Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Aug. 26, 2014 | Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'PERICOM SEMICONDUCTOR CORP | ' | ' |
Entity Central Index Key | '0001001426 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--06-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 21,946,000 | ' |
Entity Public Float | ' | ' | $177,118,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $33,020 | $30,844 |
Short-term investments in marketable securities | 86,104 | 86,839 |
Accounts receivable: | ' | ' |
Trade (net of reserves and allowances of $2,461 and $2,511) | 24,036 | 22,105 |
Other receivables | 2,878 | 3,181 |
Inventories | 12,288 | 14,844 |
Prepaid expenses and other current assets | 2,458 | 2,705 |
Deferred income taxes | 726 | 585 |
Total current assets | 161,510 | 161,103 |
Property, plant and equipment - net | 58,537 | 60,959 |
Investments in unconsolidated affiliates | 2,445 | 2,525 |
Deferred income taxes - non current | 2,460 | 3,411 |
Intangible assets (net of accumulated amortization of $12,849 and $9,836) | 7,009 | 9,944 |
Other assets | 8,118 | 8,625 |
Total assets | 240,079 | 246,567 |
Current liabilities: | ' | ' |
Accounts payable | 8,927 | 12,184 |
Accrued liabilities | 9,934 | 8,731 |
Total current liabilities | 18,861 | 20,915 |
Industrial development subsidy | 6,354 | 7,263 |
Deferred tax liabilities | 5,460 | 5,798 |
Noncurrent tax liabilities | 1,041 | 2,788 |
Other long-term liabilities | 871 | 912 |
Total liabilities | 32,587 | 37,676 |
Commitments and contingencies (Note 12) | ' | ' |
Shareholders' equity: | ' | ' |
Common stock and paid in capital - no par value, 60,000,000 shares authorized; shares issued and outstanding: at June 28, 2014, 21,974,000; at June 29, 2013, 22,813,000 | 113,118 | 119,591 |
Retained earnings | 83,204 | 79,080 |
Accumulated other comprehensive income, net of tax | 11,170 | 10,220 |
Total shareholders' equity | 207,492 | 208,891 |
Total liabilities and shareholders' equity | $240,079 | $246,567 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Balance Sheets [Abstract] | ' | ' |
Net of reserves and allowances of trade receivables | $2,461 | $2,511 |
Accumulated amortization on intangible assets | $12,849 | $9,836 |
Common stock and paid in capital, par value (in dollars per share) | ' | ' |
Common stock and paid in capital, shares authorized | 60,000,000 | 60,000,000 |
Common stock and paid in capital, shares issued | 21,974,000 | 22,813,000 |
Common stock and paid in capital, shares outstanding | 21,974,000 | 22,813,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Statements Of Operations [Abstract] | ' | ' | ' |
Net revenues | $128,068 | $129,255 | $137,135 |
Cost of revenues | 76,983 | 81,388 | 88,484 |
Gross profit | 51,085 | 47,867 | 48,651 |
Operating expenses: | ' | ' | ' |
Research and development | 19,795 | 21,017 | 21,722 |
Selling, general and administrative | 30,320 | 29,581 | 29,648 |
Goodwill impairment | ' | 16,899 | ' |
Total operating expenses | 50,115 | 67,497 | 51,370 |
Income (loss) from operations | 970 | -19,630 | -2,719 |
Interest and other income, net | 2,792 | 4,043 | 3,684 |
Interest expense | ' | -19 | -70 |
Income (loss) before income taxes | 3,762 | -15,606 | 895 |
Income tax expense (benefit) | -230 | 6,223 | 3,097 |
Net income (loss) from consolidated companies | 3,992 | -21,829 | -2,202 |
Equity in net income of unconsolidated affiliates | 132 | 215 | 134 |
Net income (loss) | $4,124 | ($21,614) | ($2,068) |
Basic income (loss) per share | $0.18 | ($0.93) | ($0.09) |
Diluted income (loss) per share | $0.18 | ($0.93) | ($0.09) |
Shares used in computing basic earnings (loss) per share | 22,594 | 23,251 | 24,094 |
Shares used in computing diluted earnings (loss) per share | 22,797 | 23,251 | 24,094 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Net income (loss) | $4,124 | ($21,614) | ($2,068) |
Other comprehensive income: | ' | ' | ' |
Change in unrealized gain (loss) on securities available for sale, net | 925 | -1,005 | -25 |
Foreign currency translation adjustment | 394 | 1,260 | 635 |
Tax benefit (provision) related to other comprehensive income | -369 | 386 | -34 |
Other comprehensive income, net of tax | 950 | 641 | 576 |
Comprehensive income (loss) | $5,074 | ($20,973) | ($1,492) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net |
In Thousands, except Share data | ||||
Balance at Jul. 02, 2011 | $242,725 | $130,960 | $102,762 | $9,003 |
Balance (Shares) at Jul. 02, 2011 | ' | 24,716 | ' | ' |
Net income | -2,068 | ' | -2,068 | ' |
Change in unrealized gain on investments, net | -59 | ' | ' | -59 |
Currency translation adjustment | 635 | ' | ' | 635 |
Issuance of common stock under employee stock plans | 918 | 918 | ' | ' |
Issuance of common stock under employee stock plans (Shares) | ' | 332 | ' | ' |
Share-based compensation expense | 3,723 | 3,723 | ' | ' |
Tax expense resulting from share-based transactions | -612 | -612 | ' | ' |
Repurchase and retirement of common stock | -11,627 | -11,627 | ' | ' |
Repurchase and retirement of common stock (Shares) | ' | -1,483 | ' | ' |
Balance at Jun. 30, 2012 | 233,635 | 123,362 | 100,694 | 9,579 |
Balance (Shares) at Jun. 30, 2012 | ' | 23,565 | ' | ' |
Net income | -21,614 | ' | -21,614 | ' |
Change in unrealized gain on investments, net | -619 | ' | ' | -619 |
Currency translation adjustment | 1,260 | ' | ' | 1,260 |
Issuance of common stock under employee stock plans | 797 | 797 | ' | ' |
Issuance of common stock under employee stock plans (Shares) | ' | 348 | ' | ' |
Share-based compensation expense | 3,339 | 3,339 | ' | ' |
Tax expense resulting from share-based transactions | -134 | -134 | ' | ' |
Repurchase and retirement of common stock | -7,773 | -7,773 | ' | ' |
Repurchase and retirement of common stock (Shares) | ' | -1,100 | ' | ' |
Balance at Jun. 29, 2013 | 208,891 | 119,591 | 79,080 | 10,220 |
Balance (Shares) at Jun. 29, 2013 | ' | 22,813 | ' | ' |
Net income | 4,124 | ' | 4,124 | ' |
Change in unrealized gain on investments, net | 556 | ' | ' | 556 |
Currency translation adjustment | 394 | ' | ' | 394 |
Issuance of common stock under employee stock plans | 2,344 | 2,344 | ' | ' |
Issuance of common stock under employee stock plans (Shares) | ' | 515 | ' | ' |
Share-based compensation expense | 2,777 | 2,777 | ' | ' |
Tax expense resulting from share-based transactions | -278 | -278 | ' | ' |
Repurchase and retirement of common stock | -11,316 | -11,316 | ' | ' |
Repurchase and retirement of common stock (Shares) | ' | -1,354 | ' | ' |
Balance at Jun. 28, 2014 | $207,492 | $113,118 | $83,204 | $11,170 |
Balance (Shares) at Jun. 28, 2014 | ' | 21,974 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income (loss) | $4,124 | ($21,614) | ($2,068) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 10,023 | 11,208 | 11,898 |
Share-based compensation | 2,792 | 3,340 | 3,736 |
Tax benefit resulting from share-based transactions | 700 | 492 | 512 |
Excess tax benefit resulting from share-based transactions | -41 | -4 | -4 |
Write-off of notes receivable | ' | ' | 856 |
Write-off of government subsidy receivable | 843 | ' | ' |
Gain on sale of investments | -179 | -1,013 | -673 |
Write-off of property and equipment | 343 | 475 | 354 |
Goodwill impairment | ' | 16,899 | ' |
Equity in net income of unconsolidated affiliates | -132 | -215 | -134 |
Deferred taxes | 90 | -182 | 1,753 |
Changes in assets and liabilities net of effects of entities acquired: | ' | ' | ' |
Accounts receivable | -2,229 | 2,475 | 6,289 |
Inventories | 2,602 | 1,884 | 5,008 |
Prepaid expenses and other current assets | 245 | 188 | -883 |
Other assets | 338 | 151 | 676 |
Accounts payable | -3,404 | -2,768 | 2,688 |
Accrued liabilities | 349 | -956 | -2,735 |
Other long-term liabilities | -1,917 | 654 | 453 |
Net cash provided by operating activities | 14,547 | 11,014 | 27,726 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property plant and equipment | -4,950 | -13,231 | -4,324 |
Acquisition of PTI, net of cash acquired | ' | ' | -8,077 |
Purchase of available-for-sale investments | -58,359 | -92,993 | -97,726 |
Maturities and sales of available-for-sale investments | 59,799 | 109,525 | 91,981 |
Change in restricted cash balance | ' | ' | 2,947 |
Net cash provided by (used in) investing activities | -3,510 | 3,301 | -15,199 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from common stock issuance under stock plans | 2,344 | 797 | 918 |
Excess tax benefit resulting from share-based transactions | 41 | 4 | 4 |
Proceeds from short-term debt | 514 | 3,992 | 10,744 |
Payments on short-term debt | -514 | -5,398 | -17,635 |
Repurchase of common stock | -11,316 | -7,773 | -11,627 |
Net cash used in financing activities | -8,931 | -8,378 | -17,596 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 70 | 624 | -671 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,176 | 6,561 | -5,740 |
CASH AND CASH EQUIVALENTS: | ' | ' | ' |
Beginning of year | 30,844 | 24,283 | 30,023 |
End of year | 33,020 | 30,844 | 24,283 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' | ' |
Cash paid during the period for income taxes | 1,378 | 4,467 | 1,722 |
Cash paid during the period for interest | ' | $21 | $75 |
Business_and_Significant_Accou
Business and Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||
Business and Significant Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||||||||||
1. BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||||||||
Pericom Semiconductor Corporation (the “Company” or “Pericom”) was incorporated in June 1990 in the state of California. The Company designs, manufactures and markets high performance digital, analog and mixed-signal integrated circuits (“ICs”) and frequency control products (“FCPs”) used for the transfer, routing, and timing of digital and analog signals within and between computer, networking, datacom and telecom systems. | ||||||||||||||||||||||||||||
USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||
BASIS OF PRESENTATION — These consolidated financial statements include the accounts of Pericom Semiconductor Corporation and its wholly owned subsidiaries, Pericom Global Limited (“PGL”), PSE Technology Corporation (“PSE-TW”), and Pericom Asia Limited (“PAL”). PGL has two wholly-owned subsidiaries, Pericom International Limited (“PIL”) and Pericom Semiconductor (HK) Limited (“PHK”). In addition, PAL has three subsidiaries, PSE Technology (Shandong) Corporation (“PSE-SD”), Pericom Technology Yangzhou Corporation (“PSC-YZ”) for the Jinan, China and Yangzhou, China operations, respectively, and Pericom Technology Inc. (“PTI”). All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||||||||||||||||
The Company has significant operations in the People’s Republic of China (“PRC”), where certain political, economic and currency restrictions may apply. Insofar as can be reasonably determined, and based on our experience to date, the effect of foreign exchange restrictions upon the consolidated financial position and results of the Company are not material. | ||||||||||||||||||||||||||||
FISCAL PERIOD — For purposes of reporting the financial results, the Company’s fiscal years end on the Saturday closest to the end of June. The year ended July 3, 2010 contains 53 weeks, whereas all other fiscal years presented herein include 52 weeks. | ||||||||||||||||||||||||||||
CASH EQUIVALENTS — The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less when purchased to be cash equivalents. The recorded carrying amounts of the Company’s cash and cash equivalents approximate their fair value. | ||||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS IN MARKETABLE SECURITIES — The Company’s policy is to invest in instruments with investment grade credit ratings. The Company classifies its short-term investments as “available-for-sale” securities and the Company bases the cost of securities sold using the specific identification method. The Company accounts for unrealized gains and losses on its available-for-sale securities as a separate component of shareholders’ equity in the consolidated balance sheets in the period in which the gain or loss occurs. In prior years, the Company classified portions of its available-for-sale securities as current or noncurrent based on each security’s attributes. Effective as of June 28, 2014, all available-for-sale securities are classified as short-term investments, as we consider the entire investment portfolio to be saleable if cash is needed or if better investment opportunities arise. Prior period balance sheets have been reclassed accordingly to conform to the current year presentation. This reclass had no effect on previously reported net income (loss), comprehensive income (loss), shareholders’ equity or cash flows. | ||||||||||||||||||||||||||||
As of June 28, 2014 and June 29, 2013, investments, and any difference between the fair market value and the underlying amortized cost of such investments, consisted of the following: | ||||||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||||||
As of June 28, 2014 | ||||||||||||||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Net | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Unrealized | Value | ||||||||||||||||||||||||
Gains | ||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||||||
Time deposits | $ | 17,693 | $ | — | $ | — | $ | — | $ | 17,693 | ||||||||||||||||||
Repurchase agreements | 500 | — | — | — | 500 | |||||||||||||||||||||||
US Treasury securities | 526 | 1 | — | 1 | 527 | |||||||||||||||||||||||
National government and agency securities | 4,962 | 95 | (2 | ) | 93 | 5,055 | ||||||||||||||||||||||
State and municipal bond obligations | 7,090 | 63 | (4 | ) | 59 | 7,149 | ||||||||||||||||||||||
Corporate bonds and notes | 42,675 | 249 | (143 | ) | 106 | 42,781 | ||||||||||||||||||||||
Asset backed securities | 7,592 | 28 | (6 | ) | 22 | 7,614 | ||||||||||||||||||||||
Mortgage backed securities | 4,766 | 26 | (7 | ) | 19 | 4,785 | ||||||||||||||||||||||
Total | $ | 85,804 | $ | 462 | $ | (162 | ) | $ | 300 | $ | 86,104 | |||||||||||||||||
As of June 29, 2013 | ||||||||||||||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Net | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Unrealized | Value | ||||||||||||||||||||||||
Gains | ||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||||||
Time deposits | $ | 12,087 | $ | — | $ | — | $ | — | $ | 12,087 | ||||||||||||||||||
Repurchase agreements | 1,997 | — | — | — | 1,997 | |||||||||||||||||||||||
National government and agency securities | 4,348 | 106 | (3 | ) | 103 | 4,451 | ||||||||||||||||||||||
State and municipal bond obligations | 3,776 | 9 | (27 | ) | (18 | ) | 3,758 | |||||||||||||||||||||
Corporate bonds and notes | 48,438 | 71 | (716 | ) | (645 | ) | 47,793 | |||||||||||||||||||||
Asset backed securities | 10,063 | 19 | (60 | ) | (41 | ) | 10,022 | |||||||||||||||||||||
Mortgage backed securities | 6,755 | 26 | (50 | ) | (24 | ) | 6,731 | |||||||||||||||||||||
Total | $ | 87,464 | $ | 231 | $ | (856 | ) | $ | (625 | ) | $ | 86,839 | ||||||||||||||||
The following tables show the gross unrealized losses and fair values of the Company’s investments that have unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||||||
Continuous Unrealized Losses at June 28, 2014 | ||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
National government and agency securities | $ | 282 | $ | 1 | $ | 91 | $ | 1 | $ | 373 | $ | 2 | ||||||||||||||||
State and municipal bond obligations | — | — | 695 | 4 | 695 | 4 | ||||||||||||||||||||||
Corporate bonds and notes | 3,901 | 11 | 5,801 | 132 | 9,702 | 143 | ||||||||||||||||||||||
Asset backed securities | 895 | 1 | 1,195 | 5 | 2,090 | 6 | ||||||||||||||||||||||
Mortgage backed securities | 1,083 | 3 | 504 | 4 | 1,587 | 7 | ||||||||||||||||||||||
$ | 6,161 | $ | 16 | $ | 8,286 | $ | 146 | $ | 14,447 | $ | 162 | |||||||||||||||||
Continuous Unrealized Losses at June 29, 2013 | ||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
National government and agency securities | $ | 154 | $ | 3 | $ | — | $ | — | $ | 154 | $ | 3 | ||||||||||||||||
State and municipal bond obligations | 2,364 | 27 | — | — | 2,364 | 27 | ||||||||||||||||||||||
Corporate bonds and notes | 36,394 | 626 | 4,298 | 90 | 40,692 | 716 | ||||||||||||||||||||||
Asset backed securities | 5,881 | 51 | 546 | 9 | 6,427 | 60 | ||||||||||||||||||||||
Mortgage backed securities | 3,616 | 13 | 216 | 37 | 3,831 | 50 | ||||||||||||||||||||||
$ | 48,409 | $ | 720 | $ | 5,060 | $ | 136 | $ | 53,469 | $ | 856 | |||||||||||||||||
The unrealized losses are of a temporary nature due to the Company’s intent and ability to hold the investments until maturity or until the cost is recoverable. The unrealized losses are primarily due to fluctuations in market interest rates. The Company reports unrealized gains and losses on its “available-for-sale” securities in accumulated other comprehensive income, net of tax, in shareholders’ equity. | ||||||||||||||||||||||||||||
The Company records gains or losses realized on sales of available-for-sale securities in interest and other income, net on its consolidated statements of operations. The cost of securities sold is based on the specific identification of the security and its amortized cost. In fiscal 2014, 2013 and 2012, realized gains on available-for-sale securities were $179,000, $1.0 million and $673,000, respectively. | ||||||||||||||||||||||||||||
The following table lists the fair value of the Company’s short-term investments by length of time to maturity as of June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
One year or less | $ | 24,963 | $ | 19,853 | ||||||||||||||||||||||||
Between one and three years | 24,242 | 29,525 | ||||||||||||||||||||||||||
Greater than three years | 30,449 | 29,244 | ||||||||||||||||||||||||||
Multiple dates | 6,450 | 8,217 | ||||||||||||||||||||||||||
$ | 86,104 | $ | 86,839 | |||||||||||||||||||||||||
Securities with maturities over multiple dates are mortgage-backed securities (“MBS”) or asset-backed securities (“ABS”) featuring periodic principle paydowns through 2041. | ||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS — The Company has determined that the amounts reported for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short maturities and/or variable interest rates. Available-for-sale investments are reported at their fair value based on quoted market prices. A further discussion of the fair value of financial instruments is detailed in Note 16 to the Consolidated Financial Statements contained in this report on Form 10-K. | ||||||||||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company computes its allowance for doubtful accounts using a combination of factors. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations to the Company, the Company records a specific allowance against amounts due to the Company, reducing the net recognized receivable to the amount the Company reasonably believes it will collect. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and its historical experience. | ||||||||||||||||||||||||||||
INVENTORIES — For IC and certain FCP products, the Company records inventories at the lower of standard cost (which generally approximates actual cost on a first-in, first-out basis) or market value. The carrying value of inventory is adjusted for excess and obsolete inventory based on inventory age, shipment history and the forecast | ||||||||||||||||||||||||||||
of demand over a specific future period. The semiconductor markets that the Company serves are volatile and actual results may vary from forecast or other assumptions, potentially affecting the Company’s assessment of excess and obsolete inventory, resulting in material effects on gross margin. | ||||||||||||||||||||||||||||
The inventories of the remainder of the FCP products are recorded at the lower of weighted-average cost, which approximates actual cost, or market value. Weighted average cost is comprised of average manufacturing costs weighted by the volume produced in each production run. Market value is defined as the net realizable value for finished goods, and replacement cost for raw materials and work in process. | ||||||||||||||||||||||||||||
Raw material inventory is considered slow moving and is fully reserved if it has not moved in 365 days. For assembled devices, the inventory is disaggregated by part number. The quantities on hand in each part number category are compared to the quantity that was shipped in the previous twelve months, the quantity in backlog and to the quantity expected to ship in the next twelve months. A reserve is recorded to the extent the value of each quantity on hand is in excess of the lesser of the three comparisons. The Company also periodically reviews inventory for obsolescence beyond the established formulaic tests. The Company believes this method of evaluating inventory fairly represents market conditions. | ||||||||||||||||||||||||||||
The Company considers the reserved material to be available for sale. The reserved inventory is not revalued should market conditions change or if a market develops for the obsolete inventory. In the past, the Company has sold obsolete inventory that was previously fully reserved. | ||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT — The Company states its property, plant and equipment at cost. Cost includes purchase cost, applicable taxes, freight, installation costs and interest incurred in the acquisition of any asset that requires a period of time to make it ready for use. We compute depreciation and amortization using the straight-line method over estimated useful lives of three to eight years except for buildings, which we depreciate using the straight-line method over estimated useful lives of twenty to forty years. We depreciate leasehold improvements over the shorter of the lease term or the improvement’s estimated useful life. In addition, we capitalize the cost of major replacements, improvements and betterments, while we expense normal maintenance and repair. | ||||||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES — The Company holds or has held ownership interests in various investees. Our ownership in these affiliates has varied from 20% to approximately 49%. We classify these investments as investments in unconsolidated affiliates in our consolidated balance sheets. The Company accounts for long-term investments in companies in which it has an ownership share larger than 20% and in which it has significant influence over the activities of the investee using the equity method. We recognize our proportionate share of each investee’s income or loss in the period in which the investee reports the income or loss. We eliminate all intercompany transactions in accounting for our equity method investments. | ||||||||||||||||||||||||||||
OTHER ASSETS — The Company’s other assets classification includes investments in privately held companies in which we have less than a 20% interest, land use rights and deposits. The Company reports its investments in privately held companies at the lower of cost or market. The Company’s management reviews the investment in these companies for losses that may be other than temporary on a quarterly basis. Should management determine that such an impairment exists, the Company will reduce the value of the Company’s investment in the period in which management discovers the impairment and charge the impairment to the consolidated statement of operations. The Company’s management performed such an evaluation as of June 28, 2014 and determined that no impairment existed. Two of the Company’s subsidiaries, PSE-SD and PTI, hold land use rights that were acquired from the local Chinese government which entitle the Company to use the land for 15 to 50 years. The cost of the land use rights is recorded as a component of other assets and is being depreciated over 15 to 50 years, the useful life of the rights. | ||||||||||||||||||||||||||||
LONG-LIVED ASSETS — The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the sum of the | ||||||||||||||||||||||||||||
undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount, the Company will recognize an impairment loss as the amount of the difference between carrying value and fair value as determined by discounted cash flows. | ||||||||||||||||||||||||||||
INCOME TAXES — The Company accounts for income taxes following the Financial Accounting Standards Board’s (“FASB”) statements and related interpretations, which require an asset and liability approach to recording deferred taxes. We record a valuation allowance to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company’s income tax calculations are based on application of the respective U.S. federal, state or foreign tax laws. The Company’s tax filings, however, are subject to audit by the respective tax authorities. Accordingly, the Company recognizes tax liabilities based on its estimates of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases are recorded as income tax expense or benefit in the consolidated statements of operations. | ||||||||||||||||||||||||||||
The Internal Revenue Service completed their examination of the Company’s federal tax returns for fiscal 2010 and 2011 during fiscal 2014, and additional tax payments of approximately $208,000 were made in fiscal 2014, including interest charges for the two years that were examined. The Company had previously accrued for this exposure. | ||||||||||||||||||||||||||||
FOREIGN CURRENCY TRANSLATION — The functional currency of the Company’s foreign subsidiaries is the local currency. In consolidation, the Company translates assets and liabilities at exchange rates in effect at the balance sheet date. The Company translates revenue and expense accounts at average exchange rates during the period in which the transaction takes place. Net gains or (losses) from foreign currency translation of assets and liabilities of $394,000 and $1.3 million in fiscal 2014 and 2013, respectively, are included in the cumulative translation adjustment component of accumulated other comprehensive income, net of tax, a component of shareholders’ equity. Net gains or (losses) arising from transactions denominated in currencies other than the functional currency were $(11,000), $562,000 and $334,000 in fiscal 2014, 2013 and 2012 respectively, and are included in interest and other income, net. | ||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION — The Company recognizes employee share-based compensation through measurement at grant date based on the fair value of the award, and the fair value is recognized as an expense over the employee’s requisite service period. See Note 14 for further discussion of share-based compensation. | ||||||||||||||||||||||||||||
REVENUE RECOGNITION — The Company recognizes revenue from the sale of its products when: | ||||||||||||||||||||||||||||
• | Persuasive evidence of an arrangement exists; | |||||||||||||||||||||||||||
• | Delivery has occurred; | |||||||||||||||||||||||||||
• | The sales price is fixed or determinable; and | |||||||||||||||||||||||||||
• | Collectability is reasonably assured. | |||||||||||||||||||||||||||
Generally, the Company meets these conditions upon shipment because, in most cases, title and risk of loss passes to the customer at that time. In addition, the Company estimates and records provisions for future returns and other charges against revenue at the time of shipment consistent with the terms of sale. | ||||||||||||||||||||||||||||
The Company sells products to large, domestic distributors at the price listed in its price book for that distributor. At the time of sale the Company records a sales reserve for ship from stock and debits (“SSD”s), stock rotations, return material authorizations (“RMA”s), authorized price protection programs, and any special programs approved by management. The Company offsets the sales reserve against revenues, producing the net revenue amount reported in the consolidated statements of operations. | ||||||||||||||||||||||||||||
The market price for the Company’s products can be significantly different from the book price at which the Company sold the product to the distributor. When the market price, as compared to the Company’s original book price, of a particular distributor’s sales opportunity to their own customer would result in low or negative margins for our distributor, the Company negotiates a ship from stock and debit with the distributor. Management analyzes the Company’s SSD history to develop current SSD rates that form the basis of the SSD sales reserve recorded each period. The Company obtains the historical SSD rates from its internal records. | ||||||||||||||||||||||||||||
The Company’s distribution agreements provide for semi-annual stock rotation privileges of typically 10% of net sales for the previous six-month period. The contractual stock rotation applies only to shipments at the Company’s listed book price. Asian distributors typically buy the Company’s product at less than standard price and therefore are not entitled to the 10% stock rotation privilege. In order to provide for routine inventory refreshing, for the Company’s benefit as well as theirs, the Company grants Asian distributors stock rotation privileges between 1% and 10% even though the Company is not contractually obligated to do so. Each month the Company adjusts the sales reserve for the estimated stock rotation privilege anticipated to be utilized by the distributors. | ||||||||||||||||||||||||||||
From time to time, customers may request to return parts for various reasons including the customers’ belief that the parts are not performing to specification. Many such return requests are the result of customers incorrectly using the parts, not because the parts are defective. Management reviews these requests and, if approved, the Company prepares a RMA. The Company is only obligated to accept defective parts returns. To accommodate the Company’s customers, the Company may approve particular return requests, even though it is not obligated to do so. Each month the Company records a sales reserve for approved RMAs covering products that have not yet been returned. The Company does not maintain a general warranty reserve because, historically, valid warranty returns, which are the result of a part not meeting specifications or being non-functional, have been immaterial and the Company can frequently resell returned parts to other customers for use in other applications. The Company monitors and assesses RMA activity and overall materiality to assess whether a general warranty reserve has become appropriate. | ||||||||||||||||||||||||||||
The Company grants price protection solely at the discretion of Pericom management. The purpose of price protection is to reduce the distributor’s cost of inventory as market prices fall thus reducing SSD rates. Pericom sales management prepares price protection proposals for individual products located at individual distributors. Pericom general management reviews and approves or disapproves these proposals. If a particular price protection arrangement is approved, the Company estimates the dollar impact based on the sales price reduction per unit for the products approved and the number of units of those products in that distributor’s inventory. The Company records a sales reserve in that period for the estimated amount at the time revenue is recognized. | ||||||||||||||||||||||||||||
At the discretion of Pericom management, the Company may offer rebates on specific products sold to specific end customers. The purpose of the rebates is to allow for pricing adjustments for large programs without affecting the pricing the Company charges its distributor customers. The Company records the rebate at the time of shipment. | ||||||||||||||||||||||||||||
Pericom typically grants payment terms of between 30 and 60 days to its customers. The Company’s customers generally pay within those terms. The Company grants relatively few customers sales terms that include cash discounts. Distributors are invoiced for shipments at listed book price. When the distributors pay the Company’s invoices, they may claim debits for SSDs, stock rotations, cash discounts, RMAs and price protection when appropriate. Once claimed, the Company processes the requests against the prior authorizations and reduces the reserve previously established for that customer. | ||||||||||||||||||||||||||||
The revenue the Company records for sales to its distributors is net of estimated provisions for these programs. When determining this net revenue, the Company must make significant judgments and estimates. The Company bases its estimates on historical experience rates, inventory levels in the distribution channel, current trends and other related factors. However, because of the inherent nature of estimates, there is a risk that there could be significant differences between actual amounts and the Company’s estimates. The Company’s financial condition | ||||||||||||||||||||||||||||
and operating results depend on its ability to make reliable estimates and Pericom believes that such estimates are reasonable. | ||||||||||||||||||||||||||||
PRODUCT WARRANTY — The Company offers a standard one-year product replacement warranty. In the past, the Company has not had to accrue for a general warranty reserve, but assesses the level and materiality of RMAs and determines whether it is appropriate to accrue for estimated returns of defective products at the time revenue is recognized. On occasion, management may determine to accept product returns beyond the standard one-year warranty period. In those instances, the Company accrues for the estimated cost at the time management decides to accept the return. Because of the Company’s standardized manufacturing processes and product testing procedures, returns of defective product are infrequent and the quantities have not been significant. Accordingly, historical warranty costs have not been material. | ||||||||||||||||||||||||||||
SHIPPING COSTS — We charge shipping costs to cost of revenues as incurred. | ||||||||||||||||||||||||||||
CONCENTRATION OF CREDIT RISK — The Company primarily sells its products to a relatively small number of companies and generally does not require its customers to provide collateral or other security to support accounts receivable. The Company maintains allowances for estimated bad debt losses. The Company also purchases substantially all of its wafers from three suppliers and purchases other manufacturing services from a relatively small number of suppliers. | ||||||||||||||||||||||||||||
The following table indicates the percentage of our net revenues and accounts receivable in excess of 10% with any single customer: | ||||||||||||||||||||||||||||
Percentage of | ||||||||||||||||||||||||||||
Fiscal Year Ended: | Net | Trade | ||||||||||||||||||||||||||
Revenues | Accounts | |||||||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||||||
28-Jun-14 | Customer A | 26 | % | 29 | % | |||||||||||||||||||||||
Customer B | 10 | 8 | ||||||||||||||||||||||||||
All others | 64 | 63 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
29-Jun-13 | Customer A | 21 | % | 28 | % | |||||||||||||||||||||||
Customer B | 12 | 7 | ||||||||||||||||||||||||||
All others | 67 | 65 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
30-Jun-12 | Customer A | 18 | % | 26 | % | |||||||||||||||||||||||
Customer B | 14 | 6 | ||||||||||||||||||||||||||
All others | 68 | 68 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
The Company maintains cash, cash equivalents and short-term investments with various high credit quality financial institutions. The Company has designed its investment policy to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that manage its investments. The Company is exposed to credit risk in the event of default by the financial institutions or issuers of securities to the extent of the amounts reported in the consolidated balance sheets. | ||||||||||||||||||||||||||||
RECLASSIFICATIONS — Certain reclassifications have been made to prior year financial statements to conform to the current year presentation. The reclassifications had no effect on the previously reported consolidated statement of operations, comprehensive income (loss), shareholders’ equity or cash flows. | ||||||||||||||||||||||||||||
RECENTLY ISSUED ACCOUNTING STANDARDS — In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU 2013-11 will be effective for annual reporting periods, and interim reporting periods within those years, beginning after December 15, 2013. Early adoption is permitted. Since ASU 2013-11 only impacts financial statement disclosure requirements for unrecognized tax benefits, the Company does not expect its adoption to have an impact on the Company’s financial position or results of operations. | ||||||||||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 requires an entity to 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 or services. ASU 2014-09 will be effective for annual and interim reporting periods beginning after December 15, 2016. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. | ||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE — The Company bases its basic earnings (loss) per share upon the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | ||||||||||||||||||||||||||||
Basic and diluted earnings (loss) per share for each of the three years in the period ended June 28, 2014 is as follows: | ||||||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||||||
(in thousands, except for per share data) | June 28, | June 29, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Net income (loss) | $ | 4,124 | $ | (21,614 | ) | $ | (2,068 | ) | ||||||||||||||||||||
Computation of common shares outstanding — basic earnings (loss) per share: | ||||||||||||||||||||||||||||
Weighted average shares of common stock | 22,594 | 23,251 | 24,094 | |||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.18 | $ | (0.93 | ) | $ | (0.09 | ) | ||||||||||||||||||||
Computation of common shares outstanding — diluted earnings (loss) per share: | ||||||||||||||||||||||||||||
Weighted average shares of common stock | 22,594 | 23,251 | 24,094 | |||||||||||||||||||||||||
Dilutive shares using the treasury stock method | 203 | — | — | |||||||||||||||||||||||||
Shares used in computing diluted earnings (loss) per share | 22,797 | 23,251 | 24,094 | |||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.18 | $ | (0.93 | ) | $ | (0.09 | ) | ||||||||||||||||||||
As the Company incurred losses for the years ended June 29, 2013 and June 30, 2012, diluted loss per share is the same as basic loss per share since the addition of any contingently issuable share would be anti-dilutive. Options to purchase 1.9 million shares of common stock, and restricted stock units of 1,138 shares were outstanding during the year ended June 28, 2014 and were excluded from the computation of diluted net earnings per share because such options and units were anti-dilutive. Options to purchase 2.4 million shares of common stock, and restricted | ||||||||||||||||||||||||||||
stock units of 525,000 shares were outstanding during the year ended June 29, 2013 and were excluded from the computation of diluted net earnings per share because such options and units were anti-dilutive. Options to purchase 2.5 million shares of common stock, and restricted stock units of 504,000 shares were outstanding during the year ended June 30, 2012 and were excluded from the computation of diluted net earnings per share because such options and units were anti-dilutive. |
Other_Receivables
Other Receivables | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Other Receivables [Abstract] | ' | |||||||||||
OTHER RECEIVABLES | ' | |||||||||||
2. OTHER RECEIVABLES | ||||||||||||
Other receivables consist of: | ||||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Interest receivable | $ | 1,516 | $ | 1,054 | ||||||||
VAT and other tax receivables | 1,031 | 1,076 | ||||||||||
Government subsidy receivable | — | 840 | ||||||||||
Other accounts receivable | 331 | 211 | ||||||||||
$ | 2,878 | $ | 3,181 | |||||||||
Inventories
Inventories | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Inventory [Abstract] | ' | |||||||||||
INVENTORIES | ' | |||||||||||
3. INVENTORIES | ||||||||||||
Inventories consist of: | ||||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Finished goods | $ | 3,991 | $ | 3,847 | ||||||||
Work-in-process | 2,468 | 3,869 | ||||||||||
Raw materials | 5,829 | 7,128 | ||||||||||
$ | 12,288 | $ | 14,844 | |||||||||
As of June 28, 2014, the Company had reserved for $3.2 million of inventory as compared to $3.1 million at June 29, 2013. |
Property_Plant_And_Equipment_N
Property, Plant And Equipment - Net | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Property, Plant and Equipment - Net [Abstract] | ' | |||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | ' | |||||||||||
4. PROPERTY, PLANT AND EQUIPMENT — NET | ||||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Machinery and equipment | $ | 55,408 | $ | 55,795 | ||||||||
Buildings | 36,196 | 30,637 | ||||||||||
Computer equipment and software | 13,742 | 14,449 | ||||||||||
Land | 9,473 | 3,661 | ||||||||||
Furniture and fixtures | 1,218 | 1,402 | ||||||||||
Leasehold improvements | 595 | 1,115 | ||||||||||
Vehicles | 151 | 155 | ||||||||||
Total | 116,783 | 107,214 | ||||||||||
Accumulated depreciation and amortization | (59,500 | ) | (56,825 | ) | ||||||||
Construction-in-progress | 1,254 | 10,570 | ||||||||||
Property, plant and equipment — net | $ | 58,537 | $ | 60,959 | ||||||||
Depreciation expense for the years ended June 28, 2014, June 29, 2013 and June 30, 2012 was $6.4 million, $7.4 million and $8.0 million, respectively. |
Other_Assets
Other Assets | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Other Assets [Abstract] | ' | |||||||||||
OTHER ASSETS | ' | |||||||||||
5. OTHER ASSETS | ||||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Land use rights | $ | 6,631 | $ | 6,821 | ||||||||
Investments in privately held companies | 1,243 | 1,238 | ||||||||||
Deposits | 118 | 262 | ||||||||||
Other | 126 | 304 | ||||||||||
Total | $ | 8,118 | $ | 8,625 | ||||||||
The Company purchased land use rights from the PRC in 2008 for the construction of its Jinan facility and its operation for a period of 50 years. In addition, the PTI acquisition in 2011 included land use rights for PTI’s properties in Shanghai. | ||||||||||||
The Company has investments in certain privately held companies which it accounts for under the cost method. The Company reviews these investments for impairment on a periodic basis. No impairment charges relating to investments in privately held companies were recorded during fiscal 2014, 2013 or 2012. For the year ended June 30, 2012, the Company wrote off $856,000 of promissory notes receivable due from two privately held technology companies which was recorded as a charge to general and administrative expense. |
Investment_in_Unconsolidated_A
Investment in Unconsolidated Affiliate | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Investments in Unconsolidated Affiliate [Abstract] | ' | |||||||||||
INVESTMENT IN UNCONSOLIDATED AFFILIATE | ' | |||||||||||
6. INVESTMENT IN UNCONSOLIDATED AFFILIATE | ||||||||||||
The Company’s investment in unconsolidated affiliate is comprised of the following: | ||||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Jiyuan Crystal Photoelectric Frequency Technology Ltd. | $ | 2,445 | $ | 2,525 | ||||||||
PSE-TW has a 49% equity interest in Jiyuan Crystal Photoelectric Frequency Technology Ltd. (“JCP”), an FCP manufacturing company located in Science Park of Jiyuan City, Henan Province, China. JCP is a key manufacturing partner of PSE-TW. For fiscal 2014, the Company’s investment in JCP increased by the $132,000 allocated portion of JCP’s income, and decreased by a $212,000 JCP declared dividend. | ||||||||||||
The Company holds or has held ownership interests in various other privately held companies. The ownership in these affiliates varied from 20% to approximately 49%. For those companies in which the ownership interest is more than 20% and in which the Company has the ability to exercise significant influence on the affiliate’s operations, the investment is valued using the equity method of accounting. As of June 28, 2014, the amount of consolidated retained earnings of the Company represented by undistributed earnings of 50% or less entities accounted for by the equity method was approximately $3.9 million. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | |||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||||||||||
7. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||||||||
The following table summarizes the activity related to the carrying value of our goodwill during the year ended June 29, 2013: | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 16,797 | ||||||||||||||||||||||||||
Other adjustments | — | |||||||||||||||||||||||||||
Cumulative translation adjustments | 102 | |||||||||||||||||||||||||||
Impairment | (16,899 | ) | ||||||||||||||||||||||||||
Balance at June 29, 2013 | $ | — | ||||||||||||||||||||||||||
The Company tests goodwill for impairment annually. Initially there is an assessment of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. If the carrying value exceeds its fair value, then the second step is performed to determine the implied fair value of each reporting unit’s goodwill, and an impairment loss is recorded for an amount equal to the difference between the implied fair value and the carrying value of the goodwill. The fiscal 2013 goodwill impairment analysis resulted in an impairment charge of $16.9 million, in which the Company wrote off the balance of the goodwill associated with the acquisition of PTI in 2010 and Pericom Taiwan Limited in 2009. This was based on a combination of factors including a decline in the net present value of expected future cash flows from the Company’s three reporting units as well as a decline in the Company’s market capitalization. | ||||||||||||||||||||||||||||
The Company’s acquired intangible assets associated with completed acquisitions for each of the following fiscal years are composed of: | ||||||||||||||||||||||||||||
As of the year ended | ||||||||||||||||||||||||||||
28-Jun-14 | 29-Jun-13 | |||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||||
Customer relationships | $ | 6,056 | $ | (3,913 | ) | $ | 2,143 | $ | 6,032 | $ | (2,912 | ) | $ | 3,120 | ||||||||||||||
In process research and development | 3,564 | (1,959 | ) | 1,605 | 3,549 | (1,367 | ) | 2,182 | ||||||||||||||||||||
Core developed technology | 9,838 | (6,977 | ) | 2,861 | 9,800 | (5,557 | ) | 4,243 | ||||||||||||||||||||
Total amortizable purchased intangible assets | 19,458 | (12,849 | ) | 6,609 | 19,381 | (9,836 | ) | 9,545 | ||||||||||||||||||||
SaRonix trade name | 400 | — | 400 | 399 | — | 399 | ||||||||||||||||||||||
Total purchased intangible assets | $ | 19,858 | $ | (12,849 | ) | $ | 7,009 | $ | 19,780 | $ | (9,836 | ) | $ | 9,944 | ||||||||||||||
Amortization expense related to finite-lived purchased intangible assets was approximately $3.0 million in fiscal 2014, $3.1 million in fiscal 2013 and $3.1 million in fiscal 2012. Amortization of intangible assets in fiscal 2012 included accelerated amortization related to a supplier relationship of approximately $125,000 and subsequent write-off. | ||||||||||||||||||||||||||||
The Company performs an annual impairment review of its long-lived assets, including its intangible assets. Based on the results of its most recent annual impairment tests, the Company determined that no impairment of the intangible assets existed as of June 28, 2014 or June 29, 2013. However, future impairment tests could result in a charge to earnings. | ||||||||||||||||||||||||||||
The finite-lived purchased intangible assets consist of customer relationships, capitalized in-process research and development and core developed technology, which have remaining useful lives of approximately two years. We expect our future amortization expense over the next five years associated with these assets to be: | ||||||||||||||||||||||||||||
Fiscal Years Ending | ||||||||||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 and | Total | |||||||||||||||||||||||
beyond | ||||||||||||||||||||||||||||
Expected Amortization | ||||||||||||||||||||||||||||
Customer relationships | $ | 989 | $ | 989 | $ | 165 | $ | — | $ | 2,143 | ||||||||||||||||||
In process research and development | 594 | 594 | 417 | — | 1,605 | |||||||||||||||||||||||
Core developed technology | 1,321 | 1,321 | 219 | — | 2,861 | |||||||||||||||||||||||
$ | 2,904 | $ | 2,904 | $ | 801 | $ | — | $ | 6,609 | |||||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Accrued Liabilities [Abstract] | ' | |||||||||||
ACCRUED LIABILITIES | ' | |||||||||||
8. ACCRUED LIABILITIES | ||||||||||||
Accrued liabilities consist of: | ||||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Accrued compensation | $ | 6,892 | $ | 6,029 | ||||||||
Income taxes payable | 1,140 | 655 | ||||||||||
Sales commissions | 307 | 316 | ||||||||||
Accrued construction liabilities | — | 134 | ||||||||||
Other accrued expenses | 1,595 | 1,597 | ||||||||||
$ | 9,934 | $ | 8,731 | |||||||||
Debt
Debt | 12 Months Ended |
Jun. 28, 2014 | |
Debt [Abstract] | ' |
DEBT | ' |
9. DEBT | |
As of June 28, 2014 and June 29, 2013, the Company has no outstanding debt. However, the Company’s subsidiary PSE-TW has two loan and credit facilities in place for equipment purchases or inventory financing via short term loans, letters of credit, and trade financing. The first is a secured facility for $200 million New Taiwan Dollars (“NTD”), approximately U.S. $6.7 million. The loans are for up to 180 days, and are based on the Taiwan Interbank Offered Rate (“TAIBOR”) plus 1.25% and may be in NTD, USD, Japanese yen (“JPY”) or other currencies. The second is an unsecured facility for $100 million NTD. Loans under this facility are limited to $70 million NTD, are for up to 180 days, and are based on TAIBOR plus 1.25% and may be in NTD, USD, JPY or other currencies. |
Restricted_Assets
Restricted Assets | 12 Months Ended |
Jun. 28, 2014 | |
Restricted Assets [Abstract] | ' |
RESTRICTED ASSETS | ' |
10. RESTRICTED ASSETS | |
As of June 28, 2014 and June 29, 2013, the Company had pledged and restricted assets of $4.2 million, respectively, consisting of land and buildings PSE-TW has pledged for its $200 million NTD loan and credit facility. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Commitments and Contingencies [Abstract] | ' | |||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||||||
11. COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
The future minimum commitments at June 28, 2014 are as follows: | ||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 and | Total | ||||||||||||||||
beyond | ||||||||||||||||||||
Operating lease payments | $ | 485 | $ | 55 | $ | — | $ | 540 | ||||||||||||
Capital equipment purchase commitments | 4 | — | — | 4 | ||||||||||||||||
Facility modification commitments | 12 | — | — | 12 | ||||||||||||||||
Total | $ | 501 | $ | 55 | $ | — | $ | 556 | ||||||||||||
The operating lease commitments are primarily facility leases at certain of the Company’s Asian subsidiaries. | ||||||||||||||||||||
The Company has no purchase obligations other than routine purchase orders and the facility modifications shown in the table as of June 28, 2014. | ||||||||||||||||||||
Rent expense during the fiscal years ended June 28, 2014, June 29, 2013 and June 30, 2012 was $801,000, $2.0 million and $1.9 million, respectively. |
Industrial_Development_Subsidy
Industrial Development Subsidy | 12 Months Ended |
Jun. 28, 2014 | |
Industrial Development Subsidy [Abstract] | ' |
INDUSTRIAL DEVELOPMENT SUBSIDY | ' |
12. INDUSTRIAL DEVELOPMENT SUBSIDY | |
As of June 28, 2014, industrial development subsidies in the amount of $12.8 million have been earned and applied for by PSE-SD from the Jinan Hi-Tech Industries Development Zone Commission based on meeting certain pre-defined criteria. The subsidies may be used for the acquisition of assets or to cover business expenses. When a subsidy is used to acquire assets, the subsidy will be amortized over the useful life of the asset. When a subsidy is used for expenses incurred, the subsidy is regarded as earned upon the incurrence of the expenditure. The remaining balance of the subsidies at June 28, 2014 was $6.4 million, which is expected to be recognized over the next six to eight years. | |
A portion of the $12.8 million in subsidies has been recorded as a receivable. As of June 28, 2014, the Company concluded that the remaining $843,000 of receivables will not be paid and accordingly the balance was written off. | |
The Company recognized $755,000 and $1.3 million of industrial development subsidy as a reduction of cost of goods sold and $187,000 and $183,000 of industrial development subsidy as a reduction of operating expenses in the consolidated statements of operations for the years ended June 28, 2014 and June 29, 2013, respectively. |
Equity_and_Comprehensive_Incom
Equity and Comprehensive Income | 12 Months Ended |
Jun. 28, 2014 | |
Equity and Comprehensive Income [Abstract] | ' |
EQUITY AND COMPREHENSIVE INCOME | ' |
13. EQUITY AND COMPREHENSIVE INCOME | |
Comprehensive income (loss) consists of net income (loss), changes in net unrealized gains (losses) on available-for-sale investments and changes in cumulative currency translation adjustments at consolidated subsidiaries. | |
As of June 28, 2014, accumulated other comprehensive income of $11.2 million consists of $11.0 million of accumulated currency translation gains and $300,000 of net unrealized gains on available-for-sale investments, which was recorded net of a $168,000 tax provision. As of June 29, 2013, accumulated other comprehensive income of $10.2 million consists of $10.6 million of accumulated currency translation gains partially offset by $625,000 of net unrealized losses on available-for-sale investments, which was recorded net of a $201,000 tax benefit. |
Shareholders_Equity_and_ShareB
Shareholders' Equity and Share-Based Compensation | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Shareholders' Equity and Share-Based Compensation [Abstract] | ' | |||||||||||||||||||||||
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | ' | |||||||||||||||||||||||
14. SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION | ||||||||||||||||||||||||
PREFERRED STOCK | ||||||||||||||||||||||||
The Company’s shareholders have authorized the Board of Directors to issue 5,000,000 shares of preferred stock from time to time in one or more series and to fix the rights, privileges and restrictions of each series. As of June 28, 2014, the Company has issued no shares of preferred stock. | ||||||||||||||||||||||||
STOCK INCENTIVE PLANS | ||||||||||||||||||||||||
At June 28, 2014 the Company had three stock incentive plans and one employee stock purchase plan, including the 1995 Stock Option Plan, 2001 Stock Option Plan, 2004 Stock Incentive Plan and the 2010 Employee Stock Purchase Plan (“ESPP”). The Company’s aggregate compensation cost due to option and restricted stock unit grants and the ESPP for the twelve months ended June 28, 2014 totaled $2.8 million, as compared with $3.3 million and $3.7 million for fiscal 2013 and 2012, respectively. The Company recognized $910,000, $1.1 million, and $1.2 million in income tax benefit in the consolidated statements of operations for fiscal 2014, 2013 and 2012, respectively, related to the Company’s share-based compensation arrangements. The net impact of share-based compensation for the fiscal years ended June 28, 2014, June 29, 2013 and June 30, 2012 was a reduction in net income of $1.9 million, $2.2 million and $2.5 million, respectively, or a reduction of $0.08, $0.10 and $0.10 per diluted share, respectively. | ||||||||||||||||||||||||
Under the Company’s 2004, 2001 and 1995 stock incentive plans, the Company has reserved 4.5 million shares of common stock as of June 28, 2014 for issuance to employees, officers, directors, independent contractors and consultants of the Company in the form of incentive and nonqualified stock options and restricted stock units. | ||||||||||||||||||||||||
The Company may grant options at the fair value on grant date for incentive stock options and nonqualified stock options. Options vest over periods of generally 48 months as determined by the Board of Directors. Options granted under the Plans expire 10 years from the grant date. | ||||||||||||||||||||||||
The Company estimates the fair value of each employee option on the date of grant using the Black-Scholes option valuation model and expenses that value as compensation using a straight-line method over the option’s vesting period, which corresponds to the requisite employee service period. The Company estimates expected stock price volatility based on actual historical volatility for periods that the Company believes represent predictors of future volatility. The Company uses historical data to estimate option exercises, expected option holding periods and option forfeitures. The Company bases the risk-free interest rate on the U.S. Treasury note yield for periods equal to the expected term of the option. | ||||||||||||||||||||||||
The following table lists the weighted average assumptions the Company used to value stock options: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
28-Jun-14 | 29-Jun-13 | 30-Jun-12 | ||||||||||||||||||||||
Expected life | 5.9 years | 5.9 years | 5.5 years | |||||||||||||||||||||
Risk-free interest rate | 1.47% | 1.05% | 2.46% | |||||||||||||||||||||
Volatility | 52% | 54% | 54% | |||||||||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||||||||||||||||||||
The following table summarizes the Company’s stock option plans as of July 2, 2011 and changes during the three fiscal periods ended June 28, 2014: | ||||||||||||||||||||||||
Outstanding Options | ||||||||||||||||||||||||
Options | Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||||
Average | Average | Intrinsic Value | ||||||||||||||||||||||
Exercise Price | Remaining | |||||||||||||||||||||||
Contractual | ||||||||||||||||||||||||
Term | ||||||||||||||||||||||||
(in thousands) | (years) | (in thousands) | ||||||||||||||||||||||
Options outstanding at July 2, 2011 | 2,974 | $ | 10.89 | 4.88 | $ | 645 | ||||||||||||||||||
Options granted (weighted average grant date fair value of $3.89) | 142 | 7.65 | ||||||||||||||||||||||
Options exercised | (21 | ) | 7.77 | |||||||||||||||||||||
Options forfeited or expired | (642 | ) | 12.37 | |||||||||||||||||||||
Options outstanding at June 30, 2012 | 2,453 | $ | 10.34 | 5.12 | $ | 912 | ||||||||||||||||||
Options granted (weighted average grant date fair value of $4.06) | 233 | 8.07 | ||||||||||||||||||||||
Options exercised | (6 | ) | 7.87 | |||||||||||||||||||||
Options forfeited or expired | (249 | ) | 9.17 | |||||||||||||||||||||
Options outstanding at June 29, 2013 | 2,431 | $ | 10.25 | 4.86 | $ | 52 | ||||||||||||||||||
Options granted (weighted average grant date fair value of $4.06) | 236 | 8.16 | ||||||||||||||||||||||
Options exercised | (190 | ) | 8.25 | |||||||||||||||||||||
Options forfeited or expired | (392 | ) | 9.96 | |||||||||||||||||||||
Options outstanding at June 28, 2014 | 2,085 | $ | 10.25 | 4.54 | $ | 1,077 | ||||||||||||||||||
Options vested and expected to vest at June 28, 2014 | 2,048 | $ | 10.3 | 4.45 | $ | 1,031 | ||||||||||||||||||
Options exercisable at June 28, 2014 | 1,796 | $ | 10.62 | 3.85 | $ | 742 | ||||||||||||||||||
At June 28, 2014, 1,046,000 shares were available for future grants under the option plans. The aggregate intrinsic value of options exercised during the fiscal years ended June 28, 2014, June 29, 2013 and June 30, 2012 was $177,000, $2,000 and $8,000, respectively. | ||||||||||||||||||||||||
The Company has unamortized share-based compensation expense related to options of $1.3 million, which will be amortized to expense over a weighted average period of 2.6 years. | ||||||||||||||||||||||||
Additional information regarding options outstanding as of June 28, 2014 is as follows: | ||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||
Outstanding | Average | Average | Exercisable as | Average | ||||||||||||||||||||
as of June 28, | Remaining | Exercise | of June 28, | Exercise | ||||||||||||||||||||
2014 | Contractual | Price | 2014 | Price | ||||||||||||||||||||
Term (Years) | ||||||||||||||||||||||||
$ 4.89 $ 7.87 | 458,067 | 6.88 | $ | 7.51 | 259,883 | $ | 7.47 | |||||||||||||||||
$ 7.88 $ 8.71 | 420,413 | 3.08 | $ | 8.34 | 398,919 | $ | 8.34 | |||||||||||||||||
$ 8.72 $10.01 | 506,849 | 4.88 | $ | 9.58 | 436,825 | $ | 9.69 | |||||||||||||||||
$10.02 $15.45 | 494,607 | 3.81 | $ | 12.6 | 494,607 | $ | 12.6 | |||||||||||||||||
$15.45 $18.10 | 205,500 | 3.17 | $ | 16.3 | 205,500 | $ | 16.3 | |||||||||||||||||
$ 4.89 $18.10 | 2,085,436 | 4.54 | $ | 10.25 | 1,795,734 | $ | 10.62 | |||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||
Restricted stock units (“RSUs”) are converted into shares of the Company’s common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs is subject to the employee’s continuing service to the Company. RSUs generally vest over a period of 4 years and are expensed ratably on a straight-line basis over their respective vesting period net of estimated forfeitures. The fair value of RSUs granted pursuant to the Company’s 2004 Stock Incentive Plan is the product of the number of shares granted and the grant date fair value of our common stock. The following table summarizes the RSUs as of July 2, 2011 and changes during the three fiscal years ended June 28, 2014: | ||||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Average Grant | Average | Intrinsic Value | ||||||||||||||||||||||
Date Fair | Remaining | |||||||||||||||||||||||
Value | Vesting Term | |||||||||||||||||||||||
(in thousands) | (years) | (in thousands) | ||||||||||||||||||||||
RSUs outstanding at July 2, 2011 | 592 | $ | 9.73 | 1.6 | $ | 5,253 | ||||||||||||||||||
Awarded | 156 | 7.78 | ||||||||||||||||||||||
Released | (203 | ) | 9.91 | |||||||||||||||||||||
Forfeited | (41 | ) | 9.73 | |||||||||||||||||||||
RSUs outstanding at June 30, 2012 | 504 | $ | 9.06 | 1.42 | $ | 4,535 | ||||||||||||||||||
Awarded | 301 | 7.74 | ||||||||||||||||||||||
Released | (217 | ) | 9.55 | |||||||||||||||||||||
Forfeited | (63 | ) | 8.24 | |||||||||||||||||||||
RSUs outstanding at June 29, 2013 | 525 | $ | 8.2 | 1.48 | $ | 3,735 | ||||||||||||||||||
Awarded | 416 | 8.46 | ||||||||||||||||||||||
Released | (196 | ) | 8.61 | |||||||||||||||||||||
Forfeited | (96 | ) | 8.26 | |||||||||||||||||||||
RSUs outstanding at June 28, 2014 | 649 | $ | 8.23 | 1.58 | $ | 5,901 | ||||||||||||||||||
RSUs vested and expected to vest after June 28, 2014 | 553 | $ | 8.22 | 1.46 | $ | 5,029 | ||||||||||||||||||
The Company has unamortized share-based compensation expense related to RSUs of $3.8 million, which will be amortized to expense over a weighted average period of 2.7 years. | ||||||||||||||||||||||||
2010 EMPLOYEE STOCK PURCHASE PLAN | ||||||||||||||||||||||||
The Company’s 2010 Employee Stock Purchase Plan (the “Stock Purchase Plan”) allows eligible employees of the Company to purchase shares of Common Stock through payroll deductions. The Company reserved 2.0 million shares of the Company’s Common Stock for issuance under the Stock Purchase Plan, of which 1.6 million remain available at June 28, 2014. The Stock Purchase Plan permits eligible employees to purchase Common Stock at a discount through payroll deductions during six-month purchase periods. The six-month periods come to an end on or about May 1 and November 1 and the purchases are then made. Participants in the Stock Purchase Plan may purchase stock at 85% of the lower of the stock’s fair market value on the first day and last day of the purchase period. The maximum number of shares of Common Stock that any employee may purchase under the Stock Purchase Plan during any offering period is 1,500 shares, and an employee may not accrue more than $15,000 for share purchases in any offering period. During fiscal year 2014, 2013 and 2012, the Company issued 129,000, 125,000 and 109,000 shares of common stock at weighted average prices of $6.02, $5.98 and $6.96, respectively. The weighted average grant date fair value of the fiscal 2014, 2013 and 2012 stock purchase awards were $1.75, $1.65 and $2.22 per share, respectively. | ||||||||||||||||||||||||
The Company estimates the fair value of stock purchase rights granted under the Company’s Stock Purchase Plan on the date of grant using the Black-Scholes option valuation model. ASC Topic 718, Stock Based Compensation, states that a “lookback” pricing provision with a share limit should be considered a combination of stock and a call option. The valuation results for these elements have been combined to value the specific features of the stock purchase rights. The Company bases volatility on the expected volatility of the Company’s stock during the accrual period. The expected term is determined as the time from enrollment until purchase. The Company uses historical data to determine expected forfeitures and the U.S. Treasury yield for the risk-free interest rate for the expected term. | ||||||||||||||||||||||||
The following table lists the values of the assumptions the Company used to value share-based compensation in the Stock Purchase Plan: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
28-Jun-14 | 29-Jun-13 | 30-Jun-12 | ||||||||||||||||||||||
Expected life | 6 months | 6 months | 6 months | |||||||||||||||||||||
Risk-free interest rate | 0.07% | 0.12% | 0.10% | |||||||||||||||||||||
Volatility range | 26%–34% | 35%–37% | 43%–64% | |||||||||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||||||||||||||||||||
The following table summarizes activity in the Company’s employee stock purchase plan during the fiscal year ended June 28, 2014: | ||||||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Purchase | ||||||||||||||||||||||||
Price | ||||||||||||||||||||||||
Beginning Available | 1,710,525 | |||||||||||||||||||||||
Purchases | (128,969 | ) | $ | 6.02 | ||||||||||||||||||||
Ending Available | 1,581,556 | |||||||||||||||||||||||
At June 28, 2014, the Company has $75,000 in unamortized share-based compensation related to its employee stock purchase plan. We estimate this expense will be amortized and recognized in the consolidated statements of operations over the next four months. | ||||||||||||||||||||||||
REPORTING SHARE-BASED COMPENSATION | ||||||||||||||||||||||||
The following table shows total share-based compensation expense classified by consolidated statement of operations reporting caption generated from the plans mentioned above: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Cost of revenues | $ | 163 | $ | 187 | $ | 211 | ||||||||||||||||||
Research and development | 1,096 | 1,282 | 1,434 | |||||||||||||||||||||
Selling, general and administrative | 1,533 | 1,871 | 2,091 | |||||||||||||||||||||
Pre-tax stock-based compensation expense | 2,792 | 3,340 | 3,736 | |||||||||||||||||||||
Income tax effect | (910 | ) | (1,101 | ) | (1,229 | ) | ||||||||||||||||||
Net stock-based compensation expense | $ | 1,882 | $ | 2,239 | $ | 2,507 | ||||||||||||||||||
The amount of share-based compensation expense in inventory at June 28, 2014, June 29, 2013 and June 30, 2012 is immaterial. | ||||||||||||||||||||||||
Share-based compensation expense categorized by the type of award from which it arose is as follows for fiscal years ended June 28, 2014, June 29, 2013 and June 30, 2012: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Stock incentive plans | $ | 2,586 | $ | 3,128 | $ | 3,492 | ||||||||||||||||||
Less income tax effect | 910 | 1,101 | 1,229 | |||||||||||||||||||||
Net stock incentive plan expense | 1,676 | 2,027 | 2,263 | |||||||||||||||||||||
Employee stock purchase plan | 206 | 212 | 244 | |||||||||||||||||||||
Less income tax effect | — | — | — | |||||||||||||||||||||
Net employee stock purchase plan expense | 206 | 212 | 244 | |||||||||||||||||||||
$ | 1,882 | $ | 2,239 | $ | 2,507 | |||||||||||||||||||
STOCK REPURCHASE PLAN | ||||||||||||||||||||||||
On April 26, 2012, the Board of Directors authorized a share repurchase program for up to $25 million of shares of the Company’s common stock, and on April 24, 2014 the Board authorized an additional $20 million for the share repurchase program. The Company was authorized to repurchase the shares from time to time in the open market or private transactions, at the discretion of the Company’s management. During the year ended June 28, 2014, the Company repurchased 1,354,511 shares for an aggregate cost of $11.3 million. During the year ended June 29, 2013, the Company repurchased 1,100,306 shares for an aggregate cost of $7.8 million. During the year ended June 30, 2012, the Company repurchased 1,482,572 shares for an aggregate cost of $11.6 million. As of June 28, 2014, approximately $26.6 million may yet be purchased under the 2012 and 2014 purchase authorities. | ||||||||||||||||||||||||
Current cash balances and the proceeds from stock option exercises and purchases in the stock purchase plan have funded stock repurchases in the past, and the Company expects to fund future stock repurchases from these same sources. | ||||||||||||||||||||||||
Shareholder_Rights_Plan
Shareholder Rights Plan | 12 Months Ended |
Jun. 28, 2014 | |
Shareholder Rights Plan [Abstract] | ' |
SHAREHOLDER RIGHTS PLAN | ' |
15. SHAREHOLDER RIGHTS PLAN | |
On March 6, 2012, the Company adopted a shareholder rights plan and declared a dividend of one preferred share purchase right for each share of common stock held by shareholders of record as of that date. Each right entitles shareholders, after the rights become exercisable, to purchase one one-thousandth of a share of our Series D Junior Participating Preferred Stock. | |
The Company designed the rights plan to protect the long-term value of the Company for its shareholders during any future unsolicited acquisition attempt. The Company did not adopt the rights plan in response to any specific attempt to acquire the Company or its shares and the Company is not aware of any current efforts to do so. The rights will become exercisable only upon the occurrence of certain events specified in the plan, including the acquisition of 15% of the Company’s outstanding common stock by a person or group. Should a person or group acquire 15% or more of the outstanding common stock or announce an unsolicited tender offer, the consummation of which would result in a person or group acquiring 15% or more of the outstanding common stock, shareholders other than the acquiring person may exercise the rights, unless the Board of Directors has approved the transaction in advance. Each right entitles the holder, other than an acquiring person, to purchase shares of the Company’s common stock (or, in the event that there are insufficient authorized common stock shares, substitute consideration such as cash, property, or other securities of the Company, such as Preferred Stock) at a 50% discount to the then prevailing market price. Prior to the acquisition by a person or group of 15% or more of the outstanding common stock, the Company may redeem the rights for $0.001 per right at the option of the Board of Directors. The rights will expire on March 6, 2022. As of June 28, 2014, there were 21,974,000 rights outstanding. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||
16. FAIR VALUE MEASUREMENTS | ||||||||||||||||||||
The Company defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last is considered unobservable: | ||||||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||
The following table represents our fair value hierarchy for financial assets (cash equivalents and investments) measured at fair value on a recurring basis. Level 1 available-for-sale investments are primarily comprised of investments in U.S. Treasury securities, valued using market prices in active markets. Most of the investments are classified as Level 2. Level 2 pricing is provided by third party sources of market information obtained through the Company’s investment advisors. The Company does not adjust for or apply any additional assumptions or estimates to the pricing information it receives from advisors. The Company’s investment advisors obtain pricing data from independent sources, such as Standard & Poor’s, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities it holds are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. | ||||||||||||||||||||
The Company’s Level 2 securities include time deposits, government securities, corporate debt securities and mortgage backed and asset backed securities. Government securities include US federal agency securities, foreign government and agency securities, and US state and municipal bond obligations. Many of the municipal bonds are | ||||||||||||||||||||
insured; those that are not are nearly all AAA/Aaa rated. The corporate debt securities are all investment grade and most are single A-rated or better. The asset-backed securities are AAA/Aaa rated and are backed by auto loans, student loans, credit card balances and residential or commercial mortgages. | ||||||||||||||||||||
Assets measured at fair value are summarized as follows: | ||||||||||||||||||||
As of June 28, 2014 | ||||||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Investments(1) | ||||||||||||||||||||
US Treasury securities | $ | 527 | $ | 527 | $ | — | $ | — | ||||||||||||
Repurchase agreements | 4,547 | — | 4,547 | — | ||||||||||||||||
Time deposits | 17,693 | — | 17,693 | — | ||||||||||||||||
National government and agency securities | 5,055 | — | 5,055 | — | ||||||||||||||||
State and municipal bond obligations | 7,149 | — | 7,149 | — | ||||||||||||||||
Corporate bonds and notes | 42,781 | — | 42,781 | — | ||||||||||||||||
Asset backed securities | 7,614 | — | 7,614 | — | ||||||||||||||||
Mortgage backed securities | 4,785 | — | 4,785 | — | ||||||||||||||||
Total | $ | 90,151 | $ | 527 | $ | 89,624 | $ | — | ||||||||||||
As of June 29, 2013 | ||||||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Investments(1) | ||||||||||||||||||||
Commercial paper | $ | 2,400 | $ | — | $ | 2,400 | $ | — | ||||||||||||
Repurchase agreements | 4,988 | — | 4,988 | — | ||||||||||||||||
Time deposits | 12,087 | — | 12,087 | — | ||||||||||||||||
National government and agency securities | 4,451 | — | 4,451 | — | ||||||||||||||||
State and municipal bond obligations | 3,758 | — | 3,758 | — | ||||||||||||||||
Corporate bonds and notes | 47,793 | — | 47,793 | — | ||||||||||||||||
Asset backed securities | 10,022 | — | 10,022 | — | ||||||||||||||||
Mortgage backed securities | 6,731 | — | 6,731 | — | ||||||||||||||||
Total | $ | 92,230 | $ | — | $ | 92,230 | $ | — | ||||||||||||
(1) | At June 28, 2014, $4,047 of the repurchase agreements are included in cash and cash equivalents; at June 29, 2013, the commercial paper and $2,991 of the repurchase agreements are included in cash and cash equivalents; the balance of the investments at June 28, 2014 and June 29, 2013 are included in short-term investments in marketable securities on the consolidated balance sheets. | |||||||||||||||||||
The Company had no transfers between Level 1 and Level 2 during the years ended June 28, 2014 and June 29, 2013. | ||||||||||||||||||||
When assessing marketable securities for other-than-temporary declines in value, a number of factors are considered. Analyses of the severity and duration of price declines, remaining years to maturity, portfolio manager reports, economic forecasts, and the specific circumstances of issuers indicate that it is reasonable to expect marketable securities with unrealized losses at June 28, 2014 to recover in fair value up to the Company’s cost bases within a reasonable period of time. The Company does not intend to sell investments with unrealized losses before maturity, when the obligors are required to redeem them at full face value or par. The Company believes the obligors have the financial resources to redeem the debt securities. Accordingly, the Company does not consider the investments to be other-than-temporarily impaired at June 28, 2014. | ||||||||||||||||||||
The Company has determined that the amounts reported for cash and cash equivalents, accounts receivable, deposits, accounts payable, accrued liabilities and debt approximate fair value because of their short maturities and/or variable interest rates. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
INCOME TAXES | ' | |||||||||||||||
17. INCOME TAXES | ||||||||||||||||
Income tax expense consists of federal, state and foreign current and deferred income taxes as follows: | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Income (loss) before income taxes | ||||||||||||||||
U.S. | $ | (1,282 | ) | $ | 12,176 | $ | 341 | |||||||||
Foreign | 5,044 | (27,782 | ) | 554 | ||||||||||||
3,762 | (15,606 | ) | 895 | |||||||||||||
Federal: | ||||||||||||||||
Current | (1,366 | ) | 5,424 | 941 | ||||||||||||
Deferred | 95 | 141 | (641 | ) | ||||||||||||
(1,271 | ) | 5,565 | 300 | |||||||||||||
State: | ||||||||||||||||
Current | — | 7 | (522 | ) | ||||||||||||
Deferred | (12 | ) | (172 | ) | 2,768 | |||||||||||
(12 | ) | (165 | ) | 2,246 | ||||||||||||
Foreign: | ||||||||||||||||
Current | 953 | 672 | 551 | |||||||||||||
Deferred | 100 | 151 | — | |||||||||||||
1,053 | 823 | 551 | ||||||||||||||
Total current | (413 | ) | 6,103 | 970 | ||||||||||||
Total deferred | 183 | 120 | 2,127 | |||||||||||||
Total income tax expense (benefit) | $ | (230 | ) | $ | 6,223 | $ | 3,097 | |||||||||
The reconciliation between the Company’s effective tax rate and the U.S. statutory rate is as follows: | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
June 28, | June 29, | June 30, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Tax provision at federal statutory rate | 34 | % | 33.8 | % | 34 | % | ||||||||||
State income taxes, net of federal benefit | (1.3 | ) | 2.1 | (33.4 | ) | |||||||||||
Foreign income and withholding taxes | 1.7 | (67.9 | ) | 34.1 | ||||||||||||
Benefits from resolution of certain tax audits and expiration of statute of limitations | (21.8 | ) | 0.8 | (15.4 | ) | |||||||||||
Intercompany licensing of intellectual property | (27.1 | ) | (6.5 | ) | — | |||||||||||
Share-based compensation | 3.4 | (1.1 | ) | 20.5 | ||||||||||||
Research and development tax credits | (2.3 | ) | — | (2.2 | ) | |||||||||||
Change in valuation allowance | 0.5 | (1.8 | ) | 307.3 | ||||||||||||
Other | 6.8 | 0.7 | 1.1 | |||||||||||||
Income tax expense | (6.1 | )% | (39.9 | )% | 346 | % | ||||||||||
The components of the net deferred tax assets were as follows (in thousands): | ||||||||||||||||
As of the year ended | ||||||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Deferred tax assets: | ||||||||||||||||
Credit carryforwards | $ | 2,778 | $ | 2,798 | ||||||||||||
Accruals and reserves | 843 | 1,311 | ||||||||||||||
Cumulative loss on investment | 400 | 884 | ||||||||||||||
Depreciation and amortization | (933 | ) | (975 | ) | ||||||||||||
Net operating loss carryforward | 1,418 | 1,424 | ||||||||||||||
Share-based compensation | 3,013 | 3,088 | ||||||||||||||
Other | 781 | 530 | ||||||||||||||
Total | 8,300 | 9,060 | ||||||||||||||
Valuation allowance | (5,114 | ) | (5,064 | ) | ||||||||||||
Deferred tax assets | $ | 3,186 | $ | 3,996 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Gain on previously held shares in unconsolidated affiliate | $ | (3,793 | ) | $ | (3,768 | ) | ||||||||||
Acquired PTI intangibles and other | (1,667 | ) | (2,030 | ) | ||||||||||||
Deferred tax liabilities | $ | (5,460 | ) | $ | (5,798 | ) | ||||||||||
As of June 28, 2014, the Company has net operating loss carryforwards of approximately $207,000, $3.7 million and $5.0 million for PSE-TW in Taiwan, PSE-SD in China and PTI in Hong Kong, which will begin to expire in 2015, 2014 and no expiration, respectively. In addition, the Company has research and development tax credit carryforwards of approximately $145,000 and $4.7 million to offset future federal and state taxable income. The federal research and development tax credit carryforward will begin to expire in 2034 and the state research and development tax credit can be carried forward indefinitely. | ||||||||||||||||
The Company provides a valuation allowance for deferred tax assets when it is more likely than not, based upon currently available evidence and other factors, that some portion or all of the deferred tax asset will not be realized. The change in valuation allowance for the year ended June 28, 2014 and June 29, 2013 was an increase of $50,000 and $759,000, respectively, which resulted primarily from an increase in the research and development tax credit for California and the foreign net operating losses. | ||||||||||||||||
Consolidated income before income taxes includes non-U.S. income (loss) of approximately $5.0 million, $(27.8) million and $554,000 for the fiscal years ended June 28, 2014, June 29, 2013 and June 30, 2012, respectively. Pericom has not provided for U.S. income taxes on a cumulative total of approximately $19.7 million of undistributed earnings reported by certain foreign subsidiaries. The Company intends to reinvest these earnings indefinitely in its foreign subsidiaries. If these earnings were distributed to the United States in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, the Company would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. It is not practical to determine the unrecognized deferred U.S. income tax liability that might be payable on the possible remittance of earnings that are intended to be reinvested indefinitely due to the complexities associated with its hypothetical calculation. | ||||||||||||||||
The Company recorded $1.7 million for unrecognized tax benefits as of June 28, 2014. A reconciliation of the beginning and ending amount of unrecognized tax benefit for the three fiscal years from July 2, 2011 through June 28, 2014 is as follows: | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance as of July 2, 2011 | $ | (755 | ) | |||||||||||||
Gross increases — prior period tax positions | (515 | ) | ||||||||||||||
Gross increases — current period tax positions | (475 | ) | ||||||||||||||
Reductions as a result of a lapse of statute of limitations | 138 | |||||||||||||||
Balance as of June 30, 2012 | $ | (1,607 | ) | |||||||||||||
Gross increases — prior period tax positions | (135 | ) | ||||||||||||||
Gross increases — current period tax positions | (1,423 | ) | ||||||||||||||
Reductions as a result of a lapse of statute of limitations | 132 | |||||||||||||||
Balance as of June 29, 2013 | $ | (3,033 | ) | |||||||||||||
Gross increases — prior period tax positions | (411 | ) | ||||||||||||||
Gross increases — current period tax positions | (194 | ) | ||||||||||||||
Reductions — prior period tax positions | 1,020 | |||||||||||||||
Reductions as a result of a lapse of statute of limitations | 887 | |||||||||||||||
Balance as of June 28, 2014 | $ | (1,731 | ) | |||||||||||||
$934,000 of the balance at June 28, 2014 would affect the Company’s effective tax rate if recognized. The Company is subject to examination by federal, foreign, and various state jurisdictions for the years 2008 through 2014. The Internal Revenue Service recently completed their examination of the Company’s federal tax returns for fiscal 2010 and 2011, and additional tax payments of approximately $208,000 were made, including interest charges for the two years. | ||||||||||||||||
As of June 28, 2014, the Company has accrued $215,000 for interest and penalties related to the unrecognized tax benefits. The balance of unrecognized tax benefits and the related interest and penalties is recorded as a noncurrent liability on our consolidated balance sheet. | ||||||||||||||||
Within the next 12 months, we do not anticipate a material decrease in the unrecognized tax benefit or any other significant changes to our tax reserves during that period. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Jun. 28, 2014 | |
Employee Benefit Plan [Abstract] | ' |
EMPLOYEE BENEFIT PLAN | ' |
18. EMPLOYEE BENEFIT PLAN | |
The Company has a 401(k) tax-deferred savings plan under which eligible employees may elect to have a portion of their salary deferred and contributed to the plan. The Board of Directors determines the employer matching contributions at their discretion. There were no employer-matching contributions in fiscal 2014, 2013 or 2012. |
Industry_and_Geographical_Segm
Industry and Geographical Segment Information | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Industry and Geographical Segment Information [Abstract] | ' | |||||||||||||||
INDUSTRY AND GEOGRAPHICAL SEGMENT INFORMATION | ' | |||||||||||||||
19. INDUSTRY AND GEOGRAPHICAL SEGMENT INFORMATION | ||||||||||||||||
The Company has three operating segments which aggregate into one reportable segment, the interconnectivity device supply market. The Company designs, develops, manufactures and markets high performance integrated circuits and frequency control products. The Chief Executive Officer has been identified as the Chief Operating Decision Maker as defined by ASC No. 280, Disclosures about Segments Reporting (“ASC 280”). | ||||||||||||||||
For geographical reporting, the Company attributes net sales to the country where customers are located (the “bill to” location). The Company neither conducts business in, nor sells to persons in, Iran, Syria, Sudan, or Cuba, countries located in the referenced regions that are identified as state sponsors of terrorism by the U.S. Department of State, and are subject to U.S. economic sanctions and export controls. Long-lived assets consist of all non-monetary assets, excluding non-current deferred tax assets, goodwill and intangible assets. The Company attributes long-lived assets to the country where they are located. The following presents net sales for each of the three years ended June 28, 2014; and the net book value of long-lived assets as of June 28, 2014, June 29, 2013 and June 30, 2012 by geographical segment: | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net sales to countries: | ||||||||||||||||
China (including Hong Kong) | $ | 61,054 | $ | 61,486 | $ | 48,178 | ||||||||||
Taiwan | 39,463 | 43,144 | 63,301 | |||||||||||||
United States | 5,927 | 6,517 | 7,242 | |||||||||||||
Others (less than 10% each) | 21,624 | 18,108 | 18,414 | |||||||||||||
Total net sales | $ | 128,068 | $ | 129,255 | $ | 137,135 | ||||||||||
(in thousands) | ||||||||||||||||
Long-lived assets: | ||||||||||||||||
China (including Hong Kong) | $ | 32,234 | $ | 35,180 | $ | 37,761 | ||||||||||
Taiwan | 12,914 | 14,120 | 15,005 | |||||||||||||
United States | 12,154 | 10,779 | 2,304 | |||||||||||||
Korea | 1,067 | 659 | 650 | |||||||||||||
Others (less than 10% each) | 168 | 221 | 382 | |||||||||||||
Total long-lived assets | $ | 58,537 | $ | 60,959 | $ | 56,102 | ||||||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
QUARTERLY FINANCIAL DATA | ' | |||||||||||||||||||
20. QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||||||||
Following is a summary of quarterly operating results and share data for the years ended June 28, 2014 and June 29, 2013: | ||||||||||||||||||||
PERICOM SEMICONDUCTOR CORPORATION | ||||||||||||||||||||
QUARTERLY FINANCIAL DATA | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
June 28, | March 29, | Dec 28, | Sept 28, | |||||||||||||||||
2014 | 2014 | 2013 | 2013 | |||||||||||||||||
Net revenues | $ | 32,739 | $ | 30,681 | $ | 32,040 | $ | 32,608 | ||||||||||||
Cost of revenues | 19,188 | 18,175 | 19,820 | 19,800 | ||||||||||||||||
Gross profit | 13,551 | 12,506 | 12,220 | 12,808 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 4,782 | 4,694 | 5,274 | 5,045 | ||||||||||||||||
Selling, general and administrative | 8,100 | 7,407 | 7,126 | 7,687 | ||||||||||||||||
Total operating expenses | 12,882 | 12,101 | 12,400 | 12,732 | ||||||||||||||||
Income from operations | 669 | 405 | (180 | ) | 76 | |||||||||||||||
Interest and other income, net | 456 | 802 | 1,047 | 486 | ||||||||||||||||
Income before income tax expense | 1,125 | 1,207 | 867 | 562 | ||||||||||||||||
Income tax expense (benefit) | 291 | (421 | ) | (331 | ) | 231 | ||||||||||||||
Net income from consolidated companies | 834 | 1,628 | 1,198 | 331 | ||||||||||||||||
Equity in net income of unconsolidated affiliates | 50 | 13 | 27 | 43 | ||||||||||||||||
Net income | $ | 884 | $ | 1,641 | $ | 1,225 | $ | 374 | ||||||||||||
Basic income per share | $ | 0.04 | $ | 0.07 | $ | 0.05 | $ | 0.02 | ||||||||||||
Diluted income per share | $ | 0.04 | $ | 0.07 | $ | 0.05 | $ | 0.02 | ||||||||||||
Shares used in computing basic income per share | 22,123 | 22,659 | 22,800 | 22,794 | ||||||||||||||||
Shares used in computing diluted income per share | 22,338 | 22,880 | 23,019 | 22,951 | ||||||||||||||||
PERICOM SEMICONDUCTOR CORPORATION | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
June 29, | March 30, | Dec 29, | Sept 29, | |||||||||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||||||||||
Net revenues | $ | 31,707 | $ | 30,366 | $ | 30,433 | $ | 36,749 | ||||||||||||
Cost of revenues | 19,791 | 19,521 | 19,239 | 22,838 | ||||||||||||||||
Gross profit | 11,916 | 10,845 | 11,194 | 13,911 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 5,320 | 5,277 | 5,097 | 5,323 | ||||||||||||||||
Selling, general and administrative | 7,217 | 7,193 | 7,532 | 7,639 | ||||||||||||||||
Goodwill impairment | 16,899 | — | — | — | ||||||||||||||||
Total operating expenses | 29,436 | 12,470 | 12,629 | 12,962 | ||||||||||||||||
Income (loss) from operations | (17,520 | ) | (1,625 | ) | (1,435 | ) | 949 | |||||||||||||
Interest and other income, net | 1,277 | 1,318 | 795 | 635 | ||||||||||||||||
Income (loss) before income tax expense | (16,243 | ) | (307 | ) | (640 | ) | 1,584 | |||||||||||||
Income tax expense | 573 | 395 | 4,756 | 500 | ||||||||||||||||
Net income (loss) from consolidated companies | (16,816 | ) | (702 | ) | (5,396 | ) | 1,084 | |||||||||||||
Equity in net income of unconsolidated affiliates | 30 | 21 | 57 | 108 | ||||||||||||||||
Net income (loss) | $ | (16,786 | ) | $ | (681 | ) | $ | (5,339 | ) | $ | 1,192 | |||||||||
Basic income (loss) per share | $ | (0.74 | ) | $ | (0.03 | ) | $ | (0.23 | ) | $ | 0.05 | |||||||||
Diluted income (loss) per share | $ | (0.74 | ) | $ | (0.03 | ) | $ | (0.23 | ) | $ | 0.05 | |||||||||
Shares used in computing basic income (loss) per share | 22,783 | 23,162 | 23,515 | 23,543 | ||||||||||||||||
Shares used in computing diluted income (loss) per share | 22,783 | 23,162 | 23,515 | 23,740 | ||||||||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||
Schedule of Valuation and Qualifying Accounts | ' | ||||||||||||||||||
Schedule II | |||||||||||||||||||
PERICOM SEMICONDUCTOR CORPORATION | |||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Balance at | Charged to | Deductions | Balance at | ||||||||||||||||
Beginning | Revenues | End of | |||||||||||||||||
of Period | Period | ||||||||||||||||||
Reserves for returns and pricing adjustments | |||||||||||||||||||
Fiscal year ended June 28, 2014 | $ | 2,435 | $ | 4,880 | $ | (4,879 | ) | $ | 2,436 | ||||||||||
Fiscal year ended June 29, 2013 | 2,522 | 4,493 | (4,580 | ) | 2,435 | ||||||||||||||
Fiscal year ended June 30, 2012 | 1,718 | 5,982 | (5,178 | ) | 2,522 | ||||||||||||||
Balance at | Charged to | Deductions/ | Balance at | ||||||||||||||||
Beginning | Expense | Write-offs | End of | ||||||||||||||||
of Period | Period | ||||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||||
Fiscal year ended June 28, 2014 | $ | 76 | $ | 1 | $ | (52 | ) | $ | 25 | ||||||||||
Fiscal year ended June 29, 2013 | 44 | 49 | (17 | ) | 76 | ||||||||||||||
Fiscal year ended June 30, 2012 | 229 | 92 | (277 | ) | 44 | ||||||||||||||
Balance at | Charged to | Deductions/ | Balance at | ||||||||||||||||
Beginning | Expense | Write-offs | End of | ||||||||||||||||
of Period | Period | ||||||||||||||||||
Deferred tax valuation allowance | |||||||||||||||||||
Fiscal year ended June 28, 2014 | $ | 5,064 | $ | 50 | $ | — | $ | 5,114 | |||||||||||
Fiscal year ended June 29, 2013 | 4,305 | 759 | — | 5,064 | |||||||||||||||
Fiscal year ended June 30, 2012 | 1,062 | 3,243 | — | 4,305 | |||||||||||||||
Business_and_Significant_Accou1
Business and Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||
Business and Significant Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||
USE OF ESTIMATES | ' | |||||||||||||||||||||||||||
USE OF ESTIMATES — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||
BASIS OF PRESENTATION | ' | |||||||||||||||||||||||||||
BASIS OF PRESENTATION — These consolidated financial statements include the accounts of Pericom Semiconductor Corporation and its wholly owned subsidiaries, Pericom Global Limited (“PGL”), PSE Technology Corporation (“PSE-TW”), and Pericom Asia Limited (“PAL”). PGL has two wholly-owned subsidiaries, Pericom International Limited (“PIL”) and Pericom Semiconductor (HK) Limited (“PHK”). In addition, PAL has three subsidiaries, PSE Technology (Shandong) Corporation (“PSE-SD”), Pericom Technology Yangzhou Corporation (“PSC-YZ”) for the Jinan, China and Yangzhou, China operations, respectively, and Pericom Technology Inc. (“PTI”). All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||||||||||||||||
The Company has significant operations in the People’s Republic of China (“PRC”), where certain political, economic and currency restrictions may apply. Insofar as can be reasonably determined, and based on our experience to date, the effect of foreign exchange restrictions upon the consolidated financial position and results of the Company are not material. | ||||||||||||||||||||||||||||
FISCAL PERIOD | ' | |||||||||||||||||||||||||||
FISCAL PERIOD — For purposes of reporting the financial results, the Company’s fiscal years end on the Saturday closest to the end of June. The year ended July 3, 2010 contains 53 weeks, whereas all other fiscal years presented herein include 52 weeks. | ||||||||||||||||||||||||||||
CASH EQUIVALENTS | ' | |||||||||||||||||||||||||||
CASH EQUIVALENTS — The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less when purchased to be cash equivalents. The recorded carrying amounts of the Company’s cash and cash equivalents approximate their fair value. | ||||||||||||||||||||||||||||
SHORT-TERM AND LONG-TERM INVESTMENTS IN MARKETABLE SECURITIES | ' | |||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS IN MARKETABLE SECURITIES — The Company’s policy is to invest in instruments with investment grade credit ratings. The Company classifies its short-term investments as “available-for-sale” securities and the Company bases the cost of securities sold using the specific identification method. The Company accounts for unrealized gains and losses on its available-for-sale securities as a separate component of shareholders’ equity in the consolidated balance sheets in the period in which the gain or loss occurs. In prior years, the Company classified portions of its available-for-sale securities as current or noncurrent based on each security’s attributes. Effective as of June 28, 2014, all available-for-sale securities are classified as short-term investments, as we consider the entire investment portfolio to be saleable if cash is needed or if better investment opportunities arise. Prior period balance sheets have been reclassed accordingly to conform to the current year presentation. This reclass had no effect on previously reported net income (loss), comprehensive income (loss), shareholders’ equity or cash flows. | ||||||||||||||||||||||||||||
As of June 28, 2014 and June 29, 2013, investments, and any difference between the fair market value and the underlying amortized cost of such investments, consisted of the following: | ||||||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||||||
As of June 28, 2014 | ||||||||||||||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Net | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Unrealized | Value | ||||||||||||||||||||||||
Gains | ||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||||||
Time deposits | $ | 17,693 | $ | — | $ | — | $ | — | $ | 17,693 | ||||||||||||||||||
Repurchase agreements | 500 | — | — | — | 500 | |||||||||||||||||||||||
US Treasury securities | 526 | 1 | — | 1 | 527 | |||||||||||||||||||||||
National government and agency securities | 4,962 | 95 | (2 | ) | 93 | 5,055 | ||||||||||||||||||||||
State and municipal bond obligations | 7,090 | 63 | (4 | ) | 59 | 7,149 | ||||||||||||||||||||||
Corporate bonds and notes | 42,675 | 249 | (143 | ) | 106 | 42,781 | ||||||||||||||||||||||
Asset backed securities | 7,592 | 28 | (6 | ) | 22 | 7,614 | ||||||||||||||||||||||
Mortgage backed securities | 4,766 | 26 | (7 | ) | 19 | 4,785 | ||||||||||||||||||||||
Total | $ | 85,804 | $ | 462 | $ | (162 | ) | $ | 300 | $ | 86,104 | |||||||||||||||||
As of June 29, 2013 | ||||||||||||||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Net | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Unrealized | Value | ||||||||||||||||||||||||
Gains | ||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||||||
Time deposits | $ | 12,087 | $ | — | $ | — | $ | — | $ | 12,087 | ||||||||||||||||||
Repurchase agreements | 1,997 | — | — | — | 1,997 | |||||||||||||||||||||||
National government and agency securities | 4,348 | 106 | (3 | ) | 103 | 4,451 | ||||||||||||||||||||||
State and municipal bond obligations | 3,776 | 9 | (27 | ) | (18 | ) | 3,758 | |||||||||||||||||||||
Corporate bonds and notes | 48,438 | 71 | (716 | ) | (645 | ) | 47,793 | |||||||||||||||||||||
Asset backed securities | 10,063 | 19 | (60 | ) | (41 | ) | 10,022 | |||||||||||||||||||||
Mortgage backed securities | 6,755 | 26 | (50 | ) | (24 | ) | 6,731 | |||||||||||||||||||||
Total | $ | 87,464 | $ | 231 | $ | (856 | ) | $ | (625 | ) | $ | 86,839 | ||||||||||||||||
The following tables show the gross unrealized losses and fair values of the Company’s investments that have unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||||||
Continuous Unrealized Losses at June 28, 2014 | ||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
National government and agency securities | $ | 282 | $ | 1 | $ | 91 | $ | 1 | $ | 373 | $ | 2 | ||||||||||||||||
State and municipal bond obligations | — | — | 695 | 4 | 695 | 4 | ||||||||||||||||||||||
Corporate bonds and notes | 3,901 | 11 | 5,801 | 132 | 9,702 | 143 | ||||||||||||||||||||||
Asset backed securities | 895 | 1 | 1,195 | 5 | 2,090 | 6 | ||||||||||||||||||||||
Mortgage backed securities | 1,083 | 3 | 504 | 4 | 1,587 | 7 | ||||||||||||||||||||||
$ | 6,161 | $ | 16 | $ | 8,286 | $ | 146 | $ | 14,447 | $ | 162 | |||||||||||||||||
Continuous Unrealized Losses at June 29, 2013 | ||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
National government and agency securities | $ | 154 | $ | 3 | $ | — | $ | — | $ | 154 | $ | 3 | ||||||||||||||||
State and municipal bond obligations | 2,364 | 27 | — | — | 2,364 | 27 | ||||||||||||||||||||||
Corporate bonds and notes | 36,394 | 626 | 4,298 | 90 | 40,692 | 716 | ||||||||||||||||||||||
Asset backed securities | 5,881 | 51 | 546 | 9 | 6,427 | 60 | ||||||||||||||||||||||
Mortgage backed securities | 3,616 | 13 | 216 | 37 | 3,831 | 50 | ||||||||||||||||||||||
$ | 48,409 | $ | 720 | $ | 5,060 | $ | 136 | $ | 53,469 | $ | 856 | |||||||||||||||||
The unrealized losses are of a temporary nature due to the Company’s intent and ability to hold the investments until maturity or until the cost is recoverable. The unrealized losses are primarily due to fluctuations in market interest rates. The Company reports unrealized gains and losses on its “available-for-sale” securities in accumulated other comprehensive income, net of tax, in shareholders’ equity. | ||||||||||||||||||||||||||||
The Company records gains or losses realized on sales of available-for-sale securities in interest and other income, net on its consolidated statements of operations. The cost of securities sold is based on the specific identification of the security and its amortized cost. In fiscal 2014, 2013 and 2012, realized gains on available-for-sale securities were $179,000, $1.0 million and $673,000, respectively. | ||||||||||||||||||||||||||||
The following table lists the fair value of the Company’s short-term investments by length of time to maturity as of June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
One year or less | $ | 24,963 | $ | 19,853 | ||||||||||||||||||||||||
Between one and three years | 24,242 | 29,525 | ||||||||||||||||||||||||||
Greater than three years | 30,449 | 29,244 | ||||||||||||||||||||||||||
Multiple dates | 6,450 | 8,217 | ||||||||||||||||||||||||||
$ | 86,104 | $ | 86,839 | |||||||||||||||||||||||||
Securities with maturities over multiple dates are mortgage-backed securities (“MBS”) or asset-backed securities (“ABS”) featuring periodic principle paydowns through 2041. | ||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS — The Company has determined that the amounts reported for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short maturities and/or variable interest rates. Available-for-sale investments are reported at their fair value based on quoted market prices. A further discussion of the fair value of financial instruments is detailed in Note 16 to the Consolidated Financial Statements contained in this report on Form 10-K. | ||||||||||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ' | |||||||||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company computes its allowance for doubtful accounts using a combination of factors. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations to the Company, the Company records a specific allowance against amounts due to the Company, reducing the net recognized receivable to the amount the Company reasonably believes it will collect. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and its historical experience. | ||||||||||||||||||||||||||||
INVENTORIES | ' | |||||||||||||||||||||||||||
INVENTORIES — For IC and certain FCP products, the Company records inventories at the lower of standard cost (which generally approximates actual cost on a first-in, first-out basis) or market value. The carrying value of inventory is adjusted for excess and obsolete inventory based on inventory age, shipment history and the forecast of demand over a specific future period. The semiconductor markets that the Company serves are volatile and actual results may vary from forecast or other assumptions, potentially affecting the Company’s assessment of excess and obsolete inventory, resulting in material effects on gross margin. | ||||||||||||||||||||||||||||
The inventories of the remainder of the FCP products are recorded at the lower of weighted-average cost, which approximates actual cost, or market value. Weighted average cost is comprised of average manufacturing costs weighted by the volume produced in each production run. Market value is defined as the net realizable value for finished goods, and replacement cost for raw materials and work in process. | ||||||||||||||||||||||||||||
Raw material inventory is considered slow moving and is fully reserved if it has not moved in 365 days. For assembled devices, the inventory is disaggregated by part number. The quantities on hand in each part number category are compared to the quantity that was shipped in the previous twelve months, the quantity in backlog and to the quantity expected to ship in the next twelve months. A reserve is recorded to the extent the value of each quantity on hand is in excess of the lesser of the three comparisons. The Company also periodically reviews inventory for obsolescence beyond the established formulaic tests. The Company believes this method of evaluating inventory fairly represents market conditions. | ||||||||||||||||||||||||||||
The Company considers the reserved material to be available for sale. The reserved inventory is not revalued should market conditions change or if a market develops for the obsolete inventory. In the past, the Company has sold obsolete inventory that was previously fully reserved. | ||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT — The Company states its property, plant and equipment at cost. Cost includes purchase cost, applicable taxes, freight, installation costs and interest incurred in the acquisition of any asset that requires a period of time to make it ready for use. We compute depreciation and amortization using the straight-line method over estimated useful lives of three to eight years except for buildings, which we depreciate using the straight-line method over estimated useful lives of twenty to forty years. We depreciate leasehold improvements over the shorter of the lease term or the improvement’s estimated useful life. In addition, we capitalize the cost of major replacements, improvements and betterments, while we expense normal maintenance and repair. | ||||||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | ' | |||||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES — The Company holds or has held ownership interests in various investees. Our ownership in these affiliates has varied from 20% to approximately 49%. We classify these investments as investments in unconsolidated affiliates in our consolidated balance sheets. The Company accounts for long-term investments in companies in which it has an ownership share larger than 20% and in which it has significant influence over the activities of the investee using the equity method. We recognize our proportionate share of each investee’s income or loss in the period in which the investee reports the income or loss. We eliminate all intercompany transactions in accounting for our equity method investments. | ||||||||||||||||||||||||||||
OTHER ASSETS | ' | |||||||||||||||||||||||||||
OTHER ASSETS — The Company’s other assets classification includes investments in privately held companies in which we have less than a 20% interest, land use rights and deposits. The Company reports its investments in privately held companies at the lower of cost or market. The Company’s management reviews the investment in these companies for losses that may be other than temporary on a quarterly basis. Should management determine that such an impairment exists, the Company will reduce the value of the Company’s investment in the period in which management discovers the impairment and charge the impairment to the consolidated statement of operations. The Company’s management performed such an evaluation as of June 28, 2014 and determined that no impairment existed. Two of the Company’s subsidiaries, PSE-SD and PTI, hold land use rights that were acquired from the local Chinese government which entitle the Company to use the land for 15 to 50 years. The cost of the land use rights is recorded as a component of other assets and is being depreciated over 15 to 50 years, the useful life of the rights. | ||||||||||||||||||||||||||||
LONG-LIVED ASSETS | ' | |||||||||||||||||||||||||||
LONG-LIVED ASSETS — The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount, the Company will recognize an impairment loss as the amount of the difference between carrying value and fair value as determined by discounted cash flows. | ||||||||||||||||||||||||||||
INCOME TAXES | ' | |||||||||||||||||||||||||||
INCOME TAXES — The Company accounts for income taxes following the Financial Accounting Standards Board’s (“FASB”) statements and related interpretations, which require an asset and liability approach to recording deferred taxes. We record a valuation allowance to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company’s income tax calculations are based on application of the respective U.S. federal, state or foreign tax laws. The Company’s tax filings, however, are subject to audit by the respective tax authorities. Accordingly, the Company recognizes tax liabilities based on its estimates of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases are recorded as income tax expense or benefit in the consolidated statements of operations. | ||||||||||||||||||||||||||||
The Internal Revenue Service completed their examination of the Company’s federal tax returns for fiscal 2010 and 2011 during fiscal 2014, and additional tax payments of approximately $208,000 were made in fiscal 2014, including interest charges for the two years that were examined. The Company had previously accrued for this exposure. | ||||||||||||||||||||||||||||
FOREIGN CURRENCY TRANSLATION | ' | |||||||||||||||||||||||||||
FOREIGN CURRENCY TRANSLATION — The functional currency of the Company’s foreign subsidiaries is the local currency. In consolidation, the Company translates assets and liabilities at exchange rates in effect at the balance sheet date. The Company translates revenue and expense accounts at average exchange rates during the period in which the transaction takes place. Net gains or (losses) from foreign currency translation of assets and liabilities of $394,000 and $1.3 million in fiscal 2014 and 2013, respectively, are included in the cumulative translation adjustment component of accumulated other comprehensive income, net of tax, a component of shareholders’ equity. Net gains or (losses) arising from transactions denominated in currencies other than the functional currency were $(11,000), $562,000 and $334,000 in fiscal 2014, 2013 and 2012 respectively, and are included in interest and other income, net. | ||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||||||||||||||
SHARE-BASED COMPENSATION — The Company recognizes employee share-based compensation through measurement at grant date based on the fair value of the award, and the fair value is recognized as an expense over the employee’s requisite service period. See Note 14 for further discussion of share-based compensation. | ||||||||||||||||||||||||||||
REVENUE RECOGNITION | ' | |||||||||||||||||||||||||||
REVENUE RECOGNITION — The Company recognizes revenue from the sale of its products when: | ||||||||||||||||||||||||||||
• | Persuasive evidence of an arrangement exists; | |||||||||||||||||||||||||||
• | Delivery has occurred; | |||||||||||||||||||||||||||
• | The sales price is fixed or determinable; and | |||||||||||||||||||||||||||
• | Collectability is reasonably assured. | |||||||||||||||||||||||||||
Generally, the Company meets these conditions upon shipment because, in most cases, title and risk of loss passes to the customer at that time. In addition, the Company estimates and records provisions for future returns and other charges against revenue at the time of shipment consistent with the terms of sale. | ||||||||||||||||||||||||||||
The Company sells products to large, domestic distributors at the price listed in its price book for that distributor. At the time of sale the Company records a sales reserve for ship from stock and debits (“SSD”s), stock rotations, return material authorizations (“RMA”s), authorized price protection programs, and any special programs approved by management. The Company offsets the sales reserve against revenues, producing the net revenue amount reported in the consolidated statements of operations. | ||||||||||||||||||||||||||||
The market price for the Company’s products can be significantly different from the book price at which the Company sold the product to the distributor. When the market price, as compared to the Company’s original book price, of a particular distributor’s sales opportunity to their own customer would result in low or negative margins for our distributor, the Company negotiates a ship from stock and debit with the distributor. Management analyzes the Company’s SSD history to develop current SSD rates that form the basis of the SSD sales reserve recorded each period. The Company obtains the historical SSD rates from its internal records. | ||||||||||||||||||||||||||||
The Company’s distribution agreements provide for semi-annual stock rotation privileges of typically 10% of net sales for the previous six-month period. The contractual stock rotation applies only to shipments at the Company’s listed book price. Asian distributors typically buy the Company’s product at less than standard price and therefore are not entitled to the 10% stock rotation privilege. In order to provide for routine inventory refreshing, for the Company’s benefit as well as theirs, the Company grants Asian distributors stock rotation privileges between 1% and 10% even though the Company is not contractually obligated to do so. Each month the Company adjusts the sales reserve for the estimated stock rotation privilege anticipated to be utilized by the distributors. | ||||||||||||||||||||||||||||
From time to time, customers may request to return parts for various reasons including the customers’ belief that the parts are not performing to specification. Many such return requests are the result of customers incorrectly using the parts, not because the parts are defective. Management reviews these requests and, if approved, the Company prepares a RMA. The Company is only obligated to accept defective parts returns. To accommodate the Company’s customers, the Company may approve particular return requests, even though it is not obligated to do so. Each month the Company records a sales reserve for approved RMAs covering products that have not yet been returned. The Company does not maintain a general warranty reserve because, historically, valid warranty returns, which are the result of a part not meeting specifications or being non-functional, have been immaterial and the Company can frequently resell returned parts to other customers for use in other applications. The Company monitors and assesses RMA activity and overall materiality to assess whether a general warranty reserve has become appropriate. | ||||||||||||||||||||||||||||
The Company grants price protection solely at the discretion of Pericom management. The purpose of price protection is to reduce the distributor’s cost of inventory as market prices fall thus reducing SSD rates. Pericom sales management prepares price protection proposals for individual products located at individual distributors. Pericom general management reviews and approves or disapproves these proposals. If a particular price protection arrangement is approved, the Company estimates the dollar impact based on the sales price reduction per unit for the products approved and the number of units of those products in that distributor’s inventory. The Company records a sales reserve in that period for the estimated amount at the time revenue is recognized. | ||||||||||||||||||||||||||||
At the discretion of Pericom management, the Company may offer rebates on specific products sold to specific end customers. The purpose of the rebates is to allow for pricing adjustments for large programs without affecting the pricing the Company charges its distributor customers. The Company records the rebate at the time of shipment. | ||||||||||||||||||||||||||||
Pericom typically grants payment terms of between 30 and 60 days to its customers. The Company’s customers generally pay within those terms. The Company grants relatively few customers sales terms that include cash discounts. Distributors are invoiced for shipments at listed book price. When the distributors pay the Company’s invoices, they may claim debits for SSDs, stock rotations, cash discounts, RMAs and price protection when appropriate. Once claimed, the Company processes the requests against the prior authorizations and reduces the reserve previously established for that customer. | ||||||||||||||||||||||||||||
The revenue the Company records for sales to its distributors is net of estimated provisions for these programs. When determining this net revenue, the Company must make significant judgments and estimates. The Company bases its estimates on historical experience rates, inventory levels in the distribution channel, current trends and other related factors. However, because of the inherent nature of estimates, there is a risk that there could be significant differences between actual amounts and the Company’s estimates. The Company’s financial condition and operating results depend on its ability to make reliable estimates and Pericom believes that such estimates are reasonable. | ||||||||||||||||||||||||||||
PRODUCT WARRANTY | ' | |||||||||||||||||||||||||||
PRODUCT WARRANTY — The Company offers a standard one-year product replacement warranty. In the past, the Company has not had to accrue for a general warranty reserve, but assesses the level and materiality of RMAs and determines whether it is appropriate to accrue for estimated returns of defective products at the time revenue is recognized. On occasion, management may determine to accept product returns beyond the standard one-year warranty period. In those instances, the Company accrues for the estimated cost at the time management decides to accept the return. Because of the Company’s standardized manufacturing processes and product testing procedures, returns of defective product are infrequent and the quantities have not been significant. Accordingly, historical warranty costs have not been material. | ||||||||||||||||||||||||||||
SHIPPING COSTS | ' | |||||||||||||||||||||||||||
SHIPPING COSTS — We charge shipping costs to cost of revenues as incurred. | ||||||||||||||||||||||||||||
CONCENTRATION OF CREDIT RISK | ' | |||||||||||||||||||||||||||
CONCENTRATION OF CREDIT RISK — The Company primarily sells its products to a relatively small number of companies and generally does not require its customers to provide collateral or other security to support accounts receivable. The Company maintains allowances for estimated bad debt losses. The Company also purchases substantially all of its wafers from three suppliers and purchases other manufacturing services from a relatively small number of suppliers. | ||||||||||||||||||||||||||||
The following table indicates the percentage of our net revenues and accounts receivable in excess of 10% with any single customer: | ||||||||||||||||||||||||||||
Percentage of | ||||||||||||||||||||||||||||
Fiscal Year Ended: | Net | Trade | ||||||||||||||||||||||||||
Revenues | Accounts | |||||||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||||||
28-Jun-14 | Customer A | 26 | % | 29 | % | |||||||||||||||||||||||
Customer B | 10 | 8 | ||||||||||||||||||||||||||
All others | 64 | 63 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
29-Jun-13 | Customer A | 21 | % | 28 | % | |||||||||||||||||||||||
Customer B | 12 | 7 | ||||||||||||||||||||||||||
All others | 67 | 65 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
30-Jun-12 | Customer A | 18 | % | 26 | % | |||||||||||||||||||||||
Customer B | 14 | 6 | ||||||||||||||||||||||||||
All others | 68 | 68 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
The Company maintains cash, cash equivalents and short-term investments with various high credit quality financial institutions. The Company has designed its investment policy to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that manage its investments. The Company is exposed to credit risk in the event of default by the financial institutions or issuers of securities to the extent of the amounts reported in the consolidated balance sheets. | ||||||||||||||||||||||||||||
RECLASSIFICATIONS | ' | |||||||||||||||||||||||||||
RECLASSIFICATIONS — Certain reclassifications have been made to prior year financial statements to conform to the current year presentation. The reclassifications had no effect on the previously reported consolidated statement of operations, comprehensive income (loss), shareholders’ equity or cash flows. | ||||||||||||||||||||||||||||
RECENTLY ISSUED ACCOUNTING STANDARDS | ' | |||||||||||||||||||||||||||
RECENTLY ISSUED ACCOUNTING STANDARDS — In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU 2013-11 will be effective for annual reporting periods, and interim reporting periods within those years, beginning after December 15, 2013. Early adoption is permitted. Since ASU 2013-11 only impacts financial statement disclosure requirements for unrecognized tax benefits, the Company does not expect its adoption to have an impact on the Company’s financial position or results of operations. | ||||||||||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 requires an entity to 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 or services. ASU 2014-09 will be effective for annual and interim reporting periods beginning after December 15, 2016. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. | ||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE | ' | |||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE — The Company bases its basic earnings (loss) per share upon the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | ||||||||||||||||||||||||||||
Basic and diluted earnings (loss) per share for each of the three years in the period ended June 28, 2014 is as follows: | ||||||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||||||
(in thousands, except for per share data) | June 28, | June 29, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Net income (loss) | $ | 4,124 | $ | (21,614 | ) | $ | (2,068 | ) | ||||||||||||||||||||
Computation of common shares outstanding — basic earnings (loss) per share: | ||||||||||||||||||||||||||||
Weighted average shares of common stock | 22,594 | 23,251 | 24,094 | |||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.18 | $ | (0.93 | ) | $ | (0.09 | ) | ||||||||||||||||||||
Computation of common shares outstanding — diluted earnings (loss) per share: | ||||||||||||||||||||||||||||
Weighted average shares of common stock | 22,594 | 23,251 | 24,094 | |||||||||||||||||||||||||
Dilutive shares using the treasury stock method | 203 | — | — | |||||||||||||||||||||||||
Shares used in computing diluted earnings (loss) per share | 22,797 | 23,251 | 24,094 | |||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.18 | $ | (0.93 | ) | $ | (0.09 | ) | ||||||||||||||||||||
As the Company incurred losses for the years ended June 29, 2013 and June 30, 2012, diluted loss per share is the same as basic loss per share since the addition of any contingently issuable share would be anti-dilutive. Options to purchase 1.9 million shares of common stock, and restricted stock units of 1,138 shares were outstanding during the year ended June 28, 2014 and were excluded from the computation of diluted net earnings per share because such options and units were anti-dilutive. Options to purchase 2.4 million shares of common stock, and restricted stock units of 525,000 shares were outstanding during the year ended June 29, 2013 and were excluded from the computation of diluted net earnings per share because such options and units were anti-dilutive. Options to purchase 2.5 million shares of common stock, and restricted stock units of 504,000 shares were outstanding during the year ended June 30, 2012 and were excluded from the computation of diluted net earnings per share because such options and units were anti-dilutive. |
Business_and_Significant_Accou2
Business and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||
Business and Significant Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||
Summary of available for sale securities | ' | |||||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||||||
As of June 28, 2014 | ||||||||||||||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Net | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Unrealized | Value | ||||||||||||||||||||||||
Gains | ||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||||||
Time deposits | $ | 17,693 | $ | — | $ | — | $ | — | $ | 17,693 | ||||||||||||||||||
Repurchase agreements | 500 | — | — | — | 500 | |||||||||||||||||||||||
US Treasury securities | 526 | 1 | — | 1 | 527 | |||||||||||||||||||||||
National government and agency securities | 4,962 | 95 | (2 | ) | 93 | 5,055 | ||||||||||||||||||||||
State and municipal bond obligations | 7,090 | 63 | (4 | ) | 59 | 7,149 | ||||||||||||||||||||||
Corporate bonds and notes | 42,675 | 249 | (143 | ) | 106 | 42,781 | ||||||||||||||||||||||
Asset backed securities | 7,592 | 28 | (6 | ) | 22 | 7,614 | ||||||||||||||||||||||
Mortgage backed securities | 4,766 | 26 | (7 | ) | 19 | 4,785 | ||||||||||||||||||||||
Total | $ | 85,804 | $ | 462 | $ | (162 | ) | $ | 300 | $ | 86,104 | |||||||||||||||||
As of June 29, 2013 | ||||||||||||||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Net | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Unrealized | Value | ||||||||||||||||||||||||
Gains | ||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||||||
Time deposits | $ | 12,087 | $ | — | $ | — | $ | — | $ | 12,087 | ||||||||||||||||||
Repurchase agreements | 1,997 | — | — | — | 1,997 | |||||||||||||||||||||||
National government and agency securities | 4,348 | 106 | (3 | ) | 103 | 4,451 | ||||||||||||||||||||||
State and municipal bond obligations | 3,776 | 9 | (27 | ) | (18 | ) | 3,758 | |||||||||||||||||||||
Corporate bonds and notes | 48,438 | 71 | (716 | ) | (645 | ) | 47,793 | |||||||||||||||||||||
Asset backed securities | 10,063 | 19 | (60 | ) | (41 | ) | 10,022 | |||||||||||||||||||||
Mortgage backed securities | 6,755 | 26 | (50 | ) | (24 | ) | 6,731 | |||||||||||||||||||||
Total | $ | 87,464 | $ | 231 | $ | (856 | ) | $ | (625 | ) | $ | 86,839 | ||||||||||||||||
Summary of gross unrealized losses and fair values | ' | |||||||||||||||||||||||||||
Continuous Unrealized Losses at June 28, 2014 | ||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
National government and agency securities | $ | 282 | $ | 1 | $ | 91 | $ | 1 | $ | 373 | $ | 2 | ||||||||||||||||
State and municipal bond obligations | — | — | 695 | 4 | 695 | 4 | ||||||||||||||||||||||
Corporate bonds and notes | 3,901 | 11 | 5,801 | 132 | 9,702 | 143 | ||||||||||||||||||||||
Asset backed securities | 895 | 1 | 1,195 | 5 | 2,090 | 6 | ||||||||||||||||||||||
Mortgage backed securities | 1,083 | 3 | 504 | 4 | 1,587 | 7 | ||||||||||||||||||||||
$ | 6,161 | $ | 16 | $ | 8,286 | $ | 146 | $ | 14,447 | $ | 162 | |||||||||||||||||
Continuous Unrealized Losses at June 29, 2013 | ||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
National government and agency securities | $ | 154 | $ | 3 | $ | — | $ | — | $ | 154 | $ | 3 | ||||||||||||||||
State and municipal bond obligations | 2,364 | 27 | — | — | 2,364 | 27 | ||||||||||||||||||||||
Corporate bonds and notes | 36,394 | 626 | 4,298 | 90 | 40,692 | 716 | ||||||||||||||||||||||
Asset backed securities | 5,881 | 51 | 546 | 9 | 6,427 | 60 | ||||||||||||||||||||||
Mortgage backed securities | 3,616 | 13 | 216 | 37 | 3,831 | 50 | ||||||||||||||||||||||
$ | 48,409 | $ | 720 | $ | 5,060 | $ | 136 | $ | 53,469 | $ | 856 | |||||||||||||||||
Summary of fair market value of the Company's short and long-term investments by length of time to maturity | ' | |||||||||||||||||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
One year or less | $ | 24,963 | $ | 19,853 | ||||||||||||||||||||||||
Between one and three years | 24,242 | 29,525 | ||||||||||||||||||||||||||
Greater than three years | 30,449 | 29,244 | ||||||||||||||||||||||||||
Multiple dates | 6,450 | 8,217 | ||||||||||||||||||||||||||
$ | 86,104 | $ | 86,839 | |||||||||||||||||||||||||
Summary of percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | |||||||||||||||||||||||||||
Percentage of | ||||||||||||||||||||||||||||
Fiscal Year Ended: | Net | Trade | ||||||||||||||||||||||||||
Revenues | Accounts | |||||||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||||||
28-Jun-14 | Customer A | 26 | % | 29 | % | |||||||||||||||||||||||
Customer B | 10 | 8 | ||||||||||||||||||||||||||
All others | 64 | 63 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
29-Jun-13 | Customer A | 21 | % | 28 | % | |||||||||||||||||||||||
Customer B | 12 | 7 | ||||||||||||||||||||||||||
All others | 67 | 65 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
30-Jun-12 | Customer A | 18 | % | 26 | % | |||||||||||||||||||||||
Customer B | 14 | 6 | ||||||||||||||||||||||||||
All others | 68 | 68 | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||
Summary of basic and diluted earnings per share | ' | |||||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||||||
(in thousands, except for per share data) | June 28, | June 29, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Net income (loss) | $ | 4,124 | $ | (21,614 | ) | $ | (2,068 | ) | ||||||||||||||||||||
Computation of common shares outstanding — basic earnings (loss) per share: | ||||||||||||||||||||||||||||
Weighted average shares of common stock | 22,594 | 23,251 | 24,094 | |||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.18 | $ | (0.93 | ) | $ | (0.09 | ) | ||||||||||||||||||||
Computation of common shares outstanding — diluted earnings (loss) per share: | ||||||||||||||||||||||||||||
Weighted average shares of common stock | 22,594 | 23,251 | 24,094 | |||||||||||||||||||||||||
Dilutive shares using the treasury stock method | 203 | — | — | |||||||||||||||||||||||||
Shares used in computing diluted earnings (loss) per share | 22,797 | 23,251 | 24,094 | |||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.18 | $ | (0.93 | ) | $ | (0.09 | ) | ||||||||||||||||||||
Other_Receivables_Tables
Other Receivables (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Other Receivables [Abstract] | ' | |||||||||||
Other receivables | ' | |||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Interest receivable | $ | 1,516 | $ | 1,054 | ||||||||
VAT and other tax receivables | 1,031 | 1,076 | ||||||||||
Government subsidy receivable | — | 840 | ||||||||||
Other accounts receivable | 331 | 211 | ||||||||||
$ | 2,878 | $ | 3,181 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Inventory [Abstract] | ' | |||||||||||
Inventories | ' | |||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Finished goods | $ | 3,991 | $ | 3,847 | ||||||||
Work-in-process | 2,468 | 3,869 | ||||||||||
Raw materials | 5,829 | 7,128 | ||||||||||
$ | 12,288 | $ | 14,844 |
Recovered_Sheet1
Property, Plant and Equipment - Net (Tables) | 12 Months Ended | ||||||||||
Jun. 28, 2014 | |||||||||||
Property, Plant and Equipment - Net [Abstract] | ' | ||||||||||
Property, plant and equipment | ' | ||||||||||
As of the year ended | |||||||||||
(in thousands) | June 28, | June 29, | |||||||||
2014 | 2013 | ||||||||||
Machinery and equipment | $ | 55,408 | $ | 55,795 | |||||||
Buildings | 36,196 | 30,637 | |||||||||
Computer equipment and software | 13,742 | 14,449 | |||||||||
Land | 9,473 | 3,661 | |||||||||
Furniture and fixtures | 1,218 | 1,402 | |||||||||
Leasehold improvements | 595 | 1,115 | |||||||||
Vehicles | 151 | 155 | |||||||||
Total | 116,783 | 107,214 | |||||||||
Accumulated depreciation and amortization | (59,500 | ) | (56,825 | ) | |||||||
Construction-in-progress | 1,254 | 10,570 | |||||||||
Property, plant and equipment — net | $ | 58,537 | $ | 60,959 | |||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Other Assets [Abstract] | ' | |||||||||||
Other assets | ' | |||||||||||
As of the year ended | ||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||
2014 | 2013 | |||||||||||
Land use rights | $ | 6,631 | $ | 6,821 | ||||||||
Investments in privately held companies | 1,243 | 1,238 | ||||||||||
Deposits | 118 | 262 | ||||||||||
Other | 126 | 304 | ||||||||||
Total | $ | 8,118 | $ | 8,625 | ||||||||
Investment_in_Unconsolidated_A1
Investment in Unconsolidated Affiliate (Tables) | 12 Months Ended | ||||||||||
Jun. 28, 2014 | |||||||||||
Investments in Unconsolidated Affiliate [Abstract] | ' | ||||||||||
Investment in unconsolidated affiliates | ' | ||||||||||
As of the year ended | |||||||||||
(in thousands) | June 28, | June 29, | |||||||||
2014 | 2013 | ||||||||||
Jiyuan Crystal Photoelectric Frequency Technology Ltd. | $ | 2,445 | $ | 2,525 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of goodwill | ' | |||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 16,797 | ||||||||||||||||||||||||||
Other adjustments | — | |||||||||||||||||||||||||||
Cumulative translation adjustments | 102 | |||||||||||||||||||||||||||
Impairment | (16,899 | ) | ||||||||||||||||||||||||||
Balance at June 29, 2013 | $ | — | ||||||||||||||||||||||||||
Summary of acquired intangible assets | ' | |||||||||||||||||||||||||||
As of the year ended | ||||||||||||||||||||||||||||
28-Jun-14 | 29-Jun-13 | |||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||||
Customer relationships | $ | 6,056 | $ | (3,913 | ) | $ | 2,143 | $ | 6,032 | $ | (2,912 | ) | $ | 3,120 | ||||||||||||||
In process research and development | 3,564 | (1,959 | ) | 1,605 | 3,549 | (1,367 | ) | 2,182 | ||||||||||||||||||||
Core developed technology | 9,838 | (6,977 | ) | 2,861 | 9,800 | (5,557 | ) | 4,243 | ||||||||||||||||||||
Total amortizable purchased intangible assets | 19,458 | (12,849 | ) | 6,609 | 19,381 | (9,836 | ) | 9,545 | ||||||||||||||||||||
SaRonix trade name | 400 | — | 400 | 399 | — | 399 | ||||||||||||||||||||||
Total purchased intangible assets | $ | 19,858 | $ | (12,849 | ) | $ | 7,009 | $ | 19,780 | $ | (9,836 | ) | $ | 9,944 | ||||||||||||||
Summary of future amortization expense associated with intangible assets | ' | |||||||||||||||||||||||||||
Fiscal Years Ending | ||||||||||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 and | Total | |||||||||||||||||||||||
beyond | ||||||||||||||||||||||||||||
Expected Amortization | ||||||||||||||||||||||||||||
Customer relationships | $ | 989 | $ | 989 | $ | 165 | $ | — | $ | 2,143 | ||||||||||||||||||
In process research and development | 594 | 594 | 417 | — | 1,605 | |||||||||||||||||||||||
Core developed technology | 1,321 | 1,321 | 219 | — | 2,861 | |||||||||||||||||||||||
$ | 2,904 | $ | 2,904 | $ | 801 | $ | — | $ | 6,609 | |||||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||||
Jun. 28, 2014 | |||||||||||
Accrued Liabilities [Abstract] | ' | ||||||||||
Accrued liabilities | ' | ||||||||||
As of the year ended | |||||||||||
(in thousands) | June 28, | June 29, | |||||||||
2014 | 2013 | ||||||||||
Accrued compensation | $ | 6,892 | $ | 6,029 | |||||||
Income taxes payable | 1,140 | 655 | |||||||||
Sales commissions | 307 | 316 | |||||||||
Accrued construction liabilities | — | 134 | |||||||||
Other accrued expenses | 1,595 | 1,597 | |||||||||
$ | 9,934 | $ | 8,731 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||||||||||
Future minimum commitments | ' | ||||||||||||||||||
Fiscal Year | |||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 and | Total | |||||||||||||||
beyond | |||||||||||||||||||
Operating lease payments | $ | 485 | $ | 55 | $ | — | $ | 540 | |||||||||||
Capital equipment purchase commitments | 4 | — | — | 4 | |||||||||||||||
Facility modification commitments | 12 | — | — | 12 | |||||||||||||||
Total | $ | 501 | $ | 55 | $ | — | $ | 556 | |||||||||||
Shareholders_Equity_and_ShareB1
Shareholders' Equity and Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||||
Shareholders' Equity and Share-Based Compensation [Abstract] | ' | ||||||||||||||||||||||
Assumption of the Company used value stock options | ' | ||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
28-Jun-14 | 29-Jun-13 | 30-Jun-12 | |||||||||||||||||||||
Expected life | 5.9 years | 5.9 years | 5.5 years | ||||||||||||||||||||
Risk-free interest rate | 1.47% | 1.05% | 2.46% | ||||||||||||||||||||
Volatility | 52% | 54% | 54% | ||||||||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||
Company's stock option plans | ' | ||||||||||||||||||||||
Outstanding Options | |||||||||||||||||||||||
Options | Shares | Weighted | Weighted | Aggregate | |||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||||||||
Contractual | |||||||||||||||||||||||
Term | |||||||||||||||||||||||
(in thousands) | (years) | (in thousands) | |||||||||||||||||||||
Options outstanding at July 2, 2011 | 2,974 | $ | 10.89 | 4.88 | $ | 645 | |||||||||||||||||
Options granted (weighted average grant date fair value of $3.89) | 142 | 7.65 | |||||||||||||||||||||
Options exercised | (21 | ) | 7.77 | ||||||||||||||||||||
Options forfeited or expired | (642 | ) | 12.37 | ||||||||||||||||||||
Options outstanding at June 30, 2012 | 2,453 | $ | 10.34 | 5.12 | $ | 912 | |||||||||||||||||
Options granted (weighted average grant date fair value of $4.06) | 233 | 8.07 | |||||||||||||||||||||
Options exercised | (6 | ) | 7.87 | ||||||||||||||||||||
Options forfeited or expired | (249 | ) | 9.17 | ||||||||||||||||||||
Options outstanding at June 29, 2013 | 2,431 | $ | 10.25 | 4.86 | $ | 52 | |||||||||||||||||
Options granted (weighted average grant date fair value of $4.06) | 236 | 8.16 | |||||||||||||||||||||
Options exercised | (190 | ) | 8.25 | ||||||||||||||||||||
Options forfeited or expired | (392 | ) | 9.96 | ||||||||||||||||||||
Options outstanding at June 28, 2014 | 2,085 | $ | 10.25 | 4.54 | $ | 1,077 | |||||||||||||||||
Options vested and expected to vest at June 28, 2014 | 2,048 | $ | 10.3 | 4.45 | $ | 1,031 | |||||||||||||||||
Options exercisable at June 28, 2014 | 1,796 | $ | 10.62 | 3.85 | $ | 742 | |||||||||||||||||
Option outstanding under exercise price range | ' | ||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||
Outstanding | Average | Average | Exercisable as | Average | |||||||||||||||||||
as of June 28, | Remaining | Exercise | of June 28, | Exercise | |||||||||||||||||||
2014 | Contractual | Price | 2014 | Price | |||||||||||||||||||
Term (Years) | |||||||||||||||||||||||
$ 4.89 $ 7.87 | 458,067 | 6.88 | $ | 7.51 | 259,883 | $ | 7.47 | ||||||||||||||||
$ 7.88 $ 8.71 | 420,413 | 3.08 | $ | 8.34 | 398,919 | $ | 8.34 | ||||||||||||||||
$ 8.72 $10.01 | 506,849 | 4.88 | $ | 9.58 | 436,825 | $ | 9.69 | ||||||||||||||||
$10.02 $15.45 | 494,607 | 3.81 | $ | 12.6 | 494,607 | $ | 12.6 | ||||||||||||||||
$15.45 $18.10 | 205,500 | 3.17 | $ | 16.3 | 205,500 | $ | 16.3 | ||||||||||||||||
$ 4.89 $18.10 | 2,085,436 | 4.54 | $ | 10.25 | 1,795,734 | $ | 10.62 | ||||||||||||||||
Summary of RSU's activities | ' | ||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||||
Average Grant | Average | Intrinsic Value | |||||||||||||||||||||
Date Fair | Remaining | ||||||||||||||||||||||
Value | Vesting Term | ||||||||||||||||||||||
(in thousands) | (years) | (in thousands) | |||||||||||||||||||||
RSUs outstanding at July 2, 2011 | 592 | $ | 9.73 | 1.6 | $ | 5,253 | |||||||||||||||||
Awarded | 156 | 7.78 | |||||||||||||||||||||
Released | (203 | ) | 9.91 | ||||||||||||||||||||
Forfeited | (41 | ) | 9.73 | ||||||||||||||||||||
RSUs outstanding at June 30, 2012 | 504 | $ | 9.06 | 1.42 | $ | 4,535 | |||||||||||||||||
Awarded | 301 | 7.74 | |||||||||||||||||||||
Released | (217 | ) | 9.55 | ||||||||||||||||||||
Forfeited | (63 | ) | 8.24 | ||||||||||||||||||||
RSUs outstanding at June 29, 2013 | 525 | $ | 8.2 | 1.48 | $ | 3,735 | |||||||||||||||||
Awarded | 416 | 8.46 | |||||||||||||||||||||
Released | (196 | ) | 8.61 | ||||||||||||||||||||
Forfeited | (96 | ) | 8.26 | ||||||||||||||||||||
RSUs outstanding at June 28, 2014 | 649 | $ | 8.23 | 1.58 | $ | 5,901 | |||||||||||||||||
RSUs vested and expected to vest after June 28, 2014 | 553 | $ | 8.22 | 1.46 | $ | 5,029 | |||||||||||||||||
Assumption used to value stock purchase paln | ' | ||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
28-Jun-14 | 29-Jun-13 | 30-Jun-12 | |||||||||||||||||||||
Expected life | 6 months | 6 months | 6 months | ||||||||||||||||||||
Risk-free interest rate | 0.07% | 0.12% | 0.10% | ||||||||||||||||||||
Volatility range | 26%–34% | 35%–37% | 43%–64% | ||||||||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||
Options activities under ESOP'S | ' | ||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||
Average | |||||||||||||||||||||||
Purchase | |||||||||||||||||||||||
Price | |||||||||||||||||||||||
Beginning Available | 1,710,525 | ||||||||||||||||||||||
Purchases | (128,969 | ) | $ | 6.02 | |||||||||||||||||||
Ending Available | 1,581,556 | ||||||||||||||||||||||
Share based compensation expenses classified by consolidated statement of operations | ' | ||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
Cost of revenues | $ | 163 | $ | 187 | $ | 211 | |||||||||||||||||
Research and development | 1,096 | 1,282 | 1,434 | ||||||||||||||||||||
Selling, general and administrative | 1,533 | 1,871 | 2,091 | ||||||||||||||||||||
Pre-tax stock-based compensation expense | 2,792 | 3,340 | 3,736 | ||||||||||||||||||||
Income tax effect | (910 | ) | (1,101 | ) | (1,229 | ) | |||||||||||||||||
Net stock-based compensation expense | $ | 1,882 | $ | 2,239 | $ | 2,507 | |||||||||||||||||
Share-based compensation expense categorized by the type of award | ' | ||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
Stock incentive plans | $ | 2,586 | $ | 3,128 | $ | 3,492 | |||||||||||||||||
Less income tax effect | 910 | 1,101 | 1,229 | ||||||||||||||||||||
Net stock incentive plan expense | 1,676 | 2,027 | 2,263 | ||||||||||||||||||||
Employee stock purchase plan | 206 | 212 | 244 | ||||||||||||||||||||
Less income tax effect | — | — | — | ||||||||||||||||||||
Net employee stock purchase plan expense | 206 | 212 | 244 | ||||||||||||||||||||
$ | 1,882 | $ | 2,239 | $ | 2,507 | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||||
Fair value measurements | ' | |||||||||||||||||||
As of June 28, 2014 | ||||||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Investments(1) | ||||||||||||||||||||
US Treasury securities | $ | 527 | $ | 527 | $ | — | $ | — | ||||||||||||
Repurchase agreements | 4,547 | — | 4,547 | — | ||||||||||||||||
Time deposits | 17,693 | — | 17,693 | — | ||||||||||||||||
National government and agency securities | 5,055 | — | 5,055 | — | ||||||||||||||||
State and municipal bond obligations | 7,149 | — | 7,149 | — | ||||||||||||||||
Corporate bonds and notes | 42,781 | — | 42,781 | — | ||||||||||||||||
Asset backed securities | 7,614 | — | 7,614 | — | ||||||||||||||||
Mortgage backed securities | 4,785 | — | 4,785 | — | ||||||||||||||||
Total | $ | 90,151 | $ | 527 | $ | 89,624 | $ | — | ||||||||||||
As of June 29, 2013 | ||||||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Investments(1) | ||||||||||||||||||||
Commercial paper | $ | 2,400 | $ | — | $ | 2,400 | $ | — | ||||||||||||
Repurchase agreements | 4,988 | — | 4,988 | — | ||||||||||||||||
Time deposits | 12,087 | — | 12,087 | — | ||||||||||||||||
National government and agency securities | 4,451 | — | 4,451 | — | ||||||||||||||||
State and municipal bond obligations | 3,758 | — | 3,758 | — | ||||||||||||||||
Corporate bonds and notes | 47,793 | — | 47,793 | — | ||||||||||||||||
Asset backed securities | 10,022 | — | 10,022 | — | ||||||||||||||||
Mortgage backed securities | 6,731 | — | 6,731 | — | ||||||||||||||||
Total | $ | 92,230 | $ | — | $ | 92,230 | $ | — | ||||||||||||
(1) | At June 28, 2014, $4,047 of the repurchase agreements are included in cash and cash equivalents; at June 29, 2013, the commercial paper and $2,991 of the repurchase agreements are included in cash and cash equivalents; the balance of the investments at June 28, 2014 and June 29, 2013 are included in short-term investments in marketable securities on the consolidated balance sheets. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income tax expense consists of Federal, state and foreign current and deferred income taxes | ' | |||||||||||||||
Fiscal Year Ended | ||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Income (loss) before income taxes | ||||||||||||||||
U.S. | $ | (1,282 | ) | $ | 12,176 | $ | 341 | |||||||||
Foreign | 5,044 | (27,782 | ) | 554 | ||||||||||||
3,762 | (15,606 | ) | 895 | |||||||||||||
Federal: | ||||||||||||||||
Current | (1,366 | ) | 5,424 | 941 | ||||||||||||
Deferred | 95 | 141 | (641 | ) | ||||||||||||
(1,271 | ) | 5,565 | 300 | |||||||||||||
State: | ||||||||||||||||
Current | — | 7 | (522 | ) | ||||||||||||
Deferred | (12 | ) | (172 | ) | 2,768 | |||||||||||
(12 | ) | (165 | ) | 2,246 | ||||||||||||
Foreign: | ||||||||||||||||
Current | 953 | 672 | 551 | |||||||||||||
Deferred | 100 | 151 | — | |||||||||||||
1,053 | 823 | 551 | ||||||||||||||
Total current | (413 | ) | 6,103 | 970 | ||||||||||||
Total deferred | 183 | 120 | 2,127 | |||||||||||||
Total income tax expense (benefit) | $ | (230 | ) | $ | 6,223 | $ | 3,097 | |||||||||
Reconciliation between Company's effective tax rate and U.S. statutory rate | ' | |||||||||||||||
Fiscal Year Ended | ||||||||||||||||
June 28, | June 29, | June 30, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Tax provision at federal statutory rate | 34 | % | 33.8 | % | 34 | % | ||||||||||
State income taxes, net of federal benefit | (1.3 | ) | 2.1 | (33.4 | ) | |||||||||||
Foreign income and withholding taxes | 1.7 | (67.9 | ) | 34.1 | ||||||||||||
Benefits from resolution of certain tax audits and expiration of statute of limitations | (21.8 | ) | 0.8 | (15.4 | ) | |||||||||||
Intercompany licensing of intellectual property | (27.1 | ) | (6.5 | ) | — | |||||||||||
Share-based compensation | 3.4 | (1.1 | ) | 20.5 | ||||||||||||
Research and development tax credits | (2.3 | ) | — | (2.2 | ) | |||||||||||
Change in valuation allowance | 0.5 | (1.8 | ) | 307.3 | ||||||||||||
Other | 6.8 | 0.7 | 1.1 | |||||||||||||
Income tax expense | (6.1 | )% | (39.9 | )% | 346 | % | ||||||||||
Components of net deferred tax assets | ' | |||||||||||||||
As of the year ended | ||||||||||||||||
(in thousands) | June 28, | June 29, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Deferred tax assets: | ||||||||||||||||
Credit carryforwards | $ | 2,778 | $ | 2,798 | ||||||||||||
Accruals and reserves | 843 | 1,311 | ||||||||||||||
Cumulative loss on investment | 400 | 884 | ||||||||||||||
Depreciation and amortization | (933 | ) | (975 | ) | ||||||||||||
Net operating loss carryforward | 1,418 | 1,424 | ||||||||||||||
Share-based compensation | 3,013 | 3,088 | ||||||||||||||
Other | 781 | 530 | ||||||||||||||
Total | 8,300 | 9,060 | ||||||||||||||
Valuation allowance | (5,114 | ) | (5,064 | ) | ||||||||||||
Deferred tax assets | $ | 3,186 | $ | 3,996 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Gain on previously held shares in unconsolidated affiliate | $ | (3,793 | ) | $ | (3,768 | ) | ||||||||||
Acquired PTI intangibles and other | (1,667 | ) | (2,030 | ) | ||||||||||||
Deferred tax liabilities | $ | (5,460 | ) | $ | (5,798 | ) | ||||||||||
Reconciliation of beginning and ending amount of unrecognized tax benefit | ' | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance as of July 2, 2011 | $ | (755 | ) | |||||||||||||
Gross increases — prior period tax positions | (515 | ) | ||||||||||||||
Gross increases — current period tax positions | (475 | ) | ||||||||||||||
Reductions as a result of a lapse of statute of limitations | 138 | |||||||||||||||
Balance as of June 30, 2012 | $ | (1,607 | ) | |||||||||||||
Gross increases — prior period tax positions | (135 | ) | ||||||||||||||
Gross increases — current period tax positions | (1,423 | ) | ||||||||||||||
Reductions as a result of a lapse of statute of limitations | 132 | |||||||||||||||
Balance as of June 29, 2013 | $ | (3,033 | ) | |||||||||||||
Gross increases — prior period tax positions | (411 | ) | ||||||||||||||
Gross increases — current period tax positions | (194 | ) | ||||||||||||||
Reductions — prior period tax positions | 1,020 | |||||||||||||||
Reductions as a result of a lapse of statute of limitations | 887 | |||||||||||||||
Balance as of June 28, 2014 | $ | (1,731 | ) |
Industry_and_Geographical_Segm1
Industry and Geographical Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Industry and Geographical Segment Information [Abstract] | ' | |||||||||||||||
Schedule of net sales and net book value of long-lived assets by geographical segment | ' | |||||||||||||||
Fiscal Year Ended | ||||||||||||||||
(in thousands) | June 28, | June 29, | June 30, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net sales to countries: | ||||||||||||||||
China (including Hong Kong) | $ | 61,054 | $ | 61,486 | $ | 48,178 | ||||||||||
Taiwan | 39,463 | 43,144 | 63,301 | |||||||||||||
United States | 5,927 | 6,517 | 7,242 | |||||||||||||
Others (less than 10% each) | 21,624 | 18,108 | 18,414 | |||||||||||||
Total net sales | $ | 128,068 | $ | 129,255 | $ | 137,135 | ||||||||||
(in thousands) | ||||||||||||||||
Long-lived assets: | ||||||||||||||||
China (including Hong Kong) | $ | 32,234 | $ | 35,180 | $ | 37,761 | ||||||||||
Taiwan | 12,914 | 14,120 | 15,005 | |||||||||||||
United States | 12,154 | 10,779 | 2,304 | |||||||||||||
Korea | 1,067 | 659 | 650 | |||||||||||||
Others (less than 10% each) | 168 | 221 | 382 | |||||||||||||
Total long-lived assets | $ | 58,537 | $ | 60,959 | $ | 56,102 | ||||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Summary of quarterly operating results and share data | ' | |||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
June 28, | March 29, | Dec 28, | Sept 28, | |||||||||||||||||
2014 | 2014 | 2013 | 2013 | |||||||||||||||||
Net revenues | $ | 32,739 | $ | 30,681 | $ | 32,040 | $ | 32,608 | ||||||||||||
Cost of revenues | 19,188 | 18,175 | 19,820 | 19,800 | ||||||||||||||||
Gross profit | 13,551 | 12,506 | 12,220 | 12,808 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 4,782 | 4,694 | 5,274 | 5,045 | ||||||||||||||||
Selling, general and administrative | 8,100 | 7,407 | 7,126 | 7,687 | ||||||||||||||||
Total operating expenses | 12,882 | 12,101 | 12,400 | 12,732 | ||||||||||||||||
Income from operations | 669 | 405 | (180 | ) | 76 | |||||||||||||||
Interest and other income, net | 456 | 802 | 1,047 | 486 | ||||||||||||||||
Income before income tax expense | 1,125 | 1,207 | 867 | 562 | ||||||||||||||||
Income tax expense (benefit) | 291 | (421 | ) | (331 | ) | 231 | ||||||||||||||
Net income from consolidated companies | 834 | 1,628 | 1,198 | 331 | ||||||||||||||||
Equity in net income of unconsolidated affiliates | 50 | 13 | 27 | 43 | ||||||||||||||||
Net income | $ | 884 | $ | 1,641 | $ | 1,225 | $ | 374 | ||||||||||||
Basic income per share | $ | 0.04 | $ | 0.07 | $ | 0.05 | $ | 0.02 | ||||||||||||
Diluted income per share | $ | 0.04 | $ | 0.07 | $ | 0.05 | $ | 0.02 | ||||||||||||
Shares used in computing basic income per share | 22,123 | 22,659 | 22,800 | 22,794 | ||||||||||||||||
Shares used in computing diluted income per share | 22,338 | 22,880 | 23,019 | 22,951 | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
June 29, | March 30, | Dec 29, | Sept 29, | |||||||||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||||||||||
Net revenues | $ | 31,707 | $ | 30,366 | $ | 30,433 | $ | 36,749 | ||||||||||||
Cost of revenues | 19,791 | 19,521 | 19,239 | 22,838 | ||||||||||||||||
Gross profit | 11,916 | 10,845 | 11,194 | 13,911 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 5,320 | 5,277 | 5,097 | 5,323 | ||||||||||||||||
Selling, general and administrative | 7,217 | 7,193 | 7,532 | 7,639 | ||||||||||||||||
Goodwill impairment | 16,899 | — | — | — | ||||||||||||||||
Total operating expenses | 29,436 | 12,470 | 12,629 | 12,962 | ||||||||||||||||
Income (loss) from operations | (17,520 | ) | (1,625 | ) | (1,435 | ) | 949 | |||||||||||||
Interest and other income, net | 1,277 | 1,318 | 795 | 635 | ||||||||||||||||
Income (loss) before income tax expense | (16,243 | ) | (307 | ) | (640 | ) | 1,584 | |||||||||||||
Income tax expense | 573 | 395 | 4,756 | 500 | ||||||||||||||||
Net income (loss) from consolidated companies | (16,816 | ) | (702 | ) | (5,396 | ) | 1,084 | |||||||||||||
Equity in net income of unconsolidated affiliates | 30 | 21 | 57 | 108 | ||||||||||||||||
Net income (loss) | $ | (16,786 | ) | $ | (681 | ) | $ | (5,339 | ) | $ | 1,192 | |||||||||
Basic income (loss) per share | $ | (0.74 | ) | $ | (0.03 | ) | $ | (0.23 | ) | $ | 0.05 | |||||||||
Diluted income (loss) per share | $ | (0.74 | ) | $ | (0.03 | ) | $ | (0.23 | ) | $ | 0.05 | |||||||||
Shares used in computing basic income (loss) per share | 22,783 | 23,162 | 23,515 | 23,543 | ||||||||||||||||
Shares used in computing diluted income (loss) per share | 22,783 | 23,162 | 23,515 | 23,740 | ||||||||||||||||
Business_and_Significant_Accou3
Business and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Available-for-Sale Securities | ' | ' |
Amortized Cost | $85,804 | $87,464 |
Unrealized Gains | 462 | 231 |
Unrealized Losses | -162 | -856 |
Net Unrealized Gains (Losses) | 300 | -625 |
Fair Value | 86,104 | 86,839 |
Time Deposits [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 17,693 | 12,087 |
Unrealized Gains | ' | ' |
Unrealized Losses | ' | ' |
Net Unrealized Gains (Losses) | ' | ' |
Fair Value | 17,693 | 12,087 |
Repurchase Agreements [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 500 | 1,997 |
Unrealized Gains | ' | ' |
Unrealized Losses | ' | ' |
Net Unrealized Gains (Losses) | ' | ' |
Fair Value | 500 | 1,997 |
US Treasury securities [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 526 | ' |
Unrealized Gains | 1 | ' |
Unrealized Losses | ' | ' |
Net Unrealized Gains (Losses) | 1 | ' |
Fair Value | 527 | ' |
National government and agency securities [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 4,962 | 4,348 |
Unrealized Gains | 95 | 106 |
Unrealized Losses | -2 | -3 |
Net Unrealized Gains (Losses) | 93 | 103 |
Fair Value | 5,055 | 4,451 |
State and municipal bond obligations [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 7,090 | 3,776 |
Unrealized Gains | 63 | 9 |
Unrealized Losses | -4 | -27 |
Net Unrealized Gains (Losses) | 59 | -18 |
Fair Value | 7,149 | 3,758 |
Corporate bonds and notes [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 42,675 | 48,438 |
Unrealized Gains | 249 | 71 |
Unrealized Losses | -143 | -716 |
Net Unrealized Gains (Losses) | 106 | -645 |
Fair Value | 42,781 | 47,793 |
Asset backed Securities [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 7,592 | 10,063 |
Unrealized Gains | 28 | 19 |
Unrealized Losses | -6 | -60 |
Net Unrealized Gains (Losses) | 22 | -41 |
Fair Value | 7,614 | 10,022 |
Mortgage backed securities [Member] | ' | ' |
Available-for-Sale Securities | ' | ' |
Amortized Cost | 4,766 | 6,755 |
Unrealized Gains | 26 | 26 |
Unrealized Losses | -7 | -50 |
Net Unrealized Gains (Losses) | 19 | -24 |
Fair Value | $4,785 | $6,731 |
Business_and_Significant_Accou4
Business and Significant Accounting Policies (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Gross unrealized losses and fair market values of the Company's investments | ' | ' |
Less Than 12 Months, Fair Value | $6,161 | $48,409 |
Less Than 12 Months, Unrealized Losses | 16 | 720 |
12 Months or Longer, Fair Value | 8,286 | 5,060 |
12 Months or Longer, Unrealized Losses | 146 | 136 |
Total, Fair Value | 14,447 | 53,469 |
Total, Unrealized Losses | 162 | 856 |
National government and agency securities [Member] | ' | ' |
Gross unrealized losses and fair market values of the Company's investments | ' | ' |
Less Than 12 Months, Fair Value | 282 | 154 |
Less Than 12 Months, Unrealized Losses | 1 | 3 |
12 Months or Longer, Fair Value | 91 | ' |
12 Months or Longer, Unrealized Losses | 1 | ' |
Total, Fair Value | 373 | 154 |
Total, Unrealized Losses | 2 | 3 |
State and municipal bond obligations [Member] | ' | ' |
Gross unrealized losses and fair market values of the Company's investments | ' | ' |
Less Than 12 Months, Fair Value | ' | 2,364 |
Less Than 12 Months, Unrealized Losses | ' | 27 |
12 Months or Longer, Fair Value | 695 | ' |
12 Months or Longer, Unrealized Losses | 4 | ' |
Total, Fair Value | 695 | 2,364 |
Total, Unrealized Losses | 4 | 27 |
Corporate bonds and notes [Member] | ' | ' |
Gross unrealized losses and fair market values of the Company's investments | ' | ' |
Less Than 12 Months, Fair Value | 3,901 | 36,394 |
Less Than 12 Months, Unrealized Losses | 11 | 626 |
12 Months or Longer, Fair Value | 5,801 | 4,298 |
12 Months or Longer, Unrealized Losses | 132 | 90 |
Total, Fair Value | 9,702 | 40,692 |
Total, Unrealized Losses | 143 | 716 |
Asset backed Securities [Member] | ' | ' |
Gross unrealized losses and fair market values of the Company's investments | ' | ' |
Less Than 12 Months, Fair Value | 895 | 5,881 |
Less Than 12 Months, Unrealized Losses | 1 | 51 |
12 Months or Longer, Fair Value | 1,195 | 546 |
12 Months or Longer, Unrealized Losses | 5 | 9 |
Total, Fair Value | 2,090 | 6,427 |
Total, Unrealized Losses | 6 | 60 |
Mortgage backed securities [Member] | ' | ' |
Gross unrealized losses and fair market values of the Company's investments | ' | ' |
Less Than 12 Months, Fair Value | 1,083 | 3,616 |
Less Than 12 Months, Unrealized Losses | 3 | 13 |
12 Months or Longer, Fair Value | 504 | 216 |
12 Months or Longer, Unrealized Losses | 4 | 37 |
Total, Fair Value | 1,587 | 3,831 |
Total, Unrealized Losses | $7 | $50 |
Business_and_Significant_Accou5
Business and Significant Accounting Policies (Details 2) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
The fair value of the Company's short- and long-term investments by length of time to maturity | ' | ' |
Fair value of investments | $86,104 | $86,839 |
One year or less [Member] | ' | ' |
The fair value of the Company's short- and long-term investments by length of time to maturity | ' | ' |
Fair value of investments | 24,963 | 19,853 |
Between one and three years [Member] | ' | ' |
The fair value of the Company's short- and long-term investments by length of time to maturity | ' | ' |
Fair value of investments | 24,242 | 29,525 |
Greater than three years [Member] | ' | ' |
The fair value of the Company's short- and long-term investments by length of time to maturity | ' | ' |
Fair value of investments | 30,449 | 29,244 |
Multiple Dates [Member] | ' | ' |
The fair value of the Company's short- and long-term investments by length of time to maturity | ' | ' |
Fair value of investments | $6,450 | $8,217 |
Business_and_Significant_Accou6
Business and Significant Accounting Policies (Details 3) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Net Revenues [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 100.00% | 100.00% | 100.00% |
Net Revenues [Member] | Customer A [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 26.00% | 21.00% | 18.00% |
Net Revenues [Member] | Customer B [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 10.00% | 12.00% | 14.00% |
Net Revenues [Member] | All others [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 64.00% | 67.00% | 68.00% |
Trade Accounts Receivable [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 100.00% | 100.00% | 100.00% |
Trade Accounts Receivable [Member] | Customer A [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 29.00% | 28.00% | 26.00% |
Trade Accounts Receivable [Member] | Customer B [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 8.00% | 7.00% | 6.00% |
Trade Accounts Receivable [Member] | All others [Member] | ' | ' | ' |
The percentage of net revenues and accounts receivable in excess of 10% with any single customer | ' | ' | ' |
Concentration risk, Percentage | 63.00% | 65.00% | 68.00% |
Business_and_Significant_Accou7
Business and Significant Accounting Policies (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Basic and diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $4,124 | ($21,614) | ($2,068) |
Computation of common shares outstanding - basic earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares of common stock | 22,123 | 22,659 | 22,800 | 22,794 | 22,783 | 23,162 | 23,515 | 23,543 | 22,594 | 23,251 | 24,094 |
Basic earnings (loss) per share | $0.04 | $0.07 | $0.05 | $0.02 | ($0.74) | ($0.03) | ($0.23) | $0.05 | $0.18 | ($0.93) | ($0.09) |
Computation of common shares outstanding - diluted earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 22,594 | 23,251 | 24,094 |
Dilutive shares using the treasury stock method | ' | ' | ' | ' | ' | ' | ' | ' | 203 | ' | ' |
Shares used in computing diluted income (loss) per share | 22,338 | 22,880 | 23,019 | 22,951 | 22,783 | 23,162 | 23,515 | 23,740 | 22,797 | 23,251 | 24,094 |
Diluted income (loss) per share | $0.04 | $0.07 | $0.05 | $0.02 | ($0.74) | ($0.03) | ($0.23) | $0.05 | $0.18 | ($0.93) | ($0.09) |
Business_and_Significant_Accou8
Business and Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Stock rotation privileges, Percentage | 10.00% | ' | ' |
Business And Significant Accounting Policies Additional Textual [Abstract] | ' | ' | ' |
Gross realized gains on available-for-sale-securities | $179,000 | $1,000,000 | $673,000 |
Inventory turnover period | '365 days | ' | ' |
Comparison of delivery periods for inventory, Description | 'The quantities on hand in each part number category are compared to the quantity that was shipped in the previous twelve months, the quantity in backlog and to the quantity expected to ship in the next twelve months. | ' | ' |
Description of an uncertain income tax position recognized | 'An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | ' | ' |
Net gains or (losses) from foreign currency translation of assets and liabilities | 394,000 | 1,300,000 | ' |
Net gains (losses) from foreign currency transaction | -11,000 | 562,000 | 334,000 |
Period of warranty | '1 year | ' | ' |
Additional tax payments | $208,000 | ' | ' |
Stock Option [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Number of shares excluded from the computation of diluted net earnings per share | 1,900,000 | 2,400,000 | 2,500,000 |
Restricted Stock [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Number of shares excluded from the computation of diluted net earnings per share | 1,138 | 525,000 | 504,000 |
Maximum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Interest in privately held companies | 20.00% | ' | ' |
Ownership interest | 49.00% | ' | ' |
Stock rotation privileges, Percentage | 10.00% | ' | ' |
Period of payments from customers | '60 days | ' | ' |
Minimum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Ownership interest | 20.00% | ' | ' |
Stock rotation privileges, Percentage | 1.00% | ' | ' |
Period of payments from customers | '30 days | ' | ' |
Building [Member] | Maximum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '40 years | ' | ' |
Building [Member] | Minimum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '20 years | ' | ' |
Property And Equipement [Member] | Maximum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Property And Equipement [Member] | Minimum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '8 years | ' | ' |
Land [Member] | Maximum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '50 years | ' | ' |
Land [Member] | Minimum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '15 years | ' | ' |
Land use right [Member] | Maximum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '50 years | ' | ' |
Land use right [Member] | Minimum [Member] | ' | ' | ' |
Business And Significant Accounting Policies Textual [Abstract] | ' | ' | ' |
Estimated useful life | '15 years | ' | ' |
Other_Receivables_Details
Other Receivables (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Components of other receivables | ' | ' |
Interest receivable | $1,516 | $1,054 |
VAT and other tax receivables | 1,031 | 1,076 |
Government subsidy receivable | ' | 840 |
Other accounts receivable | 331 | 211 |
Other receivables | $2,878 | $3,181 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Finished goods | $3,991 | $3,847 |
Work in process | 2,468 | 3,869 |
Raw materials | 5,829 | 7,128 |
Inventories | $12,288 | $14,844 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Millions, unless otherwise specified | ||
Inventories (Textual) | ' | ' |
Inventory reserved | $3.20 | $3.10 |
Property_Plant_and_Equipment_N1
Property, Plant and Equipment - Net (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment | ' | ' |
Total | $116,783 | $107,214 |
Accumulated depreciation and amortization | -59,500 | -56,825 |
Construction-in-progress | 1,254 | 10,570 |
Property, plant and equipment - net | 58,537 | 60,959 |
Machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment | ' | ' |
Total | 55,408 | 55,795 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment | ' | ' |
Total | 36,196 | 30,637 |
Computer equipment and software [Member] | ' | ' |
Property, Plant and Equipment | ' | ' |
Total | 13,742 | 14,449 |
Land [Member] | ' | ' |
Property, Plant and Equipment | ' | ' |
Total | 9,473 | 3,661 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment | ' | ' |
Total | 1,218 | 1,402 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment | ' | ' |
Total | 595 | 1,115 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment | ' | ' |
Total | $151 | $155 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment - Net (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Property plant and equipment net (Textual) | ' | ' | ' |
Depreciation expense | $6.40 | $7.40 | $8 |
Other_Assets_Details
Other Assets (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Other assets | ' | ' |
Land use rights | $6,631 | $6,821 |
Investments in privately held companies | 1,243 | 1,238 |
Deposits | 118 | 262 |
Other | 126 | 304 |
Total | $8,118 | $8,625 |
Other_Assets_Details_Textual
Other Assets (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Other assets (Textual) | ' | ' | ' |
Period of construction operation | '50 years | ' | ' |
Impairment charges relating to investments in privately held companies | $0 | $0 | $0 |
Promissory notes receivable write-off | ' | ' | $856,000 |
Investment_in_Unconsolidated_A2
Investment in Unconsolidated Affiliate (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Investment in unconsolidated affiliate | ' | ' |
Jiyuan Crystal Photoelectric Frequency Technology Ltd. | $2,445 | $2,525 |
Investment_in_Unconsolidated_A3
Investment in Unconsolidated Affiliate (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Investment in Unconsolidated Affiliate (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Description | ' | ' | ' | ' | ' | ' | ' | ' | 'Is more than 20 | ' | ' |
Percentage of net earnings | ' | ' | ' | ' | ' | ' | ' | ' | '50% or less | ' | ' |
Amount of consolidated retained earnings of the Company represented by undistributed earnings of 50% or less | $3,900,000 | ' | ' | ' | ' | ' | ' | ' | $3,900,000 | ' | ' |
Allocated portion of JCP's income, increased | -50,000 | -13,000 | -27,000 | -43,000 | -30,000 | -21,000 | -57,000 | -108,000 | -132,000 | -215,000 | -134,000 |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Unconsolidated Affiliate (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest | 49.00% | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Unconsolidated Affiliate (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest | 20.00% | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Jiyuan Crystal Photoelectric Frequency Technology Ltd [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Unconsolidated Affiliate (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest | 49.00% | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' |
JCP declared dividend, decreased | ' | ' | ' | ' | ' | ' | ' | ' | 212,000 | ' | ' |
Allocated portion of JCP's income, increased | ' | ' | ' | ' | ' | ' | ' | ' | $132,000 | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Schedule of goodwill | ' | ' | ' |
Beginning balance | ' | $16,797 | ' |
Other adjustments | ' | ' | ' |
Cumulative translation adjustments | ' | 102 | ' |
Impairment | ' | 16,899 | ' |
Ending balance | ' | ' | $16,797 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 1) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ' | ' |
Finite lived intangible assets. Gross | $19,458 | $19,836 |
Finite lived intangible assets, Accumulated Amortization | -12,849 | -9,836 |
Finite lived intangible assets, Net | 6,069 | 9,545 |
Purchased intangible assets, Gross | 19,858 | 19,780 |
Purchased intangible assets, Accumulated Amortization | -12,849 | -9,836 |
Purchased intangible assets, Net | 7,009 | 9,944 |
SaRonix trade name [Member] | ' | ' |
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ' | ' |
Indefinite lived intangible assets, Gross | 400 | 399 |
Indefinite lived intangible assets, Accumulated Amortization | ' | ' |
Indefinite lived intangible assets, Net | 400 | 399 |
In-process research and development [Member] | ' | ' |
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ' | ' |
Indefinite lived intangible assets, Gross | 3,564 | 3,549 |
Indefinite lived intangible assets, Accumulated Amortization | -1,959 | -1,367 |
Indefinite lived intangible assets, Net | 1,605 | 2,182 |
Customer relationships [Member] | ' | ' |
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ' | ' |
Finite lived intangible assets. Gross | 6,056 | 6,032 |
Finite lived intangible assets, Accumulated Amortization | -3,913 | -2,912 |
Finite lived intangible assets, Net | 2,143 | 3,120 |
Core developed technology | ' | ' |
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ' | ' |
Finite lived intangible assets. Gross | 9,838 | 9,800 |
Finite lived intangible assets, Accumulated Amortization | -6,977 | -5,557 |
Finite lived intangible assets, Net | $2,861 | $4,243 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details 2) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Summary of future amortization expense associated with intangible assets | ' | ' |
2015 | $2,904 | ' |
2016 | 2,904 | ' |
2017 | 801 | ' |
2018 and beyond | ' | ' |
Total | 6,069 | 9,545 |
Customer relationships [Member] | ' | ' |
Summary of future amortization expense associated with intangible assets | ' | ' |
2015 | ' | 989 |
2016 | ' | 989 |
2017 | ' | 165 |
2018 and beyond | ' | ' |
Total | 2,143 | 3,120 |
Core developed technology | ' | ' |
Summary of future amortization expense associated with intangible assets | ' | ' |
2015 | ' | 1,321 |
2016 | ' | 1,321 |
2017 | ' | 219 |
2018 and beyond | ' | ' |
Total | 2,861 | 4,243 |
IPRD [Member] | ' | ' |
Summary of future amortization expense associated with intangible assets | ' | ' |
2015 | ' | 594 |
2016 | ' | 594 |
2017 | ' | 417 |
2018 and beyond | ' | ' |
Total | ' | $1,605 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Goodwill And Intangible Assets (Textual) | ' | ' | ' | ' | ' | ' | ' |
Amortization expense related to finite-lived purchased intangible assets | ' | ' | ' | ' | $3,000,000 | $3,100,000 | $3,100,000 |
Impairment of intangible assets | 16,899,000 | ' | ' | ' | ' | ' | ' |
Accelerated amortization to a supplier relationship | ' | ' | ' | ' | ' | ' | 125,000 |
Goodwill impairment | ' | ' | ' | ' | ' | $16,899,000 | ' |
Customer Relationships [Member] | ' | ' | ' | ' | ' | ' | ' |
Goodwill And Intangible Assets (Textual) | ' | ' | ' | ' | ' | ' | ' |
Finite lived intangible assets weighted average useful lives | ' | ' | ' | ' | ' | '2 years | ' |
Developed Technology Rights [Member] | ' | ' | ' | ' | ' | ' | ' |
Goodwill And Intangible Assets (Textual) | ' | ' | ' | ' | ' | ' | ' |
Finite lived intangible assets weighted average useful lives | ' | ' | ' | ' | ' | '2 years | ' |
eCERA trade name [Member] | ' | ' | ' | ' | ' | ' | ' |
Goodwill And Intangible Assets (Textual) | ' | ' | ' | ' | ' | ' | ' |
Finite lived intangible assets weighted average useful lives | ' | ' | ' | ' | ' | '2 years | ' |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of accrued liabilities | ' | ' |
Accrued compensation | $6,892 | $6,029 |
Income taxes payable | 1,140 | 655 |
Sales commissions | 307 | 316 |
Accrued construction liabilities | ' | 134 |
Other accrued expenses | 1,595 | 1,597 |
Total accrued liabilities | $9,934 | $8,731 |
Debt_Details
Debt (Details) (PSE-TW [Member], TWD) | Jun. 28, 2014 | Jun. 29, 2013 |
In Millions, unless otherwise specified | ||
PSE-TW [Member] | ' | ' |
Debt (Textual) | ' | ' |
Loan and credit facility #2 in place for equipment purchases or inventory financing | 100 | ' |
Interest rate on loan (spread over TAIBOR) | 1.25% | ' |
Loan and credit facility #1 in place for equipment purchases or inventory financing | 200 | 200 |
Restricted_Assets_Details
Restricted Assets (Details) (PSE-TW [Member], USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Millions, unless otherwise specified | ||
PSE-TW [Member] | ' | ' |
Restricted Assets (Textual) | ' | ' |
Other restricted assets, total | $4.20 | $4.20 |
Loan and credit facility | $200 | $200 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Jun. 28, 2014 |
In Thousands, unless otherwise specified | |
Future minimum commitments | ' |
2015 | $501 |
2016 | 55 |
2017 and beyond | ' |
Total | 556 |
Operating Lease Payments [Member] | ' |
Future minimum commitments | ' |
2015 | 485 |
2016 | 55 |
2017 and beyond | ' |
Total | 540 |
Capital Equipment Purchase Commitments [Member] | ' |
Future minimum commitments | ' |
2015 | 4 |
2016 | ' |
2017 and beyond | ' |
Total | 4 |
Facility Modification Commitments [Member] | ' |
Future minimum commitments | ' |
2015 | 12 |
2016 | ' |
2017 and beyond | ' |
Total | $12 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Commitments and Contingencies (Textual) | ' | ' | ' |
Rent expense | $801,000 | $2,000,000 | $1,900,000 |
Industrial_Development_Subsidy1
Industrial Development Subsidy (Details) (USD $) | 12 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Industrial Development Subsidy (Textual) | ' | ' |
Subsidy recieved | $12,800,000 | ' |
Remaining subsidy | 6,400,000 | ' |
Period over which remaining subsidy to be recognized | 'Six to eight years. | ' |
Subsidy used in reduction in cost of goods sold | 755,000 | 1,300,000 |
Subsidy used in reduction in cost of operating expenses | $187,000 | $183,000 |
Equity_and_Comprehensive_Incom1
Equity and Comprehensive Income (Details) (USD $) | 12 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Equity and Comprehensive Income (Textual) | ' | ' |
Accumulated other comprehensive income | $11,170,000 | $10,220,000 |
Accumulated currency translation gains included in accumulated other comprehensive income | 11,000,000 | 10,600,000 |
Net unrealized gains on available-for-sale investments | 300,000 | 625,000 |
Tax provision/benefit | $168,000 | $201,000 |
Shareholders_Equity_and_ShareB2
Shareholders Equity and Share-Based Compensation (Details) (Stock Option [Member]) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Stock Option [Member] | ' | ' | ' |
Assumptions of the Company used to value stock options: | ' | ' | ' |
Expected life | '5 years 10 months 24 days | '5 years 10 months 24 days | '5 years 6 months |
Risk-free interest rate | 1.47% | 1.05% | 2.46% |
Volatility range | 52.00% | 54.00% | 54.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Shareholders_Equity_and_ShareB3
Shareholders Equity and Share-Based Compensation (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jul. 02, 2011 |
Stock Option Plan | ' | ' | ' | ' |
Beginning Balance, Options Outstanding | 2,431 | 2,453 | 2,974 | 3,477 |
Options Outstanding, granted | 236 | 233 | 142 | ' |
Option Outstanding, exercised | -190 | -6 | -21 | ' |
Option Outstanding, forfeited or expired | -392 | -249 | -642 | ' |
Ending balance, Option Outstanding | 2,085 | 2,431 | 2,453 | 2,974 |
Option Outstanding, Options vested and expected to vest | 2,048 | ' | ' | ' |
Option Outstanding, Options exercisable | 1,796 | ' | ' | ' |
Beginning Balance, Weighted Average Exercise Price | $10.25 | $10.34 | $10.89 | $11.85 |
Weighted Average Exercise Price, granted | $8.16 | $8.07 | $7.65 | ' |
Weighted Average Exercise Price, Exercised | $8.25 | $7.87 | $7.77 | ' |
Weighted Average Exercise Price, forfeited or expired | $9.96 | $9.17 | $12.37 | ' |
Ending Balance, Weighted Average Exercise Price | $10.25 | $10.25 | $10.34 | $10.89 |
Weighted Average Exercise Price, Options vested and expected to vest | $10.30 | ' | ' | ' |
Weighted Average Exercise Price, Options exercisable | $10.62 | ' | ' | ' |
Weighted Average Remaining Contractual Term, Options outstanding | '4 years 6 months 15 days | '4 years 10 months 10 days | '5 years 1 month 13 days | '4 years 10 months 17 days |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | '4 years 5 months 12 days | ' | ' | ' |
Weighted Average Remaining Contractual Term, Options exercisable | '3 years 10 months 6 days | ' | ' | ' |
Beginning balance, Aggregate Intrinsic Value | $52 | $912 | $645 | ' |
Ending balance, Aggregate Intrinsic Value | 1,077 | 52 | 912 | 645 |
Aggregate intrinsic value, Options vested and expected to vest | 1,031 | ' | ' | ' |
Aggregate intrinsic value, Options exercisable | $742 | ' | ' | ' |
Shareholders_Equity_and_ShareB4
Shareholders Equity and Share-Based Compensation (Details 2) (USD $) | 12 Months Ended |
Jun. 28, 2014 | |
Exercise price range one [Member] | ' |
Share based compensation arrangement by share based payment award options outstanding exercise price range | ' |
Range of exercise price, lower range limit | $4.89 |
Range of exercise price, Upper range limit | $7.87 |
Range of Exercise Prices, Number Outstanding | 458,067 |
Range of Exercise Prices, Weighted Average Remaining Contractual Term | '6 years 10 months 17 days |
Range of Exercise Prices, Weighted Average Exercise Price | $7.51 |
Range of Exercise Prices, Number Exercisable | 259,883 |
Range of Exercise Prices, Weighted Average Exercise Price | $7.47 |
Exercise price range two [Member] | ' |
Share based compensation arrangement by share based payment award options outstanding exercise price range | ' |
Range of exercise price, lower range limit | $7.88 |
Range of exercise price, Upper range limit | $8.71 |
Range of Exercise Prices, Number Outstanding | 420,413 |
Range of Exercise Prices, Weighted Average Remaining Contractual Term | '3 years 29 days |
Range of Exercise Prices, Weighted Average Exercise Price | $8.34 |
Range of Exercise Prices, Number Exercisable | 398,919 |
Range of Exercise Prices, Weighted Average Exercise Price | $8.34 |
Exercise price range three [Member] | ' |
Share based compensation arrangement by share based payment award options outstanding exercise price range | ' |
Range of exercise price, lower range limit | $8.72 |
Range of exercise price, Upper range limit | $10.01 |
Range of Exercise Prices, Number Outstanding | 506,849 |
Range of Exercise Prices, Weighted Average Remaining Contractual Term | '4 years 10 months 17 days |
Range of Exercise Prices, Weighted Average Exercise Price | $9.58 |
Range of Exercise Prices, Number Exercisable | 436,825 |
Range of Exercise Prices, Weighted Average Exercise Price | $9.69 |
Exercise price range four [Member] | ' |
Share based compensation arrangement by share based payment award options outstanding exercise price range | ' |
Range of exercise price, lower range limit | $10.02 |
Range of exercise price, Upper range limit | $15.15 |
Range of Exercise Prices, Number Outstanding | 494,607 |
Range of Exercise Prices, Weighted Average Remaining Contractual Term | '3 years 9 months 22 days |
Range of Exercise Prices, Weighted Average Exercise Price | $12.60 |
Range of Exercise Prices, Number Exercisable | 494,607 |
Range of Exercise Prices, Weighted Average Exercise Price | $12.60 |
Exercise price range five [Member] | ' |
Share based compensation arrangement by share based payment award options outstanding exercise price range | ' |
Range of exercise price, lower range limit | $15.45 |
Range of exercise price, Upper range limit | $18.10 |
Range of Exercise Prices, Number Outstanding | 205,500 |
Range of Exercise Prices, Weighted Average Remaining Contractual Term | '3 years 2 months 1 day |
Range of Exercise Prices, Weighted Average Exercise Price | $16.30 |
Range of Exercise Prices, Number Exercisable | 205,500 |
Range of Exercise Prices, Weighted Average Exercise Price | $16.30 |
Exercise price range six [Member] | ' |
Share based compensation arrangement by share based payment award options outstanding exercise price range | ' |
Range of exercise price, lower range limit | $4.89 |
Range of exercise price, Upper range limit | $18.10 |
Range of Exercise Prices, Number Outstanding | 2,085,436 |
Range of Exercise Prices, Weighted Average Remaining Contractual Term | '4 years 6 months 15 days |
Range of Exercise Prices, Weighted Average Exercise Price | $10.25 |
Range of Exercise Prices, Number Exercisable | 1,795,734 |
Range of Exercise Prices, Weighted Average Exercise Price | $10.62 |
Shareholders_Equity_and_ShareB5
Shareholders Equity and Share-Based Compensation (Details 3) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Summary of RSU's activities | ' | ' | ' |
RSUs outstanding , Beginning balance | 525 | 504 | 592 |
RUS's outstanding, Awarded | 416 | 301 | 156 |
RUS's outstanding, Released | -196 | -217 | -203 |
RUS's outstanding, Forfeited | -96 | -63 | -41 |
RSUs outstanding, Ending Balance | 649 | 525 | 504 |
RSU's vested and expected to vested, Number of Shares | 553 | ' | ' |
RSUs outstanding, Weighted average grant date fair value, Beginning balance | $8.20 | $9.06 | $9.73 |
RUS's awarded, Weighted average grant date fair value | $8.46 | $7.74 | $7.78 |
RUS's realeased, Weighted average grant date fair value | $8.61 | $9.55 | $9.91 |
RUS's forfeited, Weighted average grant date fair value | $8.26 | $8.24 | $9.73 |
RSUs outstanding, Weighted average grant date fair value, Balance | $8.23 | $8.20 | $9.06 |
RSU's vested and expected to vested, Weighted average grant date fair value | $8.22 | ' | ' |
RSUs outstanding, Weighted average remaining vesting term | '1 year 6 months 29 days | '1 year 5 months 23 days | '1 year 5 months 1 day |
RSUs vested and expected to vest, Weighted average remaining vesting term | '1 year 5 months 16 days | ' | ' |
RSUs outstanding, Aggregate intrinsic value, Beginning balance | $3,735 | $4,535 | $5,253 |
RSUs outstanding, Aggregate intrinsic value, Ending balance | 5,901 | 3,735 | 4,535 |
RSU's vested and expected to vested, Aggregate intrinsic value | $5,029 | ' | ' |
Shareholders_Equity_and_ShareB6
Shareholders Equity and Share-Based Compensation (Details 4) (Stock purchase plan [Member]) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Assumption used to value stock compensation under stock purchase plan | ' | ' | ' |
Expected life | '6 years | '6 months | '6 months |
Risk-free interest rate | 0.07% | 0.12% | 0.10% |
Volatility range, Minimum | 26.00% | 35.00% | 43.00% |
Volatility range, Maximum | 34.00% | 37.00% | 64.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Shareholders_Equity_and_ShareB7
Shareholders Equity and Share-Based Compensation (Details 5) (USD $) | 12 Months Ended |
Jun. 28, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Beginning Balance, Available | 1,710,525 |
Purchases | -128,969 |
Ending Balance, Available | 1,581,556 |
Purchase, Weighted average price | $6.02 |
Shareholders_Equity_and_ShareB8
Shareholders Equity and Share-Based Compensation (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Share based compensation expenses classified by consolidated statement of operations | ' | ' | ' |
Pre-tax stock-based compensation expense | $2,792 | $3,340 | $3,736 |
Income tax effect | -910 | -1,101 | -1,229 |
Net stock-based compensation expense | 1,882 | 2,239 | 2,507 |
Cost of revenue [Member] | ' | ' | ' |
Share based compensation expenses classified by consolidated statement of operations | ' | ' | ' |
Pre-tax stock-based compensation expense | 163 | 187 | 211 |
Research and development [Member] | ' | ' | ' |
Share based compensation expenses classified by consolidated statement of operations | ' | ' | ' |
Pre-tax stock-based compensation expense | 1,096 | 1,282 | 1,434 |
Selling, general and administrative expenses [Member] | ' | ' | ' |
Share based compensation expenses classified by consolidated statement of operations | ' | ' | ' |
Pre-tax stock-based compensation expense | $1,533 | $1,871 | $2,091 |
Shareholders_Equity_and_ShareB9
Shareholders Equity and Share-Based Compensation (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Share-based compensation expense categorized by the type of award | ' | ' | ' |
Income tax effect | $910 | $1,101 | $1,229 |
Net Stock incentive /Employee stock purchase plan expenses | 2,792 | 3,340 | 3,736 |
Net stock-based compensation expense | 1,882 | 2,239 | 2,507 |
Stock incentive plan [Member] | ' | ' | ' |
Share-based compensation expense categorized by the type of award | ' | ' | ' |
Stock incentive /Employee stock purchase plan expenses | 2,586 | 3,128 | 3,492 |
Income tax effect | 910 | 1,101 | 1,229 |
Net Stock incentive /Employee stock purchase plan expenses | 1,676 | 2,027 | 2,263 |
Employee stock purchase plan [Member] | ' | ' | ' |
Share-based compensation expense categorized by the type of award | ' | ' | ' |
Stock incentive /Employee stock purchase plan expenses | 206 | 212 | 244 |
Income tax effect | ' | ' | ' |
Net Stock incentive /Employee stock purchase plan expenses | $206 | $212 | $244 |
Recovered_Sheet2
Shareholders Equity and Share-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Apr. 24, 2014 | Apr. 26, 2012 | |
Shareholders equity and share based compensation (Textual) | ' | ' | ' | ' | ' |
Income tax benefits recognized | $910,000 | $1,100,000 | $1,200,000 | ' | ' |
Reduction in net income due to sharebased compensation | 1,900,000 | 2,200,000 | 2,500,000 | ' | ' |
Reduction in net income per diluted share due to sharebased compensation | $0.08 | $0.10 | $0.10 | ' | ' |
Repurchase of common stock, Authorized | ' | ' | ' | 20,000,000 | 25,000,000 |
Stock repurchased during period, value | 11,300,000 | 7,800,000 | 11,600,000 | ' | ' |
Stock repurchased during period, shares | 1,354,511 | 1,100,306 | 1,482,572 | ' | ' |
Amount of remaining stock repurchase | 26,600,000 | ' | ' | ' | ' |
Weighted Average Exercise Price, granted | $8.16 | $8.07 | $7.65 | ' | ' |
Aggregate intrinsic value, Options vested and expected to vest | 1,031,000 | ' | ' | ' | ' |
Board of Directors [Member] | ' | ' | ' | ' | ' |
Shareholders equity and share based compensation (Textual) | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 5,000,000 | ' | ' | ' | ' |
Preferred stock, shares issued | 0 | ' | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Shareholders equity and share based compensation (Textual) | ' | ' | ' | ' | ' |
Options vesting period | '4 years | ' | ' | ' | ' |
Unamortized sharebased compensation expense | 3,800,000 | ' | ' | ' | ' |
Weighted average period of recognition | '2 years 8 months 12 days | ' | ' | ' | ' |
Stock option Plan [Member] | ' | ' | ' | ' | ' |
Shareholders equity and share based compensation (Textual) | ' | ' | ' | ' | ' |
Number Of Stock Option Plan | 3 | ' | ' | ' | ' |
Reserve of common stock for issuance to employees and officers | 4,500,000 | ' | ' | ' | ' |
Options vesting period | '48 months | ' | ' | ' | ' |
Option expiration period | '10 years | ' | ' | ' | ' |
Unamortized sharebased compensation expense | 1,300,000 | ' | ' | ' | ' |
Weighted average period of recognition | '2 years 7 months 6 days | ' | ' | ' | ' |
Shares available for future grant | 1,046,000 | ' | ' | ' | ' |
Aggregate intrinsic value, Options vested and expected to vest | 177,000 | 2,000 | 8,000 | ' | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' | ' |
Shareholders equity and share based compensation (Textual) | ' | ' | ' | ' | ' |
Number Of Stock Option Plan | 1 | ' | ' | ' | ' |
Aggregate compensation expenses related to grant of option and restricted stock units | 2,800,000 | 3,300,000 | 3,700,000 | ' | ' |
Reserve of common stock for issuance to employees and officers | 2,000,000 | ' | ' | ' | ' |
Unamortized sharebased compensation expense | 75,000 | ' | ' | ' | ' |
Shares available for future grant | 1,600,000 | ' | ' | ' | ' |
Weighted Average Exercise Price, granted | $6.02 | $5.98 | $6.96 | ' | ' |
Purchase option for participants in purchase period | '85% of the lower of the stock's fair market value on the first day and last day of the purchase period. | ' | ' | ' | ' |
Maximum number of common stock by employees in purchase period | 1,500 | ' | ' | ' | ' |
Maximum amount that can be accrued in offering periog for stock purchased | $15,000 | ' | ' | ' | ' |
Shares issued under ESOP plan | 129,000 | 125,000 | 109,000 | ' | ' |
Shareholder_Rights_Plan_Detail
Shareholder Rights Plan (Details) (USD $) | 12 Months Ended |
Jun. 28, 2014 | |
Stockholder Rights Plan (Textual) | ' |
Condition for right to become exercisable | 'The rights will become exercisable only upon the occurrence of certain events specified in the plan, including the acquisition of 15% of the Company's outstanding common stock by a person or group. Should a person or group acquire 15% or more of the outstanding common stock or announce an unsolicited tender offer, the consummation of which would result in a person or group acquiring 15% or more of the outstanding common stock, shareholders other than the acquiring person may exercise the rights. |
Discount rate on then prevailing market price | 50.00% |
Exercise price of rights | $0.00 |
Expiration date of rights | 6-Mar-22 |
Rights outstanding | 21,974,000 |
Series D Junior Participating Preferred Stock [Member] | ' |
Stockholder Rights Plan (Textual) | ' |
Condition to exercise right | 'To purchase one one-thousandth of a share |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | $90,151 | [1] | $92,230 | [1] |
Fair Value [Member] | Commercial paper [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | 2,400 | [1] | |
Fair Value [Member] | Repurchase Agreements [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 4,547 | [1] | 4,988 | [1] |
Fair Value [Member] | Time deposits [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 17,693 | [1] | 12,087 | [1] |
Fair Value [Member] | US Treasury securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 527 | [1] | ' | |
Fair Value [Member] | National government and agency securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 5,055 | [1] | 4,451 | [1] |
Fair Value [Member] | State and municipal bond obligations [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 7,149 | [1] | 3,758 | [1] |
Fair Value [Member] | Corporate bonds and notes [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 42,781 | [1] | 47,793 | [1] |
Fair Value [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 7,614 | [1] | 10,022 | [1] |
Fair Value [Member] | Mortgage backed securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 4,785 | [1] | 6,731 | [1] |
Level 1 [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 527 | [1] | ' | [1] |
Level 1 [Member] | Commercial paper [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | ' | [1] | |
Level 1 [Member] | Repurchase Agreements [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 1 [Member] | Time deposits [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 1 [Member] | US Treasury securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 527 | [1] | ' | |
Level 1 [Member] | National government and agency securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 1 [Member] | State and municipal bond obligations [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 1 [Member] | Corporate bonds and notes [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 1 [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 1 [Member] | Mortgage backed securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 2 [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 89,624 | [1] | 92,230 | [1] |
Level 2 [Member] | Commercial paper [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | 2,400 | [1] | |
Level 2 [Member] | Repurchase Agreements [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 4,547 | [1] | 4,988 | [1] |
Level 2 [Member] | Time deposits [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 17,693 | [1] | 12,087 | [1] |
Level 2 [Member] | US Treasury securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | |
Level 2 [Member] | National government and agency securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 5,055 | [1] | 4,451 | [1] |
Level 2 [Member] | State and municipal bond obligations [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 7,149 | [1] | 3,758 | [1] |
Level 2 [Member] | Corporate bonds and notes [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 42,781 | [1] | 47,793 | [1] |
Level 2 [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 7,614 | [1] | 10,022 | [1] |
Level 2 [Member] | Mortgage backed securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | 4,785 | [1] | 6,731 | [1] |
Level 3 [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | Commercial paper [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | Repurchase Agreements [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | Time deposits [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | US Treasury securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | |
Level 3 [Member] | National government and agency securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | State and municipal bond obligations [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | Corporate bonds and notes [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
Level 3 [Member] | Mortgage backed securities [Member] | ' | ' | ||
Fair value mesurement | ' | ' | ||
Fair value measurement of assets | ' | [1] | ' | [1] |
[1] | At June 28, 2014, $4,047 of the repurchase agreements are included in cash and cash equivalents; at June 29, 2013, the commercial paper and $2,991 of the repurchase agreements are included in cash and cash equivalents; the balance of the investments at June 28, 2014 and June 29, 2013 are included in short-term investments in marketable securities on the consolidated balance sheets. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
Fair Value Measurements (Textual) | ' | ' |
Commercial paper included in cash and cash equivalents | ' | $2,991 |
Repurchase agreements included in cash and cash equivalents | $4,047 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ($1,282) | $12,176 | $341 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | -27,782 | 554 |
Income (loss) before income taxes | 1,125 | 1,207 | 867 | 562 | -16,243 | -307 | -640 | 1,584 | 3,762 | -15,606 | 895 |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | -1,366 | 5,424 | 941 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | 95 | 141 | -641 |
Federal Income Tax Expense (Benefit), Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | -1,271 | 5,565 | 300 |
State | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | -522 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | -12 | -172 | 2,768 |
State and Local Income Tax Expense (Benefit), Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | -12 | -165 | 2,246 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | 953 | 672 | 551 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 151 | ' |
Foreign Income Tax Expense (Benefit), Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 1,053 | 823 | 551 |
Total current | ' | ' | ' | ' | ' | ' | ' | ' | -413 | 6,103 | 970 |
Total deferred | ' | ' | ' | ' | ' | ' | ' | ' | 90 | -182 | 1,753 |
Total income tax expense (benefit) | $291 | ($421) | ($331) | $231 | $573 | $395 | $4,756 | $500 | ($230) | $6,223 | $3,097 |
Income_Taxes_Details_1
Income Taxes (Details 1) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' |
Tax provision at federal statutory rate | 34.00% | 33.80% | 34.00% |
State income taxes, net of federal benefit | -1.30% | 2.10% | -33.40% |
Foreign income and withholding taxes | 1.70% | -67.90% | 34.10% |
Benefits from resolution of certain tax audits and expiration of statute of limitations | -21.80% | 0.80% | -15.40% |
Intercompany licensing of intellectual property | -21.70% | -6.50% | ' |
Share-based compensation | 3.40% | -1.10% | 20.50% |
Research and development tax credits | -2.30% | ' | -2.20% |
Change in valuation allowance | 0.50% | -1.80% | 307.30% |
Other | 6.80% | 0.70% | 1.10% |
Income tax expense | -6.10% | -39.90% | 346.00% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Credit carryforwards | $2,778 | $2,798 |
Accruals and reserves | 843 | 1,311 |
Cumulative loss on investment | 400 | 884 |
Depreciation and amortization | -933 | -975 |
Net operating loss carryforward | 1,418 | 1,424 |
Share-based compensation | 3,013 | 3,088 |
Other | 781 | 530 |
Total | 8,300 | 9,060 |
Valuation allowance | -5,114 | -5,064 |
Deferred tax assets | 3,186 | 3,996 |
Deferred tax liabilities: | ' | ' |
Gain on previously held shares in unconsolidated affiliate | -3,793 | -3,768 |
Acquired PTI intangibles and other | -1,667 | -2,030 |
Deferred tax liabilities | ($5,460) | ($5,798) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Beginning balance | ($3,033) | ($1,607) | ($755) |
Gross increases - prior period tax positions | -411 | -135 | -515 |
Gross increases - current period tax positions | -194 | -1,423 | -475 |
Reductions - Gross increases - prior period tax positions | 1,020 | ' | ' |
Reductions as a result of a lapse of statute of limitations | 887 | 132 | 138 |
Balance as of June 29,2013 | ($1,731) | ($3,033) | ($1,607) |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jul. 02, 2011 | |
Income Taxes (Textual) | ' | ' | ' | ' |
Change in valuance allowance, deferred tax assets | $50,000 | $759,000 | ' | ' |
Non-U.S. income (loss) before income tax | 5,000,000 | -27,782,000 | 554,000 | ' |
Undistributed earnings reported by certain foreign subsidiaries | 19,700,000 | ' | ' | ' |
Unrecognized tax benefits | -1,731,000 | -3,033,000 | -1,607,000 | -755,000 |
Balance of unrecognized tax benefits that would affect the Company's effective tax rate if recognized | 934,000 | ' | ' | ' |
Income tax examination year under examination, range | '2008 through 2014 | ' | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits | 215,000 | ' | ' | ' |
Additional tax payments | 208,000 | ' | ' | ' |
Additional payments interest charges | '2 years | ' | ' | ' |
Federal taxable income [Member] | ' | ' | ' | ' |
Income Taxes (Textual) | ' | ' | ' | ' |
Research and development tax credit carryforwards | 145,000 | ' | ' | ' |
Expiration of tax credit carryforwards | '2034 | ' | ' | ' |
State taxable income [Member] | ' | ' | ' | ' |
Income Taxes (Textual) | ' | ' | ' | ' |
Research and development tax credit carryforwards | 4,700,000 | ' | ' | ' |
PSE-TW in Taiwan | ' | ' | ' | ' |
Income Taxes (Textual) | ' | ' | ' | ' |
Net operating loss carryforwards | 207,000 | ' | ' | ' |
Operating loss carryforwards begins to expiration date | '2015 | ' | ' | ' |
PSE-SD in China | ' | ' | ' | ' |
Income Taxes (Textual) | ' | ' | ' | ' |
Net operating loss carryforwards | 3,700,000 | ' | ' | ' |
Operating loss carryforwards begins to expiration date | '2014 | ' | ' | ' |
PTI in Hong Kong | ' | ' | ' | ' |
Income Taxes (Textual) | ' | ' | ' | ' |
Net operating loss carryforwards | $5,000,000 | ' | ' | ' |
Operating loss carryforwards begins to expiration date | 'No expiration | ' | ' | ' |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Compensation and Retirement (Textual) | ' | ' | ' |
Employer-matching contributions, percentage | ' | ' | ' |
Industry_and_Geographical_Segm2
Industry and Geographical Segment Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Schedule of net sales and net book value of long-lived assets by geographical segment | ' | ' | ' |
Total net sales | $128,068 | $129,255 | $137,135 |
Total long-lived assets | 58,537 | 60,959 | 56,102 |
China (including Hong Kong) [Member] | ' | ' | ' |
Schedule of net sales and net book value of long-lived assets by geographical segment | ' | ' | ' |
Total net sales | 61,054 | 61,486 | 48,178 |
Total long-lived assets | 32,234 | 35,180 | 37,761 |
Taiwan [Member] | ' | ' | ' |
Schedule of net sales and net book value of long-lived assets by geographical segment | ' | ' | ' |
Total net sales | 39,463 | 43,144 | 63,301 |
Total long-lived assets | 12,914 | 14,120 | 15,005 |
United States [Member] | ' | ' | ' |
Schedule of net sales and net book value of long-lived assets by geographical segment | ' | ' | ' |
Total net sales | 5,927 | 6,517 | 7,242 |
Total long-lived assets | 12,154 | 10,779 | 2,304 |
Korea [Member] | ' | ' | ' |
Schedule of net sales and net book value of long-lived assets by geographical segment | ' | ' | ' |
Total long-lived assets | 1,067 | 659 | 650 |
Others (less than 10% each) [Member] | ' | ' | ' |
Schedule of net sales and net book value of long-lived assets by geographical segment | ' | ' | ' |
Total net sales | 21,624 | 18,108 | 18,414 |
Total long-lived assets | $168 | $221 | $382 |
Industry_and_Geographical_Segm3
Industry and Geographical Segment Information (Details Textual) | 12 Months Ended |
Jun. 28, 2014 | |
Segment | |
Segment Reporting Textual [Abstract] | ' |
Number of operating segments | 3 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Summary of quarterly operating results and share data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $32,739 | $30,681 | $32,040 | $32,608 | $31,707 | $30,366 | $30,433 | $36,749 | $128,068 | $129,255 | $137,135 |
Cost of revenues | 19,188 | 18,175 | 19,820 | 19,800 | 19,791 | 19,521 | 19,239 | 22,838 | 76,983 | 81,388 | 88,484 |
Gross profit | 13,551 | 12,506 | 12,220 | 12,808 | 11,916 | 10,845 | 11,194 | 13,911 | 51,085 | 47,867 | 48,651 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | 4,782 | 4,694 | 5,274 | 5,045 | 5,320 | 5,277 | 5,097 | 5,323 | 19,795 | 21,017 | 21,722 |
Selling, general and administrative | 8,100 | 7,407 | 7,126 | 7,687 | 7,217 | 7,193 | 7,532 | 7,639 | 30,320 | 29,581 | 29,648 |
Goodwill impairment | ' | ' | ' | ' | 16,899 | ' | ' | ' | ' | ' | ' |
Total operating expenses | 12,882 | 12,101 | 12,400 | 12,732 | 29,436 | 12,470 | 12,629 | 12,962 | 50,115 | 67,497 | 51,370 |
Income (loss) from operations | 669 | 405 | -180 | 76 | -17,520 | -1,625 | -1,435 | 949 | 970 | -19,630 | -2,719 |
Interest and other income, net | 456 | 802 | 1,047 | 486 | 1,277 | 1,318 | 795 | 635 | 2,792 | 4,043 | 3,684 |
Income (loss) before income tax | 1,125 | 1,207 | 867 | 562 | -16,243 | -307 | -640 | 1,584 | 3,762 | -15,606 | 895 |
Income tax expense | 291 | -421 | -331 | 231 | 573 | 395 | 4,756 | 500 | -230 | 6,223 | 3,097 |
Net income (loss) from consolidated companies | 834 | 1,628 | 1,198 | 331 | -16,816 | -702 | -5,396 | 1,084 | 3,992 | -21,829 | -2,202 |
Equity in net income of unconsolidated affiliates | 50 | 13 | 27 | 43 | 30 | 21 | 57 | 108 | 132 | 215 | 134 |
Net income | $884 | $1,641 | $1,225 | $374 | ($16,786) | ($681) | ($5,339) | $1,192 | $4,124 | ($21,614) | ($2,068) |
Basic income (loss) per share | $0.04 | $0.07 | $0.05 | $0.02 | ($0.74) | ($0.03) | ($0.23) | $0.05 | $0.18 | ($0.93) | ($0.09) |
Diluted income (loss) per share | $0.04 | $0.07 | $0.05 | $0.02 | ($0.74) | ($0.03) | ($0.23) | $0.05 | $0.18 | ($0.93) | ($0.09) |
Shares used in computing basic income (loss) per share | 22,123 | 22,659 | 22,800 | 22,794 | 22,783 | 23,162 | 23,515 | 23,543 | 22,594 | 23,251 | 24,094 |
Shares used in computing diluted income (loss) per share | 22,338 | 22,880 | 23,019 | 22,951 | 22,783 | 23,162 | 23,515 | 23,740 | 22,797 | 23,251 | 24,094 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Reserves for returns and pricing adjustments | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | $2,435 | $2,522 | $1,718 |
Charged to Revenues | 4,880 | 4,493 | 5,982 |
Deductions/Write-off | -4,879 | -4,580 | -5,718 |
Ending Balance | 2,436 | 2,435 | 2,522 |
Allowance for Doubtful Accounts | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | 76 | 44 | 229 |
Charged to Expense | 1 | 49 | 92 |
Deductions/Write-off | -52 | -17 | -277 |
Ending Balance | 25 | 76 | 44 |
Deferred tax valuation allowance | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning Balance | 5,064 | 4,305 | 1,062 |
Charged to Expense | 50 | 759 | 3,243 |
Deductions/Write-off | ' | ' | ' |
Ending Balance | $5,114 | $5,064 | $4,305 |