Cover
Cover - shares | 3 Months Ended | |
Sep. 29, 2023 | Oct. 30, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33278 | |
Entity Registrant Name | AVIAT NETWORKS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5961564 | |
Entity Address, Address Line One | 200 Parker Drive, Suite C100A, | |
Entity Address, City or Town | Austin, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78728 | |
City Area Code | 408 | |
Local Phone Number | 941-7100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AVNW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,720,047 | |
Entity Central Index Key | 0001377789 | |
Current Fiscal Year End Date | --06-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Preferred Share Purchase Rights | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Share Purchase Rights | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Revenues: | ||
Total revenues | $ 87,566 | $ 81,251 |
Cost of revenues: | ||
Total cost of revenues | 55,714 | 51,797 |
Gross margin | 31,852 | 29,454 |
Operating expenses: | ||
Research and development | 6,424 | 6,087 |
Selling and administrative | 19,237 | 17,504 |
Restructuring charges | 644 | 1,950 |
Total operating expenses | 26,305 | 25,541 |
Operating income | 5,547 | 3,913 |
Other expense, net | 901 | 2,782 |
Income before income taxes | 4,646 | 1,131 |
Provision for income taxes | 641 | 3,877 |
Net income (loss), basic | 4,005 | (2,746) |
Net income (loss) | $ 4,005 | $ (2,746) |
Net income (loss) per share of common stock outstanding: | ||
Basic (in dollars per share) | $ 0.35 | $ (0.25) |
Diluted (in dollars per share) | $ 0.34 | $ (0.25) |
Weighted-average shares outstanding: | ||
Basic (in shares) | 11,574 | 11,200 |
Diluted (in shares) | 11,943 | 11,200 |
Product sales | ||
Revenues: | ||
Total revenues | $ 59,545 | $ 55,101 |
Cost of revenues: | ||
Total cost of revenues | 36,313 | 35,253 |
Services | ||
Revenues: | ||
Total revenues | 28,021 | 26,150 |
Cost of revenues: | ||
Total cost of revenues | $ 19,401 | $ 16,544 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 4,005 | $ (2,746) |
Other comprehensive income (loss): | ||
Net change in cumulative translation adjustments | 33 | (1,113) |
Other comprehensive income (loss) | 33 | (1,113) |
Comprehensive income (loss) | $ 4,038 | $ (3,859) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 35,465 | $ 22,242 |
Accounts receivable, net of allowances of $726 and $719 | 94,497 | 101,653 |
Unbilled receivables | 60,975 | 58,588 |
Inventories | 30,659 | 33,057 |
Other current assets | 22,814 | 22,164 |
Total current assets | 244,410 | 237,704 |
Property, plant and equipment, net | 9,035 | 9,452 |
Goodwill | 5,112 | 5,112 |
Intangible assets, net | 8,870 | 9,046 |
Deferred income taxes | 86,452 | 86,650 |
Right of use assets | 2,984 | 2,554 |
Other assets | 13,436 | 13,978 |
Total assets | 370,299 | 364,496 |
Current Liabilities: | ||
Accounts payable | 61,767 | 60,141 |
Accrued expenses | 20,561 | 24,442 |
Short-term lease liabilities | 723 | 610 |
Advance payments and unearned revenue | 46,050 | 44,268 |
Restructuring liabilities | 112 | 600 |
Total current liabilities | 129,213 | 130,061 |
Unearned revenue | 7,627 | 7,416 |
Long-term lease liabilities | 2,436 | 2,140 |
Other long-term liabilities | 317 | 314 |
Reserve for uncertain tax positions | 4,064 | 3,975 |
Deferred income taxes | 492 | 492 |
Total liabilities | 144,149 | 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, 11.7 million shares issued and outstanding at September 29, 2023; 11.5 million shares issued and outstanding at June 30, 2023 | 117 | 115 |
Treasury stock | (6,147) | (6,147) |
Additional paid-in-capital | 832,060 | 830,048 |
Accumulated deficit | (583,909) | (587,914) |
Accumulated other comprehensive loss | (15,971) | (16,004) |
Total stockholders’ equity | 226,150 | 220,098 |
Total liabilities and stockholders’ equity | $ 370,299 | $ 364,496 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 726 | $ 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) | 11,700,000 | 11,500,000 |
Common stock shares outstanding (in shares) | 11,700,000 | 11,500,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income (loss) | $ 4,005 | $ (2,746) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation of property, plant and equipment | 1,168 | 1,344 |
Amortization of intangible assets | 176 | 124 |
Provision for uncollectible receivables | 14 | 182 |
Share-based compensation | 1,834 | 1,838 |
Deferred taxes | 39 | 3,338 |
Charges for inventory write-downs | 547 | 405 |
Noncash lease expense | 177 | 206 |
Net loss on marketable securities | 0 | 1,734 |
Other non-cash operating activities, net | 17 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,043 | 4,279 |
Unbilled receivables | (2,395) | (5,570) |
Inventories | 1,955 | (2,727) |
Accounts payable | 1,787 | (346) |
Accrued expenses | (3,947) | (2,619) |
Advance payments and unearned revenue | 1,998 | (2,496) |
Income taxes | 331 | 91 |
Other assets and liabilities | (769) | (3,351) |
Net cash provided by (used in) operating activities | 13,980 | (6,314) |
Investing Activities | ||
Payments for acquisition of property, plant and equipment | (717) | (474) |
Proceeds from sale of marketable securities | 0 | 7,907 |
Acquisition, net of cash acquired and purchases of intangible assets | 0 | (15,769) |
Net cash used in investing activities | (717) | (8,336) |
Financing Activities | ||
Proceeds from borrowings | 25,200 | 15,000 |
Repayments of borrowings | (25,200) | (15,000) |
Payments for taxes related to net settlement of equity awards | (105) | (670) |
Proceeds from issuance of common stock under employee stock plans | 285 | 360 |
Net cash provided by (used in) financing activities | 180 | (310) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (223) | (347) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 13,220 | (15,307) |
Cash, cash equivalents, and restricted cash, beginning of period | 22,521 | 37,104 |
Cash, cash equivalents, and restricted cash, end of period | $ 35,741 | $ 21,797 |
CONDENSED CONSOLIDATED STATEM_4
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 (loss) | (2,746) | (2,746) | ||||
Other comprehensive income (loss) | (1,113) | (1,113) | ||||
Issuance of common stock under employee stock plans (in shares) | 174 | |||||
Issuance of common stock under employee stock plans | 360 | $ 2 | 358 | |||
Shares withheld for taxes related to vesting of equity awards (in shares) | (22) | |||||
Shares withheld for taxes related to vesting of equity awards | (670) | $ (1) | (669) | |||
Share-based compensation | 1,838 | 1,838 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 11,313 | |||||
Ending balance at Sep. 30, 2022 | $ 199,422 | $ 113 | (6,147) | 824,786 | (602,188) | (17,142) |
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 (loss) | 4,005 | 4,005 | ||||
Other comprehensive income (loss) | 33 | 33 | ||||
Issuance of common stock under employee stock plans (in shares) | 204 | |||||
Issuance of common stock under employee stock plans | 285 | $ 2 | 283 | |||
Shares withheld for taxes related to vesting of equity awards (in shares) | (3) | |||||
Shares withheld for taxes related to vesting of equity awards | (105) | (105) | ||||
Share-based compensation | $ 1,834 | 1,834 | ||||
Ending balance (in shares) at Sep. 29, 2023 | 11,700 | 11,719 | ||||
Ending balance at Sep. 29, 2023 | $ 226,150 | $ 117 | $ (6,147) | $ 832,060 | $ (583,909) | $ (15,971) |
The Company and Basis of Presen
The Company and Basis of Presentation | 3 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation The Company Aviat Networks, Inc. (“Aviat,” the “Company,” “we,” “us,” and “our”) designs, manufactures, and sells 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 three months ended September 29, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in 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 September 29, 2023 and September 30, 2022 both consisted of 13 weeks. Fiscal year 2024 will be comprised of 52 weeks and will end on June 28, 2024. Fiscal year 2023 was comprised of 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 three months ended September 29, 2023, 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 The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). The Company determined at this time that all ASUs issued but not yet adopted are either not applicable or are expected to have a minimal impact on its financial position and results of operations. |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 3 Months Ended |
Sep. 29, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | Net Income (Loss) Per Share of Common Stock The following table presents the computation of basic and diluted net income per share: Three Months Ended (In thousands, except per share amounts) September 29, September 30, Numerator: Net income (loss) $ 4,005 $ (2,746) Denominator: Weighted-average shares outstanding, basic 11,574 11,200 Effect of potentially dilutive equivalent shares 369 — Weighted-average shares outstanding, diluted 11,943 11,200 Net income (loss) per share of common stock outstanding: Basic $ 0.35 $ (0.25) Diluted $ 0.34 $ (0.25) The following table summarizes the weighted-average equity awards that were excluded from the diluted net income (loss) per share calculations since they were anti-dilutive: Three Months Ended (In thousands) September 29, September 30, Stock options 259 154 Restricted stock units and performance stock units 58 48 Total shares of common stock excluded 317 202 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Balances, Performance Obligations, and Backlog (In thousands) September 29, 2023 June 30, 2023 Contract assets Accounts receivable, net $ 94,497 $ 101,653 Contract assets $ 60,975 $ 58,588 Capitalized commissions $ 3,070 $ 3,492 Contract liabilities Advance payments and unearned revenue $ 46,050 $ 44,268 Unearned revenue, long-term $ 7,627 $ 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 September 29, 2023, the Company reported $53.7 million in advance payments and unearned revenue and long-term unearned revenue, of which approximately 40% is expected to be recognized as revenue in the remainder of fiscal 2024 and the remainder thereafter. Approximately $7.4 million of revenue was recognized during the three months ended September 29, 2023, 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 $152.4 million at September 29, 2023. 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. |
Leases
Leases | 3 Months Ended |
Sep. 29, 2023 | |
Leases [Abstract] | |
Leases | Leases Three Months Ended September 29, September 30, 2022 (In thousands) Operating lease costs $ 221 $ 312 Short-term lease costs 414 551 Variable lease costs 12 35 Total lease costs $ 647 $ 898 The weighted average lease term and discount rate for the three months ended September 29, 2023 were as follows: Weighted average remaining lease term 5.7 years Weighted average discount rate 5.5 % As of September 29, 2023, 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 $ 724 2025 757 2026 632 2027 312 2028 319 Thereafter 1,235 Total lease payments 3,979 Less: interest (820) Present value of lease liabilities $ 3,159 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Sep. 29, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 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) September 29, June 30, Cash and cash equivalents $ 35,465 $ 22,242 Restricted cash included in other assets 276 279 Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows $ 35,741 $ 22,521 Inventories (In thousands) September 29, June 30, Finished products $ 17,104 $ 18,502 Raw materials and supplies 11,771 12,794 Customer service inventories $ 1,784 $ 1,761 Total inventories $ 30,659 $ 33,057 Consigned inventories included within raw materials and supplies $ 9,937 $ 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 months ended September 29, 2023 and September 30, 2022 were included in cost of product sales as follows: Three Months Ended (In thousands) September 29, September 30, Excess and obsolete inventory $ 294 $ 170 Customer service inventory write-downs 253 235 Total inventory charges $ 547 $ 405 Other Current Assets (In thousands) September 29, June 30, Contract manufacturing assets $ 5,782 $ 6,487 Prepaid and other current assets 17,032 15,677 Total other current assets $ 22,814 $ 22,164 Property, Plant and Equipment, net (In thousands) September 29, June 30, Land $ 210 $ 210 Buildings and leasehold improvements 5,889 5,889 Software 16,998 16,989 Machinery and equipment 47,088 47,150 Total property, plant and equipment, gross 70,185 70,238 Less: Accumulated depreciation (61,150) (60,786) Total property, plant and equipment, net $ 9,035 $ 9,452 Included in the total property, plant and equipment, gross were $0.6 million and $0.4 million of assets in progress which have not been placed in service as of September 29, 2023 and June 30, 2023, respectively. Depreciation expense related to property, plant and equipment, was as follows: Three Months Ended (In thousands) September 29, September 30, Depreciation $ 1,168 $ 1,344 Accrued Expenses (In thousands) September 29, June 30, Compensation and benefits $ 7,256 $ 10,368 Taxes 5,109 4,553 Warranties 2,100 2,100 Commissions 1,339 1,453 Professional fees 944 2,104 Other 3,813 3,864 Total accrued expenses $ 20,561 $ 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 (In thousands) September 29, September 30, Balance as of the beginning of the period $ 2,100 $ 2,913 Warranty provision recorded during the period 375 175 Assumed in acquisition — 55 Consumption during the period (375) (388) Balance as of the end of the period $ 2,100 $ 2,755 Advance Payments and Unearned Revenue (In thousands) September 29, June 30, Advance payments $ 2,049 $ 1,607 Unearned revenue 44,001 42,661 Total advance payments and unearned revenue $ 46,050 $ 44,268 Excluded from the balances above are $7.6 million and $7.4 million in long-term unearned revenue as of September 29, 2023 and June 30, 2023, respectively. |
Fair Value Measurements of Asse
Fair Value Measurements of Assets and Liabilities | 3 Months Ended |
Sep. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | Fair Value Measurements of Assets and LiabilitiesFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market in the absence of a principal market) for the asset or liability in an orderly transaction between market participants as of the measurement date. 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 September 29, 2023 and June 30, 2023 were as follows: September 29, 2023 June 30, 2023 Valuation Inputs (In thousands) Fair Value Fair Value Assets: Cash and cash equivalents: Money market funds $ 8,259 $ 571 Level 1 Bank certificates of deposit $ 3,533 $ 3,793 Level 2 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. As of September 29, 2023 and June 30, 2023, these money market funds were valued at $1.00 net asset value per share. 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 September 29, 2023 and June 30, 2023, there were no recurring assets or liabilities valued using significant unobservable inputs. The Company’s policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the first three months of fiscal 2024 and 2023, there were no transfers of assets or liabilities measured at fair value between levels of the fair value hierarchy. |
Credit Facility and Debt
Credit Facility and Debt | 3 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Credit Facility and Debt | Credit Facility and Debt In May 2023, the Company entered into a Secured Credit Facility Agreement (the “Credit Facility”) with Wells Fargo Bank, National Association, as administrative agent, swingline lender and issuing lender and Wells Fargo Securities LLC, Citigroup Global Markets Inc., and Regions Capital Markets as lenders. The Credit Facility provides for a $40.0 million revolving credit facility (the “Revolver”) and a $50.0 million Delayed Draw Term Loan Facility (the “Term Loan”) with a maturity date of May 8, 2028. The $40.0 million Revolver can be borrowed with a $10.0 million sublimit for letters of credit, and a $10.0 million swingline loan sublimit. The Term Loan has a funding date on or prior to the closing date of the NEC Transaction (as defined below) with the proceeds intended to be used to settle the cash portion of the consideration and any related expenses. See Note 12. Acquisitions for further information. Deferred financing costs of $0.8 million were paid in association with entering into the Credit Facility. As of September 29, 2023, the available credit under the Revolver was $38.8 million, reflecting the available limit of $40.0 million less outstanding letters of credit of $1.2 million. The available credit under the Term Loan was $50.0 million. The Company borrowed $25.2 million and repaid $25.2 million against the Revolver during the three months ended September 29, 2023. There was no borrowing outstanding for either the Revolver or Term Loan as of September 29, 2023. 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 September 29, 2023, the applicable margin on Adjusted Term SOFR and Base Rate borrowings was 2.75% and 1.75%, respectively. 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 September 29, 2023, the Company was in compliance with all financial covenants contained in the Credit Facility. |
Restructuring
Restructuring | 3 Months Ended |
Sep. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 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 As of September 29, 2023, the accrual balance of $0.1 million was classified as current and included in restructuring liabilities on the unaudited condensed consolidated balance sheets. Fiscal 2024 Plans During fiscal 2024, the Company’s Board of Directors approved restructuring plans, primarily associated with reductions in workforce to optimize skill sets and align cost structure. The fiscal 2024 plans are expected to be completed through the first half of fiscal 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. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Sep. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders’ Equity | 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 September 29, 2023, $7.3 million remains available and Aviat may choose to suspend or discontinue the repurchase program at any time. During the first quarter of fiscal 2024, the Company did not repurchase any shares of common stock. Stock Incentive Programs As of September 29, 2023, 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 three months ended September 29, 2023, the Company granted 63,889 restricted stock units, 63,889 performance share awards and 145,250 stock options. Total compensation expense for share-based awards included in the unaudited condensed consolidated statements of operations was as follows: Three Months Ended (In thousands) September 29, September 30, By Expense Category: Cost of revenues $ 183 $ 172 Research and development 146 135 Selling and administrative 1,505 1,531 Total share-based compensation expense $ 1,834 $ 1,838 By Type of Award: Options $ 346 $ 510 Restricted and performance stock awards and units 1,488 1,328 Total share-based compensation expense $ 1,834 $ 1,838 As of September 29, 2023, there was approximately $3.6 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 2.3 years. As of September 29, 2023, there was $10.7 million of total unrecognized compensation expense related to non-vested stock awards which is expected to be recognized over a weighted-average period of 1.7 years. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Sep. 29, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 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 months ended September 29, 2023 and September 30, 2022 was as follows: Three Months Ended (In thousands) September 29, September 30, North America $ 55,508 $ 48,848 Africa and the Middle East 9,953 10,984 Europe 5,252 4,500 Latin America and Asia Pacific 16,853 16,919 Total revenue $ 87,566 $ 81,251 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective tax rate varies from the U.S. federal statutory rate of 21% primarily due to global intangible low-taxed income inclusion (GILTI) in the U.S., state taxes, foreign operations that are subject to income taxes at different statutory rates, and certain jurisdictions where the tax benefit on current losses cannot be 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 three months ended September 29, 2023 and September 30, 2022 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 three months ended September 29, 2023 was primarily due to tax expense related to U.S. and profitable foreign subsidiaries. Tax expense for the three months ended September 30, 2022 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. Aviat 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 three months ended September 29, 2023 and September 30, 2022. 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. |
Acquisition
Acquisition | 3 Months Ended |
Sep. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisitions NEC’s Wireless Transport Business On May 9, 2023, the Company entered into a Master Sale of Business Agreement (the “Purchase Agreement”), with NEC Corporation (“NEC”). Pursuant to the Purchase Agreement, the Company will purchase certain assets and liabilities from NEC relating to NEC’s wireless backhaul business (the “NEC Transaction”). Initial consideration due at the closing of the NEC Transaction will be comprised of (i) an amount in cash equal to $45.0 million, subject to certain post-closing adjustments, and (ii) the issuance of $25.0 million in Company common stock. Aggregate consideration will be approximately $70.0 million. The Company has obtained permanent financing to fund the cash portion of the NEC Transaction. See Note 7. Credit Facility and Debt for further information. The Purchase Agreement contains certain customary termination rights, including, among others, (i) the right of the Company or NEC to terminate if all the conditions to closing have not been either waived or satisfied on or before February 9, 2024 and (ii) there is a final non-appealable order of a government entity prohibiting the consummation of the NEC Transaction. The NEC Transaction remains subject to, among other things, regulatory approvals and satisfaction of other customary closing conditions. NEC is a leader in wireless backhaul networks with an extensive installed base of their Pasolink series products. The Company expects to complete the NEC Transaction in the fourth quarter of calendar year 2023. 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”), for a purchase price of $20.4 million. Redline is a leading provider of mission-critical data infrastructure. 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Orders and Other Commitments From time to time in the normal course of business, 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 September 29, 2023, the Company had outstanding purchase obligations with its suppliers or contract manufacturers of $34.1 million. In addition, the Company had contractual obligations of approximately $5.7 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 September 29, 2023, 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 September 29, 2023, the Company had commercial commitments outstanding of $60.5 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) September 29, Letters of credit $ 2,588 Bonds 57,921 $ 60,509 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 September 29, 2023, 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 September 29, 2023, 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 Company’s directors of Aviat India appeared before the Ministry of Finance Enforcement Directorate. No settlement offers were discussed at the meeting and the matter is still ongoing with no subsequent hearing date currently scheduled as of September 29, 2023. 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Sep. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following presents details of goodwill and intangible assets (in thousands except useful life): September 29, 2023 June 30, 2023 Goodwill $ 5,112 $ 5,112 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. Useful life in Years September 29, 2023 June 30, 2023 Intangible assets: Patents 10 $ 690 $ 690 Customer relationships 14 7,730 7,730 Trade names 16 1,330 1,330 Total gross intangible assets $ 9,750 $ 9,750 Accumulated amortization (880) (704) Total net intangible assets $ 8,870 $ 9,046 Amortization of finite-lived intangibles is included in selling and administrative expenses. There were no impairment charges recorded for the three months ended September 29, 2023 and September 30, 2022. As of September 29, 2023, the estimated future amortization expense of finite-lived intangible assets is as follows (in thousands): Remainder of 2024 $ 528 2025 704 2026 704 2027 704 2028 704 Thereafter 5,526 Total $ 8,870 |
The Company and Basis of Pres_2
The Company and Basis of Presentation (Policies) | 3 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information, and 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 three months ended September 29, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in 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 September 29, 2023 and September 30, 2022 both consisted of 13 weeks. Fiscal year 2024 will be comprised of 52 weeks and will end on June 28, 2024. Fiscal year 2023 was comprised of 52 weeks and ended on June 30, 2023. |
Use of Estimates | Use of EstimatesThe 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 The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). The Company determined at this time that all 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. As of September 29, 2023 and June 30, 2023, these money market funds were valued at $1.00 net asset value per share. 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. |
Net Income (Loss) Per Share o_2
Net Income (Loss) Per Share of Common Stock (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income per Share | The following table presents the computation of basic and diluted net income per share: Three Months Ended (In thousands, except per share amounts) September 29, September 30, Numerator: Net income (loss) $ 4,005 $ (2,746) Denominator: Weighted-average shares outstanding, basic 11,574 11,200 Effect of potentially dilutive equivalent shares 369 — Weighted-average shares outstanding, diluted 11,943 11,200 Net income (loss) per share of common stock outstanding: Basic $ 0.35 $ (0.25) Diluted $ 0.34 $ (0.25) |
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 (loss) per share calculations since they were anti-dilutive: Three Months Ended (In thousands) September 29, September 30, Stock options 259 154 Restricted stock units and performance stock units 58 48 Total shares of common stock excluded 317 202 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | (In thousands) September 29, 2023 June 30, 2023 Contract assets Accounts receivable, net $ 94,497 $ 101,653 Contract assets $ 60,975 $ 58,588 Capitalized commissions $ 3,070 $ 3,492 Contract liabilities Advance payments and unearned revenue $ 46,050 $ 44,268 Unearned revenue, long-term $ 7,627 $ 7,416 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
Leases [Abstract] | |
Schedule of Lease, Cost | Three Months Ended September 29, September 30, 2022 (In thousands) Operating lease costs $ 221 $ 312 Short-term lease costs 414 551 Variable lease costs 12 35 Total lease costs $ 647 $ 898 The weighted average lease term and discount rate for the three months ended September 29, 2023 were as follows: Weighted average remaining lease term 5.7 years Weighted average discount rate 5.5 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | As of September 29, 2023, 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 $ 724 2025 757 2026 632 2027 312 2028 319 Thereafter 1,235 Total lease payments 3,979 Less: interest (820) Present value of lease liabilities $ 3,159 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of 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) September 29, June 30, Cash and cash equivalents $ 35,465 $ 22,242 Restricted cash included in other assets 276 279 Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows $ 35,741 $ 22,521 |
Schedule of 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) September 29, June 30, Cash and cash equivalents $ 35,465 $ 22,242 Restricted cash included in other assets 276 279 Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows $ 35,741 $ 22,521 |
Schedule of Inventories | (In thousands) September 29, June 30, Finished products $ 17,104 $ 18,502 Raw materials and supplies 11,771 12,794 Customer service inventories $ 1,784 $ 1,761 Total inventories $ 30,659 $ 33,057 Consigned inventories included within raw materials and supplies $ 9,937 $ 11,224 |
Schedule of Adjustments to Inventory | The charges incurred during the three months ended September 29, 2023 and September 30, 2022 were included in cost of product sales as follows: Three Months Ended (In thousands) September 29, September 30, Excess and obsolete inventory $ 294 $ 170 Customer service inventory write-downs 253 235 Total inventory charges $ 547 $ 405 |
Schedule of Other Current Assets | Other Current Assets (In thousands) September 29, June 30, Contract manufacturing assets $ 5,782 $ 6,487 Prepaid and other current assets 17,032 15,677 Total other current assets $ 22,814 $ 22,164 |
Schedule of Property, Plant and Equipment, Net | (In thousands) September 29, June 30, Land $ 210 $ 210 Buildings and leasehold improvements 5,889 5,889 Software 16,998 16,989 Machinery and equipment 47,088 47,150 Total property, plant and equipment, gross 70,185 70,238 Less: Accumulated depreciation (61,150) (60,786) Total property, plant and equipment, net $ 9,035 $ 9,452 Three Months Ended (In thousands) September 29, September 30, Depreciation $ 1,168 $ 1,344 |
Schedule of Accrued Expenses | (In thousands) September 29, June 30, Compensation and benefits $ 7,256 $ 10,368 Taxes 5,109 4,553 Warranties 2,100 2,100 Commissions 1,339 1,453 Professional fees 944 2,104 Other 3,813 3,864 Total accrued expenses $ 20,561 $ 24,442 |
Schedule of Changes in Warranty Liability | Changes in the warranty liability were as follows: Three Months Ended (In thousands) September 29, September 30, Balance as of the beginning of the period $ 2,100 $ 2,913 Warranty provision recorded during the period 375 175 Assumed in acquisition — 55 Consumption during the period (375) (388) Balance as of the end of the period $ 2,100 $ 2,755 |
Schedule of Advance Payments and Unearned Income | (In thousands) September 29, June 30, Advance payments $ 2,049 $ 1,607 Unearned revenue 44,001 42,661 Total advance payments and unearned revenue $ 46,050 $ 44,268 |
Fair Value Measurements of As_2
Fair Value Measurements of Assets and Liabilities (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
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 September 29, 2023 and June 30, 2023 were as follows: September 29, 2023 June 30, 2023 Valuation Inputs (In thousands) Fair Value Fair Value Assets: Cash and cash equivalents: Money market funds $ 8,259 $ 571 Level 1 Bank certificates of deposit $ 3,533 $ 3,793 Level 2 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
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 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
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 (In thousands) September 29, September 30, By Expense Category: Cost of revenues $ 183 $ 172 Research and development 146 135 Selling and administrative 1,505 1,531 Total share-based compensation expense $ 1,834 $ 1,838 By Type of Award: Options $ 346 $ 510 Restricted and performance stock awards and units 1,488 1,328 Total share-based compensation expense $ 1,834 $ 1,838 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Region | Revenue by region for the three months ended September 29, 2023 and September 30, 2022 was as follows: Three Months Ended (In thousands) September 29, September 30, North America $ 55,508 $ 48,848 Africa and the Middle East 9,953 10,984 Europe 5,252 4,500 Latin America and Asia Pacific 16,853 16,919 Total revenue $ 87,566 $ 81,251 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commercial Commitments | The following table presents details of the Company’s commercial commitments: (In thousands) September 29, Letters of credit $ 2,588 Bonds 57,921 $ 60,509 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Sep. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following presents details of goodwill and intangible assets (in thousands except useful life): September 29, 2023 June 30, 2023 Goodwill $ 5,112 $ 5,112 |
Schedule of Goodwill Impairment | Useful life in Years September 29, 2023 June 30, 2023 Intangible assets: Patents 10 $ 690 $ 690 Customer relationships 14 7,730 7,730 Trade names 16 1,330 1,330 Total gross intangible assets $ 9,750 $ 9,750 Accumulated amortization (880) (704) Total net intangible assets $ 8,870 $ 9,046 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 29, 2023, the estimated future amortization expense of finite-lived intangible assets is as follows (in thousands): Remainder of 2024 $ 528 2025 704 2026 704 2027 704 2028 704 Thereafter 5,526 Total $ 8,870 |
Net Income (Loss) Per Share o_3
Net Income (Loss) Per Share of Common Stock (Schedule of Basic and Diluted Net (Loss) Income per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Numerator: | ||
Net income (loss) | $ 4,005 | $ (2,746) |
Denominator: | ||
Weighted-average shares outstanding, basic (in shares) | 11,574 | 11,200 |
Effect of potentially dilutive equivalent shares (in shares) | 369 | 0 |
Weighted-average shares outstanding, diluted (in shares) | 11,943 | 11,200 |
Net income (loss) per share of common stock outstanding: | ||
Basic (in dollars per share) | $ 0.35 | $ (0.25) |
Diluted (in dollars per share) | $ 0.34 | $ (0.25) |
Net Income (Loss) Per Share o_4
Net Income (Loss) Per Share of Common Stock (Schedule of Common Stock Excluded Because they were Antidilutive) (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential shares of common stock excluded (in shares) | 317 | 202 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential shares of common stock excluded (in shares) | 259 | 154 |
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) | 58 | 48 |
Revenue Recognition (Contracted
Revenue Recognition (Contracted Balances) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Contract assets | ||
Accounts receivable, net | $ 94,497 | $ 101,653 |
Contract assets | 60,975 | 58,588 |
Capitalized commissions | 3,070 | 3,492 |
Contract liabilities | ||
Advance payments and unearned revenue | 46,050 | 44,268 |
Unearned revenue, long-term | $ 7,627 | $ 7,416 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Millions | 3 Months Ended |
Sep. 29, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Advance payments and unearned income | $ 53.7 |
Revenue to be recognized, percentage | 40% |
Services | |
Disaggregation of Revenue [Line Items] | |
Revenue recognized | $ 7.4 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-09-30 $ in Millions | Sep. 29, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 152.4 |
Remaining performance obligation, percentage | 50% |
Expected timing of satisfaction, period | 12 months |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 221 | $ 312 |
Short-term lease costs | 414 | 551 |
Variable lease costs | 12 | 35 |
Total lease costs | $ 647 | $ 898 |
Leases - Rent Expense Terms (De
Leases - Rent Expense Terms (Details) | Sep. 29, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term | 5 years 8 months 12 days |
Weighted average discount rate | 5.50% |
Leases - Operating Leases, Futu
Leases - Operating Leases, Future Minimum Payments Due (Details) $ in Thousands | Sep. 29, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of fiscal 2024 | $ 724 |
2025 | 757 |
2026 | 632 |
2027 | 312 |
2028 | 319 |
Thereafter | 1,235 |
Total lease payments | 3,979 |
Less: interest | (820) |
Present value of lease liabilities | $ 3,159 |
Balance Sheet Components (Cash,
Balance Sheet Components (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jul. 01, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 35,465 | $ 22,242 | ||
Restricted cash included in other assets | 276 | 279 | ||
Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows | $ 35,741 | $ 22,521 | $ 21,797 | $ 37,104 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished products | $ 17,104 | $ 18,502 |
Raw materials and supplies | 11,771 | 12,794 |
Customer service inventories | 1,784 | 1,761 |
Total inventories | 30,659 | 33,057 |
Consigned inventories included within raw materials and supplies | $ 9,937 | $ 11,224 |
Balance Sheet Components (Inv_2
Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | ||
Excess and obsolete inventory | $ 294 | $ 170 |
Customer service inventory write-downs | 253 | 235 |
Total inventory charges | $ 547 | $ 405 |
Balance Sheet Components (Other
Balance Sheet Components (Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Contract Manufacturing Assets | $ 5,782 | $ 6,487 |
Prepaid Expense and Other Assets, Current | 17,032 | 15,677 |
Other current assets | $ 22,814 | $ 22,164 |
Balance Sheet Components (Prope
Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 70,185 | $ 70,238 | |
Less: Accumulated depreciation | (61,150) | (60,786) | |
Total property, plant and equipment, net | 9,035 | 9,452 | |
Depreciation of property, plant and equipment | 1,168 | $ 1,344 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 210 | 210 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 5,889 | 5,889 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 16,998 | 16,989 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 47,088 | 47,150 | |
Asset under construction | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 600 | $ 400 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued Expenses) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Compensation and benefits | $ 7,256 | $ 10,368 |
Taxes | 5,109 | 4,553 |
Warranties | 2,100 | 2,100 |
Commissions | 1,339 | 1,453 |
Professional fees | 944 | 2,104 |
Other | 3,813 | 3,864 |
Total accrued expenses | $ 20,561 | $ 24,442 |
Balance Sheet Components (Acc_2
Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Warranty Liability Roll Forward | ||
Balance as of the beginning of the period | $ 2,100 | $ 2,913 |
Warranty provision recorded during the period | 375 | 175 |
Assumed in acquisition | 0 | 55 |
Consumption during the period | (375) | (388) |
Balance as of the end of the period | $ 2,100 | $ 2,755 |
Balance Sheet Components (Advan
Balance Sheet Components (Advance Payments and Unearned Revenue) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Advance payments | $ 2,049 | $ 1,607 |
Unearned revenue | 44,001 | 42,661 |
Total advance payments and unearned revenue | 46,050 | 44,268 |
Unearned revenue, long-term | $ 7,627 | $ 7,416 |
Fair Value Measurements of As_3
Fair Value Measurements of Assets and Liabilities (Details) - Recurring - Fair Value - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Level 1 | Money market funds | ||
Assets: | ||
Cash and cash equivalents: | $ 8,259 | $ 571 |
Level 2 | Bank certificates of deposit | ||
Assets: | ||
Cash and cash equivalents: | $ 3,533 | $ 3,793 |
Fair Value Measurements of As_4
Fair Value Measurements of Assets and Liabilities (Narrative) (Details) - $ / shares | Sep. 29, 2023 | 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 | $ 1 |
Credit Facility and Debt (Detai
Credit Facility and Debt (Details) | 3 Months Ended | |
May 09, 2023 USD ($) | Sep. 29, 2023 USD ($) quarter | |
Line of Credit Facility [Line Items] | ||
Payments of deferred financing costs | $ 800,000 | |
Letters of credit | $ 2,588,000 | |
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 | Secured Overnight Financing Rate (SOFR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.75% | |
Revolving Credit Facility | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Revolving Credit Facility | Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | 40,000,000 | |
Delayed Draw Term Loan Facility | Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | 50,000,000 | |
Letter of Credit | Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | 10,000,000 | |
Letters of credit | $ 1,200,000 | |
Swing Line Loan | Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 10,000,000 | |
Line of Credit | Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Available credit under credit facility | 38,800,000 | |
Line of credit facility, current borrowing capacity | 40,000,000 | |
Letters of credit | 50,000,000 | |
Proceeds from lines of credit | 25,200,000 | |
Repayments of lines of credit | $ 25,200,000 | |
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 | |
Maximum leverage ratio, period 2 | 2.75 | |
Maximum leverage ratio, period 3 | 2.50 |
Restructuring (Restructuring Re
Restructuring (Restructuring Related Activities) (Details) - Employee Severance and Benefits $ in Thousands | 3 Months Ended |
Sep. 29, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrual balance, beginning of period | $ 600 |
Charges, net | 681 |
Cash payments | (1,169) |
Accrued balance, end of period | 112 |
Fiscal 2024 Plans | |
Restructuring Reserve [Roll Forward] | |
Accrual balance, beginning of period | 0 |
Charges, net | 333 |
Cash payments | (221) |
Accrued balance, end of period | 112 |
Prior Years’ Plans | |
Restructuring Reserve [Roll Forward] | |
Accrual balance, beginning of period | 600 |
Charges, net | 348 |
Cash payments | (948) |
Accrued balance, end of period | $ 0 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Restructuring and Related Activities [Abstract] | ||
Restructuring liabilities | $ 112 | $ 600 |
Stockholders_ Equity (Narrative
Stockholders’ Equity (Narrative) (Details) | 3 Months Ended | |
Sep. 29, 2023 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 | $ 7,300,000 | |
Stock options granted (in shares) | shares | 145,250 | |
Unrecognized compensation expense for non-vested stock options | $ 3,600,000 | |
Unrecognized compensation expense for non-vested stock awards | $ 10,700,000 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested awards, expense expected to be recognized, weighted average period | 2 years 3 months 18 days | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock granted (in shares) | shares | 63,889 | |
Market-based stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock granted (in shares) | shares | 63,889 | |
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 8 months 12 days | |
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 |
Stockholders_ Equity (Stock Bas
Stockholders’ Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 1,834 | $ 1,838 |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 346 | 510 |
Restricted and performance stock awards and units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1,488 | 1,328 |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 183 | 172 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 146 | 135 |
Selling and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 1,505 | $ 1,531 |
Segment and Geographic Inform_3
Segment and Geographic Information (Schedule of Revenues by Geographic Region) (Details) $ in Thousands | 3 Months Ended | |
Sep. 29, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of reportable segments | segment | 1 | |
Total revenue | $ 87,566 | $ 81,251 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 55,508 | 48,848 |
Africa and the Middle East | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 9,953 | 10,984 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 5,252 | 4,500 |
Latin America and Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 16,853 | $ 16,919 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Millions | May 09, 2023 | Sep. 30, 2022 |
Redline Communications Group Inc | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 20.4 | |
NEC Corporation | ||
Business Acquisition [Line Items] | ||
Asset acquisitions in cash | $ 45 | |
Consideration transferred, equity interest issued and issuable | 25 | |
Aggregate consideration transferred | $ 70 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended |
Sep. 29, 2023 USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | |
Commercial commitments outstanding | $ 60,509 |
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 | $ 34,100 |
Licensing Agreements | |
Property Subject to or Available for Operating Lease [Line Items] | |
Purchase obligations with suppliers or contract manufacturers and contractual obligations outstanding | $ 5,700 |
Commitments and Contingencies_2
Commitments and Contingencies (Commercial Commitments) (Details) $ in Thousands | Sep. 29, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit | $ 2,588 |
Bonds | 57,921 |
Total | $ 60,509 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Intangible Assets and Goodwill) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 5,112 | $ 5,112 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Goodwill Impairment) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total gross intangible assets | $ 9,750 | $ 9,750 |
Accumulated amortization | (880) | (704) |
Total | $ 8,870 | 9,046 |
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] | ||
Useful life in Years | 14 years | |
Total gross intangible assets | $ 7,730 | 7,730 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life in Years | 16 years | |
Total gross intangible assets | $ 1,330 | $ 1,330 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Jun. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 528 | |
2025 | 704 | |
2026 | 704 | |
2027 | 704 | |
2028 | 704 | |
Thereafter | 5,526 | |
Total | $ 8,870 | $ 9,046 |