balances due from NEC of $4.7 million, of which $0.5 million is included in accounts receivable, net and $4.2 million is included in other current assets on the unaudited condensed consolidated balance sheets. As of March 29, 2024, the Company had outstanding related party payable balances due to NEC of $12.9 million, of which $8.6 million is included in accounts payable and $4.3 million is included in accrued expenses on the unaudited condensed consolidated balance sheets.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Fair Value Measurements of Assets and Liabilities (Tables)

9 Months Ended

Mar. 29, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, by Balance Sheet Grouping

The estimated fair values and valuation input levels of assets and liabilities that are measured at fair value on a recurring basis as of March 29, 2024 and June 30, 2023 were as follows:


	March 29, 2024		June 30, 2023		Valuation Inputs
(In thousands)	Fair Value		Fair Value
Assets:
Cash and cash equivalents:
Money market funds	$	7,675	$	571	Level 1
Bank certificates of deposit	$	3,408	$	3,793	Level 2
Marketable securities	$	988	$	2	Level 1

Commitments and Contingencies (Schedule of Commercial Commitments) (Details) $ in Thousands	Mar. 29, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Letters of credit	$ 4,786
Bonds	11,782
Total	$ 16,568

Commitments and Contingencies

9 Months Ended

Mar. 29, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Purchase Orders and Other Commitments

From time to time in the normal course of business, the Company may enter into purchasing agreements with its suppliers that require the Company to accept delivery of and remit full payment for finished products that it has ordered, finished products that it requested be held as safety stock, and work in process started on its behalf, in the event it cancels or terminates 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 the Company has no present intention to cancel or terminate any of these agreements, the Company currently does not believe that it has any future liability under these agreements. As of March 29, 2024, the Company had outstanding purchase obligations with its suppliers or contract manufacturers of $53.5 million. In addition, the Company had contractual obligations of approximately $4.4 million associated with software licenses.

Financial Guarantees and Commercial Commitments

Guarantees issued by banks, insurance companies, or other financial institutions are contingent commitments issued to guarantee performance under borrowing arrangements, such as bank overdraft facilities, tax and customs obligations, and similar transactions, or to ensure performance under customer or vendor contracts. The terms of the guarantees are generally equal to the remaining term of the related debt or other obligations and are generally limited to two years or less. As of March 29, 2024, the Company had no guarantees applicable to its debt arrangements.

The Company has entered into commercial commitments in the normal course of business including surety bonds, standby letters of credit agreements, and other arrangements with financial institutions primarily relating to the guarantee of future performance on certain contracts to provide products and services to customers. As of March 29, 2024, the Company had commercial commitments outstanding of $16.6 million, that were not recorded on the unaudited condensed consolidated balance sheets. The Company does not believe, based on historical experience and information currently available, that it is probable that any significant amounts will be required to be paid on these performance guarantees in the future.

The following table presents details of the Company’s commercial commitments:


(In thousands)	March 29, 2024
Letters of credit	$	4,786
Bonds	11,782
	$	16,568

Indemnifications

Under the terms of substantially all of the Company’s license agreements, it has agreed to defend and pay any final judgment against its customers arising from claims against such customers that the Company’s products infringe the intellectual property rights of a third party. As of March 29, 2024, the Company has not received any notice that any customer is subject to an infringement claim arising from the use of its products; the Company has not received any request to defend any customers from infringement claims arising from the use of its products; and the Company has not paid any final judgment on behalf of any customer related to an infringement claim arising from the use of its 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, the Company cannot estimate the maximum amount of potential future payments, if any, related to its indemnification provisions. As of March 29, 2024, the Company had not recorded any liabilities related to these indemnifications.

Legal Proceedings

The Company is subject from time to time to disputes with customers concerning its products and services. From time to time, the Company may be involved in various other legal claims and litigation that arise in the normal course of its operations. The Company is aggressively defending all current litigation matters. Although there can be no assurances and the outcome of these matters is currently not determinable, the Company currently believes that none of these claims or proceedings are likely to have a material adverse effect on its financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against the Company may cause it to incur costly litigation and/or substantial settlement charges. As a result, the Company’s 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 the Company’s estimates, if any.

The Company records accruals for its 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. The Company evaluates, 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. The Company has not recorded any significant accrual for loss contingencies associated with such legal claims or litigation discussed above.

Contingent Liabilities

The Company records 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. The Company expenses 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 Aviat’s 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, the directors of Aviat India appeared before the Ministry of Finance Enforcement Directorate. In March 2024, the Company appeared before the Joint Director of Enforcement to review the transactions at issue. No subsequent hearing date has been scheduled as of March 29, 2024. The Company has accrued an immaterial amount representing the estimated probable loss for which it would settle the matter. The Company currently cannot form an estimate of the range of

loss in excess of its amounts already accrued. If the outcome of this matter is greater than the current immaterial amount accrued, the Company intends to dispute it vigorously.

Periodically, the Company reviews 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, the estimated loss is reflected 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 the consolidated financial statements.

As additional information becomes available, the Company will reassess the potential liability related to its pending claims and litigation and may revise estimates accordingly. Such revisions in the estimates of the potential liabilities could have a material impact on the Company’s results of operations and financial position.

Net Income Per Share of Common Stock

9 Months Ended

Mar. 29, 2024

Earnings Per Share [Abstract]

Net Income Per Share of Common Stock

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


	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Numerator:
Net income	$	3,418	$	4,889	$	10,313	$	8,189

Denominator:
Weighted-average shares outstanding, basic	12,555		11,413		12,043		11,319
Effect of potentially dilutive equivalent shares	224		471		282		510
Weighted-average shares outstanding, diluted	12,779		11,884		12,325		11,829

Net income per share of common stock outstanding:
Basic	$	0.27	$	0.43	$	0.86	$	0.72
Diluted	$	0.27	$	0.41	$	0.84	$	0.69

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


	Three Months Ended		Nine Months Ended
(In thousands)	March 29, 2024	March 31, 2023	March 29, 2024	March 31, 2023
Stock options	337	211	315	189
Restricted stock units and performance stock units	31	25	26	20
Total shares of common stock excluded	368	236	341	209

Stockholders’ Equity

9 Months Ended

Mar. 29, 2024

Share-Based Payment Arrangement [Abstract]

Stockholders’ Equity

Stock Repurchase Program

In November 2021, the Company’s Board of Directors approved a stock repurchase program to purchase up to $10.0 million of the Company’s common stock. As of March 29, 2024, $6.9 million remains available and Aviat may choose to suspend or discontinue the repurchase program at any time. Repurchased shares are recorded as treasury stock. During the third quarter of fiscal 2024, the Company did not repurchase any shares of its common stock. During the nine months ended March 29, 2024, the Company repurchased 11,208 shares of its common stock in the open market for an aggregate purchase price, including commissions, of $0.3 million.

Stock Incentive Programs

As of March 29, 2024, the Company had one stock incentive plan for its employees and non-employee directors, the 2018 Incentive Plan (the “2018 Plan”). The 2018 Plan provides for the issuance of share-based awards in the form of stock options, stock appreciation rights, restricted stock awards and units, and performance share awards and units.

Under the 2018 Plan, option exercise prices are equal to the fair market value of Aviat common stock on the date the options are granted using the 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 annually to non-executive board members 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.

During the nine months ended March 29, 2024, the Company granted 100,689 restricted stock units, 64,643 performance share awards and 151,094 stock options.

The Company recognizes compensation cost for share-based payment awards on a straight-line basis over the requisite service period. For awards with a performance condition vesting feature, share-based compensation costs are recognized when achievement of the performance conditions is considered probable. Forfeitures are recognized as they occur.

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


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
By Expense Category:
Cost of revenues	$	126	$	125	$	310	$	463
Research and development	155		113		452		385
Selling and administrative	1,605		1,400		4,783		4,287
Total share-based compensation expense	$	1,886	$	1,638	$	5,545	$	5,135
By Type of Award:
Options	$	408	$	46	$	1,173	$	862
Restricted stock and performance share awards and units	1,478		1,592		4,372		4,273
Total share-based compensation expense	$	1,886	$	1,638	$	5,545	$	5,135

As of March 29, 2024, there was approximately $2.7 million of total unrecognized compensation expense related to non-vested stock options granted which is expected to be recognized over a weighted-average period of 1.9 years. As of March 29, 2024, there was $8.2 million of total unrecognized compensation expense related to non-vested stock awards which is expected to be recognized over a weighted-average period of 1.5 years.

- 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
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-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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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 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 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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+ Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 3,418	$ 4,889	$ 10,313	$ 8,189

- Definition

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

+ References

+ Details

Fair Value Measurements of Assets and Liabilities (Schedule of Fair Value, by Balance Sheet Grouping) (Details) - Recurring - Fair Value - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Level 1
Assets:
Marketable securities	$ 988	$ 2
Level 1 \| Money market funds
Assets:
Cash and cash equivalents:	7,675	571
Level 2 \| Bank certificates of deposit
Assets:
Cash and cash equivalents:	$ 3,408	$ 3,793

Acquisitions (Schedule of Preliminary Purchase Consideration) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Nov. 30, 2023	Jun. 30, 2023
Business Acquisition [Line Items]
Goodwill	$ 8,217		$ 5,112
NEC Corporation
Business Acquisition [Line Items]
Accounts receivable, net		$ 51,787
Inventories	1,400	34,175
Property, plant and equipment, net		539
Identifiable finite-lived intangible assets	$ 1,500
Other assets		243
Accounts payable		(13,182)
Advance payments and unearned revenue		(3,192)
Other liabilities		(2,187)
Goodwill		3,106
Net assets acquired		76,889
Customer relationships \| NEC Corporation
Business Acquisition [Line Items]
Identifiable finite-lived intangible assets		3,800
Technology-Based Intangible Assets \| NEC Corporation
Business Acquisition [Line Items]
Identifiable finite-lived intangible assets		$ 1,800

Balance Sheet Components

9 Months Ended

Mar. 29, 2024

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Cash, Cash equivalents, and Restricted cash

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


(In thousands)	March 29, 2024		June 30, 2023
Cash and cash equivalents	$	58,201	$	22,242

Restricted cash included in other assets	278		279
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	58,479	$	22,521

Inventories


(In thousands)	March 29, 2024		June 30, 2023
Finished products	$	37,780	$	18,502
Raw materials and supplies	17,407		12,794
Customer service inventories	$	1,625	$	1,761
Total inventories	$	56,812	$	33,057
Consigned inventories included within raw materials and supplies	$	13,670	$	11,224

The Company records charges to adjust inventories due to excess and obsolete inventory resulting from lower sales forecasts, product transitioning or discontinuance. The charges incurred during the three and nine months ended March 29, 2024 and March 31, 2023 were included in cost of product sales as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Excess and obsolete inventory	$	2,251	$	275	$	2,937	$	856
Customer service inventory write-downs	153		302		652		859
Total inventory charges	$	2,404	$	577	$	3,589	$	1,715

Other Current Assets


(In thousands)	March 29, 2024		June 30, 2023
Taxes	10,082		2,417
Due from related party	4,200		—
Contract manufacturing assets	$	3,204	$	6,487
Prepaid and other current assets	13,235		13,258
Total other current assets	$	30,721	$	22,162

Assets Held for Sale

During the third quarter of fiscal 2024, management initiated the sale of the Company’s property located in New Zealand. The Company expects to complete the sale within twelve months. As of March 29, 2024, the aggregate carrying value of the assets held for sale was $2.7 million.

Property, Plant and Equipment, net


(In thousands)	March 29, 2024		June 30, 2023
Land	$	—	$	210
Buildings and leasehold improvements	1,169		5,889
Software	17,006		16,989
Machinery and equipment	49,037		47,150
Total property, plant and equipment, gross	67,212		70,238
Less: accumulated depreciation	(60,814)		(60,786)
Total property, plant and equipment, net	$	6,398	$	9,452

Included in the total property, plant and equipment, gross were $1.3 million and $0.4 million of assets in progress which have not been placed in service as of March 29, 2024 and June 30, 2023, respectively.

During the third quarter of fiscal 2024, $0.2 million of land, $4.7 million of buildings and improvements, and $2.2 million of accumulated depreciation, were reclassified from property, plant and equipment, net to Assets held for sale on the Company’s unaudited condensed consolidated balance sheets.

Depreciation expense related to property, plant and equipment, was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Depreciation	$	1,004	$	1,428	$	3,077	$	4,193

Accrued Expenses


(In thousands)	March 29, 2024		June 30, 2023
Project costs	$	10,342	$	1,319
Compensation and benefits	8,690		10,368
Taxes	6,233		4,616
Due to related party	4,303		—
Warranties	2,796		2,100
Commissions	1,376		1,453
Professional fees	994		2,104
Other	3,782		2,482
Total accrued expenses	$	38,516	$	24,442

The Company accrues for the estimated cost to repair or replace products under warranty. Changes in the warranty liability were as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Balance as of the beginning of the period	$	2,746	$	2,549	$	2,100	$	2,913
Warranty provision recorded during the period	587		186		1,601		560
Assumed in acquisition	—		—		446		55
Consumption during the period	(537)		(424)		(1,351)		(1,217)
Balance as of the end of the period	$	2,796	$	2,311	$	2,796	$	2,311

Advance Payments and Unearned Revenue


(In thousands)	March 29, 2024		June 30, 2023
Advance payments	$	2,557	$	1,607
Unearned revenue	39,587		42,661
Total advance payments and unearned revenue	$	42,144	$	44,268

Excluded from the balances above are $7.7 million and $7.4 million in long-term unearned revenue as of March 29, 2024 and June 30, 2023, respectively.

Leases - (Schedule of Rent Expense Terms) (Details)	Mar. 29, 2024
Leases [Abstract]
Weighted average remaining lease term	6 years 2 months 12 days
Weighted average discount rate	5.40%

Fair Value Measurements of Assets and Liabilities (Narrative) (Details) - $ / shares	Mar. 29, 2024	Jun. 30, 2023
Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market, net asset value (in dollars per share)	$ 1.00	$ 1.00

Acquisitions (Schedule of Pro Forma Adjustments) (Details) - NEC Corporation - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Revenue	$ 111,613	$ 139,094	$ 379,128	$ 408,358
Net income (loss)	$ 4,393	$ 7,812	$ 18,765	$ (1,214)

Net Income Per Share of Common Stock (Schedule of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Numerator:
Net income	$ 3,418	$ 4,889	$ 10,313	$ 8,189
Denominator:
Weighted-average shares outstanding, basic (in shares)	12,555	11,413	12,043	11,319
Effect of potentially dilutive equivalent shares (in shares)	224	471	282	510
Weighted-average shares outstanding, diluted (in shares)	12,779	11,884	12,325	11,829
Net income per share of common stock outstanding:
Basic (in dollars per share)	$ 0.27	$ 0.43	$ 0.86	$ 0.72
Diluted (in dollars per share)	$ 0.27	$ 0.41	$ 0.84	$ 0.69

- Definition

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

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- Definition

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

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+ Details

- Definition

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

+ References

+ Details

Balance Sheet Components (Schedule of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023	Mar. 31, 2023	Jul. 01, 2022
Balance Sheet Related Disclosures [Abstract]
Cash and cash equivalents	$ 58,201	$ 22,242
Restricted cash included in other assets	278	279
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$ 58,479	$ 22,521	$ 22,666	$ 37,104

Balance Sheet Components (Tables)

9 Months Ended

Mar. 29, 2024

Balance Sheet Related Disclosures [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	March 29, 2024		June 30, 2023
Cash and cash equivalents	$	58,201	$	22,242

Restricted cash included in other assets	278		279
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	58,479	$	22,521

Schedule of Cash, Cash Equivalents and Restricted Cash


(In thousands)	March 29, 2024		June 30, 2023
Cash and cash equivalents	$	58,201	$	22,242

Restricted cash included in other assets	278		279
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows	$	58,479	$	22,521

Schedule of Inventories


(In thousands)	March 29, 2024		June 30, 2023
Finished products	$	37,780	$	18,502
Raw materials and supplies	17,407		12,794
Customer service inventories	$	1,625	$	1,761
Total inventories	$	56,812	$	33,057
Consigned inventories included within raw materials and supplies	$	13,670	$	11,224

Schedule of Adjustments to Inventory

The charges incurred during the three and nine months ended March 29, 2024 and March 31, 2023 were included in cost of product sales as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Excess and obsolete inventory	$	2,251	$	275	$	2,937	$	856
Customer service inventory write-downs	153		302		652		859
Total inventory charges	$	2,404	$	577	$	3,589	$	1,715

Schedule of Other Current Assets

Other Current Assets


(In thousands)	March 29, 2024		June 30, 2023
Taxes	10,082		2,417
Due from related party	4,200		—
Contract manufacturing assets	$	3,204	$	6,487
Prepaid and other current assets	13,235		13,258
Total other current assets	$	30,721	$	22,162

Schedule of Property, Plant and Equipment, Net


(In thousands)	March 29, 2024		June 30, 2023
Land	$	—	$	210
Buildings and leasehold improvements	1,169		5,889
Software	17,006		16,989
Machinery and equipment	49,037		47,150
Total property, plant and equipment, gross	67,212		70,238
Less: accumulated depreciation	(60,814)		(60,786)
Total property, plant and equipment, net	$	6,398	$	9,452

Depreciation expense related to property, plant and equipment, was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Depreciation	$	1,004	$	1,428	$	3,077	$	4,193

Schedule of Accrued Expenses


(In thousands)	March 29, 2024		June 30, 2023
Project costs	$	10,342	$	1,319
Compensation and benefits	8,690		10,368
Taxes	6,233		4,616
Due to related party	4,303		—
Warranties	2,796		2,100
Commissions	1,376		1,453
Professional fees	994		2,104
Other	3,782		2,482
Total accrued expenses	$	38,516	$	24,442

Schedule of Changes in Warranty Liability

The Company accrues for the estimated cost to repair or replace products under warranty. Changes in the warranty liability were as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Balance as of the beginning of the period	$	2,746	$	2,549	$	2,100	$	2,913
Warranty provision recorded during the period	587		186		1,601		560
Assumed in acquisition	—		—		446		55
Consumption during the period	(537)		(424)		(1,351)		(1,217)
Balance as of the end of the period	$	2,796	$	2,311	$	2,796	$	2,311

Schedule of Advance Payments and Unearned Income


(In thousands)	March 29, 2024		June 30, 2023
Advance payments	$	2,557	$	1,607
Unearned revenue	39,587		42,661
Total advance payments and unearned revenue	$	42,144	$	44,268

Insider Trading Arrangements	3 Months Ended	9 Months Ended
Insider Trading Arrangements	Mar. 29, 2024 shares	Mar. 29, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Gary Croke [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On February 14, 2024, Gary Croke, Vice President, Marketing and Product Line Management, adopted a new trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The trading plan is intended to permit Mr. Croke to sell an aggregate of 24,474 shares. Mr. Croke’s plan is in effect until December 31, 2024.
Name	Gary Croke
Title	Vice President
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 14, 2024
Arrangement Duration	321 days
Aggregate Available	24,474	24,474

Goodwill and Intangible Assets

9 Months Ended

Mar. 29, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The following presents details of goodwill and intangible assets:


(In thousands)	March 29, 2024		June 30, 2023
Goodwill	$	8,217	$	5,112

The Company recognized goodwill of $3.1 million associated with the NEC Transaction, based on the preliminary estimated fair value of the assets acquired and liabilities assumed. See Note 12. Acquisitions for further information.

The Company performs its annual goodwill impairment test on the first day of its fourth fiscal quarter. No indicators of impairment were identified during the current period that required the Company to perform an interim assessment or recoverability test.


(In thousands except useful life)	Useful life in Years	March 29, 2024		June 30, 2023
Intangible assets:
Technology	5	$	1,800	$	—
Patents	10	690		690
Customer relationships	14 — 15	11,530		7,730
Trade names	16	1,330		1,330
Total gross intangible assets		$	15,350	$	9,750
Accumulated amortization		(1,355)		(704)
Total net intangible assets		$	13,995	$	9,046

Amortization of finite-lived intangibles for the three and nine months ended March 29, 2024 was $0.2 million and $0.7 million, respectively, and is included in selling and administrative expenses. There were no impairment charges recorded for the three and nine months ended March 29, 2024 and March 31, 2023.

As of March 29, 2024, the estimated future amortization expense of finite-lived intangible assets is as follows (in thousands):


Remainder of 2024	$	304
2025	1,215
2026	1,215
2027	1,215
2028	1,215
Thereafter	8,831
Total	$	13,995

Stockholders’ Equity (Schedule of Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,886	$ 1,638	$ 5,545	$ 5,135
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	408	46	1,173	862
Restricted stock and performance share awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,478	1,592	4,372	4,273
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	126	125	310	463
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	155	113	452	385
Selling and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,605	$ 1,400	$ 4,783	$ 4,287

- 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

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-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

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (c)(1)(iv)(02)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
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-Section 50
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-Subparagraph (c)(2)(i)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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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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-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
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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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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Section 50
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Paragraph 2
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Fair Value Measurements of Assets and Liabilities

9 Months Ended

Mar. 29, 2024

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. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value and established a three-level fair value hierarchy that prioritizes the observable 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 estimated fair values and valuation input levels of assets and liabilities that are measured at fair value on a recurring basis as of March 29, 2024 and June 30, 2023 were as follows:


	March 29, 2024		June 30, 2023		Valuation Inputs
(In thousands)	Fair Value		Fair Value
Assets:
Cash and cash equivalents:
Money market funds	$	7,675	$	571	Level 1
Bank certificates of deposit	$	3,408	$	3,793	Level 2
Marketable securities	$	988	$	2	Level 1

Items are classified within Level 1 if quoted prices are available in active markets. The Company’s Level 1 items are primarily money market funds and marketable securities. As of March 29, 2024 and June 30, 2023, the money market funds were valued at $1.00 net asset value per share. Marketable securities include publicly traded stock measured at fair value and classified within Level 1.

Items are classified within 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. The Company’s bank certificates of deposit are classified within Level 2. The carrying value of bank certificates of deposit approximates their fair value.

As of March 29, 2024 and June 30, 2023, there were no recurring assets or liabilities valued using significant unobservable inputs.

- 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

Related Party Transactions (Details) $ in Thousands		3 Months Ended	9 Months Ended
Related Party Transactions (Details) $ in Thousands	Nov. 30, 2023 shares	Mar. 29, 2024 USD ($)	Mar. 29, 2024 USD ($)	Jun. 30, 2023 USD ($)
Related Party Transaction [Line Items]
Accounts receivable, net		$ 138,366	$ 138,366	$ 101,653
Outstanding related party payable balances		3,782	3,782	2,482
Related Party
Related Party Transaction [Line Items]
Outstanding related party receivable balances		4,200	4,200	0
Outstanding related party payable balances		4,303	4,303	$ 0
Related Party \| NEC Corporation
Related Party Transaction [Line Items]
Outstanding related party receivable balances		4,700	4,700
Accounts receivable, net		500	500
Other receivables, net, current		4,200	4,200
Accounts payable and other accrued liabilities		12,900	12,900
Accounts payable		8,600	8,600
Outstanding related party payable balances		$ 4,300	$ 4,300
NEC Corporation \| NEC Transaction
Related Party Transaction [Line Items]
Equity method investment, ownership percentage		5.90%	5.90%
Lock-Up \| Related Party
Related Party Transaction [Line Items]
Share release, monthly release of issued shares	0.0833
Share release, period after closing date	2 years
Inventory Purchases \| NEC Corporation
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction		$ 4,800	$ 4,800
NEC Corporation
Related Party Transaction [Line Items]
Consideration transferred, equity interest issued and issuable, number of shares (in shares) \| shares	736,750
NEC Corporation \| Transition Services
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction		1,200	2,200
NEC Corporation \| Research and Development Services
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction		$ 3,200	$ 4,300

Commitments and Contingencies (Narrative) (Details) $ in Thousands	9 Months Ended
	Mar. 29, 2024 USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Commercial commitments outstanding	$ 16,568
Maximum
Property Subject to or Available for Operating Lease [Line Items]
Guarantee term	2 years
Inventories
Property Subject to or Available for Operating Lease [Line Items]
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding	$ 53,500
Licensing Agreements
Property Subject to or Available for Operating Lease [Line Items]
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding	$ 4,400

Goodwill and Intangible Assets (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill acquired	$ 3,100,000
Goodwill, impairment			$ 0
Amortization of intangible assets	200,000		651,000	$ 372,000
Impairment charges	$ 0	$ 0	$ 0	$ 0

Revenue Recognition (Remaining Performance Obligations) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-30 $ in Millions	Mar. 29, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 154.5
Remaining performance obligation, percentage	50.00%
Expected timing of satisfaction, period	12 months

Stockholders’ Equity (Tables)

9 Months Ended

Mar. 29, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Compensation Expense for Share-based Compensation Awards

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


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
By Expense Category:
Cost of revenues	$	126	$	125	$	310	$	463
Research and development	155		113		452		385
Selling and administrative	1,605		1,400		4,783		4,287
Total share-based compensation expense	$	1,886	$	1,638	$	5,545	$	5,135
By Type of Award:
Options	$	408	$	46	$	1,173	$	862
Restricted stock and performance share awards and units	1,478		1,592		4,372		4,273
Total share-based compensation expense	$	1,886	$	1,638	$	5,545	$	5,135

The Company and Basis of Presentation	9 Months Ended
The Company and Basis of Presentation	Mar. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation The Company Aviat Networks, Inc. (“Aviat,” the “Company,” “we,” “us,” and “our”) designs, manufactures, and sells 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. Aviat’s products include broadband wireless access base stations and customer premises equipment for fixed and mobile, point-to-point digital microwave radio systems for access, backhaul, trunking and license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information, and Aviat has made estimates, assumptions and judgments affecting the amounts reported in its unaudited condensed consolidated financial statements and the accompanying notes, as discussed in greater detail below. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of the Company’s management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the nine months ended March 29, 2024 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in Aviat’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. Certain amounts in the financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. Aviat’s fiscal year includes 52 or 53 weeks and ends on the Friday nearest to June 30. The three months ended March 29, 2024 and March 31, 2023 both consisted of 13 weeks. Fiscal year 2024 contains 52 weeks and will end on June 28, 2024. Fiscal year 2023 contained 52 weeks and ended on June 30, 2023. Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires the Company 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 the Company’s management. The Company evaluates estimates and assumptions on an ongoing basis and may employ outside experts to assist 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, uncertainties in income taxes, contingencies and recoverability of long-lived assets. Actual results may differ materially from estimates. Summary of Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies as of and for the nine months ended March 29, 2024, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly presented to the chief operating decision maker. The disclosures required under ASU 2023-07 are also required for public entities with a single reportable segment. ASU 2023-07 is effective for the Company’s annual reporting beginning in fiscal 2025 and for interim periods beginning in fiscal 2026. The Company is currently evaluating the impact of the ASU on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU enhances the transparency and usefulness of income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company’s annual reporting beginning in fiscal 2026. The Company is currently evaluating the impact of this ASU on its consolidated financial statements 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.

Leases

9 Months Ended

Mar. 29, 2024

Leases [Abstract]

Leases


	Three Months Ended				Nine Months Ended
	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
(In thousands)
Operating lease costs	$	280	$	270	$	765	$	817
Short-term lease costs	1,204		490		2,667		1,507
Variable lease costs	21		12		51		92
Total lease costs	$	1,505	$	772	$	3,483	$	2,416

The weighted average lease term and discount rate as of March 29, 2024 were as follows:


Weighted average remaining lease term	6.2 years
Weighted average discount rate	5.4	%

As of March 29, 2024, future minimum lease payments under all non-cancelable operating leases with an initial term in excess of one year were as follows (in thousands):


Remainder of fiscal 2024	$	206
2025	921
2026	799
2027	348
2028	318
Thereafter	1,235
Total lease payments	3,827
Less: interest	(677)
Present value of lease liabilities	$	3,150

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Operating Activities
Net income	$ 10,313	$ 8,189
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation of property, plant and equipment	3,077	4,193
Amortization of intangible assets	651	372
Provision for uncollectible receivables	569	476
Share-based compensation	5,545	5,135
Deferred taxes	2,180	5,189
Inventory write-downs	3,589	1,715
Noncash lease expense	575	524
Net (gain) loss on marketable securities	(61)	1,730
Other non-cash operating activities, net	83	34
Changes in operating assets and liabilities:
Accounts receivable	14,312	(12,212)
Unbilled receivables	(17,039)	(17,719)
Inventories	7,037	(9,919)
Accounts payable	(8,841)	16,344
Accrued expenses	11,449	(3,594)
Advance payments and unearned revenue	(4,213)	1,948
Income taxes	1,099	1,932
Other assets and liabilities	(8,096)	(13,342)
Net cash provided by (used in) operating activities	22,229	(9,005)
Investing Activities
Purchase of property, plant and equipment	(1,866)	(5,055)
Purchase of marketable securities	(925)	0
Proceeds from sale of marketable securities	0	9,163
Acquisition, net of cash acquired	(32,162)	(15,769)
Net cash used in investing activities	(34,953)	(11,661)
Financing Activities
Proceeds from revolver	33,200	50,200
Repayments of revolver	(33,200)	(44,000)
Proceeds from term loan	50,000	0
Repayments of term loan	(625)	0
Payments of deferred financing costs	(79)	0
Payments for repurchase of common stock - treasury shares	(332)	0
Payments for taxes related to net settlement of equity awards	(690)	(1,055)
Proceeds from issuance of common stock under employee stock plans	1,005	1,074
Net cash provided by financing activities	49,279	6,219
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(597)	9
Net increase (decrease) in cash, cash equivalents, and restricted cash	35,958	(14,438)
Cash, cash equivalents, and restricted cash, beginning of period	22,521	37,104
Cash, cash equivalents, and restricted cash, end of period	58,479	22,666
Non-cash investing and financing activities:
Common stock issued in connection with acquisition	$ 22,331	$ 0

Net Income Per Share of Common Stock (Tables)

9 Months Ended

Mar. 29, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income per Share

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


	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Numerator:
Net income	$	3,418	$	4,889	$	10,313	$	8,189

Denominator:
Weighted-average shares outstanding, basic	12,555		11,413		12,043		11,319
Effect of potentially dilutive equivalent shares	224		471		282		510
Weighted-average shares outstanding, diluted	12,779		11,884		12,325		11,829

Net income per share of common stock outstanding:
Basic	$	0.27	$	0.43	$	0.86	$	0.72
Diluted	$	0.27	$	0.41	$	0.84	$	0.69

Schedule of Antidilutive Securities Excluded from Computation of Net Income Per Share

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


	Three Months Ended		Nine Months Ended
(In thousands)	March 29, 2024	March 31, 2023	March 29, 2024	March 31, 2023
Stock options	337	211	315	189
Restricted stock units and performance stock units	31	25	26	20
Total shares of common stock excluded	368	236	341	209

Revenue Recognition (Tables)

9 Months Ended

Mar. 29, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Contract with Customer, Asset and Liability


(In thousands)	March 29, 2024		June 30, 2023
Contract assets
Accounts receivable, net	$	138,366	$	101,653
Unbilled receivables	74,650		58,588
Capitalized commissions	3,095		3,492
Contract liabilities
Advance payments and unearned revenue	$	42,144	$	44,268
Unearned revenue, long-term	7,676		7,416

Commitment and Contingencies (Tables)

9 Months Ended

Mar. 29, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commercial Commitments

The following table presents details of the Company’s commercial commitments:


(In thousands)	March 29, 2024
Letters of credit	$	4,786
Bonds	11,782
	$	16,568

Net Income Per Share of Common Stock (Schedule of Common Stock Excluded Because they were Antidilutive) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	368	236	341	209
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	337	211	315	189
Restricted stock units and performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded (in shares)	31	25	26	20

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,250	$ 719
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)	12,600,000	11,500,000
Common stock shares outstanding (in shares)	12,600,000	11,500,000

Credit Facility and Debt (Tables)

9 Months Ended

Mar. 29, 2024

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The following summarizes the Company’s outstanding long-term debt as of March 29, 2024:


(In thousands)
Term loan	$	49,375
Less: unamortized deferred financing costs	(428)
Total debt	48,947
Less: current portion of long-term debt	(2,395)
Total long-term debt	$	46,552

Schedule of Maturities of Long-Term Debt

As of March 29, 2024, scheduled maturities of outstanding long-term debt are as follows:


(In thousands)
Remainder of 2024	$	625
2025	2,500
2026	3,750
2027	6,250
2028	36,250
Total	$	49,375

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Segment and Geographic Information

9 Months Ended

Mar. 29, 2024

Segment Reporting [Abstract]

Segment and Geographic Information

Aviat operates in one reportable business segment: the design, manufacturing, and sale of wireless networking products, solutions, and services. The Company’s financial performance is regularly reviewed by its chief operating decision maker who is its Chief Executive Officer (“CEO”).

The Company reports revenue by region and country based on the location where its customers accept delivery of products and services. Revenue by region for the three and nine months ended March 29, 2024 and March 31, 2023 was as follows:


	Three Months Ended				Nine Months Ended
(In thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
North America	$	44,409	$	46,064	$	151,243	$	146,961
Africa and the Middle East	11,401		19,235		35,856		44,354
Europe	6,549		3,871		17,379		13,705
Latin America and Asia Pacific	49,254		14,310		89,737		50,394
Total revenue	$	111,613	$	83,480	$	294,215	$	255,414

- 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
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+ Details

Restructuring (Narrative) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring liabilities	$ 350	$ 600

Restructuring (Schedule of Restructuring Related Activities) (Details) - Employee Severance and Benefits - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Dec. 29, 2023	Sep. 29, 2023
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	$ 1,532	$ 112	$ 600
Charges (recoveries), net	(421)	2,000	681
Cash payments	(761)	(580)	(1,169)
Accrued balance, end of period	350	1,532	112
Fiscal 2024 Plans
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	1,532	112	0
Charges (recoveries), net	(635)	2,000	333
Cash payments	(547)	(580)	(221)
Accrued balance, end of period	350	1,532	112
Prior Years’ Plans
Restructuring Reserve [Roll Forward]
Accrual balance, beginning of period	0	0	600
Charges (recoveries), net	214	0	348
Cash payments	(214)	0	(948)
Accrued balance, end of period	$ 0	$ 0	$ 0

Goodwill and Intangible Assets (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 304
2025	1,215
2026	1,215
2027	1,215
2028	1,215
Thereafter	8,831
Total	$ 13,995	$ 9,046

Leases - (Schedule of Lease Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease costs	$ 280	$ 270	$ 765	$ 817
Short-term lease costs	1,204	490	2,667	1,507
Variable lease costs	21	12	51	92
Total lease costs	$ 1,505	$ 772	$ 3,483	$ 2,416

Revenue Recognition

9 Months Ended

Mar. 29, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Contract Balances, Performance Obligations, and Backlog


(In thousands)	March 29, 2024		June 30, 2023
Contract assets
Accounts receivable, net	$	138,366	$	101,653
Unbilled receivables	74,650		58,588
Capitalized commissions	3,095		3,492
Contract liabilities
Advance payments and unearned revenue	$	42,144	$	44,268
Unearned revenue, long-term	7,676		7,416

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

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

As of March 29, 2024, the Company reported $49.8 million in advance payments and unearned revenue and long-term unearned revenue, of which approximately 64% is expected to be recognized as revenue in the next twelve months and the remainder thereafter. Approximately $9.2 million and $29.1 million, respectively, of revenue was recognized during the three and nine months ended March 29, 2024, which was included in advance payments and unearned revenue at June 30, 2023.

Remaining Performance Obligations

The aggregate amount of transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $154.5 million at March 29, 2024. Of this amount, approximately 50% is expected to be recognized as revenue during the next 12 months, with the remaining amount to be recognized thereafter. The unsatisfied (or partially unsatisfied) performance obligations excludes the impact of the NEC Transaction (as defined below). See Note 12. Acquisitions for further information. The Company is in the process of reviewing the contracts acquired in connection with the NEC Transaction. However, due to the timing of the closing of the NEC Transaction and delivery of related data, there was insufficient time to finalize the analysis for incorporation into this disclosure.

- 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

The Company and Basis of Presentation (Policies)	9 Months Ended
The Company and Basis of Presentation (Policies)	Mar. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information, and Aviat has made estimates, assumptions and judgments affecting the amounts reported in its unaudited condensed consolidated financial statements and the accompanying notes, as discussed in greater detail below. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of the Company’s management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the nine months ended March 29, 2024 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in Aviat’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. Certain amounts in the financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. Aviat’s fiscal year includes 52 or 53 weeks and ends on the Friday nearest to June 30. The three months ended March 29, 2024 and March 31, 2023 both consisted of 13 weeks. Fiscal year 2024 contains 52 weeks and will end on June 28, 2024. Fiscal year 2023 contained 52 weeks and ended on June 30, 2023.
Use of Estimates	Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires the Company 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 the Company’s management. The Company evaluates estimates and assumptions on an ongoing basis and may employ outside experts to assist 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, uncertainties in income taxes, contingencies and recoverability of long-lived assets. Actual results may differ materially from estimates.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly presented to the chief operating decision maker. The disclosures required under ASU 2023-07 are also required for public entities with a single reportable segment. ASU 2023-07 is effective for the Company’s annual reporting beginning in fiscal 2025 and for interim periods beginning in fiscal 2026. The Company is currently evaluating the impact of the ASU on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU enhances the transparency and usefulness of income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company’s annual reporting beginning in fiscal 2026. The Company is currently evaluating the impact of this ASU on its consolidated financial statements 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.
Fair Value Measurements	Items are classified within Level 1 if quoted prices are available in active markets. The Company’s Level 1 items are primarily money market funds and marketable securities. As of March 29, 2024 and June 30, 2023, the money market funds were valued at $1.00 net asset value per share. Marketable securities include publicly traded stock measured at fair value and classified within Level 1. Items are classified within 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. The Company’s bank certificates of deposit are classified within Level 2. The carrying value of bank certificates of deposit approximates their fair value.

Cover - shares	9 Months Ended
Cover - shares	Mar. 29, 2024	Apr. 29, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 29, 2024
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,565,284
Entity Central Index Key	0001377789
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	AVNW
Security Exchange Name	NASDAQ
Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preferred Share Purchase Rights
Security Exchange Name	NASDAQ
No Trading Symbol Flag	true

Balance Sheet Components (Schedule of Other Current Assets) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Taxes	$ 10,082	$ 2,417
Contract manufacturing assets	3,204	6,487
Prepaid and other current assets	13,235	13,258
Other current assets	30,721	22,162
Related Party
Related Party Transaction [Line Items]
Due from related party	$ 4,200	$ 0

Goodwill and Intangible Assets (Schedule of Goodwill Impairment) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Total gross intangible assets	$ 15,350	$ 9,750
Accumulated amortization	(1,355)	(704)
Total	$ 13,995	9,046
Technology
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	5 years
Total gross intangible assets	$ 1,800	0
Patents
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	10 years
Total gross intangible assets	$ 690	690
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Total gross intangible assets	$ 11,530	7,730
Customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	14 years
Customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	15 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Useful life in Years	16 years
Total gross intangible assets	$ 1,330	$ 1,330

Balance Sheet Components (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 29, 2024	Mar. 29, 2024	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Assets held for sale	$ 2,720	$ 2,720	$ 0
Property, plant and equipment, gross	67,212	67,212	70,238
Accumulated depreciation		(2,200)
Asset under construction
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,300	1,300	400
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	0	0	210
Property, plant and equipment, reclassified	200
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,169	$ 1,169	$ 5,889
Property, plant and equipment, reclassified	$ 4,700

Balance Sheet Components (Schedule of Accrued Warranties) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Warranty Liability Roll Forward
Balance as of the beginning of the period	$ 2,746	$ 2,549	$ 2,100	$ 2,913
Warranty provision recorded during the period	587	186	1,601	560
Assumed in acquisition	0	0	446	55
Consumption during the period	(537)	(424)	(1,351)	(1,217)
Balance as of the end of the period	$ 2,796	$ 2,311	$ 2,796	$ 2,311

Balance Sheet Components (Schedule of Inventory Adjustments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Excess and obsolete inventory	$ 2,251	$ 275	$ 2,937	$ 856
Customer service inventory write-downs	153	302	652	859
Total inventory charges	$ 2,404	$ 577	$ 3,589	$ 1,715

Goodwill and Intangible Assets (Schedule of Intangible Assets and Goodwill) (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 8,217	$ 5,112

- Definition

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

+ References + Details

Leases - (Schedule of Operating Leases, Future Minimum Payments Due) (Details) $ in Thousands	Mar. 29, 2024 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of fiscal 2024	$ 206
2025	921
2026	799
2027	348
2028	318
Thereafter	1,235
Total lease payments	3,827
Less: interest	(677)
Present value of lease liabilities	$ 3,150

Acquisitions (Tables)

9 Months Ended

Mar. 29, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of Preliminary Purchase Consideration

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


(In thousands)
Accounts receivable, net	$	51,787
Inventories	34,175
Property, plant and equipment, net	539
Identifiable finite-lived intangible assets:
Customer relationships	3,800
Technology	1,800
Other assets	243
Accounts payable	(13,182)
Advance payments and unearned revenue	(3,192)
Other liabilities	(2,187)
Goodwill	3,106
Net assets acquired	$	76,889

Schedule of Pro Forma Adjustments


	Three Months Ended				Nine Months Ended
	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Revenue	$	111,613	$	139,094	$	379,128	$	408,358
Net income (loss)	4,393		7,812		18,765		(1,214)

Balance Sheet Components (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 67,212		$ 67,212		$ 70,238
Less: accumulated depreciation	(60,814)		(60,814)		(60,786)
Total property, plant and equipment, net	6,398		6,398		9,452
Depreciation	1,004	$ 1,428	3,077	$ 4,193
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	0		0		210
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,169		1,169		5,889
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	17,006		17,006		16,989
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	49,037		49,037		47,150
Asset under construction
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,300		$ 1,300		$ 400

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Mar. 29, 2024	Mar. 31, 2023
Revenues:
Total revenues	$ 111,613	$ 83,480	$ 294,215	$ 255,414
Cost of revenues:
Total cost of revenues	75,079	53,647	188,999	163,907
Gross margin	36,534	29,833	105,216	91,507
Operating expenses:
Research and development	10,623	6,518	25,441	18,652
Selling and administrative	21,300	15,842	61,979	49,913
Restructuring (recovery) charges	(417)	(23)	2,227	2,855
Total operating expenses	31,506	22,337	89,647	71,420
Operating income	5,028	7,496	15,569	20,087
Interest expense, net	928	122	1,421	210
Other expense, net	63	306	228	2,540
Income before income taxes	4,037	7,068	13,920	17,337
Provision for income taxes	619	2,179	3,607	9,148
Net income, basic	3,418	4,889	10,313	8,189
Net income, diluted	$ 3,418	$ 4,889	$ 10,313	$ 8,189
Net income per share of common stock outstanding:
Basic (in dollars per share)	$ 0.27	$ 0.43	$ 0.86	$ 0.72
Diluted (in dollars per share)	$ 0.27	$ 0.41	$ 0.84	$ 0.69
Weighted-average shares outstanding:
Basic (in shares)	12,555	11,413	12,043	11,319
Diluted (in shares)	12,779	11,884	12,325	11,829
Product sales
Revenues:
Total revenues	$ 70,857	$ 54,811	$ 196,794	$ 175,473
Cost of revenues:
Total cost of revenues	47,791	35,745	121,775	111,567
Services
Revenues:
Total revenues	40,756	28,669	97,421	79,941
Cost of revenues:
Total cost of revenues	$ 27,288	$ 17,902	$ 67,224	$ 52,340