Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2020 | Jul. 27, 2020 | Nov. 30, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | RICHARDSON ELECTRONICS LTD/DE | ||
Entity Central Index Key | 0000355948 | ||
Document Type | 10-K | ||
Trading Symbol | RELL | ||
Document Period End Date | May 30, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --05-30 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 61.4 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity File Number | 0-12906 | ||
Entity Tax Identification Number | 36-2096643 | ||
Entity Address, Address Line One | 40W267 Keslinger Road | ||
Entity Address, Address Line Two | P.O. Box 393 | ||
Entity Address, City or Town | LaFox | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60147-0393 | ||
City Area Code | 630 | ||
Local Phone Number | 208-2200 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common stock, $0.05 Par Value | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the Annual Meeting of Stockholders scheduled to be held October 6, 2020, which will be filed pursuant to Regulation 14A, are incorporated by reference in Part III of this report. Except as specifically incorporated herein by reference, the abovementioned Proxy Statement is not deemed filed as part of this report. | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,110,735 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,096,919 |
Audited Consolidated Balance Sh
Audited Consolidated Balance Sheets - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 30,535 | $ 42,019 |
Accounts receivable, less allowance of $334 and $339, respectively | 20,197 | 24,296 |
Inventories, net | 57,492 | 53,232 |
Prepaid expenses and other assets | 2,442 | 3,067 |
Investments - current | 16,000 | 8,000 |
Total current assets | 126,666 | 130,614 |
Non-current assets: | ||
Property, plant and equipment, net | 17,674 | 19,111 |
Intangible assets, net | 2,505 | 2,763 |
Lease ROU asset | 3,419 | |
Non-current deferred income taxes | 456 | 529 |
Total non-current assets | 24,054 | 22,403 |
Total assets | 150,720 | 153,017 |
Current liabilities: | ||
Accounts payable | 17,372 | 16,943 |
Accrued liabilities | 10,324 | 11,273 |
Lease liability current | 1,485 | |
Total current liabilities | 29,181 | 28,216 |
Non-current liabilities: | ||
Non-current deferred income tax liabilities | 161 | 212 |
Lease liability non-current | 1,941 | |
Other non-current liabilities | 777 | 832 |
Total non-current liabilities | 2,879 | 1,044 |
Total liabilities | 32,060 | 29,260 |
Commitments and Contingencies | ||
Stockholders’ equity | ||
Preferred stock, $1.00 par value, no shares issued | ||
Additional paid-in-capital | 61,749 | 61,012 |
Retained earnings | 54,764 | 59,703 |
Accumulated other comprehensive income | 1,490 | 2,390 |
Total stockholders’ equity | 118,660 | 123,757 |
Total liabilities and stockholders’ equity | 150,720 | 153,017 |
Common Stock | ||
Stockholders’ equity | ||
Common stock, $0.05 par value; issued and outstanding 11,038 shares at May 30, 2020 and 10,957 shares at June 1, 2019 Class B common stock, convertible, $0.05 par value; issued and outstanding 2,097 shares at May 30, 2020 and 2,097 shares at June 1, 2019 | 552 | 547 |
Common Class B | ||
Stockholders’ equity | ||
Common stock, $0.05 par value; issued and outstanding 11,038 shares at May 30, 2020 and 10,957 shares at June 1, 2019 Class B common stock, convertible, $0.05 par value; issued and outstanding 2,097 shares at May 30, 2020 and 2,097 shares at June 1, 2019 | $ 105 | $ 105 |
Audited Consolidated Balance _2
Audited Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Allowance for accounts receivable | $ 334 | $ 339 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, issued (in shares) | 0 | 0 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, issued (in shares) | 11,038 | 10,957 |
Common stock, outstanding (in shares) | 11,038 | 10,957 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, issued (in shares) | 2,097 | 2,097 |
Common stock, outstanding (in shares) | 2,097 | 2,097 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Net sales | $ 155,898 | $ 166,652 | $ 163,212 |
Cost of sales | 106,225 | 114,917 | 108,130 |
Gross profit | 49,673 | 51,735 | 55,082 |
Selling, general and administrative expenses | 51,327 | 52,156 | 51,729 |
Impairment of goodwill | 6,332 | ||
Loss (gain) on disposal of assets | 3 | 23 | (276) |
Operating (loss) income | (1,657) | (6,776) | 3,629 |
Other (income) expense: | |||
Investment/interest income | (377) | (540) | (432) |
Foreign exchange (gain) loss | (15) | 84 | 224 |
Other, net | (51) | (9) | (23) |
Total other (income) expense | (443) | (465) | (231) |
(Loss) income from continuing operations before income taxes | (1,214) | (6,311) | 3,860 |
Income tax provision | 624 | 1,017 | 1,534 |
(Loss) income from continuing operations | (1,838) | (7,328) | 2,326 |
Income from discontinued operations | 1,496 | ||
Net (loss) income | (1,838) | (7,328) | 3,822 |
Foreign currency translation (loss) gain, net of tax | (900) | (1,976) | 1,580 |
Fair value adjustments on investments (loss) gain | (130) | ||
Comprehensive (loss) income | $ (2,738) | $ (9,304) | $ 5,272 |
Common Class B | |||
Net (loss) income per Common share - Basic: | |||
(Loss) income from continuing operations | $ (0.13) | $ (0.51) | $ 0.16 |
Income from discontinued operations | 0.11 | ||
Total net (loss) income per Common share - Basic | (0.13) | (0.51) | 0.27 |
Net (loss) income per Common share - Diluted: | |||
(Loss) income from continuing operations | (0.13) | (0.51) | 0.16 |
Income from discontinued operations | 0.11 | ||
Total net (loss) income per Common share - Diluted | $ (0.13) | $ (0.51) | $ 0.27 |
Weighted average number of shares: | |||
Common shares - Basic | 2,097 | 2,106 | 2,137 |
Common shares - Diluted | 2,097 | 2,106 | 2,137 |
Dividends per share | $ 0.220 | $ 0.220 | $ 0.220 |
Common Stock | |||
Net (loss) income per Common share - Basic: | |||
(Loss) income from continuing operations | (0.14) | (0.57) | 0.18 |
Income from discontinued operations | 0.12 | ||
Total net (loss) income per Common share - Basic | (0.14) | (0.57) | 0.30 |
Net (loss) income per Common share - Diluted: | |||
(Loss) income from continuing operations | (0.14) | (0.57) | 0.18 |
Income from discontinued operations | 0.12 | ||
Total net (loss) income per Common share - Diluted | $ (0.14) | $ (0.57) | $ 0.30 |
Weighted average number of shares: | |||
Common shares - Basic | 11,026 | 10,923 | 10,765 |
Common shares - Diluted | 11,026 | 10,923 | 10,824 |
Dividends per share | $ 0.240 | $ 0.240 | $ 0.240 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Operating activities: | |||
Net (loss) income | $ (1,838) | $ (7,328) | $ 3,822 |
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | |||
Depreciation and amortization | 3,386 | 3,173 | 2,993 |
Inventory provisions | 1,013 | 1,076 | 773 |
Gain on sale of investments | (183) | ||
Loss (gain) on disposal of assets | 3 | 23 | (276) |
Share-based compensation expense | 683 | 697 | 533 |
Deferred income taxes | (7) | 315 | 319 |
Impairment of goodwill | 6,332 | ||
Change in assets and liabilities: | |||
Accounts receivable | 3,895 | (2,030) | (1,764) |
Inventories | (5,452) | (4,242) | (8,247) |
Prepaid expenses and other assets | 620 | 622 | (627) |
Accounts payable | 631 | (2,424) | 3,457 |
Accrued liabilities | (889) | 1,097 | 1,906 |
Other | (122) | 126 | 246 |
Net cash provided by (used in) operating activities | 1,923 | (2,563) | 2,952 |
Investing activities: | |||
Capital expenditures | (1,776) | (3,874) | (5,239) |
Proceeds from sale of assets | 374 | ||
Proceeds from maturity of investments | 21,000 | 9,800 | 12,315 |
Purchases of investments | (29,000) | (17,800) | (3,943) |
Proceeds from sales of available-for-sale securities | 913 | ||
Purchases of available-for-sale securities | (265) | ||
Other | (3) | ||
Net cash (used in) provided by investing activities | (9,776) | (11,874) | 4,152 |
Financing activities: | |||
Payment of financing lease principal | (166) | ||
Proceeds from issuance of common stock | 59 | 259 | 97 |
Cash dividends paid on Common and Class B Common shares | (3,101) | (3,076) | (3,048) |
Net cash used in financing activities | (3,208) | (2,817) | (2,951) |
Effect of exchange rate changes on cash and cash equivalents | (423) | (1,192) | 985 |
(Decrease) increase in cash and cash equivalents | (11,484) | (18,446) | 5,138 |
Cash and cash equivalents at beginning of period | 42,019 | 60,465 | 55,327 |
Cash and cash equivalents at end of period | 30,535 | 42,019 | 60,465 |
Cash paid during the fiscal year for: | |||
Income taxes | $ 1,018 | $ 290 | $ 474 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Class B | Common Stock | Par value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning Balance at May. 27, 2017 | $ 132,327 | $ 642 | $ 59,436 | $ 69,333 | $ 2,916 | ||
Beginning Balance (in shares) at May. 27, 2017 | 2,137,000 | 10,712,000 | |||||
Comprehensive (loss) income | |||||||
Net (loss) income | 3,822 | 3,822 | |||||
Foreign currency translation | 1,580 | 1,580 | |||||
Fair value adjustments on investments | (130) | (130) | |||||
Share-based compensation: | |||||||
Restricted stock | 98 | 98 | |||||
Stock options | 435 | 435 | |||||
Options exercised | 97 | 1 | 96 | ||||
Options exercised (in shares) | 16,000 | ||||||
Restricted stock issuance | 4 | (4) | |||||
Restricted stock issuance (in shares) | 78,000 | ||||||
Dividends paid to: | |||||||
Common ($0.24 per share) | (2,586) | (2,586) | |||||
Class B ($0.22 per share) | (462) | (462) | |||||
Ending Balance at Jun. 02, 2018 | 135,181 | 647 | 60,061 | 70,107 | 4,366 | ||
Ending Balance (in shares) at Jun. 02, 2018 | 2,137,000 | 10,806,000 | |||||
Comprehensive (loss) income | |||||||
Net (loss) income | (7,328) | (7,328) | |||||
Foreign currency translation | (1,976) | (1,976) | |||||
Share-based compensation: | |||||||
Restricted stock | 313 | 313 | |||||
Stock options | 384 | 384 | |||||
Options exercised | 259 | 2 | 257 | ||||
Options exercised (in shares) | 46,000 | ||||||
Restricted stock issuance | 3 | (3) | |||||
Restricted stock issuance (in shares) | 65,000 | ||||||
Converted Class B to common (in shares) | (40,000) | 40,000 | |||||
Dividends paid to: | |||||||
Common ($0.24 per share) | (2,621) | (2,621) | |||||
Class B ($0.22 per share) | (455) | (455) | |||||
Ending Balance at Jun. 01, 2019 | 123,757 | 652 | 61,012 | 59,703 | 2,390 | ||
Ending Balance (in shares) at Jun. 01, 2019 | 2,097,000 | 10,957,000 | |||||
Comprehensive (loss) income | |||||||
Net (loss) income | (1,838) | (1,838) | |||||
Foreign currency translation | (900) | (900) | |||||
Share-based compensation: | |||||||
Restricted stock | 455 | 455 | |||||
Stock options | 228 | 228 | |||||
Options exercised | $ 59 | 1 | 58 | ||||
Options exercised (in shares) | 10,249 | 10,000 | |||||
Restricted stock issuance | 4 | (4) | |||||
Restricted stock issuance (in shares) | 71,000 | ||||||
Dividends paid to: | |||||||
Common ($0.24 per share) | $ (2,648) | (2,648) | |||||
Class B ($0.22 per share) | (453) | (453) | |||||
Ending Balance at May. 30, 2020 | $ 118,660 | $ 657 | $ 61,749 | $ 54,764 | $ 1,490 | ||
Ending Balance (in shares) at May. 30, 2020 | 2,097,000 | 11,038,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Common Class B | |||
Dividends per common share | $ 0.22 | $ 0.22 | $ 0.22 |
Common Stock | |||
Dividends per common share | $ 0.24 | $ 0.24 | $ 0.24 |
Description of the Company
Description of the Company | 12 Months Ended |
May 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of the Company | 1. DESCRIPTION OF THE COMPANY Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high value flat panel detector solutions, replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair through its global infrastructure. Our products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as display devices in a variety of industrial, commercial, medical and communication applications. We have three operating and reportable segments, which we define as follows: Power and Microwave Technologies Group (“PMT”) combines our core engineered solutions capabilities, power grid and microwave tube business with new RF, Wireless and disruptive power technologies. As a manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in 5G, alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment. Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms. Healthcare manufactures, repairs, refurbishes and distributes high value replacement parts and equipment for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI coils, cold heads and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we believe we can help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery. We currently have operations in the following major geographic regions: North America, Asia/Pacific, Europe and Latin America. Customer Concentration: No one customer represented more than 10 percent of our total accounts receivable balance as of May 30, 2020 or June 1, 2019. No one customer accounted for more than 10 percent of the Company’s consolidated net sales in either fiscal 2020 or fiscal 2019. LAM Research Corporation individually accounted for 11 percent of the Company’s consolidated net sales in fiscal 2018. Supplier Concentration: One of our suppliers represented 16 percent of our total cost of sales in fiscal 2020 and 11 percent in fiscal 2019. The amount owed to this supplier was approximately $1.3 million as of May 30, 2020 and $2.2 million as of June 1, 2019 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
May 30, 2020 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP for all fiscal years presented. The consolidated financial statements include our wholly owned subsidiaries. All intercompany transactions and account balances have been eliminated in consolidation. Our fiscal year 2020 began on June 2, 2019 and ended on May 30, 2020, our fiscal year 2019 began on June 3, 2018 and ended on June 1, 2019 and our fiscal year 2018 began on May 28, 2017 and ended on June 2, 2018. Unless otherwise noted, all references to a particular year in this document shall mean our fiscal year. |
Significant Accounting Policies
Significant Accounting Policies and Disclosures | 12 Months Ended |
May 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Disclosures | 3. SIGNIFICANT ACCOUNTING POLICIES AND DISCLOSURES Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management continuously evaluates its critical accounting policies and estimates, including the allowance for doubtful accounts, revenue recognition, inventory obsolescence, intangible assets, loss contingencies and income taxes. Management bases the estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances, however, actual results could differ from those estimates. Fair Values of Financial Instruments: The fair values of financial instruments are determined based on quoted market prices and market interest rates as of the end of the reporting period. Our financial instruments include investments, accounts receivable, accounts payable and accrued liabilities. The fair values of these financial instruments approximate carrying values at May 30, 2020 and June 1, 2019. Cash and Cash Equivalents: We consider short-term, highly liquid investments that are readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and that have a maturity of three months or less, when purchased, to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents approximate the fair market value of these assets. Allowance for Doubtful Accounts: Our allowance for doubtful accounts includes estimated losses that result from uncollectible receivables. The estimates are influenced by the following: continuing credit evaluation of customers’ financial conditions; aging of receivables, individually and in the aggregate; a large number of customers which are widely dispersed across geographic areas; and collectability and delinquency history by geographic area. Significant changes in one or more of these considerations may require adjustments affecting net income and net carrying value of accounts receivable. The allowance for doubtful accounts was approximately $0.3 million as of both May 30, 2020 and June 1, 2019. Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency. Revenue Recognition: Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. G enerally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks. The Company also sells products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold in addition to the product. The Company recognizes services revenue when the repair, installation or training is performed. Based on our analysis of services revenue, ASU 2014-09 has an immaterial impact on the timing, amount or characterization of services revenue recognized by the Company. The services we provide are relatively short in duration and typically completed in one to two weeks. Therefore, at each reporting date, the amount of unbilled work performed is insignificant. The services revenue has consistently accounted for less than 5% of the Company’s total revenues and is expected to continue at that level. Prior to the adoption of ASU 2014-09, our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell. Foreign Currency Translation: The functional currency is the local currency at all foreign locations, with the exception of Hong Kong, which the functional currency is the U.S. dollar. Balance sheet items for our foreign entities, included in our consolidated balance sheets, are translated into U.S. dollars at end-of-period spot rates. Gains and losses resulting from translation of foreign subsidiary financial statements are credited or charged directly to accumulated other comprehensive income, a component of stockholders’ equity. Revenues and expenses are translated at the current rate on the date of the transaction. Gains and losses resulting from foreign currency transactions are included in income. Foreign exchange (gain) loss reflected in our consolidated statements of comprehensive (loss) income were less than $0.1 million during fiscal 2020 and fiscal 2019 and a loss of $0.2 million during fiscal 2018. Shipping and Handling Fees and Costs: Shipping and handling costs billed to customers are reported as revenue and the related costs are reported as a component of cost of sales. Inventories, net: Our consolidated inventories are stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $51.8 million of finished goods, $3.6 million of raw materials and $2.1 million of work-in-progress as of May 30, 2020 as compared to approximately $47.2 million of finished goods, $4.2 million of raw materials and $1.8 million of work-in-progress as of June 1, 2019. The inventory reserve as of May 30, 2020 was $5.4 million compared to $4.6 million as of June 1, 2019. Provisions for obsolete or slow moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the exiting of certain markets and assumptions about future demand and market conditions. If future demand changes in the industry or market conditions differ from management’s estimates, additional provisions may be necessary. We recorded provisions to our inventory reserves of $1.0 million, $1.1 million and $0.8 million during fiscal 2020, fiscal 2019 and fiscal 2018, respectively, which were included in cost of sales. The provisions were primarily for obsolete and slow moving parts. The parts were written down to estimated realizable value. Income Taxes: We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences, and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards. Investments: We invested in time deposits and certificates of deposit (“CDs”) in the amount of $16.0 million and $8.0 million as of May 30, 2020 and June 1, 2019, respectively, which mature in less than twelve months. We liquidated our investments in equity securities in fiscal 2018. Proceeds from the liquidation were $0.9 million with gross realized gains of $0.2 million for fiscal 2018. Prior to the liquidation of our investment in equity securities, our investments in equity securities were classified as available-for-sale and were carried at their fair value based on quoted market prices. Intangible Assets: Intangible assets are initially recorded at their fair market values determined by quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with the acquisitions. Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of accumulated depreciation. Improvements and replacements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. Provisions for depreciation are computed using the straight-line method over the estimated useful life of the asset. Depreciation expense was approximately $3.1 million, $2.9 million and $2.6 million during fiscal 2020, fiscal 2019 and fiscal 2018, respectively. Property, plant and equipment consist of the following ( in thousands May 30, 2020 June 1, 2019 Land and improvements $ 1,385 $ 1,301 Buildings and improvements 22,525 22,986 Computer, communications equipment and software 10,775 9,943 Construction in progress 750 979 Machinery and other equipment 14,326 13,884 $ 49,761 $ 49,093 Accumulated depreciation (32,087 ) (29,982 ) Property, plant, and equipment, net $ 17,674 $ 19,111 Construction in progress at May 30, 2020 includes $0.2 million related to our Healthcare growth initiatives. All projects are expected to be completed before the end of fiscal 2021. Supplemental disclosure information of the estimated useful life of the assets: Land improvements 10 years Buildings and improvements 10 - 30 years Computer, communications equipment and software 3 - 10 years Machinery and other equipment 3 - 20 years We review property and equipment, definite-lived intangible assets and other long-lived assets for impairment whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If adverse events do occur, our impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of our assets and liabilities. This analysis requires management judgment with respect to changes in technology, the continued success of product lines and future volume, revenue and expense growth rates. We conduct annual reviews for idle and underutilized equipment and review business plans for possible impairment. Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset or asset group. When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value. Additionally, we also evaluate the remaining useful life of each reporting period to determine whether events and circumstances warrant a revision to the remaining period of depreciation or amortization. If the estimate of a long lived asset’s remaining useful life is changed, the remaining carrying amount of the asset is amortized prospectively over that revised remaining useful life. Accrued Liabilities: Accrued liabilities consist of the following ( in thousands ): May 30, 2020 June 1, 2019 Compensation and payroll taxes $ 3,469 $ 2,846 Accrued severance 650 520 Professional fees 471 471 Deferred revenue 1,671 2,260 Other accrued expenses 4,063 5,176 Accrued Liabilities $ 10,324 $ 11,273 Warranties: We offer warranties for the limited number of specific products we manufacture. Our warranty terms generally range from one to three years. We estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product sale. We record expense related to our warranty obligations as cost of sales in our consolidated statements of comprehensive (loss) income. Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated warranty obligation. With respect to new products, estimates are based generally on knowledge of the products and warranty experience. Warranty reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience and other available evidence. Changes in the warranty reserve during fiscal 2020 and fiscal 2019 were as follows ( in thousands Warranty Reserve Balance at June 2, 2018 $ 149 Accruals for products sold 185 Utilization (39 ) Balance at June 1, 2019 $ 295 Accruals for products sold 201 Utilization (30 ) Balance at May 30, 2020 $ 466 Other Non-Current Liabilities: Other non-current liabilities of $0.8 million at May 30, 2020 and $0.8 million at June 1, 2019, primarily represent employee-benefits obligations in various non-US locations. Share-Based Compensation: We measure and recognize share-based compensation cost at fair value for all share-based payments, including stock options and restricted stock awards. We estimate fair value using the Black-Scholes option-pricing model, which requires assumptions such as expected volatility, risk-free interest rate, expected life and dividends. Compensation cost is recognized using a graded vesting schedule over the applicable vesting period. Share-based compensation expense totaled approximately $0.7 million during fiscal 2020, $0.7 million during fiscal 2019 and $0.5 million during fiscal 2018. Stock options granted generally vest over a period of five years and have contractual terms to exercise of 10 years. A summary of stock option activity is as follows ( in thousands, except option prices and years): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options Outstanding at May 27, 2017 1,073 $ 9.38 Granted 200 6.08 Exercised (16 ) 5.85 Forfeited (11 ) 8.05 Cancelled (51 ) 9.36 Options Outstanding at June 2, 2018 1,195 $ 8.89 Granted 279 9.02 Exercised (46 ) 5.61 Forfeited (58 ) 8.10 Cancelled (6 ) 5.03 Options Outstanding at June 1, 2019 1,364 $ 9.08 Granted 187 5.61 Exercised (10 ) 5.67 Cancelled (114 ) 6.87 Options Outstanding at May 30, 2020 1,427 $ 8.83 5.6 $ — Options Vested at May 30, 2020 931 $ 9.78 4.3 $ — (1) Includes only those options that were in-the-money as of May 30, 2020. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. There were 10,249 stock options exercised during fiscal 2020, with cash received of $0.1 million. The total intrinsic value of options exercised totaled less than $0.1 million during fiscal 2020, fiscal 2019 and fiscal 2018. The weighted average fair value of stock option grants was $0.81 during fiscal 2020, $1.71 during fiscal 2019 and $0.85 during fiscal 2018. As of May 30, 2020, total unrecognized compensation costs related to unvested stock options and restricted stock awards was approximately $1.1 million, which is expected to be recognized over the remaining weighted average period of approximately two to four years. The total grant date fair value of stock options vested during fiscal 2020 was $0.3 million. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Expected volatility 24.48 % 22.24 % 21.92 % Risk-free interest rate 1.91 % 2.82 % 2.22 % Expected lives (years) 6.50 6.36 6.31 Annual cash dividend $ 0.24 $ 0.24 $ 0.24 The expected volatility assumptions are based on historical experience commensurate with the expected term. The risk-free interest rate is based on the yield of a treasury note with a remaining term equal to the expected life of the stock option. The expected stock option life assumption is based on the Securities and Exchange Commission’s (“SEC”) guidance in Staff Accounting Bulletin (“SAB”) No. 107 (“SAB No. 107”). For stock options granted during fiscal 2020, fiscal 2019 and fiscal 2018, we believe that our historical stock option experience does not provide a reasonable basis upon which to estimate expected term. We utilized the Safe Harbor option, or Simplified Method, to determine the expected term of these options in accordance with SAB No. 107 for options granted. We intend to continue to utilize the Simplified Method for future grants in accordance with SAB No. 110 until such time that we believe that our historical stock option experience will provide a reasonable basis to estimate an expected term. The following table summarizes information about stock options outstanding at May 30, 2020 ( in thousands, except option prices and years Outstanding Vested Exercise Price Range Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value $5.49 to $6.47 430 $ 5.76 7.7 $ — 169 $ 5.82 6.8 $ — $6.90 to $9.89 490 $ 8.49 7.1 $ — 254 $ 8.49 6.4 $ — $9.99 to $13.76 507 $ 11.75 2.4 $ — 508 $ 11.75 2.4 $ — Total 1,427 $ 8.83 5.6 $ — 931 $ 9.78 4.3 $ — As of May 30, 2020, a summary of restricted stock award transactions was as follows (in thousands): Unvested Restricted Shares Unvested at June 2, 2018 78 Granted 69 Vested (26 ) Canceled (5 ) Unvested at June 1, 2019 116 Granted 73 Vested (47 ) Unvested at May 30, 2020 142 Compensation effects arising from issuing stock awards have been charged against income and recorded as additional paid-in-capital in the consolidated statements of stockholders’ equity during fiscal 2020, fiscal 2019 and fiscal 2018. The Employees’ 2011 Long-Term Incentive Compensation Plan authorizes the issuance of up to 2,500,000 shares as incentive stock options, non-qualified stock options or stock awards. Under this plan, 885,000 shares are reserved for future issuance. The Plan authorizes the granting of stock options at the fair market value at the date of grant. Generally, these options become exercisable over five years and expire up to 10 years from the date of grant. Restricted stock awards vest on the anniversary of the grant date in three equal installments. Earnings per Share: We have authorized 17,000,000 shares of common stock, and 3,000,000 shares of Class B common stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends. In accordance with ASC 260-10, Earnings Per Share The earnings per share (“EPS”) presented in our consolidated statements of comprehensive (loss) income are based on the following ( in thousands, except per share amounts For the Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Basic Diluted Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: (Loss) income from continuing operations $ (1,838 ) $ (1,838 ) $ (7,328 ) $ (7,328 ) $ 2,326 $ 2,326 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed losses $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ (722 ) $ (722 ) Common stock undistributed losses $ (4,217 ) $ (4,217 ) $ (8,866 ) $ (8,866 ) $ (613 ) $ (613 ) Class B common stock undistributed losses (722 ) (722 ) (1,538 ) (1,538 ) (109 ) (109 ) Total undistributed losses $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ (722 ) $ (722 ) Income from discontinued operations $ — $ — $ — $ — $ 1,496 $ 1,496 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed losses $ (3,101 ) $ (3,101 ) $ (3,076 ) $ (3,076 ) $ (1,552 ) $ (1,552 ) Common stock undistributed losses $ (2,648 ) $ (2,648 ) $ (2,621 ) $ (2,621 ) $ (1,317 ) $ (1,318 ) Class B common stock undistributed losses (453 ) (453 ) (455 ) (455 ) (235 ) (234 ) Total undistributed losses $ (3,101 ) $ (3,101 ) $ (3,076 ) $ (3,076 ) $ (1,552 ) $ (1,552 ) Net (loss) income $ (1,838 ) $ (1,838 ) $ (7,328 ) $ (7,328 ) $ 3,822 $ 3,822 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed (losses) income $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ 774 $ 774 Common stock undistributed (losses) income $ (4,217 ) $ (4,217 ) $ (8,866 ) $ (8,866 ) $ 657 $ 657 Class B common stock undistributed (losses) income (722 ) (722 ) (1,538 ) (1,538 ) 117 117 Total undistributed (losses) income $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ 774 $ 774 Denominator for Basic and Diluted EPS: Common stock weighted average shares 11,026 11,026 10,923 10,923 10,765 10,765 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,097 2,097 2,106 2,106 2,137 2,137 Effect of dilutive securities Dilutive stock options — — 59 Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 13,123 13,029 12,961 (Loss) income from continuing operations per share: Common stock $ (0.14 ) $ (0.14 ) $ (0.57 ) $ (0.57 ) $ 0.18 $ 0.18 Class B common stock $ (0.13 ) $ (0.13 ) $ (0.51 ) $ (0.51 ) $ 0.16 $ 0.16 Income from discontinued operations per share: Common stock $ — $ — $ — $ — $ 0.12 $ 0.12 Class B common stock $ — $ — $ — $ — $ 0.11 $ 0.11 Net (loss) income per share: Common stock $ (0.14 ) $ (0.14 ) $ (0.57 ) $ (0.57 ) $ 0.30 $ 0.30 Class B common stock $ (0.13 ) $ (0.13 ) $ (0.51 ) $ (0.51 ) $ 0.27 $ 0.27 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for fiscal 2020, fiscal 2019 and fiscal 2018 were 1,120, 882 and 0, respectively. New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which amends guidance for revenue recognition. ASU 2014-09 is principles based guidance that can be applied to all contracts with customers, enhancing comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance details the steps entities should apply to achieve the core principle. In August 2015, the FASB issued an amendment to defer the effective date for all entities by one year. For public entities, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. Companies have the option of using either a full or modified retrospective approach in applying this standard. During fiscal 2016, 2017, 2018 and 2019 the FASB issued additional updates that further clarify the guidance provided in ASU 2014-09. Effective June 3, 2018, the Company adopted the standard using the modified retrospective method to all contracts. As a result, financial information for the reporting period beginning June 3, 2018 was reported under the new standard, while comparative financial information has not been adjusted and continues to be reported in accordance with the previous standard. The adoption of this standard did not impact the timing of revenue recognition for our customer sales. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements. See Note 4 “Revenue Recognition” of the notes to our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 (as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and 2020-02) introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. The new standard is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
May 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. REVENUE RECOGNITION The Company has a number of defined revenue streams across our reportable segments. For each of these revenue streams, all products are typically sold directly by the Company to the end customer. Distribution is the Company’s largest revenue stream. The distribution business does not include a separate service bundled with the product sold or sold on top of the product. Distribution typically includes products purchased from our suppliers, stocked in our warehouses and then sold to our customers. Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. G The Company also sells products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold in addition to the product. The Company recognizes services revenue when the repair, installation or training is performed. Based on our analysis of services revenue, ASU 2014-09 has an immaterial impact on the timing, amount or characterization of services revenue recognized by the Company. The services we provide are relatively short in duration and typically completed in one to two weeks. Therefore, at each reporting date, the amount of unbilled work performed is insignificant. The services revenue has consistently accounted for less than 5% of the Company’s total revenues and is expected to continue at that level. Contracts with customers A contract is an agreement between two or more parties that creates enforceable rights and obligations. A Contract Liabilities: Contract liabilities and revenue recognized were as follows ( in thousands ): June 1, 2019 Additions Revenue Recognized May 30, 2020 Contract liabilities (deferred revenue) $ 2,260 $ 2,083 $ (2,672 ) $ 1,671 The Company receives advance payments or deposits from our customers before revenue is recognized resulting in contract liabilities. Contract liabilities are included in accrued liabilities in the consolidated balance sheets. Performance obligations and satisfaction of performance obligation in the contract Each accepted purchase order identifies a distinct good or service as the performance obligation. The goods are generally standard products we purchased from a supplier and stocked on our shelves. They can also be customized products purchased from a supplier or products that are customized or have value added to them in-house prior to shipping to the customer. Determine the transaction price and variable consideration The transaction price for each product is the amount invoiced to the customer. Each product on a purchase order is a separate performance obligation with an observable standalone selling price. Recognize revenue when the entity satisfies a performance obligation W e recognize revenue when title transfers to the customer, at the shipping point for FOB shipping contracts and at the customer’s delivery location for FOB destination contracts. We believe that the transfer of title best represents when the customer obtains control of the goods. Prior to that date, we do not have right to payment, and the significant risks and rewards remain with us. The significant risks and rewards of ownership of the inventory transfer simultaneously with the transfer of title. The customer’s acceptance of the goods is based on objective measurements, not subjective. Additional considerations Sale with right of return: Our return policy is available to customers in our terms and conditions found on our website www.rell.com. The policy varies by business unit. The Company allows returns with prior written authorization and we allow returns within ten days of shipment for replacement parts. The Company maintains a reserve for returns based on historical trends that covers all contracts and revenue streams The reserve is considered immaterial at each balance sheet date for further consideration. Returns for defective product are typically covered by our suppliers’ warranty, thus, returns for defective product are not factored into our reserve. Warranties: We offer warranties for the limited number of specific products we manufacture. Our warranty terms generally range from one to three years. See Note 3, Warranties, for further information regarding the impact of warranties concerning ASU 2014-09. Principal versus agent considerations: Principal versus agent guidance was considered for customized products that are provided by our suppliers versus manufactured by the Company. The Company acts as the principal as we are responsible for satisfying the performance obligation. We have primary responsibility for fulfilling the contract, we have inventory risk prior to delivery to our customer, we establish prices, our consideration is not in the form of a commission and we bear the credit risk. The Company recognizes revenue in the gross amount of consideration. See Note 11, Segment Reporting, |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
May 30, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 5. DISCONTINUED OPERATIONS On September 12, 2017, the Company received an income tax refund from the State of Illinois of approximately $2.0 million, which included interest earned. The refund was a result of the conclusion of the Illinois amended return related to the sale of the RF, Wireless and Power Division in 2011. A net benefit of $1.5 million, which included $0.5 million of professional fee costs incurred to pursue the refund, was recognized in the second quarter of fiscal 2018 in discontinued operations. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
May 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 6. RELATED PARTY TRANSACTION On June 15, 2015, the Company entered into a lease agreement for the IMES facility with LDL, LLC. The Executive Vice President of IMES, Lee A. McIntyre III (former owner of IMES), has an ownership interest in LDL, LLC. The lease agreement has been extended as detailed in Exhibit 10.2, filed with this Annual Report on Form 10-K. The lease agreement provides for monthly payments over five years with total future minimum lease payments of $0.8 million. Rental expense related to this lease amounted to $0.1 million for the fiscal years ended May 30, 2020, June 1, 2019 and June 2, 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
May 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill As a result of the Company’s annual impairment review as of March 3, 2019, and after reviewing the totality of events and circumstances as provided in ASU 2011-08, we determined that it was more likely than not that the fair value for the IMES reporting unit was less than its carrying value. Accordingly, we performed the quantitative impairment test using the income method, which was based on a discounted future cash flow approach that used the significant assumptions of projected revenue, projected operational profit, terminal growth rates and the cost of capital. The Guideline Public Company Method was also considered in the goodwill impairment assessment. The quantitative impairment test determined that the IMES reporting unit’s carrying value exceeded its fair value by an amount that exceeded the recorded goodwill balance. As a result, in the fourth quarter of fiscal year 2019, the Company recorded a non-cash goodwill impairment charge of full amount of the goodwill associated with the IMES reporting unit. Intangible Assets Intangible assets are initially recorded at their fair market values determined by quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. No impairment was recognized in fiscal 2020, fiscal 2019 or fiscal 2018. Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with our acquisitions. Intangible assets subject to amortization were as follows (in thousands) May 30, 2020 June 1, 2019 Gross Amounts: Trade Name $ 659 $ 659 Customer Relationships (1) 3,388 3,394 Non-compete Agreements 177 177 Technology 230 230 Total Gross Amounts $ 4,454 $ 4,460 Accumulated Amortization: Trade Name $ 659 $ 659 Customer Relationships 1,000 796 Non-compete Agreements 161 139 Technology 129 103 Total Accumulated Amortization $ 1,949 $ 1,697 Net Intangibles $ 2,505 $ 2,763 (1) Change from prior periods reflect impact of foreign currency translation. Under ASC 350, companies must perform the annual test for impairment for indefinite life intangible assets, for which the Company has none, as well as test definite life assets for impairment in the event of a “trigger event” such as adverse changes in the business climate or market which might negatively impact the value of a reporting unit. The Company identified an impairment “trigger event” for the IMES reporting unit due to adverse changes in the business climate related to COVID-19. The Company tested the IMES definite life intangible assets and other long lived assets using the undiscounted cash flows of the reporting unit (the asset group) analyzed over a period of ten years, with a residual period, compared to the carrying value of the asset group and determined that the intangible assets and other long lived assets were not impaired as of May 30, 2020. Estimates contain management’s best estimates of economic and market conditions over the projected period, including growth rates in revenue and costs and best estimates of future expected changes in operating margins and capital expenditures. For the remainder of the Company’s intangible assets, we determined that they were not impaired as of May 30, 2020 on the basis that no adverse events or changes in circumstances were identified that could indicate that the carrying amounts of such assets may not be recoverable. The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands) Fiscal Year Amortization Expense 2021 $ 245 2022 252 2023 245 2024 231 2025 219 Thereafter 1,313 Total amortization expense $ 2,505 The amortization expense associated with the intangible assets totaled approximately $0.3 million during both fiscal 2020 and fiscal 2019 and $0.4 million during fiscal 2018. The weighted average number of years of amortization expense remaining is 13.3 years. |
Lease Obligations and Other Com
Lease Obligations and Other Commitments | 12 Months Ended |
May 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Lease Obligations and Other Commitments | 8. LEASE OBLIGATIONS AND OTHER COMMITMENTS In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company elects the practical expedients (which must be elected as a package and applied consistently to all of our leases) for which we will not reassess: (1) whether any expired or existing contracts are or contains leases, (2) the lease classification for any expired or existing leases and (3) the initial indirect costs for any existing leases. We have also elected the practical expedient to combine lease and non-lease components for all of our leases. We have adopted an accounting policy to not apply the requirements of Topic 842 to leases with a term of 12 months or less, which the Company has within our facility leases. Short-term leases will be reassessed if events occur that disqualify them from short-term status. The new standard was effective for the Company on June 2, 2019. The FASB issued ASU 2018-11, targeted improvements to Topic 842, which includes an option to not restate comparative periods in transition and elect to use the effective date of Topic 842 as the date of initial application of transition. We adopted the new standard applying the new transition method allowed under ASU 2018-11. As a result of adopting Topic 842, at May 30, 2020, we recognized operating right-of-use assets of $3.0 million, financing right-of-use assets of $0.4 million, operating lease liabilities of $3.1 million and financing lease liabilities of $0.3 million. Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company is reasonably certain it will renew the lease. The standard did not have a material impact on our results of operations or cash flows. The gross amounts of assets and liabilities related to both operating and financing leases at May 30, 2020 were as follows (in thousands) : Lease Type Amount Operating lease ROU asset $ 3,018 Financing lease ROU asset 401 Total Lease ROU asset $ 3,419 Operating lease liability current $ 1,329 Financing lease liability current 156 Total lease liability current $ 1,485 Operating lease liability non-current $ 1,778 Financing lease liability non-current 163 Total lease liability non-current $ 1,941 The components of lease costs were as follows (in thousands) : Lease Type Classification Fiscal Year Ended May 30, 2020 Consolidated operating lease expense Operating expenses $ 1,963 Consolidated financing lease amortization Operating expenses 62 Consolidated financing lease interest Interest expense 22 Consolidated financing lease expense 84 Net lease cost $ 2,047 Rent expense for fiscal 2020, fiscal 2019 and fiscal 2018 was $1.8 million, $1.7 million, and $1.8 million, respectively. Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years are as follows (in thousands) Fiscal Year Operating Leases Financing Leases Total 2021 $ 1,472 $ 181 $ 1,653 2022 711 151 862 2023 488 — 488 2024 347 — 347 2025 217 — 217 Thereafter 116 — 116 Total lease payments 3,351 332 3,683 Less imputed interest 244 13 257 Net minimum lease payments $ 3,107 $ 319 $ 3,426 The approximate future minimum lease payments under operating and financing leases at June 1, 2019 were as follows (in thousands) : Fiscal Year (1) Payments 2020 $ 1,586 2021 1,367 2022 509 2023 340 2024 289 Thereafter 234 (1) On June 2, 2019, the Company elected the modified retrospective method of transition to adopt the new lease standard Topic 842, which resulted in no restatement of prior period results. At June 1, 2019, prior to adoption of the new lease standard, operating lease obligations were not included as a liability on the balance sheet. Therefore, the operating lease obligations were included in the table for comparative purposes only and the total lease liability was not included as it is not applicable. The weighted average remaining lease terms and interest rates of leases held by the Company as of May 30, 2020 were as follows: Lease Type Weighted Average Remaining Lease Term in Years Weighted Average Interest Rate Operating leases 3.4 4.6% Financing leases 1.9 4.6% The cash outflows of the leasing activity of the Company as lessee for fiscal 2020 were as follows (in thousands) : Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 924 Operating cash flows from financing leases Operating activities 149 Finance cash flows from financing leases Financing activities 166 |
Income Taxes
Income Taxes | 12 Months Ended |
May 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES (Loss) income from continuing operations before income taxes included the following components ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 United States $ (3,716 ) $ (9,971 ) $ (211 ) Foreign 2,502 3,660 4,071 (Loss) income before income taxes $ (1,214 ) $ (6,311 ) $ 3,860 The provision for income taxes for fiscal 2020, fiscal 2019 and fiscal 2018 consisted of the following ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Current: Federal $ — $ 33 $ — State — 3 (12 ) Foreign 616 652 1,220 Total current $ 616 $ 688 $ 1,208 Deferred: Federal $ (88 ) $ (104 ) $ 124 State — — — Foreign 96 433 202 Total deferred $ 8 $ 329 $ 326 Income tax provision $ 624 $ 1,017 $ 1,534 The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for both fiscal 2020 and fiscal 2019 and 29.2% for fiscal 2018 and the reported income tax provision for fiscal 2020, fiscal 2019 and fiscal 2018 are summarized as follows: Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Federal statutory rate 21.0 % 21.0 % 29.2 % Effect of: State income taxes, net of federal tax benefit 6.6 5.4 0.3 Deemed repatriation tax — — (50.0 ) Foreign taxes at other rates (15.3 ) (4.1 ) (0.1 ) Permanent tax differences (41.1 ) (16.1 ) 6.7 Deferred remeasurement — — 45.1 Tax reserves — — 3.6 Additional U.S. tax on undistributed foreign earnings — — (12.5 ) Change in valuation allowance for deferred tax assets (29.8 ) (22.8 ) 15.1 Return to provision adjustments 1.4 (0.5 ) 0.1 Closure of foreign audits — — 2.2 Other 5.8 1.0 — Effective tax rate (51.4 )% (16.1 )% 39.7 % Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our deferred tax assets and liabilities reflect continuing operations as of May 30, 2020 and June 1, 2019. Significant components were as follows ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 Deferred tax assets: NOL carryforwards - foreign and domestic $ 7,834 $ 7,458 Inventory valuations 1,388 1,179 Goodwill 1,390 1,578 Foreign tax credits 1,782 1,782 Severance reserve 165 188 Foreign capital loss 1,167 1,129 Other 1,847 1,737 Subtotal $ 15,573 $ 15,051 Valuation allowance - foreign and domestic (12,322 ) (11,706 ) Net deferred tax assets after valuation allowance $ 3,251 $ 3,345 Deferred tax liabilities: Accelerated depreciation $ (2,944 ) $ (2,908 ) Tax on undistributed earnings (24 ) (141 ) Other 13 21 Subtotal $ (2,955 ) $ (3,028 ) Net deferred tax assets $ 296 $ 317 Supplemental disclosure of net deferred tax assets, excluding valuation allowance: Domestic $ 10,925 $ 10,194 Foreign $ 1,693 $ 1,829 Total $ 12,618 $ 12,023 As of May 30, 2020, we had approximately $3.7 million of net deferred tax assets related to federal net operating loss (“NOL”) carryforwards, compared to $3.1 million as of June 1, 2019. Net deferred tax assets related to domestic state NOL carryforwards at May 30, 2020 amounted to approximately $3.8 million, compared to $3.9 million at June 1, 2019. Net deferred tax assets related to foreign NOL carryforwards as of May 30, 2020 totaled approximately $0.3 million with various or indefinite expiration dates. The amount of net deferred tax assets related to foreign NOL carryforwards was $0.4 million as of June 1, 2019. We also had a domestic net deferred tax asset of $1.8 million of foreign tax credit carryforwards as of May 30, 2020, compared to $1.8 million as of June 1, 2019. We did not have any alternative minimum tax credit carryforward as of May 30, 2020. We have historically determined that undistributed earnings of our foreign subsidiaries, to the extent of cash available, will be repatriated to the U.S. The deferred tax liability on the outside basis difference is now primarily withholding tax on future dividend distributions. Accordingly, we have reduced the deferred tax liability related to undistributed earnings of our foreign subsidiaries from $0.2 million in fiscal 2019 to less than $0.1 million in fiscal 2020. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant component of objective evidence evaluated was the cumulative income or loss incurred in each jurisdiction over the three-year period ended May 30, 2020. Such objective evidence limits the ability to consider subjective evidence such as future income projections. We considered other positive evidence in determining the need for a valuation allowance in the U.S. including the subpart F and GILTI inclusions of our foreign earnings. The weight of this positive evidence is not sufficient to outweigh other negative evidence in evaluating our need for a valuation allowance in the U.S. jurisdiction. As of May 30, 2020, a valuation allowance of $12.3 million was established to record only the portion of the deferred tax asset that will more likely than not be realized. The valuation allowance as of June 1, 2019 was $11.7 million. We recorded a valuation allowance for all domestic federal and state net deferred tax assets considering the significant cumulative losses in the U.S. jurisdiction, the reversal of the deferred tax liability for foreign earnings and no forecast of additional U.S. income. The valuation allowance also related to deferred tax assets in foreign jurisdictions where historical taxable losses have been incurred. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. Income taxes paid, including foreign estimated tax payments, were $1.0 million, $0.3 million and $0.5 million, during fiscal 2020, fiscal 2019 and fiscal 2018, respectively. In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2015 are closed for examination under the statute of limitation for U.S. federal, U.S. state and local or non-U.S. tax jurisdictions. We are currently under examination in Thailand (fiscal 2008 through 2011). Our primary foreign tax jurisdictions are Germany and the Netherlands. We have tax years open in Germany beginning in fiscal 2015 and the Netherlands beginning in fiscal 2018. The uncertain tax positions from continuing operations as of both May 30, 2020 and June 1, 2019 were $0.1 million. We record penalties and interest related to uncertain tax positions in the income tax expense line item within the Consolidated Statements of Comprehensive (Loss) Income. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets. We have not recorded a liability for interest and penalties as of May 30, 2020 or June 1, 2019. It is not expected that there will be a change in the unrecognized tax benefits due to the expiration of various statutes of limitations within the next 12 months. The following table summarizes the activity related to the unrecognized tax benefits (in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 Unrecognized tax benefits, beginning of period $ 130 $ 138 Currency translation adjustment (1 ) (8 ) Unrecognized tax benefits, end of period $ 129 $ 130 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
May 30, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Employee Benefit Plans | 10. EMPLOYEE BENEFIT PLANS Employee Profit Sharing Plan: The employee profit sharing plan is a defined contribution profit sharing plan. The profit sharing plan has a 401(k) provision whereby we match 50% of employee contributions up to 4.0% of pay. Charges to expense for matching contributions to this plan were $0.5 million, $0.5 million and $0.4 million, during fiscal 2020, fiscal 2019 and fiscal 2018, respectively. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
May 30, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 11. SEGMENT AND GEOGRAPHIC INFORMATION In accordance with ASC 280-10, Segment Reporting PMT combines our core engineered solutions capabilities, power grid and microwave tube business with new RF, Wireless and disruptive power technologies. As a manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in 5G, alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment. Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, all-in-ones, specialized cabinet finishes and application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms. Healthcare manufactures, refurbishes and distributes high value replacement parts for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include Diagnostic Imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI coils, cold heads and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we believe we can help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery. The CEO, who is the Chief Operating Decision Maker, evaluates performance and allocates resources primarily based on the gross profit of each segment. Operating results by segment are summarized in the following table ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 PMT Net Sales $ 118,480 $ 128,902 $ 128,296 Gross Profit 38,288 40,254 43,254 Canvys Net Sales $ 28,926 $ 27,968 $ 26,683 Gross Profit 9,313 9,085 8,410 Healthcare Net Sales $ 8,492 $ 9,782 $ 8,233 Gross Profit 2,072 2,396 3,418 A reconciliation of assets to the relevant consolidated amount is as follows ( in thousands May 30, 2020 June 1, 2019 Segment assets $ 89,231 $ 88,470 Cash and cash equivalents 30,535 42,019 Investments - current 16,000 8,000 Other current assets (1) 2,545 3,227 Net property, plant and equipment 10,267 10,772 Operating lease ROU asset 1,285 — Financing lease ROU asset 401 — Other assets - non-current deferred income taxes 456 529 Total assets $ 150,720 $ 153,017 (1) Assets are not disclosed by reportable segment as the Company does not track assets by reportable segment and certain assets are not specific to any reportable segment. Capital expenditures for our Healthcare segment during fiscal 2020 and fiscal 2019 were approximately $0.4 million and $1.2 million, respectively. In addition, we also had capital expenditures during fiscal 2020 and fiscal 2019 related to the Company’s ERP system as well as facilities that were not specific to any particular reportable segment. Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other. Net sales and gross profit by geographic region are summarized in the following table ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Net Sales North America $ 65,259 $ 66,228 $ 67,662 Asia/Pacific 32,979 34,681 32,607 Europe 49,394 55,038 53,818 Latin America 8,308 10,653 9,123 Other (1) (42 ) 52 2 Total $ 155,898 $ 166,652 $ 163,212 Gross Profit North America $ 24,494 $ 24,776 $ 25,996 Asia/Pacific 10,629 10,905 10,794 Europe 15,483 17,425 18,071 Latin America 2,804 3,863 3,602 Other (1) (3,737 ) (5,234 ) (3,381 ) Total $ 49,673 $ 51,735 $ 55,082 (1) Major Customers During fiscal 2020 and fiscal 2019, no one customer accounted for more than 10 percent of the Company’s consolidated net sales. During fiscal 2018, LAM Research Corporation (“LAM”) individually accounted for 11 percent of the Company’s consolidated net sales. No other customer accounted for more than 10 percent of the Company’s consolidated net sales in fiscal 2018. LAM sales were included in the PMT segment. We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Net assets by geographic region are summarized in the following table (in thousands): Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Net Assets North America $ 81,533 $ 74,054 $ 77,857 Asia/Pacific 10,370 14,889 17,254 Europe 24,973 32,807 37,911 Latin America 1,784 2,007 2,159 Total $ 118,660 $ 123,757 $ 135,181 The Company had long-lived assets of $20.2 million as of May 30, 2020 and $21.9 million as of June 1, 2019. The long-lived assets, which include our fixed assets and intangibles, were primarily in the US. There were approximately $0.6 million of long-lived assets that belong to our foreign affiliates as of May 30, 2020 and $0.9 million as of June 1, 2019. The Company had depreciation and amortization expense of $3.4 million, $3.2 million and $3.0 million for fiscal 2020, fiscal 2019 and fiscal 2018, respectively. The depreciation and amortization, which includes our fixed assets and intangibles, were primarily in the US. Depreciation and amortization expense that belong to our foreign affiliates was approximately $0.3 million for fiscal 2020 and $0.2 million and $0.3 for fiscal 2019 and fiscal 2018, respectively. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
May 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | 12. RISKS AND UNCERTAINTIES Litigation On October 15, 2018, Varex Imaging Corporation (“Varex”) filed its original Complaint (Case No. 1:18-cv-06911) against Richardson Electronics Ltd. (“Richardson”) in the Northern District of Illinois, which was subsequently amended on November 27, 2018. Varex alleged counts of infringement of U.S. Patent Nos. 6,456,692 and 6,519,317. Subsequently, on October 24, 2018, Varex TM Company Response to COVID-19 On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic based on the rapid increase in global exposure. Thereafter, most U.S. states imposed “shelter in place” directives on their populations to stem the spread of COVID-19. Of specific interest to the Company, shelter in place directives were imposed in the states of Illinois, Massachusetts and South Carolina. The shelter in place directives generally required the closure of businesses that did not provide essential functions. The Company was considered a critical supplier of products to healthcare and critical infrastructure businesses. Several of our largest customers mandated that we continue to supply parts so as not to disrupt the supply chain and their ability to serve critical industries. As such, the Company qualified as an “Essential Business”. Essential Businesses were allowed to continue to operate during shelter in place directives. We continued our manufacturing and distribution operations even when a shelter in place directive was issued. We limited the number of people in any one of our facilities by requiring only employees who could not perform their work remotely to physically work in a Company US-based facility. The impact of the COVID-19 outbreak continues to evolve. As such, the full magnitude that the pandemic will have on the Company’s financial condition, liquidity and future results of operations is uncertain. Management is actively monitoring the global situation on its financial condition, liquidity, operations, suppliers, industry and workforce. As the spread of COVID-19 continues, our ability to meet customer demands for products may be impaired or, similarly, our customers may experience adverse business consequences due to COVID-19. Reduced demand for products or impaired ability to meet customer demand (including disruptions at our transportation service providers or vendors) could have a material adverse effect on our business, operations and financial performance. Some of the decline in fiscal 2020 PMT sales and the decrease in Healthcare sales was primarily due to the COVID-19 global pandemic. While we had some COVID-19 related longer lead times as well as delays impacting new product development schedules, we did not experience a major interruption in our supply chain. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not presently able to estimate the effects of COVID-19 on its results of operations, financial condition or liquidity for fiscal year 2021. Company Response to CARES Act On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to provide certain relief as a result of the COVID-19 outbreak. The CARES Act includes provisions relating to refundable payroll tax credits, deferral of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, increased limitations on qualified charitable contributions and technical corrections to tax depreciation methods for qualified improvement property. The Company continues to examine how these provisions in the CARES Act will impact its financial position, results of operations and cash flows. In fiscal 2020, the Company deferred $0.2 million of employer side social security tax payments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
May 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions. As of May 30, 2020, we held investments that were required to be measured at fair value on a recurring basis. Our investments consist of time deposits and CDs, where face value is equal to fair value. Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of May 30, 2020 and June 1, 2019 were as follows ( in thousands Level 1 Level 2 Level 3 May 30, 2020 Time deposits/CDs $ 16,000 $ — $ — Total $ 16,000 $ — $ — June 1, 2019 Time deposits/CDs $ 8,000 $ — $ — Total $ 8,000 $ — $ — |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
May 30, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 14. VALUATION AND QUALIFYING ACCOUNTS The following table presents the valuation and qualifying account activity for fiscal years ended May 30, 2020, June 1, 2019 and June 2, 2018, ( in thousands Description Balance at beginning of period Charged to expense Deductions Balance at end of period Year ended May 30, 2020 Allowance for doubtful accounts $ 339 $ 349 (1) $ (354 ) (2) $ 334 Inventory provisions 4,568 1,013 (3) (188 ) (4) 5,393 Year ended June 1, 2019 Allowance for doubtful accounts $ 309 $ 402 (1) $ (372 ) (2) $ 339 Inventory provisions 4,027 1,076 (3) (535 ) (4) 4,568 Year ended June 2, 2018 Allowance for doubtful accounts $ 398 $ 223 (1) $ (312 ) (2) $ 309 Inventory provisions 3,456 773 (3) (202 ) (4) 4,027 Notes: (1) (2) (3) (4) |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
May 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 15. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Description First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2020 Net sales $ 40,653 $ 39,634 $ 38,249 $ 37,362 Gross profit 12,951 12,680 12,670 11,372 Income (loss) from continuing operations 157 (622 ) (93 ) (1,280 ) Net income (loss) 157 (622 ) (93 ) (1,280 ) Net income (loss) Common stock - basic $ 0.01 $ (0.05 ) $ (0.01 ) $ (0.10 ) Class B common stock - basic $ 0.01 $ (0.04 ) $ (0.01 ) $ (0.09 ) Common stock - diluted $ 0.01 $ (0.05 ) $ (0.01 ) $ (0.10 ) Class B common stock - diluted $ 0.01 $ (0.04 ) $ (0.01 ) $ (0.09 ) Fiscal 2019 Net sales $ 44,157 $ 41,314 $ 39,018 $ 42,163 Gross profit 13,953 12,971 12,299 12,512 Income (loss) from continuing operations 431 (304 ) (1,078 ) (6,377 ) (1) Net income (loss) 431 (304 ) (1,078 ) (6,377 ) (1) Net income (loss) Common stock - basic $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.50 ) Class B common stock - basic $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.44 ) Common stock - diluted $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.50 ) Class B common stock - diluted $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.44 ) (1) |
Significant Accounting Polici_2
Significant Accounting Policies and Disclosures (Policies) | 12 Months Ended |
May 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management continuously evaluates its critical accounting policies and estimates, including the allowance for doubtful accounts, revenue recognition, inventory obsolescence, intangible assets, loss contingencies and income taxes. Management bases the estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances, however, actual results could differ from those estimates. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments: The fair values of financial instruments are determined based on quoted market prices and market interest rates as of the end of the reporting period. Our financial instruments include investments, accounts receivable, accounts payable and accrued liabilities. The fair values of these financial instruments approximate carrying values at May 30, 2020 and June 1, 2019. |
Cash and Cash Equivalents | Cash and Cash Equivalents: We consider short-term, highly liquid investments that are readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and that have a maturity of three months or less, when purchased, to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents approximate the fair market value of these assets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: Our allowance for doubtful accounts includes estimated losses that result from uncollectible receivables. The estimates are influenced by the following: continuing credit evaluation of customers’ financial conditions; aging of receivables, individually and in the aggregate; a large number of customers which are widely dispersed across geographic areas; and collectability and delinquency history by geographic area. Significant changes in one or more of these considerations may require adjustments affecting net income and net carrying value of accounts receivable. The allowance for doubtful accounts was approximately $0.3 million as of both May 30, 2020 and June 1, 2019. |
Loss Contingencies | Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency. |
Revenue Recognition | Revenue Recognition: Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. G enerally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks. The Company also sells products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold in addition to the product. The Company recognizes services revenue when the repair, installation or training is performed. Based on our analysis of services revenue, ASU 2014-09 has an immaterial impact on the timing, amount or characterization of services revenue recognized by the Company. The services we provide are relatively short in duration and typically completed in one to two weeks. Therefore, at each reporting date, the amount of unbilled work performed is insignificant. The services revenue has consistently accounted for less than 5% of the Company’s total revenues and is expected to continue at that level. Prior to the adoption of ASU 2014-09, our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell. |
Foreign Currency Translation | Foreign Currency Translation: The functional currency is the local currency at all foreign locations, with the exception of Hong Kong, which the functional currency is the U.S. dollar. Balance sheet items for our foreign entities, included in our consolidated balance sheets, are translated into U.S. dollars at end-of-period spot rates. Gains and losses resulting from translation of foreign subsidiary financial statements are credited or charged directly to accumulated other comprehensive income, a component of stockholders’ equity. Revenues and expenses are translated at the current rate on the date of the transaction. Gains and losses resulting from foreign currency transactions are included in income. Foreign exchange (gain) loss reflected in our consolidated statements of comprehensive (loss) income were less than $0.1 million during fiscal 2020 and fiscal 2019 and a loss of $0.2 million during fiscal 2018. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs: Shipping and handling costs billed to customers are reported as revenue and the related costs are reported as a component of cost of sales. |
Inventories, net | Inventories, net: Our consolidated inventories are stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $51.8 million of finished goods, $3.6 million of raw materials and $2.1 million of work-in-progress as of May 30, 2020 as compared to approximately $47.2 million of finished goods, $4.2 million of raw materials and $1.8 million of work-in-progress as of June 1, 2019. The inventory reserve as of May 30, 2020 was $5.4 million compared to $4.6 million as of June 1, 2019. Provisions for obsolete or slow moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the exiting of certain markets and assumptions about future demand and market conditions. If future demand changes in the industry or market conditions differ from management’s estimates, additional provisions may be necessary. We recorded provisions to our inventory reserves of $1.0 million, $1.1 million and $0.8 million during fiscal 2020, fiscal 2019 and fiscal 2018, respectively, which were included in cost of sales. The provisions were primarily for obsolete and slow moving parts. The parts were written down to estimated realizable value. |
Income Taxes | Income Taxes: We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences, and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards. |
Investments | Investments: We invested in time deposits and certificates of deposit (“CDs”) in the amount of $16.0 million and $8.0 million as of May 30, 2020 and June 1, 2019, respectively, which mature in less than twelve months. We liquidated our investments in equity securities in fiscal 2018. Proceeds from the liquidation were $0.9 million with gross realized gains of $0.2 million for fiscal 2018. Prior to the liquidation of our investment in equity securities, our investments in equity securities were classified as available-for-sale and were carried at their fair value based on quoted market prices. |
Intangible Assets | Intangible Assets: Intangible assets are initially recorded at their fair market values determined by quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with the acquisitions. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of accumulated depreciation. Improvements and replacements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. Provisions for depreciation are computed using the straight-line method over the estimated useful life of the asset. Depreciation expense was approximately $3.1 million, $2.9 million and $2.6 million during fiscal 2020, fiscal 2019 and fiscal 2018, respectively. Property, plant and equipment consist of the following ( in thousands May 30, 2020 June 1, 2019 Land and improvements $ 1,385 $ 1,301 Buildings and improvements 22,525 22,986 Computer, communications equipment and software 10,775 9,943 Construction in progress 750 979 Machinery and other equipment 14,326 13,884 $ 49,761 $ 49,093 Accumulated depreciation (32,087 ) (29,982 ) Property, plant, and equipment, net $ 17,674 $ 19,111 Construction in progress at May 30, 2020 includes $0.2 million related to our Healthcare growth initiatives. All projects are expected to be completed before the end of fiscal 2021. Supplemental disclosure information of the estimated useful life of the assets: Land improvements 10 years Buildings and improvements 10 - 30 years Computer, communications equipment and software 3 - 10 years Machinery and other equipment 3 - 20 years We review property and equipment, definite-lived intangible assets and other long-lived assets for impairment whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If adverse events do occur, our impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of our assets and liabilities. This analysis requires management judgment with respect to changes in technology, the continued success of product lines and future volume, revenue and expense growth rates. We conduct annual reviews for idle and underutilized equipment and review business plans for possible impairment. Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset or asset group. When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value. Additionally, we also evaluate the remaining useful life of each reporting period to determine whether events and circumstances warrant a revision to the remaining period of depreciation or amortization. If the estimate of a long lived asset’s remaining useful life is changed, the remaining carrying amount of the asset is amortized prospectively over that revised remaining useful life. |
Accrued Liabilities | Accrued Liabilities: Accrued liabilities consist of the following ( in thousands ): May 30, 2020 June 1, 2019 Compensation and payroll taxes $ 3,469 $ 2,846 Accrued severance 650 520 Professional fees 471 471 Deferred revenue 1,671 2,260 Other accrued expenses 4,063 5,176 Accrued Liabilities $ 10,324 $ 11,273 |
Warranties | Warranties: We offer warranties for the limited number of specific products we manufacture. Our warranty terms generally range from one to three years. We estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product sale. We record expense related to our warranty obligations as cost of sales in our consolidated statements of comprehensive (loss) income. Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated warranty obligation. With respect to new products, estimates are based generally on knowledge of the products and warranty experience. Warranty reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience and other available evidence. Changes in the warranty reserve during fiscal 2020 and fiscal 2019 were as follows ( in thousands Warranty Reserve Balance at June 2, 2018 $ 149 Accruals for products sold 185 Utilization (39 ) Balance at June 1, 2019 $ 295 Accruals for products sold 201 Utilization (30 ) Balance at May 30, 2020 $ 466 |
Other Non-Current Liabilities | Other Non-Current Liabilities: Other non-current liabilities of $0.8 million at May 30, 2020 and $0.8 million at June 1, 2019, primarily represent employee-benefits obligations in various non-US locations. |
Share-Based Compensation | Share-Based Compensation: We measure and recognize share-based compensation cost at fair value for all share-based payments, including stock options and restricted stock awards. We estimate fair value using the Black-Scholes option-pricing model, which requires assumptions such as expected volatility, risk-free interest rate, expected life and dividends. Compensation cost is recognized using a graded vesting schedule over the applicable vesting period. Share-based compensation expense totaled approximately $0.7 million during fiscal 2020, $0.7 million during fiscal 2019 and $0.5 million during fiscal 2018. Stock options granted generally vest over a period of five years and have contractual terms to exercise of 10 years. A summary of stock option activity is as follows ( in thousands, except option prices and years): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options Outstanding at May 27, 2017 1,073 $ 9.38 Granted 200 6.08 Exercised (16 ) 5.85 Forfeited (11 ) 8.05 Cancelled (51 ) 9.36 Options Outstanding at June 2, 2018 1,195 $ 8.89 Granted 279 9.02 Exercised (46 ) 5.61 Forfeited (58 ) 8.10 Cancelled (6 ) 5.03 Options Outstanding at June 1, 2019 1,364 $ 9.08 Granted 187 5.61 Exercised (10 ) 5.67 Cancelled (114 ) 6.87 Options Outstanding at May 30, 2020 1,427 $ 8.83 5.6 $ — Options Vested at May 30, 2020 931 $ 9.78 4.3 $ — (1) Includes only those options that were in-the-money as of May 30, 2020. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. There were 10,249 stock options exercised during fiscal 2020, with cash received of $0.1 million. The total intrinsic value of options exercised totaled less than $0.1 million during fiscal 2020, fiscal 2019 and fiscal 2018. The weighted average fair value of stock option grants was $0.81 during fiscal 2020, $1.71 during fiscal 2019 and $0.85 during fiscal 2018. As of May 30, 2020, total unrecognized compensation costs related to unvested stock options and restricted stock awards was approximately $1.1 million, which is expected to be recognized over the remaining weighted average period of approximately two to four years. The total grant date fair value of stock options vested during fiscal 2020 was $0.3 million. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Expected volatility 24.48 % 22.24 % 21.92 % Risk-free interest rate 1.91 % 2.82 % 2.22 % Expected lives (years) 6.50 6.36 6.31 Annual cash dividend $ 0.24 $ 0.24 $ 0.24 The expected volatility assumptions are based on historical experience commensurate with the expected term. The risk-free interest rate is based on the yield of a treasury note with a remaining term equal to the expected life of the stock option. The expected stock option life assumption is based on the Securities and Exchange Commission’s (“SEC”) guidance in Staff Accounting Bulletin (“SAB”) No. 107 (“SAB No. 107”). For stock options granted during fiscal 2020, fiscal 2019 and fiscal 2018, we believe that our historical stock option experience does not provide a reasonable basis upon which to estimate expected term. We utilized the Safe Harbor option, or Simplified Method, to determine the expected term of these options in accordance with SAB No. 107 for options granted. We intend to continue to utilize the Simplified Method for future grants in accordance with SAB No. 110 until such time that we believe that our historical stock option experience will provide a reasonable basis to estimate an expected term. The following table summarizes information about stock options outstanding at May 30, 2020 ( in thousands, except option prices and years Outstanding Vested Exercise Price Range Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value $5.49 to $6.47 430 $ 5.76 7.7 $ — 169 $ 5.82 6.8 $ — $6.90 to $9.89 490 $ 8.49 7.1 $ — 254 $ 8.49 6.4 $ — $9.99 to $13.76 507 $ 11.75 2.4 $ — 508 $ 11.75 2.4 $ — Total 1,427 $ 8.83 5.6 $ — 931 $ 9.78 4.3 $ — As of May 30, 2020, a summary of restricted stock award transactions was as follows (in thousands): Unvested Restricted Shares Unvested at June 2, 2018 78 Granted 69 Vested (26 ) Canceled (5 ) Unvested at June 1, 2019 116 Granted 73 Vested (47 ) Unvested at May 30, 2020 142 Compensation effects arising from issuing stock awards have been charged against income and recorded as additional paid-in-capital in the consolidated statements of stockholders’ equity during fiscal 2020, fiscal 2019 and fiscal 2018. The Employees’ 2011 Long-Term Incentive Compensation Plan authorizes the issuance of up to 2,500,000 shares as incentive stock options, non-qualified stock options or stock awards. Under this plan, 885,000 shares are reserved for future issuance. The Plan authorizes the granting of stock options at the fair market value at the date of grant. Generally, these options become exercisable over five years and expire up to 10 years from the date of grant. Restricted stock awards vest on the anniversary of the grant date in three equal installments. |
Earnings per Share | Earnings per Share: We have authorized 17,000,000 shares of common stock, and 3,000,000 shares of Class B common stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends. In accordance with ASC 260-10, Earnings Per Share The earnings per share (“EPS”) presented in our consolidated statements of comprehensive (loss) income are based on the following ( in thousands, except per share amounts For the Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Basic Diluted Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: (Loss) income from continuing operations $ (1,838 ) $ (1,838 ) $ (7,328 ) $ (7,328 ) $ 2,326 $ 2,326 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed losses $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ (722 ) $ (722 ) Common stock undistributed losses $ (4,217 ) $ (4,217 ) $ (8,866 ) $ (8,866 ) $ (613 ) $ (613 ) Class B common stock undistributed losses (722 ) (722 ) (1,538 ) (1,538 ) (109 ) (109 ) Total undistributed losses $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ (722 ) $ (722 ) Income from discontinued operations $ — $ — $ — $ — $ 1,496 $ 1,496 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed losses $ (3,101 ) $ (3,101 ) $ (3,076 ) $ (3,076 ) $ (1,552 ) $ (1,552 ) Common stock undistributed losses $ (2,648 ) $ (2,648 ) $ (2,621 ) $ (2,621 ) $ (1,317 ) $ (1,318 ) Class B common stock undistributed losses (453 ) (453 ) (455 ) (455 ) (235 ) (234 ) Total undistributed losses $ (3,101 ) $ (3,101 ) $ (3,076 ) $ (3,076 ) $ (1,552 ) $ (1,552 ) Net (loss) income $ (1,838 ) $ (1,838 ) $ (7,328 ) $ (7,328 ) $ 3,822 $ 3,822 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed (losses) income $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ 774 $ 774 Common stock undistributed (losses) income $ (4,217 ) $ (4,217 ) $ (8,866 ) $ (8,866 ) $ 657 $ 657 Class B common stock undistributed (losses) income (722 ) (722 ) (1,538 ) (1,538 ) 117 117 Total undistributed (losses) income $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ 774 $ 774 Denominator for Basic and Diluted EPS: Common stock weighted average shares 11,026 11,026 10,923 10,923 10,765 10,765 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,097 2,097 2,106 2,106 2,137 2,137 Effect of dilutive securities Dilutive stock options — — 59 Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 13,123 13,029 12,961 (Loss) income from continuing operations per share: Common stock $ (0.14 ) $ (0.14 ) $ (0.57 ) $ (0.57 ) $ 0.18 $ 0.18 Class B common stock $ (0.13 ) $ (0.13 ) $ (0.51 ) $ (0.51 ) $ 0.16 $ 0.16 Income from discontinued operations per share: Common stock $ — $ — $ — $ — $ 0.12 $ 0.12 Class B common stock $ — $ — $ — $ — $ 0.11 $ 0.11 Net (loss) income per share: Common stock $ (0.14 ) $ (0.14 ) $ (0.57 ) $ (0.57 ) $ 0.30 $ 0.30 Class B common stock $ (0.13 ) $ (0.13 ) $ (0.51 ) $ (0.51 ) $ 0.27 $ 0.27 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for fiscal 2020, fiscal 2019 and fiscal 2018 were 1,120, 882 and 0, respectively. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which amends guidance for revenue recognition. ASU 2014-09 is principles based guidance that can be applied to all contracts with customers, enhancing comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance details the steps entities should apply to achieve the core principle. In August 2015, the FASB issued an amendment to defer the effective date for all entities by one year. For public entities, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. Companies have the option of using either a full or modified retrospective approach in applying this standard. During fiscal 2016, 2017, 2018 and 2019 the FASB issued additional updates that further clarify the guidance provided in ASU 2014-09. Effective June 3, 2018, the Company adopted the standard using the modified retrospective method to all contracts. As a result, financial information for the reporting period beginning June 3, 2018 was reported under the new standard, while comparative financial information has not been adjusted and continues to be reported in accordance with the previous standard. The adoption of this standard did not impact the timing of revenue recognition for our customer sales. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements. See Note 4 “Revenue Recognition” of the notes to our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 (as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and 2020-02) introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. The new standard is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. |
Lease Obligations and Other Commitments | In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company elects the practical expedients (which must be elected as a package and applied consistently to all of our leases) for which we will not reassess: (1) whether any expired or existing contracts are or contains leases, (2) the lease classification for any expired or existing leases and (3) the initial indirect costs for any existing leases. We have also elected the practical expedient to combine lease and non-lease components for all of our leases. We have adopted an accounting policy to not apply the requirements of Topic 842 to leases with a term of 12 months or less, which the Company has within our facility leases. Short-term leases will be reassessed if events occur that disqualify them from short-term status. |
Significant Accounting Polici_3
Significant Accounting Policies and Disclosures (Tables) | 12 Months Ended |
May 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following ( in thousands May 30, 2020 June 1, 2019 Land and improvements $ 1,385 $ 1,301 Buildings and improvements 22,525 22,986 Computer, communications equipment and software 10,775 9,943 Construction in progress 750 979 Machinery and other equipment 14,326 13,884 $ 49,761 $ 49,093 Accumulated depreciation (32,087 ) (29,982 ) Property, plant, and equipment, net $ 17,674 $ 19,111 |
Schedule of Property Plant and Equipment Estimated Useful Lives | Supplemental disclosure information of the estimated useful life of the assets: Land improvements 10 years Buildings and improvements 10 - 30 years Computer, communications equipment and software 3 - 10 years Machinery and other equipment 3 - 20 years |
Schedule of Accrued Liabilities | Accrued Liabilities: Accrued liabilities consist of the following ( in thousands ): May 30, 2020 June 1, 2019 Compensation and payroll taxes $ 3,469 $ 2,846 Accrued severance 650 520 Professional fees 471 471 Deferred revenue 1,671 2,260 Other accrued expenses 4,063 5,176 Accrued Liabilities $ 10,324 $ 11,273 |
Schedule of Warranty Reserve | Changes in the warranty reserve during fiscal 2020 and fiscal 2019 were as follows ( in thousands Warranty Reserve Balance at June 2, 2018 $ 149 Accruals for products sold 185 Utilization (39 ) Balance at June 1, 2019 $ 295 Accruals for products sold 201 Utilization (30 ) Balance at May 30, 2020 $ 466 |
Schedule of Share-Based Compensation, Stock Options, Activity | Stock options granted generally vest over a period of five years and have contractual terms to exercise of 10 years. A summary of stock option activity is as follows ( in thousands, except option prices and years): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options Outstanding at May 27, 2017 1,073 $ 9.38 Granted 200 6.08 Exercised (16 ) 5.85 Forfeited (11 ) 8.05 Cancelled (51 ) 9.36 Options Outstanding at June 2, 2018 1,195 $ 8.89 Granted 279 9.02 Exercised (46 ) 5.61 Forfeited (58 ) 8.10 Cancelled (6 ) 5.03 Options Outstanding at June 1, 2019 1,364 $ 9.08 Granted 187 5.61 Exercised (10 ) 5.67 Cancelled (114 ) 6.87 Options Outstanding at May 30, 2020 1,427 $ 8.83 5.6 $ — Options Vested at May 30, 2020 931 $ 9.78 4.3 $ — (1) Includes only those options that were in-the-money as of May 30, 2020. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Expected volatility 24.48 % 22.24 % 21.92 % Risk-free interest rate 1.91 % 2.82 % 2.22 % Expected lives (years) 6.50 6.36 6.31 Annual cash dividend $ 0.24 $ 0.24 $ 0.24 |
Schedule of Share-Based Compensation, Shares Outstanding Under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding at May 30, 2020 ( in thousands, except option prices and years Outstanding Vested Exercise Price Range Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value $5.49 to $6.47 430 $ 5.76 7.7 $ — 169 $ 5.82 6.8 $ — $6.90 to $9.89 490 $ 8.49 7.1 $ — 254 $ 8.49 6.4 $ — $9.99 to $13.76 507 $ 11.75 2.4 $ — 508 $ 11.75 2.4 $ — Total 1,427 $ 8.83 5.6 $ — 931 $ 9.78 4.3 $ — |
Schedule of Restricted Stock Award Transactions | As of May 30, 2020, a summary of restricted stock award transactions was as follows (in thousands): Unvested Restricted Shares Unvested at June 2, 2018 78 Granted 69 Vested (26 ) Canceled (5 ) Unvested at June 1, 2019 116 Granted 73 Vested (47 ) Unvested at May 30, 2020 142 |
Schedule of Earnings Per Share, Basic and Diluted | The earnings per share (“EPS”) presented in our consolidated statements of comprehensive (loss) income are based on the following ( in thousands, except per share amounts For the Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Basic Diluted Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: (Loss) income from continuing operations $ (1,838 ) $ (1,838 ) $ (7,328 ) $ (7,328 ) $ 2,326 $ 2,326 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed losses $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ (722 ) $ (722 ) Common stock undistributed losses $ (4,217 ) $ (4,217 ) $ (8,866 ) $ (8,866 ) $ (613 ) $ (613 ) Class B common stock undistributed losses (722 ) (722 ) (1,538 ) (1,538 ) (109 ) (109 ) Total undistributed losses $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ (722 ) $ (722 ) Income from discontinued operations $ — $ — $ — $ — $ 1,496 $ 1,496 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed losses $ (3,101 ) $ (3,101 ) $ (3,076 ) $ (3,076 ) $ (1,552 ) $ (1,552 ) Common stock undistributed losses $ (2,648 ) $ (2,648 ) $ (2,621 ) $ (2,621 ) $ (1,317 ) $ (1,318 ) Class B common stock undistributed losses (453 ) (453 ) (455 ) (455 ) (235 ) (234 ) Total undistributed losses $ (3,101 ) $ (3,101 ) $ (3,076 ) $ (3,076 ) $ (1,552 ) $ (1,552 ) Net (loss) income $ (1,838 ) $ (1,838 ) $ (7,328 ) $ (7,328 ) $ 3,822 $ 3,822 Less dividends: Common stock 2,648 2,648 2,621 2,621 2,586 2,586 Class B common stock 453 453 455 455 462 462 Undistributed (losses) income $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ 774 $ 774 Common stock undistributed (losses) income $ (4,217 ) $ (4,217 ) $ (8,866 ) $ (8,866 ) $ 657 $ 657 Class B common stock undistributed (losses) income (722 ) (722 ) (1,538 ) (1,538 ) 117 117 Total undistributed (losses) income $ (4,939 ) $ (4,939 ) $ (10,404 ) $ (10,404 ) $ 774 $ 774 Denominator for Basic and Diluted EPS: Common stock weighted average shares 11,026 11,026 10,923 10,923 10,765 10,765 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,097 2,097 2,106 2,106 2,137 2,137 Effect of dilutive securities Dilutive stock options — — 59 Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 13,123 13,029 12,961 (Loss) income from continuing operations per share: Common stock $ (0.14 ) $ (0.14 ) $ (0.57 ) $ (0.57 ) $ 0.18 $ 0.18 Class B common stock $ (0.13 ) $ (0.13 ) $ (0.51 ) $ (0.51 ) $ 0.16 $ 0.16 Income from discontinued operations per share: Common stock $ — $ — $ — $ — $ 0.12 $ 0.12 Class B common stock $ — $ — $ — $ — $ 0.11 $ 0.11 Net (loss) income per share: Common stock $ (0.14 ) $ (0.14 ) $ (0.57 ) $ (0.57 ) $ 0.30 $ 0.30 Class B common stock $ (0.13 ) $ (0.13 ) $ (0.51 ) $ (0.51 ) $ 0.27 $ 0.27 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for fiscal 2020, fiscal 2019 and fiscal 2018 were 1,120, 882 and 0, respectively. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
May 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Liabilities and Revenue Recognized | Contract Liabilities: Contract liabilities and revenue recognized were as follows ( in thousands ): June 1, 2019 Additions Revenue Recognized May 30, 2020 Contract liabilities (deferred revenue) $ 2,260 $ 2,083 $ (2,672 ) $ 1,671 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
May 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Intangible assets subject to amortization were as follows (in thousands) May 30, 2020 June 1, 2019 Gross Amounts: Trade Name $ 659 $ 659 Customer Relationships (1) 3,388 3,394 Non-compete Agreements 177 177 Technology 230 230 Total Gross Amounts $ 4,454 $ 4,460 Accumulated Amortization: Trade Name $ 659 $ 659 Customer Relationships 1,000 796 Non-compete Agreements 161 139 Technology 129 103 Total Accumulated Amortization $ 1,949 $ 1,697 Net Intangibles $ 2,505 $ 2,763 (1) Change from prior periods reflect impact of foreign currency translation. |
Schedule of the Amortization Expense for the Next Five Years | The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands) Fiscal Year Amortization Expense 2021 $ 245 2022 252 2023 245 2024 231 2025 219 Thereafter 1,313 Total amortization expense $ 2,505 |
Lease Obligations and Other C_2
Lease Obligations and Other Commitments (Tables) | 12 Months Ended |
May 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Gross Amount Assets and Liabilities Related to Operating and Financing Leases | The gross amounts of assets and liabilities related to both operating and financing leases at May 30, 2020 were as follows (in thousands) : Lease Type Amount Operating lease ROU asset $ 3,018 Financing lease ROU asset 401 Total Lease ROU asset $ 3,419 Operating lease liability current $ 1,329 Financing lease liability current 156 Total lease liability current $ 1,485 Operating lease liability non-current $ 1,778 Financing lease liability non-current 163 Total lease liability non-current $ 1,941 |
Components of Lease Costs | The components of lease costs were as follows (in thousands) : Lease Type Classification Fiscal Year Ended May 30, 2020 Consolidated operating lease expense Operating expenses $ 1,963 Consolidated financing lease amortization Operating expenses 62 Consolidated financing lease interest Interest expense 22 Consolidated financing lease expense 84 Net lease cost $ 2,047 |
Schedule Of Future Minimum Lease Payments under Operating and Financing Leases | Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years are as follows (in thousands) Fiscal Year Operating Leases Financing Leases Total 2021 $ 1,472 $ 181 $ 1,653 2022 711 151 862 2023 488 — 488 2024 347 — 347 2025 217 — 217 Thereafter 116 — 116 Total lease payments 3,351 332 3,683 Less imputed interest 244 13 257 Net minimum lease payments $ 3,107 $ 319 $ 3,426 The approximate future minimum lease payments under operating and financing leases at June 1, 2019 were as follows (in thousands) : Fiscal Year (1) Payments 2020 $ 1,586 2021 1,367 2022 509 2023 340 2024 289 Thereafter 234 (1) On June 2, 2019, the Company elected the modified retrospective method of transition to adopt the new lease standard Topic 842, which resulted in no restatement of prior period results. At June 1, 2019, prior to adoption of the new lease standard, operating lease obligations were not included as a liability on the balance sheet. Therefore, the operating lease obligations were included in the table for comparative purposes only and the total lease liability was not included as it is not applicable. |
Schedule of Weighted Average Remaining Lease Terms and Interest Rates of Leases | The weighted average remaining lease terms and interest rates of leases held by the Company as of May 30, 2020 were as follows: Lease Type Weighted Average Remaining Lease Term in Years Weighted Average Interest Rate Operating leases 3.4 4.6% Financing leases 1.9 4.6% |
Schedule of Cash Outflows of Leasing Activity | The cash outflows of the leasing activity of the Company as lessee for fiscal 2020 were as follows (in thousands) : Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 924 Operating cash flows from financing leases Operating activities 149 Finance cash flows from financing leases Financing activities 166 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax, Domestic and Foreign | (Loss) income from continuing operations before income taxes included the following components ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 United States $ (3,716 ) $ (9,971 ) $ (211 ) Foreign 2,502 3,660 4,071 (Loss) income before income taxes $ (1,214 ) $ (6,311 ) $ 3,860 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes for fiscal 2020, fiscal 2019 and fiscal 2018 consisted of the following ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Current: Federal $ — $ 33 $ — State — 3 (12 ) Foreign 616 652 1,220 Total current $ 616 $ 688 $ 1,208 Deferred: Federal $ (88 ) $ (104 ) $ 124 State — — — Foreign 96 433 202 Total deferred $ 8 $ 329 $ 326 Income tax provision $ 624 $ 1,017 $ 1,534 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for both fiscal 2020 and fiscal 2019 and 29.2% for fiscal 2018 and the reported income tax provision for fiscal 2020, fiscal 2019 and fiscal 2018 are summarized as follows: Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Federal statutory rate 21.0 % 21.0 % 29.2 % Effect of: State income taxes, net of federal tax benefit 6.6 5.4 0.3 Deemed repatriation tax — — (50.0 ) Foreign taxes at other rates (15.3 ) (4.1 ) (0.1 ) Permanent tax differences (41.1 ) (16.1 ) 6.7 Deferred remeasurement — — 45.1 Tax reserves — — 3.6 Additional U.S. tax on undistributed foreign earnings — — (12.5 ) Change in valuation allowance for deferred tax assets (29.8 ) (22.8 ) 15.1 Return to provision adjustments 1.4 (0.5 ) 0.1 Closure of foreign audits — — 2.2 Other 5.8 1.0 — Effective tax rate (51.4 )% (16.1 )% 39.7 % |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities reflect continuing operations as of May 30, 2020 and June 1, 2019. Significant components were as follows ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 Deferred tax assets: NOL carryforwards - foreign and domestic $ 7,834 $ 7,458 Inventory valuations 1,388 1,179 Goodwill 1,390 1,578 Foreign tax credits 1,782 1,782 Severance reserve 165 188 Foreign capital loss 1,167 1,129 Other 1,847 1,737 Subtotal $ 15,573 $ 15,051 Valuation allowance - foreign and domestic (12,322 ) (11,706 ) Net deferred tax assets after valuation allowance $ 3,251 $ 3,345 Deferred tax liabilities: Accelerated depreciation $ (2,944 ) $ (2,908 ) Tax on undistributed earnings (24 ) (141 ) Other 13 21 Subtotal $ (2,955 ) $ (3,028 ) Net deferred tax assets $ 296 $ 317 Supplemental disclosure of net deferred tax assets, excluding valuation allowance: Domestic $ 10,925 $ 10,194 Foreign $ 1,693 $ 1,829 Total $ 12,618 $ 12,023 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits (in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 Unrecognized tax benefits, beginning of period $ 130 $ 138 Currency translation adjustment (1 ) (8 ) Unrecognized tax benefits, end of period $ 129 $ 130 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
May 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | Operating results by segment are summarized in the following table ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 PMT Net Sales $ 118,480 $ 128,902 $ 128,296 Gross Profit 38,288 40,254 43,254 Canvys Net Sales $ 28,926 $ 27,968 $ 26,683 Gross Profit 9,313 9,085 8,410 Healthcare Net Sales $ 8,492 $ 9,782 $ 8,233 Gross Profit 2,072 2,396 3,418 |
Schedule of Reconciliation of Assets from Segment to Consolidated | A reconciliation of assets to the relevant consolidated amount is as follows ( in thousands May 30, 2020 June 1, 2019 Segment assets $ 89,231 $ 88,470 Cash and cash equivalents 30,535 42,019 Investments - current 16,000 8,000 Other current assets (1) 2,545 3,227 Net property, plant and equipment 10,267 10,772 Operating lease ROU asset 1,285 — Financing lease ROU asset 401 — Other assets - non-current deferred income taxes 456 529 Total assets $ 150,720 $ 153,017 (1) |
Schedule of Net Sales and Gross Profit by Geographic Region | Net sales and gross profit by geographic region are summarized in the following table ( in thousands Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Net Sales North America $ 65,259 $ 66,228 $ 67,662 Asia/Pacific 32,979 34,681 32,607 Europe 49,394 55,038 53,818 Latin America 8,308 10,653 9,123 Other (1) (42 ) 52 2 Total $ 155,898 $ 166,652 $ 163,212 Gross Profit North America $ 24,494 $ 24,776 $ 25,996 Asia/Pacific 10,629 10,905 10,794 Europe 15,483 17,425 18,071 Latin America 2,804 3,863 3,602 Other (1) (3,737 ) (5,234 ) (3,381 ) Total $ 49,673 $ 51,735 $ 55,082 (1) |
Schedule of Net Assets by Geographic Region | Net assets by geographic region are summarized in the following table (in thousands): Fiscal Year Ended May 30, 2020 June 1, 2019 June 2, 2018 Net Assets North America $ 81,533 $ 74,054 $ 77,857 Asia/Pacific 10,370 14,889 17,254 Europe 24,973 32,807 37,911 Latin America 1,784 2,007 2,159 Total $ 118,660 $ 123,757 $ 135,181 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Investments Measured at Fair Value on a Recurring Basis | Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of May 30, 2020 and June 1, 2019 were as follows ( in thousands Level 1 Level 2 Level 3 May 30, 2020 Time deposits/CDs $ 16,000 $ — $ — Total $ 16,000 $ — $ — June 1, 2019 Time deposits/CDs $ 8,000 $ — $ — Total $ 8,000 $ — $ — |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
May 30, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | The following table presents the valuation and qualifying account activity for fiscal years ended May 30, 2020, June 1, 2019 and June 2, 2018, ( in thousands Description Balance at beginning of period Charged to expense Deductions Balance at end of period Year ended May 30, 2020 Allowance for doubtful accounts $ 339 $ 349 (1) $ (354 ) (2) $ 334 Inventory provisions 4,568 1,013 (3) (188 ) (4) 5,393 Year ended June 1, 2019 Allowance for doubtful accounts $ 309 $ 402 (1) $ (372 ) (2) $ 339 Inventory provisions 4,027 1,076 (3) (535 ) (4) 4,568 Year ended June 2, 2018 Allowance for doubtful accounts $ 398 $ 223 (1) $ (312 ) (2) $ 309 Inventory provisions 3,456 773 (3) (202 ) (4) 4,027 Notes: (1) (2) (3) (4) |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
May 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Description First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2020 Net sales $ 40,653 $ 39,634 $ 38,249 $ 37,362 Gross profit 12,951 12,680 12,670 11,372 Income (loss) from continuing operations 157 (622 ) (93 ) (1,280 ) Net income (loss) 157 (622 ) (93 ) (1,280 ) Net income (loss) Common stock - basic $ 0.01 $ (0.05 ) $ (0.01 ) $ (0.10 ) Class B common stock - basic $ 0.01 $ (0.04 ) $ (0.01 ) $ (0.09 ) Common stock - diluted $ 0.01 $ (0.05 ) $ (0.01 ) $ (0.10 ) Class B common stock - diluted $ 0.01 $ (0.04 ) $ (0.01 ) $ (0.09 ) Fiscal 2019 Net sales $ 44,157 $ 41,314 $ 39,018 $ 42,163 Gross profit 13,953 12,971 12,299 12,512 Income (loss) from continuing operations 431 (304 ) (1,078 ) (6,377 ) (1) Net income (loss) 431 (304 ) (1,078 ) (6,377 ) (1) Net income (loss) Common stock - basic $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.50 ) Class B common stock - basic $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.44 ) Common stock - diluted $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.50 ) Class B common stock - diluted $ 0.03 $ (0.02 ) $ (0.08 ) $ (0.44 ) (1) |
Description of the Company - Ad
Description of the Company - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
May 30, 2020USD ($)Segment | Jun. 01, 2019USD ($) | Jun. 02, 2018 | |
Concentration Risk [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Number of reportable segments | Segment | 3 | ||
Supplier concentration accounts payable | $ | $ 17,372 | $ 16,943 | |
Supplier Concentration | |||
Concentration Risk [Line Items] | |||
Concentration (percent) | 16.00% | 11.00% | |
Supplier concentration accounts payable | $ | $ 1,300 | $ 2,200 | |
Accounts Receivable | Maximum | |||
Concentration Risk [Line Items] | |||
Concentration (percent) | 10.00% | 10.00% | |
LAM Research Corporation | |||
Concentration Risk [Line Items] | |||
Concentration (percent) | 11.00% | ||
Sales | Maximum | |||
Concentration Risk [Line Items] | |||
Concentration (percent) | 10.00% | 10.00% |
Significant Accounting Polici_4
Significant Accounting Policies and Disclosures - Additional Information (Details) | 12 Months Ended | ||
May 30, 2020USD ($)Number$ / sharesshares | Jun. 01, 2019USD ($)$ / sharesshares | Jun. 02, 2018USD ($)$ / sharesshares | |
Allowance for doubtful accounts | $ 334,000 | $ 339,000 | |
Foreign exchange (gain) loss | (15,000) | 84,000 | $ 224,000 |
Finished goods | 51,800,000 | 47,200,000 | |
Raw material | 3,600,000 | 4,200,000 | |
Work in progress | 2,100,000 | 1,800,000 | |
Inventory valuation reserves | 5,400,000 | 4,600,000 | |
Inventory provisions | 1,013,000 | 1,076,000 | 773,000 |
Investments - current | 16,000,000 | 8,000,000 | |
Proceeds from the sale of securities | 900,000 | ||
Gross realized gains and losses on sales | 200,000 | ||
Depreciation | 3,100,000 | 2,900,000 | 2,600,000 |
Construction in progress | 750,000 | 979,000 | |
Other non-current liabilities | 777,000 | 832,000 | |
Share-based compensation expense | $ 683,000 | 697,000 | 533,000 |
Exercised | shares | 10,249 | ||
Proceeds from share exercised | $ 100,000 | ||
Intrinsic value | $ 100,000 | $ 100,000 | $ 100,000 |
Weighted average fair value of stock option grants | $ / shares | $ 0.81 | $ 1.71 | $ 0.85 |
Total unrecognized compensation costs | $ 1,100,000 | ||
Total grant date fair value stock options vested | $ 300,000 | ||
Limit of cash dividends Class B common stock (percent) | 90.00% | ||
Common stock options anti-dilutive | shares | 1,120,000 | 882,000 | 0 |
Common Stock | |||
Common stock shares, authorized | shares | 17,000,000 | ||
Common Class B | |||
Common stock shares, authorized | shares | 3,000,000 | ||
Number of votes per share | Number | 10 | ||
Employees' 2011 Long-Term Incentive Compensation Plan | |||
Number of shares authorized | shares | 2,500,000 | ||
Number of shares for future issuance | shares | 885,000 | ||
Healthcare | |||
Construction in progress | $ 200,000 | ||
Maximum | |||
Services revenue recognized as percentage of aggregate revenue | 5.00% | ||
Foreign exchange (gain) loss | $ 100,000 | $ 100,000 | |
Period of recognition | 4 years | ||
Minimum | |||
Period of recognition | 2 years |
Significant Accounting Polici_5
Significant Accounting Policies and Disclosures - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Accounting Policies [Abstract] | ||
Land and improvements | $ 1,385 | $ 1,301 |
Buildings and improvements | 22,525 | 22,986 |
Computer, communications equipment and software | 10,775 | 9,943 |
Construction in progress | 750 | 979 |
Machinery and other equipment | 14,326 | 13,884 |
Property, plant and equipment, gross | 49,761 | 49,093 |
Accumulated depreciation | (32,087) | (29,982) |
Property, plant, and equipment, net | $ 17,674 | $ 19,111 |
Significant Accounting Polici_6
Significant Accounting Policies and Disclosures - Schedule of Property Plant and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
May 30, 2020 | |
Land Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 10 years |
Buildings and Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 10 years |
Buildings and Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 30 years |
Computer, Communications Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 3 years |
Computer, Communications Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 10 years |
Machinery and Other Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 3 years |
Machinery and Other Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 20 years |
Significant Accounting Polici_7
Significant Accounting Policies and Disclosures - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Accrued Liabilities: | ||
Compensation and payroll taxes | $ 3,469 | $ 2,846 |
Accrued severance | 650 | 520 |
Professional fees | 471 | 471 |
Deferred revenue | 1,671 | 2,260 |
Other accrued expenses | 4,063 | 5,176 |
Accrued Liabilities | $ 10,324 | $ 11,273 |
Significant Accounting Polici_8
Significant Accounting Policies and Disclosures - Schedule of Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 30, 2020 | Jun. 01, 2019 | |
Accounting Policies [Abstract] | ||
Warranty reserve, beginning | $ 295 | $ 149 |
Accruals for products sold | 201 | 185 |
Utilization | (30) | (39) |
Warranty reserve, ending | $ 466 | $ 295 |
Significant Accounting Polici_9
Significant Accounting Policies and Disclosures - Schedule of Share-Based Compensation, Stock Options, Activity (Details) - $ / shares | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||
Exercised | (10,249) | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||
Options outstanding at beginning | 1,364,000 | 1,195,000 | 1,073,000 |
Granted | 187,000 | 279,000 | 200,000 |
Exercised | (10,000) | (46,000) | (16,000) |
Forfeited | (58,000) | (11,000) | |
Cancelled | (114,000) | (6,000) | (51,000) |
Options outstanding at ending | 1,427,000 | 1,364,000 | 1,195,000 |
Options vested at ending | 931,000 | ||
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Options Outstanding at beginning | $ 9.08 | $ 8.89 | $ 9.38 |
Granted | 5.61 | 9.02 | 6.08 |
Exercised | 5.67 | 5.61 | 5.85 |
Forfeited | 8.10 | 8.05 | |
Cancelled | 6.87 | 5.03 | 9.36 |
Options outstanding at ending | 8.83 | $ 9.08 | $ 8.89 |
Options vested at ending | $ 9.78 | ||
Options, Weighted Average Remaining Contractual Term [Roll Forward] | |||
Options outstanding at ending | 5 years 7 months 6 days | ||
Options vested | 4 years 3 months 18 days |
Significant Accounting Polic_10
Significant Accounting Policies and Disclosures - Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Accounting Policies [Abstract] | |||
Expected volatility | 24.48% | 22.24% | 21.92% |
Risk-free interest rate | 1.91% | 2.82% | 2.22% |
Expected lives (years) | 6 years 6 months | 6 years 4 months 9 days | 6 years 3 months 21 days |
Annual cash dividend | $ 0.24 | $ 0.24 | $ 0.24 |
Significant Accounting Polic_11
Significant Accounting Policies and Disclosures - Schedule of Share-Based Compensation, Shares Outstanding Under Stock Option Plans, by Exercise Price Range (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | May 27, 2017 | |
Stock Options | ||||
Options, Outstanding, Number | 1,427 | 1,364 | 1,195 | 1,073 |
Options, Outstanding, Weighted Average Exercise Price | $ 8.83 | $ 9.08 | $ 8.89 | $ 9.38 |
Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 7 months 6 days | |||
Options, Vested, Number of Shares | 931 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 9.78 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 3 months 18 days | |||
$5.49 to $6.47 | ||||
Options, Outstanding, Number | 430 | |||
Options, Outstanding, Weighted Average Exercise Price | $ 5.76 | |||
Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 8 months 12 days | |||
Options, Vested, Number of Shares | 169 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 5.82 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 6 years 9 months 18 days | |||
$6.90 to $9.89 | ||||
Options, Outstanding, Number | 490 | |||
Options, Outstanding, Weighted Average Exercise Price | $ 8.49 | |||
Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 1 month 6 days | |||
Options, Vested, Number of Shares | 254 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 8.49 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 6 years 4 months 24 days | |||
$9.99 to $13.76 | ||||
Options, Outstanding, Number | 507 | |||
Options, Outstanding, Weighted Average Exercise Price | $ 11.75 | |||
Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 4 months 24 days | |||
Options, Vested, Number of Shares | 508 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 11.75 | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 4 months 24 days |
Significant Accounting Polic_12
Significant Accounting Policies and Disclosures - Schedule of Restricted Stock Award Transactions (Details) - shares shares in Thousands | 12 Months Ended | |
May 30, 2020 | Jun. 01, 2019 | |
Accounting Policies [Abstract] | ||
Unvested Restricted Shares, Beginning balance | 116 | 78 |
Granted | 73 | 69 |
Vested | (47) | (26) |
Canceled | (5) | |
Unvested Restricted Shares, Ending balance | 142 | 116 |
Significant Accounting Polic_13
Significant Accounting Policies and Disclosures - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
May 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Jun. 01, 2019 | Mar. 02, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | ||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
(Loss) income from continuing operations | $ (1,280) | $ (93) | $ (622) | $ 157 | $ (6,377) | [1] | $ (1,078) | $ (304) | $ 431 | $ (1,838) | $ (7,328) | $ 2,326 |
Undistributed losses - continuing operations, Basic | (4,939) | (10,404) | (722) | |||||||||
Income from discontinued operations | 1,496 | |||||||||||
Undistributed earnings (losses) - discontinued operations, Basic | (3,101) | (3,076) | (1,552) | |||||||||
Net (loss) income | $ (1,280) | $ (93) | $ (622) | $ 157 | $ (6,377) | [1] | $ (1,078) | $ (304) | $ 431 | (1,838) | (7,328) | 3,822 |
Undistributed (losses) income - continuing operations, Basic | (4,939) | (10,404) | 774 | |||||||||
Undistributed losses - continuing operations, Diluted | (4,939) | (10,404) | (722) | |||||||||
Undistributed earnings (losses) - discontinued operations, Diluted | (3,101) | (3,076) | (1,552) | |||||||||
Undistributed (losses) income - continuing operations, Diluted | (4,939) | (10,404) | 774 | |||||||||
Basic | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
(Loss) income from continuing operations | (1,838) | (7,328) | 2,326 | |||||||||
Income from discontinued operations | 1,496 | |||||||||||
Net (loss) income | (1,838) | (7,328) | 3,822 | |||||||||
Diluted | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
(Loss) income from continuing operations | (1,838) | (7,328) | 2,326 | |||||||||
Income from discontinued operations | 1,496 | |||||||||||
Net (loss) income | $ (1,838) | $ (7,328) | $ 3,822 | |||||||||
Denominator for basic and diluted Earnings Per Share: | ||||||||||||
Effect of dilutive securities dilutive stock options | 59 | |||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 13,123 | 13,029 | 12,961 | |||||||||
Common Class B | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Undistributed losses - continuing operations, Basic | $ (722) | $ (1,538) | $ (109) | |||||||||
Undistributed earnings (losses) - discontinued operations, Basic | (453) | (455) | (235) | |||||||||
Undistributed (losses) income - continuing operations, Basic | (722) | (1,538) | 117 | |||||||||
Undistributed losses - continuing operations, Diluted | (722) | (1,538) | (109) | |||||||||
Undistributed earnings (losses) - discontinued operations, Diluted | (453) | (455) | (234) | |||||||||
Undistributed (losses) income - continuing operations, Diluted | $ (722) | $ (1,538) | $ 117 | |||||||||
Denominator for basic and diluted Earnings Per Share: | ||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 2,097 | 2,106 | 2,137 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted | 2,097 | 2,106 | 2,137 | |||||||||
(Loss) income from continuing operations per share: | ||||||||||||
(Loss) income from continuing operations, Basic | $ (0.13) | $ (0.51) | $ 0.16 | |||||||||
(Loss) income from continuing operations, Diluted | (0.13) | (0.51) | 0.16 | |||||||||
Income from discontinued operations per share | ||||||||||||
Income from discontinued operations, Basic | 0.11 | |||||||||||
Income from discontinued operations, Diluted | 0.11 | |||||||||||
Net (loss) income per share: | ||||||||||||
Earnings Per Share, Basic | $ (0.09) | $ (0.01) | $ (0.04) | $ 0.01 | $ (0.44) | $ (0.08) | $ (0.02) | $ 0.03 | (0.13) | (0.51) | 0.27 | |
Earnings Per Share, Diluted | (0.09) | (0.01) | (0.04) | 0.01 | (0.44) | (0.08) | (0.02) | 0.03 | $ (0.13) | $ (0.51) | $ 0.27 | |
Common Class B | Basic | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | $ 453 | $ 455 | $ 462 | |||||||||
Common Class B | Diluted | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 453 | 455 | 462 | |||||||||
Continuing Operations | Common Class B | Basic | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 453 | 455 | 462 | |||||||||
Continuing Operations | Common Class B | Diluted | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 453 | 455 | 462 | |||||||||
Discontinued Operations | Common Class B | Basic | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 453 | 455 | 462 | |||||||||
Discontinued Operations | Common Class B | Diluted | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 453 | 455 | 462 | |||||||||
Common Stock | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Undistributed losses - continuing operations, Basic | (4,217) | (8,866) | (613) | |||||||||
Undistributed earnings (losses) - discontinued operations, Basic | (2,648) | (2,621) | (1,317) | |||||||||
Undistributed (losses) income - continuing operations, Basic | (4,217) | (8,866) | 657 | |||||||||
Undistributed losses - continuing operations, Diluted | (4,217) | (8,866) | (613) | |||||||||
Undistributed earnings (losses) - discontinued operations, Diluted | (2,648) | (2,621) | (1,318) | |||||||||
Undistributed (losses) income - continuing operations, Diluted | $ (4,217) | $ (8,866) | $ 657 | |||||||||
Denominator for basic and diluted Earnings Per Share: | ||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 11,026 | 10,923 | 10,765 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted | 11,026 | 10,923 | 10,765 | |||||||||
(Loss) income from continuing operations per share: | ||||||||||||
(Loss) income from continuing operations, Basic | $ (0.14) | $ (0.57) | $ 0.18 | |||||||||
(Loss) income from continuing operations, Diluted | (0.14) | (0.57) | 0.18 | |||||||||
Income from discontinued operations per share | ||||||||||||
Income from discontinued operations, Basic | 0.12 | |||||||||||
Income from discontinued operations, Diluted | 0.12 | |||||||||||
Net (loss) income per share: | ||||||||||||
Earnings Per Share, Basic | (0.10) | (0.01) | (0.05) | 0.01 | (0.50) | (0.08) | (0.02) | 0.03 | (0.14) | (0.57) | 0.30 | |
Earnings Per Share, Diluted | $ (0.10) | $ (0.01) | $ (0.05) | $ 0.01 | $ (0.50) | $ (0.08) | $ (0.02) | $ 0.03 | $ (0.14) | $ (0.57) | $ 0.30 | |
Common Stock | Basic | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | $ 2,648 | $ 2,621 | $ 2,586 | |||||||||
Common Stock | Diluted | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 2,648 | 2,621 | 2,586 | |||||||||
Common Stock | Continuing Operations | Basic | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 2,648 | 2,621 | 2,586 | |||||||||
Common Stock | Continuing Operations | Diluted | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 2,648 | 2,621 | 2,586 | |||||||||
Common Stock | Discontinued Operations | Basic | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | 2,648 | 2,621 | 2,586 | |||||||||
Common Stock | Discontinued Operations | Diluted | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Less dividends | $ 2,648 | $ 2,621 | $ 2,586 | |||||||||
[1] | Includes non-cash impairment of goodwill. Refer to Note 7 “Goodwill and Intangible Assets” of the notes to our consolidated financial statements. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 12 Months Ended |
May 30, 2020 | |
Maximum | |
Revenue Recognition [Line Items] | |
Services revenue recognized as percentage of aggregate revenue | 5.00% |
Term of product warranty | 3 years |
Minimum | |
Revenue Recognition [Line Items] | |
Term of product warranty | 1 year |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Liabilities and Revenue Recognized (Details) $ in Thousands | 12 Months Ended |
May 30, 2020USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract Liabilities (Deferred Revenue), Beginning Balance | $ 2,260 |
Contract Liabilities (Deferred Revenue), Additions | 2,083 |
Contract Liabilities (Deferred Revenue), Revenue Recognized | (2,672) |
Contract Liabilities (Deferred Revenue), Ending Balance | $ 1,671 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 02, 2017 | Sep. 12, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | ||
Income tax provision (benefit) | $ 1.5 | |
Professional fee | $ 0.5 | |
Income tax refund | $ 2 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - Lessor - LDL, LLC - Lee A. McIntyre III - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Total future minimum lease payments | $ 0.8 | ||
Lease term | 5 years | ||
Rental expense | $ 0.1 | $ 0.1 | $ 0.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 01, 2019 | May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Non cash goodwill impairment charge | $ 6,300,000 | $ 6,332,000 | ||
Impairment of intangible assets | $ 0 | 0 | $ 0 | |
Amortization expense | $ 300,000 | $ 300,000 | $ 400,000 | |
Weighted average number of years of amortization expense | 13 years 3 months 18 days |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | $ 4,454 | $ 4,460 | |
Total Accumulated Amortization | 1,949 | 1,697 | |
Net Intangibles | 2,505 | 2,763 | |
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | 659 | 659 | |
Total Accumulated Amortization | 659 | 659 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | [1] | 3,388 | 3,394 |
Total Accumulated Amortization | 1,000 | 796 | |
Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | 177 | 177 | |
Total Accumulated Amortization | 161 | 139 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | 230 | 230 | |
Total Accumulated Amortization | $ 129 | $ 103 | |
[1] | Change from prior periods reflect impact of foreign currency translation. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of the Amortization Expense for the Next Five Years (Details) $ in Thousands | May 30, 2020USD ($) |
Fiscal Year | |
2021 | $ 245 |
2022 | 252 |
2023 | 245 |
2024 | 231 |
2025 | 219 |
Thereafter | 1,313 |
Total amortization expense | $ 2,505 |
Lease Obligations and Other C_3
Lease Obligations and Other Commitments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating right-of-use assets | $ 3,018 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseRightOfUseAsset | ||
Financing right-of-use assets | $ 401 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseRightOfUseAsset | ||
Operating lease liabilities | $ 3,107 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseLiability | ||
Financing lease liabilities | $ 319 | ||
Finance Lease, Liability, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseLiability | ||
Rent expense | $ 1,800 | $ 1,700 | $ 1,800 |
Lease Obligations and Other C_4
Lease Obligations and Other Commitments - Schedule of Gross Amount Assets and Liabilities Related to Operating and Financing Leases (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Lease Type | ||
Operating lease ROU asset | $ 3,018 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseRightOfUseAsset | |
Financing lease ROU asset | $ 401 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseRightOfUseAsset | |
Total Lease ROU asset | $ 3,419 | |
Operating lease liability current | $ 1,329 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseLiabilityCurrent | |
Financing lease liability current | $ 156 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseLiabilityCurrent | |
Total lease liability current | $ 1,485 | |
Operating lease liability non-current | $ 1,778 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseLiabilityNoncurrent | |
Financing lease liability non-current | $ 163 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | rell:OperatingAndFinanceLeaseLiabilityNoncurrent | |
Total lease liability non-current | $ 1,941 |
Lease Obligations and Other C_5
Lease Obligations and Other Commitments - Components of Lease Costs (Details) $ in Thousands | 12 Months Ended |
May 30, 2020USD ($) | |
Lease Type | |
Consolidated operating lease expense | $ 1,963 |
Consolidated financing lease amortization | 62 |
Consolidated financing lease interest | 22 |
Consolidated financing lease expense | 84 |
Net lease cost | $ 2,047 |
Lease Obligations and Other C_6
Lease Obligations and Other Commitments - Schedule of Future Minimum Lease Payments Under Operating and Financing Leases (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Operating Leases | ||
2021 | $ 1,472 | |
2022 | 711 | |
2023 | 488 | |
2024 | 347 | |
2025 | 217 | |
Thereafter | 116 | |
Total lease payments | 3,351 | |
Less imputed interest | 244 | |
Net minimum lease payments | 3,107 | |
Finance Lease | ||
2021 | 181 | |
2022 | 151 | |
Total lease payments | 332 | |
Less imputed interest | 13 | |
Net minimum lease payments | 319 | |
Total | ||
2021 | 1,653 | |
2022 | 862 | |
2023 | 488 | |
2024 | 347 | |
2025 | 217 | |
Thereafter | 116 | |
Total lease payments | 3,683 | |
Less imputed interest | 257 | |
Net minimum lease payments | $ 3,426 | |
Operating Leases | ||
2020 | $ 1,586 | |
2021 | 1,367 | |
2022 | 509 | |
2023 | 340 | |
2024 | 289 | |
Thereafter | $ 234 |
Lease Obligations and Other C_7
Lease Obligations and Other Commitments - Schedule of Weighted Average Lease Terms and Interest Rates of Leases (Details) | May 30, 2020 |
Commitments And Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term in years, operating leases | 3 years 4 months 24 days |
Weighted average remaining lease term in years, financing leases | 1 year 10 months 24 days |
Weighted average interest rate, operating leases | 4.60% |
Weighted average interest rate, financing leases | 4.60% |
Lease Obligations and Other C_8
Lease Obligations and Other Commitments - Schedule of Cash Outflows of Leasing Activity (Details) $ in Thousands | 12 Months Ended |
May 30, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating cash flows from operating leases | $ 924 |
Operating cash flows from financing leases | 149 |
Finance cash flows from financing leases | $ 166 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Components Of Income Loss Before Income Taxes [Abstract] | |||
Loss from Continuing Operations before Income Taxes, United States | $ (3,716) | $ (9,971) | $ (211) |
Income from Continuing Operations before Income Taxes, Foreign | 2,502 | 3,660 | 4,071 |
(Loss) income from continuing operations before income taxes | $ (1,214) | $ (6,311) | $ 3,860 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Current: | |||
Federal | $ 33 | ||
State | 3 | $ (12) | |
Foreign | $ 616 | 652 | 1,220 |
Total current | 616 | 688 | 1,208 |
Deferred: | |||
Federal | (88) | (104) | 124 |
Foreign | 96 | 433 | 202 |
Total deferred | 8 | 329 | 326 |
Income tax provision | $ 624 | $ 1,017 | $ 1,534 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 29.20% |
Federal net operating loss | $ 3,700,000 | $ 3,100,000 | |
Foreign tax credits | 1,800,000 | 1,800,000 | |
Alternative minimum tax credit carryforward | 0 | ||
Deferred tax liability, undistributed earnings of foreign subsidiaries | 24,000 | 141,000 | |
Deferred tax valuation allowance | 12,322,000 | 11,706,000 | |
Change in valuation allowance | 11,700,000 | ||
Income taxes paid, net | 1,000,000 | 300,000 | $ 500,000 |
Liability for uncertain tax positions related to continuing operations, excluding interest and penalties | 100,000 | 100,000 | |
Liability for interest and penalties | 0 | 0 | |
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax liability, undistributed earnings of foreign subsidiaries | 100,000 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 3,800,000 | 3,900,000 | |
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 300,000 | $ 400,000 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 29.20% |
Effect of: | |||
State income taxes, net of federal tax benefit | 6.60% | 5.40% | 0.30% |
Deemed repatriation tax | (50.00%) | ||
Foreign taxes at other rates | (15.30%) | (4.10%) | (0.10%) |
Permanent tax differences | (41.10%) | (16.10%) | 6.70% |
Deferred remeasurement | 45.10% | ||
Tax reserves | 3.60% | ||
Additional U.S. tax on undistributed foreign earnings | (12.50%) | ||
Change in valuation allowance for deferred tax assets | (29.80%) | (22.80%) | 15.10% |
Return to provision adjustments | 1.40% | (0.50%) | 0.10% |
Closure of foreign audits | 2.20% | ||
Other | 5.80% | 1.00% | |
Effective tax rate | (51.40%) | (16.10%) | 39.70% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Deferred tax assets: | ||
NOL carryforwards - foreign and domestic | $ 7,834 | $ 7,458 |
Inventory valuations | 1,388 | 1,179 |
Goodwill | 1,390 | 1,578 |
Foreign tax credits | 1,782 | 1,782 |
Severance reserve | 165 | 188 |
Foreign capital loss | 1,167 | 1,129 |
Other | 1,847 | 1,737 |
Subtotal | 15,573 | 15,051 |
Valuation allowance - foreign and domestic | (12,322) | (11,706) |
Net deferred tax assets after valuation allowance | 3,251 | 3,345 |
Deferred tax liabilities: | ||
Accelerated depreciation | (2,944) | (2,908) |
Tax on undistributed earnings | (24) | (141) |
Other | 13 | 21 |
Subtotal | (2,955) | (3,028) |
Net deferred tax assets | 296 | 317 |
Supplemental disclosure of net deferred tax assets, excluding valuation allowance: | ||
Deferred tax assets - domestic | 10,925 | 10,194 |
Deferred tax assets - Foreign | 1,693 | 1,829 |
Total | $ 12,618 | $ 12,023 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 30, 2020 | Jun. 01, 2019 | |
Disclosure Income Taxes Schedule Of Unrecognized Tax Benefits Details [Abstract] | ||
Unrecognized tax benefits, beginning of period | $ 130 | $ 138 |
Currency translation adjustment | (1) | (8) |
Unrecognized tax benefits, end of period | $ 129 | $ 130 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - Employee Profit Sharing Plan - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of employees matched | 50.00% | ||
Percent of pay matched | 4.00% | ||
Matching contributions expense | $ 0.5 | $ 0.5 | $ 0.4 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
May 30, 2020USD ($)Segment | Jun. 01, 2019USD ($) | Jun. 02, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Capital expenditures | $ 1,776 | $ 3,874 | $ 5,239 |
Long-lived assets | 20,200 | 21,900 | |
Depreciation and amortization | 3,386 | 3,173 | 2,993 |
Foreign | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 600 | 900 | |
Depreciation and amortization | 300 | 200 | $ 300 |
Healthcare | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 400 | $ 1,200 |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Jun. 01, 2019 | Mar. 02, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 37,362 | $ 38,249 | $ 39,634 | $ 40,653 | $ 42,163 | $ 39,018 | $ 41,314 | $ 44,157 | $ 155,898 | $ 166,652 | $ 163,212 |
Gross Profit | $ 11,372 | $ 12,670 | $ 12,680 | $ 12,951 | $ 12,512 | $ 12,299 | $ 12,971 | $ 13,953 | 49,673 | 51,735 | 55,082 |
PMT | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 118,480 | 128,902 | 128,296 | ||||||||
Gross Profit | 38,288 | 40,254 | 43,254 | ||||||||
Canvys | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 28,926 | 27,968 | 26,683 | ||||||||
Gross Profit | 9,313 | 9,085 | 8,410 | ||||||||
Healthcare | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 8,492 | 9,782 | 8,233 | ||||||||
Gross Profit | $ 2,072 | $ 2,396 | $ 3,418 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 | |
Segment Reporting [Abstract] | |||
Segment assets | $ 89,231 | $ 88,470 | |
Cash and cash equivalents | 30,535 | 42,019 | |
Investments - current | 16,000 | 8,000 | |
Other current assets | [1] | 2,545 | 3,227 |
Net property, plant and equipment | 10,267 | 10,772 | |
Operating lease ROU asset | 1,285 | ||
Financing right-of-use assets | 401 | ||
Other assets - non-current deferred income taxes | 456 | 529 | |
Total assets | $ 150,720 | $ 153,017 | |
[1] | Other current assets include miscellaneous receivables and prepaid expenses. |
Segment and Geographic Inform_6
Segment and Geographic Information - Schedule of Net Sales and Gross Profit by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
May 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Jun. 01, 2019 | Mar. 02, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | $ 37,362 | $ 38,249 | $ 39,634 | $ 40,653 | $ 42,163 | $ 39,018 | $ 41,314 | $ 44,157 | $ 155,898 | $ 166,652 | $ 163,212 | |
Gross Profit | $ 11,372 | $ 12,670 | $ 12,680 | $ 12,951 | $ 12,512 | $ 12,299 | $ 12,971 | $ 13,953 | 49,673 | 51,735 | 55,082 | |
North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 65,259 | 66,228 | 67,662 | |||||||||
Gross Profit | 24,494 | 24,776 | 25,996 | |||||||||
Asia/Pacific | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 32,979 | 34,681 | 32,607 | |||||||||
Gross Profit | 10,629 | 10,905 | 10,794 | |||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 49,394 | 55,038 | 53,818 | |||||||||
Gross Profit | 15,483 | 17,425 | 18,071 | |||||||||
Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 8,308 | 10,653 | 9,123 | |||||||||
Gross Profit | 2,804 | 3,863 | 3,602 | |||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | [1] | (42) | 52 | 2 | ||||||||
Gross Profit | [1] | $ (3,737) | $ (5,234) | $ (3,381) | ||||||||
[1] | Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses. |
Segment and Geographic Inform_7
Segment and Geographic Information - Schedule of Net Assets by Geographic Region (Details) - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 |
Segment Reporting Information [Line Items] | |||
Net Assets | $ 118,660 | $ 123,757 | $ 135,181 |
North America | |||
Segment Reporting Information [Line Items] | |||
Net Assets | 81,533 | 74,054 | 77,857 |
Asia/Pacific | |||
Segment Reporting Information [Line Items] | |||
Net Assets | 10,370 | 14,889 | 17,254 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net Assets | 24,973 | 32,807 | 37,911 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net Assets | $ 1,784 | $ 2,007 | $ 2,159 |
Risks and Uncertainties - Addit
Risks and Uncertainties - Additional Information (Details) $ in Millions | 12 Months Ended |
May 30, 2020USD ($) | |
Risks And Uncertainties [Abstract] | |
Deferred employer social security tax payments | $ 0.2 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Investments Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Inputs, Level 1 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | May 30, 2020 | Jun. 01, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments measured at fair value | $ 16,000 | $ 8,000 |
Time Deposits or Certificate of Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments measured at fair value | $ 16,000 | $ 8,000 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 339 | $ 309 | $ 398 | |
Charged to expense | [1] | 349 | 402 | 223 |
Deductions | [2] | (354) | (372) | (312) |
Balance at end of period | 334 | 339 | 309 | |
Inventory Provisions | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 4,568 | 4,027 | 3,456 | |
Charged to expense | [3] | 1,013 | 1,076 | 773 |
Deductions | [4] | (188) | (535) | (202) |
Balance at end of period | $ 5,393 | $ 4,568 | $ 4,027 | |
[1] | Charges to bad debt expense. | |||
[2] | Uncollectible amounts written off, net of recoveries and foreign currency translation. | |||
[3] | Charges to cost of sales. Included in fiscal 2020 were inventory write-downs of $0.6 million for PMT, $0.1 million for Canvys and $0.3 million for Healthcare. | |||
[4] | Inventory disposed of or sold, net of foreign currency translation. |
Valuation and Qualifying Acco_4
Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts Disclosure (Parenthetical) (Details) $ in Millions | 12 Months Ended |
May 30, 2020USD ($) | |
PMT | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Inventory write-down | $ 0.6 |
Canvys | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Inventory write-down | 0.1 |
Healthcare | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Inventory write-down | $ 0.3 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
May 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Jun. 01, 2019 | Mar. 02, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | May 30, 2020 | Jun. 01, 2019 | Jun. 02, 2018 | ||
Net sales | $ 37,362 | $ 38,249 | $ 39,634 | $ 40,653 | $ 42,163 | $ 39,018 | $ 41,314 | $ 44,157 | $ 155,898 | $ 166,652 | $ 163,212 | |
Gross profit | 11,372 | 12,670 | 12,680 | 12,951 | 12,512 | 12,299 | 12,971 | 13,953 | 49,673 | 51,735 | 55,082 | |
(Loss) income from continuing operations | (1,280) | (93) | (622) | 157 | (6,377) | [1] | (1,078) | (304) | 431 | (1,838) | (7,328) | 2,326 |
Net (loss) income | $ (1,280) | $ (93) | $ (622) | $ 157 | $ (6,377) | [1] | $ (1,078) | $ (304) | $ 431 | $ (1,838) | $ (7,328) | $ 3,822 |
Common Stock | ||||||||||||
Net income (loss) | ||||||||||||
Earnings Per Share, Basic | $ (0.10) | $ (0.01) | $ (0.05) | $ 0.01 | $ (0.50) | $ (0.08) | $ (0.02) | $ 0.03 | $ (0.14) | $ (0.57) | $ 0.30 | |
Earnings Per Share, Diluted | (0.10) | (0.01) | (0.05) | 0.01 | (0.50) | (0.08) | (0.02) | 0.03 | (0.14) | (0.57) | 0.30 | |
Common Class B | ||||||||||||
Net income (loss) | ||||||||||||
Earnings Per Share, Basic | (0.09) | (0.01) | (0.04) | 0.01 | (0.44) | (0.08) | (0.02) | 0.03 | (0.13) | (0.51) | 0.27 | |
Earnings Per Share, Diluted | $ (0.09) | $ (0.01) | $ (0.04) | $ 0.01 | $ (0.44) | $ (0.08) | $ (0.02) | $ 0.03 | $ (0.13) | $ (0.51) | $ 0.27 | |
[1] | Includes non-cash impairment of goodwill. Refer to Note 7 “Goodwill and Intangible Assets” of the notes to our consolidated financial statements. |