Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 26, 2015 | Oct. 26, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Pericom Semiconductor Corporation | |
Entity Central Index Key | 1,001,426 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 26, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --06-27 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,891,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 26, 2015 | Jun. 27, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 41,544 | $ 38,773 |
Investments in marketable securities | 78,958 | 90,304 |
Accounts receivable | ||
Trade (net of reserves and allowances of $1,631 and $1,830) | 26,756 | 23,962 |
Other receivables | 2,727 | 2,377 |
Inventories | 15,183 | 13,613 |
Prepaid expenses and other current assets | 3,387 | 3,510 |
Deferred income taxes | 311 | 438 |
Total current assets | 168,866 | 172,977 |
Property, plant and equipment - net | 55,947 | 57,746 |
Investments in unconsolidated affiliates | 2,289 | 2,311 |
Deferred income taxes - non-current | 2,594 | 2,601 |
Intangible assets (net of accumulated amortization of $15,804 and $15,588) | 3,234 | 4,057 |
Other assets | 7,739 | 8,031 |
Total assets | 240,669 | 247,723 |
Current liabilities: | ||
Accounts payable | 10,763 | 8,960 |
Accrued liabilities | 10,142 | 11,425 |
Total current liabilities | 20,905 | 20,385 |
Industrial development subsidy | 5,010 | 5,377 |
Deferred income taxes | 4,756 | 4,705 |
Noncurrent tax liabilities | 1,424 | 1,411 |
Other long-term liabilities | 426 | 236 |
Total liabilities | $ 32,521 | $ 32,114 |
Commitments and contingencies (Note 6) | ||
Shareholders' equity: | ||
Common stock and paid in capital - no par value, 60,000,000 shares authorized; shares issued and outstanding: September 26, 2015, 21,891,000; June 27, 2015, 22,177,000 | $ 109,455 | $ 114,248 |
Retained earnings | 94,574 | 92,346 |
Accumulated other comprehensive income, net of tax | 4,119 | 9,015 |
Total shareholders' equity | 208,148 | 215,609 |
Total liabilities and shareholders' equity | $ 240,669 | $ 247,723 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 26, 2015 | Jun. 27, 2015 |
Balance Sheets [Abstract] | ||
Allowances for accounts receivable | $ 1,631 | $ 1,830 |
Accumulated amortization on intangible assets | $ 15,804 | $ 15,588 |
Common stock and paid in capital, no 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 | 21,891,000 | 22,177,000 |
Common stock and paid in capital, shares outstanding | 21,891,000 | 22,177,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Statements of Operations [Abstract] | ||
Net revenues | $ 31,570 | $ 33,259 |
Cost of revenues | 17,229 | 19,179 |
Gross profit | 14,341 | 14,080 |
Operating expenses: | ||
Research and development | 4,452 | 4,588 |
Selling, general and administrative | 9,066 | 7,300 |
Total operating expenses | 13,518 | 11,888 |
Income from operations | 823 | 2,192 |
Interest and other income, net | 3,245 | 1,274 |
Income before income tax expense | 4,068 | 3,466 |
Income tax expense | 535 | 1,010 |
Net income from consolidated companies | 3,533 | 2,456 |
Equity in net income of unconsolidated affiliate | 26 | 39 |
Net income | $ 3,559 | $ 2,495 |
Basic income per share | $ 0.16 | $ 0.11 |
Diluted income per share | $ 0.16 | $ 0.11 |
Shares used in computing basic income per share | 21,955 | 21,936 |
Shares used in computing diluted income per share | 22,523 | 22,262 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Statements of Comprehensive Income [Abstract] | ||
Net income | $ 3,559 | $ 2,495 |
Other comprehensive income (loss): | ||
Change in unrealized gain or loss on securities available for sale, net | (148) | (174) |
Foreign currency translation adjustment | (4,749) | (458) |
Tax benefit related to other comprehensive income (loss) | 1 | 115 |
Other comprehensive income (loss), net of tax | (4,896) | (517) |
Comprehensive income (loss) | $ (1,337) | $ 1,978 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,559 | $ 2,495 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,297 | 2,260 |
Share-based compensation | 960 | 709 |
Tax benefit resulting from share-based transactions | 797 | 293 |
Excess tax benefit resulting from share-based transactions | (220) | (29) |
Write off of assets | 66 | 301 |
Loss on sale of investments | 37 | 6 |
Equity in net income of unconsolidated affiliate | (26) | (39) |
Deferred taxes | 441 | 50 |
Changes in assets and liabilities: | ||
Accounts receivable | (3,962) | (1,033) |
Inventories | (2,103) | 370 |
Prepaid expenses and other current assets | 77 | 1,400 |
Other assets | 13 | 11 |
Accounts payable | 2,651 | 371 |
Accrued liabilities | (1,701) | $ (41) |
Other long-term liabilities | (3) | |
Net cash provided by operating activities | 2,883 | $ 7,124 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (2,032) | (1,136) |
Purchase of available-for-sale investments | (10,214) | (25,719) |
Maturities and sales of available-for-sale investments | 20,826 | 15,292 |
Net cash provided by (used in) investing activities | 8,580 | (11,563) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from common stock issuance under stock plans, net | 6 | $ 1,498 |
Cash dividends paid | (1,331) | |
Excess tax benefit resulting from stock option transactions | 220 | $ 29 |
Repurchase of common stock | (5,763) | (2,302) |
Net cash used in financing activities | (6,868) | (775) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (1,824) | (219) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,771 | (5,433) |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 38,773 | 33,020 |
End of period | $ 41,544 | $ 27,587 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 26, 2015 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The condensed consolidated financial statements have been prepared by Pericom Semiconductor Corporation (“Pericom” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments and accruals, necessary for a fair presentation of the Company’s financial position as of September 26, 2015, the results of operations for the three months ended September 26, 2015 and September 27, 2014 and cash flows for the three months ended September 26, 2015 and September 27, 2014. This unaudited quarterly information should be read in conjunction with the audited consolidated financial statements of Pericom and the notes thereto included in the Company’s Annual Report on Form 10-K as filed with the SEC on September 1, 2015. The preparation of the interim condensed consolidated 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 and liabilities and disclosure of contingent assets and liabilities as of the date of the interim condensed consolidated financial statements and the reported amounts of revenue and expenses during the period. Actual amounts could differ from these estimates. The results of operations for the three months ended September 26, 2015 are not necessarily indicative of the results to be expected for the entire year. The three month periods ended September 26, 2015 and September 27, 2014 each had 13 weeks. The Company participates in a dynamic high technology industry and believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position or results of operations: advances and trends in new technologies; competitive pressures in the form of new products or price reductions on current products; changes in the overall demand for products offered by the Company; changes in customer relationships; acquisitions and the subsequent integration of the acquired entity with the Company; litigation or claims against the Company based on intellectual property, patent, product, regulatory or other factors; risks associated with changes in domestic and international economic and/or political conditions or regulations and environmental laws; availability of necessary components; interruptions at wafer suppliers and subcontractors; fluctuations in currencies given the Company’s sales and operations being heavily weighted and paid in foreign currencies; and the Company’s ability to attract and retain employees necessary to support its growth. These interim condensed 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") and Pericom Technology Yangzhou Corporation (“PSC-YZ”) for the Jinan, China and Yangzhou, China operations, respectively, and Pericom Technology Inc. (“PTI”). The Company eliminates all intercompany balances and transactions in consolidation. PENDING TRANSACTION – On September 2, 2015, the Company entered into an Agreement and Plan of Merger (“Merger Agreement”) with Diodes Incorporated, a Delaware Corporation (“Diodes”) and PSI Merger Sub, Inc., a California corporation and a wholly-owned subsidiary of Diodes (“Merger Sub”), pursuant to which, subject to satisfaction or waiver of the conditions therein, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving as a wholly-owned subsidiary of Diodes. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of the Company’s common stock issued and outstanding immediately prior to the Effective Time, excluding shares owned by shareholders who have exercised dissenters’ rights under California law and shares owned by the Company, Diodes, Merger Sub or any of their respective subsidiaries, will be converted into the right to receive $17.00 in cash, without interest. The transaction is subject to approval by the Company’s shareholders, as well as other customary closing conditions and regulatory approvals. Concurrently with the Company’s execution of the Merger Agreement, certain directors and executive officers of the Company, in their capacities as holders of shares or other equity interests of the Company, entered into Voting Agreements with Diodes pursuant to which they agreed, among other things, to vote or cause to be voted all of the Company shares beneficially owned by such shareholders for the approval of the merger and the Merger Agreement and against any alternative proposal. Notwithstanding the foregoing, however, the Voting Agreements terminate upon the termination of the Merger Agreement in accordance with their terms, including the termination of the Merger Agreement by the Company’s Board of Directors in favor of a superior proposal. The Company has agreed to customary restrictions on its ability to solicit and respond to any other proposals from third parties to acquire it and to provide information to, and enter into discussions or negotiations with, third parties regarding alternative acquisition proposals. However, prior to receiving shareholder approval, the solicitation restrictions are subject to a customary “fiduciary-out” provision that allows the Company to provide information to, and engage in negotiations or discussions with, third parties with respect to a written acquisition proposal if the board of directors of the Company determines in good faith after consultation with its outside legal counsel that the failure to take such action would reasonably be expected to be inconsistent with the Board of Directors’ fiduciary duties under applicable law. The Merger Agreement contains certain termination rights for both the Company and Diodes, including the Company's ability to terminate the Merger Agreement in order to accept a superior proposal. In the event that the Merger Agreement is terminated, the Company may, under specified circumstances, be required to pay a termination fee of $15 million. The foregoing description of the Merger Agreement and the transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, a copy of which is attached as Exhibit 2.1 to the Current Report on Form 8-K filed by the Company on September 3, 2015. Additional information relating to the Merger Agreement is also included in that Current Report on Form 8-K, the Schedule 14A filed on September 17, 2015 and revised on October 13, 2015, the Current Report on Form 8-K filed on October 16, 2015 and in other filings the Company has made and will make with the SEC relating to the Merger Agreement. 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 June 27, 2015 is referred to as fiscal year 2015 or fiscal 2015, whereas the current fiscal year 2016 or fiscal 2016 will end on July 2, 2016. Fiscal 2015 contains 52 weeks or 364 days, whereas fiscal 2016 will include a 53 rd RECENTLY ISSUED ACCOUNTING STANDARDS In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, Simplifying the Measurement of Inventory . Under this ASU, inventory will be measured at the “lower of cost and net realizable value,” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption of ASU 2015-11 will have 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, 2017, although public companies may early adopt for annual and interim reporting periods beginning after December 15, 2016. The impact on the Company’s financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Sep. 26, 2015 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 2. INTANGIBLE ASSETS The following table summarizes the components of intangible assets and related accumulated amortization balances for each of the period-ending dates shown, which were recorded as a result of business combinations: September 26, 2015 June 27, 2015 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Customer relationships $ 5,845 $ (4,968 ) $ 877 $ 6,008 $ (4,862 ) $ 1,146 Core developed technology 12,831 (10,836 ) 1,995 13,251 (10,726 ) 2,525 Total amortizable purchased intangible assets 18,676 (15,804 ) 2,872 19,259 (15,588 ) 3,671 SaRonix trade name 362 - 362 386 - 386 Total purchased intangible assets $ 19,038 $ (15,804 ) $ 3,234 $ 19,645 $ (15,588 ) $ 4,057 Amortization expense related to finite-lived purchased intangible assets was approximately $721,000 and $725,000 for the three month periods ended September 26, 2015 and September 27, 2014, respectively. The Company performs an impairment review of its intangible assets at least annually. Based on the results of its most recent impairment review, the Company determined that no impairment of its intangible assets existed as of September 26, 2015. However, future impairment reviews could result in a charge to earnings. The finite-lived purchased intangible assets consist of customer relationships and existing and core technology, which have remaining useful lives from one to two years. The Company expects future amortization expense associated with its intangible assets to be: Months from September 26, 2015 (in thousands) Next 12 13-24 Over 24 Months Months Months Total Customer relationships $ 877 $ - $ - $ 877 Core developed technology 1,744 251 - 1,995 Total $ 2,621 $ 251 $ - $ 2,872 |
Income Per Share
Income Per Share | 3 Months Ended |
Sep. 26, 2015 | |
Income Per Share [Abstract] | |
INCOME PER SHARE | 3. INCOME PER SHARE Basic income per share is based upon the weighted average number of common shares outstanding. Diluted income per share reflects the additional potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Basic and diluted income per share for the three month periods ended September 26, 2015 and September 27, 2014 are computed as follows: Three Months Ended September 26, September 27, (in thousands, except per share data) 2015 2014 Net income $ 3,559 $ 2,495 Computation of common shares outstanding – basic earnings per share: Weighted average shares of common stock 21,955 21,936 Basic earnings per share $ 0.16 $ 0.11 Computation of common shares outstanding – diluted earnings per share: Weighted average shares of common stock 21,955 21,936 Dilutive shares using the treasury stock method 568 326 Shares used in computing diluted earnings per share 22,523 22,262 Diluted earnings per share $ 0.16 $ 0.11 Options to purchase 340,000 and 1,256,000 shares of common stock, and restricted stock units of 29,000 and zero were outstanding during the three month periods ended September 26, 2015 and September 27, 2014 respectively, but are not included in the computation of diluted earnings per share because the options and units would be anti-dilutive under the treasury stock method. |
Inventories
Inventories | 3 Months Ended |
Sep. 26, 2015 | |
Inventories [Abstract] | |
INVENTORIES | 4. INVENTORIES Inventories consist of: September 26, June 27, (in thousands) 2015 2015 Raw materials $ 7,448 $ 6,249 Work in process 3,150 2,812 Finished goods 4,585 4,552 Total inventories $ 15,183 $ 13,613 The Company considers raw material inventory obsolete and reserves for it if the raw material has not been placed into production within 365 days. The Company reviews its assembled devices for excess and records a reserve if the quantity of assembled devices in inventory is in excess of the greater of the quantity shipped in the previous twelve months, the quantity in backlog or the quantity forecasted to be shipped in the following twelve months. In certain circumstances, management will determine, based on expected usage or other factors, that inventory considered excess by these guidelines should not be reserved. The Company does occasionally determine that the last twelve months’ sales levels will not continue and reserves inventory in line with the quantity forecasted. As of September 26, 2015 and June 27, 2015, the Company had reserved for $2.4 million and $2.8 million of inventory, respectively. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Sep. 26, 2015 | |
Accrued Liabilities [Abstract] | |
ACCRUED LIABILITIES | 5. ACCRUED LIABILITIES Accrued liabilities consist of: September 26, June 27, (in thousands) 2015 2015 Accrued compensation $ 6,192 $ 6,489 Income taxes payable 2,207 2,280 Sales commissions 396 347 Other accrued expenses 1,347 2,309 Total accrued liabilities $ 10,142 $ 11,425 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 26, 2015 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES The Company’s future minimum commitments as of September 26, 2015 are as follows: Months from September 26, 2015 (in thousands) Less than 12-24 24-36 Over 36 48-60 Over 60 12 Months Months Months Months Months Months Total Operating lease payments $ 427 $ 315 $ 185 $ 8 $ 8 $ 2 $ 945 Capital equipment purchase commitments 11 - - - - - 11 Facility modification commitments 330 - - - - 330 Total $ 768 $ 315 $ 185 $ 8 $ 8 $ 2 $ 1,286 The operating lease commitments are primarily facility leases at certain of the Company’s Asian subsidiaries. The facility modification commitments have been made at the Company’s Shandong, China manufacturing operation for a general contractor and architecture firm to develop feasibility studies, plans and cost estimates for potential additional development of the plant site. Building permits have been applied for, and site preparation has begun. The Company has no other purchase obligations beyond routine purchase orders and the facility modifications shown in the table as of September 26, 2015. |
Industry and Segment Informatio
Industry and Segment Information | 3 Months Ended |
Sep. 26, 2015 | |
Industry and Segment Information [Abstract] | |
INDUSTRY AND SEGMENT INFORMATION | 7. INDUSTRY AND SEGMENT INFORMATION The Company has two 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 following table indicates the percentage of the Company’s net revenues and accounts receivable in excess of 10 percent with any single customer: Net Revenues Three Months Ended September 26, September 27, 2015 2014 Customer A 19 % 12 % Customer B 16 % 29 % All others 65 % 59 % 100 % 100 % Accounts Receivable September 26, June 27, 2015 2015 Customer A 27 % 23 % Customer B 14 % 16 % All others 59 % 61 % 100 % 100 % For geographical reporting, the Company attributes net revenues to the country where customers are located (the “bill to” location). The Company neither conducts business in nor sells to persons in Iran, Syria or Sudan, countries located in referenced regions identified as state sponsors of terrorism by the U.S. Department of State and subject to U.S. economic sanctions and export controls. The following table sets forth net revenues by country for the three month periods ended September 26, 2015 and September 27, 2014: Net Revenues Three Months Ended September 26, September 27, 2015 2014 China (including Hong Kong) $ 14,847 $ 16,178 Taiwan 11,297 10,805 United States 1,078 1,462 Other (less than 10% each) 4,348 4,814 Total net revenues $ 31,570 $ 33,259 Long-lived assets consist of all non-monetary assets, excluding financial assets, deferred taxes and intangible assets. The Company attributes long-lived assets to the country where they are located. The following table sets forth the Company’s long-lived assets by country of location as of September 26, 2015 and June 27, 2015: September 26, June 27, 2015 2015 China (including Hong Kong) $ 29,866 $ 31,211 United States 14,178 14,392 Taiwan 10,349 10,974 Korea 1,349 1,024 Others (less than 10% each) 205 145 Total long-lived assets $ 55,947 $ 57,746 |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Sep. 26, 2015 | |
Stock Repurchase Program [Abstract] | |
STOCK REPURCHASE PROGRAM | 8. STOCK REPURCHASE PROGRAM On April 24, 2014, the Board of Directors authorized a share repurchase program for $20 million of common stock. The Company may repurchase the shares from time to time in open market or private transactions, at the discretion of the Company’s management. During the three month period ended September 26, 2015, the Company repurchased 464,957 shares for an aggregate cost of approximately $5.8 million. During the three month period ended September 27, 2014, the Company repurchased 250,547 shares for an aggregate cost of approximately $2.3 million. Current cash balances and the proceeds from stock option exercises and purchases in the employee stock purchase plan have funded stock repurchases in the past. As of September 26, 2015, the Company had approximately $10.0 million of repurchase authority remaining under the 2014 share repurchase program. Due to the pending acquisition of the Company, no future share repurchases are scheduled. |
Shareholders' Equity and Share-
Shareholders' Equity and Share-Based Compensation | 3 Months Ended |
Sep. 26, 2015 | |
Shareholders' Equity and Share-Based Compensation [Abstract] | |
SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | 9. 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 currently undesignated preferred stock from time to time in one or more series and to fix the rights, privileges and restrictions of each series. As of September 26, 2015, the Company has issued no shares of preferred stock. STOCK OPTION PLANS As of September 26, 2015 the Company had three stock incentive plans and one employee stock purchase plan, including the 2001 Stock Option Plan, 2004 Stock Incentive Plan, 2014 Stock Award and Incentive Compensation Plan (collectively, the “Plans”) and the 2010 Employee Stock Purchase Plan (“ESPP”). Under the Plans, the Company has reserved an aggregate of 6.2 million shares of common stock as of September 26, 2015 for issuance to employees, officers, directors, independent contractors and consultants of the Company in the form of incentive or nonqualified stock options, or grants of restricted or performance stock units. The Company may grant stock options at the fair value on the 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 stock 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 for periods within the contractual life of the option on the U.S. Treasury yield corresponding to the expected life of the underlying option. The Company’s did not grant any stock options under its Plans during the three month periods ended September 26, 2015 or September 27, 2014. The following table summarizes the Company’s stock option activity for the three months ended September 26, 2015: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (years) (in thousand) Options outstanding as of June 27, 2015 1,249 $ 10.92 4.67 $ 4,501 Granted - - Exercised (14 ) 11.19 Cancelled or expired - - Options outstanding as of September 26, 2015 1,235 $ 10.92 4.44 $ 7,872 Options vested and expected to vest as of September 26, 2015 1,222 $ 10.95 4.40 $ 7,759 Options exercisable as of September 26, 2015 1,050 $ 11.29 3.76 $ 6,302 As of September 26, 2015, 2.9 million shares were available for future grants under the incentive plans. The aggregate intrinsic value of options exercised during the three months ended September 26, 2015 was $78,000. As of September 26, 2015, expected future compensation expense relating to options outstanding is $626,000, which will be amortized to expense over a weighted average period of 2.0 years. Additional information regarding options outstanding and exercisable as of September 26, 2015 is as follows: Options Outstanding Exercisable Options Weighted Number Average Weighted Number Weighted Outstanding as Remaining Average Exercisable as Average Range of Exercise of September Contractual Exercise of September Exercise Prices 26, 2015 Term Price 26, 2015 Price $ 5.48 $ 8.10 249,000 6.77 $ 7.65 158,000 $ 7.62 8.11 8.85 261,000 4.50 8.56 231,000 8.54 8.86 10.25 254,000 4.84 9.83 211,000 9.96 10.26 15.45 305,000 3.39 13.56 284,000 13.61 15.46 18.10 166,000 2.14 16.36 166,000 16.36 $ 5.48 $ 18.10 1,235,000 4.44 $ 10.92 1,050,000 $ 11.29 Restricted Stock Units and Performance Stock Units Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are converted into shares of the Company’s common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs and PSUs 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. PSUs are granted to executives of the Company and will vest in approximately 12 months subject to the achievement of certain financial metrics of the Company as well as each participant’s performance goals established at the beginning of the fiscal year. The fair value of RSUs and PSUs granted pursuant to the Company’s 2014 Stock Incentive Plan is the product of the number of shares granted and the grant date fair value of the common stock. A summary of activity of RSUs and PSUs for the three months ended September 26, 2015 is presented below: Weighted Weighted Average Aggregate Average Remaining Intrinsic Award Contractual Value Shares Date Fair Term (in (in thousands) Value (years) thousands) RSUs and PSUs outstanding as of June 27, 2015 769 $ 9.76 1.33 $ 10,792 Awarded 334 14.64 Released (174 ) 9.17 Forfeited (3 ) 10.66 RSUs and PSUs outstanding as of September 26, 2015 926 $ 11.63 1.54 $ 15,990 RSUs and PSUs expected to vest after September 26, 2015 790 $ 11.41 1.40 $ 13,653 Of the 334,000 shares awarded during the three months ended September 26, 2015, 235,000 shares were RSUs while the remaining shares awarded were PSUs. As of September 26, 2015, expected future compensation expense relating to RSUs and PSUs is $7.2 million, which will be amortized to expense over a weighted average remaining recognition period of 2.6 years. 2010 EMPLOYEE STOCK PURCHASE PLAN The Company’s ESPP 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 this Plan, of which 1.5 million remain available at September 26, 2015. The ESPP 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. Thus there were no purchases under the ESPP for the three month periods ended September 26, 2015 and September 27, 2014. Participants in the ESPP may purchase stock at 85% of the lower of the stock’s fair market value on the first day and last day of the offering period. The maximum number of shares of Common Stock that any employee may purchase during any offering period under the plan is 1,500 shares, and an employee may not accrue more than $15,000 for share purchases in any offering period. The Company estimates the fair value of stock purchase rights granted under the Company’s ESPP on the date of grant using the Black-Scholes option valuation model. Accounting Standards Codification (“ASC“) Topic 718, Compensation – Stock 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 offering period. The expected term is determined by the time from enrollment until purchase, and the Company uses the U.S. Treasury yield for the risk-free interest rate for the offering period. At September 26, 2015, the Company had $19,000 in unamortized share-based compensation related to its ESPP which will be amortized and recognized in the consolidated statement of operations over the next month. SHARE-BASED COMPENSATION The following table shows total share-based compensation expense classified by Consolidated Statements of Operations reporting caption for the three month periods ended September 26, 2015 and September 27, 2014 generated from the plans described above: Three Months Ended September 26, September 27, (in thousands) 2015 2014 Cost of goods sold $ 63 $ 33 Research and development 287 218 Selling, general and administrative 610 458 Pre-tax share-based compensation expense 960 709 Income tax impact 321 230 Net share-based compensation expense $ 639 $ 479 The amount of share-based compensation expense capitalized in inventory as of September 26, 2015 and June 27, 2015 is immaterial. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 26, 2015 | |
Income Taxes [Abstract] | |
INCOME TAXES | 10. INCOME TAXES Income Tax Expense Income tax expense for the three month periods ended September 26, 2015 and September 27, 2014 was $535,000 and $1.0 million, respectively, and was comprised of domestic federal and state income tax and foreign income tax. The effective tax rate for the three months ended September 26, 2015 was 13%, which resulted from the allocation of earnings between different tax jurisdictions and the inability to utilize losses in certain non-includable entities. The effective tax rate for the three months ended September 27, 2014 was 29%. As of September 26, 2015 and June 27, 2015, the Company has recorded a valuation allowance of $4.4 million against its deferred tax assets. The Company’s effective tax rate may differ from the federal statutory rate primarily due to the permanent differences related to the benefit of foreign rate differentials, income inclusions under Subpart F tax rules, and non-deductible share-based compensation from equity grants. Accounting for Uncertainty in Income Taxes The Company’s total amount of unrecognized tax benefits as of September 26, 2015 was $2.3 million. Of this amount, $1.1 million would affect the Company’s effective tax rate if recognized. In addition, as of September 26, 2015 the Company had accrued $240,000 for any interest and penalties related to unrecognized tax benefits. The Company is subject to examination by federal, foreign, and various state jurisdictions for the years 2009 through 2015. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate | 3 Months Ended |
Sep. 26, 2015 | |
Investments in Unconsolidated Affiliate [Abstract] | |
INVESTMENT IN UNCONSOLIDATED AFFILIATE | 11. INVESTMENT IN UNCONSOLIDATED AFFILIATE The Company’s investment in an unconsolidated affiliate is as follows: September 26, June 27, (in thousands) 2015 2015 Jiyuan Crystal Photoelectric Frequency Technology Ltd. $ 2,289 $ 2,311 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 and supplies PSE-TW with blanks for its surface mount device (“SMD”) production lines. For the first three months of fiscal 2016 and 2015, the Company’s allocated portion of JCP’s results was income of $26,000 and $39,000, respectively. |
Equity and Comprehensive Income
Equity and Comprehensive Income (Loss) | 3 Months Ended |
Sep. 26, 2015 | |
Equity and Comprehensive Income (Loss) [Abstract] | |
EQUITY AND COMPREHENSIVE INCOME (LOSS) | 12. EQUITY AND COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) consists of net income, changes in net unrealized gains or losses on available-for-sale investments and changes in cumulative currency translation adjustments at consolidated subsidiaries. As of September 26, 2015, accumulated other comprehensive income of $4.1 million consists of $4.2 million of accumulated currency translation gains and $127,000 of net unrealized losses on available-for-sale investments, which was recorded net of a $2,000 tax benefit. As of June 27, 2015, accumulated other comprehensive income of $9.0 million was made up of $9.0 million of accumulated currency translation gains and $21,000 of net unrealized gains on available-for-sale investments, which was recorded net of a $2,000 tax benefit. |
Dividends
Dividends | 3 Months Ended |
Sep. 26, 2015 | |
Dividends [Abstract] | |
DIVIDENDS | 13. DIVIDENDS On July 28, 2015, the Company’s Board of Directors declared a cash dividend of $0.06 per share of common stock. The aggregate payment of approximately $1.3 million was made on September 3, 2015 to shareholders of record as of August 20, 2015. |
Short-Term Debt
Short-Term Debt | 3 Months Ended |
Sep. 26, 2015 | |
Short-Term Debt [Abstract] | |
SHORT-TERM DEBT | 14. SHORT-TERM DEBT As of September 26, 2015 and June 27, 2015, the Company has no outstanding debt. However, the Company’s subsidiary PSE-TW has three 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 an unsecured facility for $100 million New Taiwan Dollars (“NTD”), or approximately U.S. $3.0 million. Loans under this facility are limited to $70 million NTD (U.S. $2.1 million), 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 $80 million NTD (U.S. $2.4 million). Loans under this facility are limited to $60 million NTD (U.S. $1.8 million), are for up to 180 days, with the interest rate determined on a case by case basis, and may be in NTD, USD, or JPY. The third is a secured facility for up to either $200 million NTD or $6.0 million USD. The loans are for up to 180 days, and may be in NTD, USD, JPY or other currencies, with the interest rate based on a spread over various benchmark rates depending upon the currency. PSE-TW has pledged $4.0 million in land and buildings as collateral for the secured loan and credit facility. |
Industrial Development Subsidy
Industrial Development Subsidy | 3 Months Ended |
Sep. 26, 2015 | |
Industrial Development Subsidy [Abstract] | |
INDUSTRIAL DEVELOPMENT SUBSIDY | 15. INDUSTRIAL DEVELOPMENT SUBSIDY As of September 26, 2015, industrial development subsidies in the amount of $11.6 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 as of September 26, 2015 was $5.0 million, which is expected to be recognized over the next five to seven years. The Company recognized $186,000 and $188,000 of industrial development subsidy as a reduction of cost of goods sold and $42,000 and $47,000 of industrial development subsidy as a reduction of operating expenses in the consolidated statements of operations for the three month periods ended September 26, 2015 and September 27, 2014, respectively. |
Investments in Marketable Secur
Investments in Marketable Securities | 3 Months Ended |
Sep. 26, 2015 | |
Investments In Marketable Securities [Abstract] | |
INVESTMENTS IN MARKETABLE SECURITIES | 16. 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 unrealized gain or loss occurs. As of September 26, 2015, a summary of investments by major security type is as follows: As of September 26, 2015 Net Unrealized Amortized Unrealized Unrealized Gains (in thousands) Cost Gains Losses (Losses) Fair Value Available-for-Sale Securities Time deposits $ 19,264 $ - $ - $ - $ 19,264 Repurchase agreements - - - - - National government and agency securities 3,180 61 - 61 3,241 State and municipal bond obligations 5,201 50 (9 ) 41 5,242 Corporate bonds and notes 39,386 76 (274 ) (198 ) 39,188 Asset backed securities 7,634 12 (27 ) (15 ) 7,619 Mortgage backed securities 4,419 2 (17 ) (15 ) 4,404 Total $ 79,084 $ 201 $ (327 ) $ (126 ) $ 78,958 As of June 27, 2015 a summary of investments by major security type is as follows: As of June 27, 2015 Net Unrealized Amortized Unrealized Unrealized Gains (in thousands) Cost Gains Losses (Losses) Fair Value Available-for-Sale Securities Time deposits $ 22,157 $ - $ - $ - $ 22,157 National government and agency securities 4,612 64 (3 ) 61 4,673 State and municipal bond obligations 4,488 13 (11 ) 2 4,490 Corporate bonds and notes 46,889 168 (200 ) (32 ) 46,857 Asset backed securities 6,994 12 (20 ) (8 ) 6,986 Mortgage backed securities 5,143 11 (13 ) (2 ) 5,141 Total $ 90,283 $ 268 $ (247 ) $ 21 $ 90,304 The above investments are included in short-term investments in marketable securities on the Company’s condensed consolidated balance sheets. The following tables show the unrealized losses and fair market 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 September 26, 2015 and June 27, 2015: Continuous Unrealized Losses at September 26, 2015 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses National government and agency securities $ - $ - $ - $ - $ - $ - State and municipal bond obligations 593 6 607 3 1,200 9 Corporate bonds and notes 18,266 239 1,758 35 20,024 274 Asset backed securities 2,404 12 424 15 2,828 27 Mortgage backed securities 3,200 17 - - 3,200 17 Total $ 24,463 $ 274 $ 2,789 $ 53 $ 27,252 $ 327 Continuous Unrealized Losses at June 27, 2015 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses National government and agency securities $ 1,411 $ 3 $ 190 $ - $ 1,601 $ 3 State and municipal bond obligations 928 4 1,077 7 2,005 11 Corporate bonds and notes 20,621 188 2,893 12 23,514 200 Asset backed securities 1,961 16 1,061 4 3,022 20 Mortgage backed securities 2,023 12 336 1 2,359 13 $ 26,944 $ 223 $ 5,557 $ 24 $ 32,501 $ 247 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 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 condensed consolidated statements of operations. The cost of securities sold is based on the specific identification of the security and its amortized cost. For the three month periods ended September 26, 2015 and September 27, 2014, proceeds from sales and maturities of available-for-sale securities were $20.8 million and $15.3 million, respectively, and realized losses were $37,000 and $6,000, respectively. The following table lists the fair market value of the Company’s short-term investments by length of time to maturity as of September 26, 2015. Securities with maturities over multiple dates are mortgage-backed (“MBS”) or asset-backed securities (“ABS”) featuring periodic principle paydowns through 2042. September 26, (in thousands) 2015 Contractual Maturities Less than 12 months $ 21,985 One to three years 35,128 Over three years 16,699 Multiple dates 5,146 Total $ 78,958 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 26, 2015 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | 17. 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 standard describes a fair value hierarchy 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 the Company’s fair value hierarchy for financial assets measured at fair value on a recurring basis. All of the investments are classified as Level 2 as of September 26, 2015. 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. The securities must meet a required rating level by at least one of the rating agencies (Moody’s, Standard & Poor’s, Fitch). 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. As of September 26, 2015 (in thousands) Fair Value Level 1 Level 2 Level 3 Investments Time deposits $ 40,062 $ - $ 40,062 $ - Repurchase Agreements 754 - 754 - National government and agency securities 3,241 - 3,241 - State and municipal bond obligations 5,242 - 5,242 - Corporate bonds and notes 39,188 - 39,188 - Asset backed securities 7,619 - 7,619 - Mortgage backed securities 4,404 - 4,404 - Total $ 100,510 $ - $ 100,510 $ - (1) $20,798,000 of the time deposits and $754,000 of the repurchase agreements are included in cash and cash equivalents; the balance of the investments are included in short-term investments in marketable securities on our consolidated balance sheet. The Company had no transfers into or out of Level 2 during the three months ended September 26, 2015. 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 as of September 26, 2015 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 as of September 26, 2015. The Company has determined that the amounts reported for cash and cash equivalents, accounts receivable, deposits, accounts payable and accrued liabilities approximate fair value because of their short maturities and/or variable interest rates. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 26, 2015 | |
Basis of Presentation [Abstract] | |
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 June 27, 2015 is referred to as fiscal year 2015 or fiscal 2015, whereas the current fiscal year 2016 or fiscal 2016 will end on July 2, 2016. Fiscal 2015 contains 52 weeks or 364 days, whereas fiscal 2016 will include a 53 rd |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, Simplifying the Measurement of Inventory . Under this ASU, inventory will be measured at the “lower of cost and net realizable value,” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption of ASU 2015-11 will have 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, 2017, although public companies may early adopt for annual and interim reporting periods beginning after December 15, 2016. The impact on the Company’s financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Intangible Assets [Abstract] | |
Summary of components intangible assets and related accumulated amortization as result of business combinations | September 26, 2015 June 27, 2015 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Customer relationships $ 5,845 $ (4,968 ) $ 877 $ 6,008 $ (4,862 ) $ 1,146 Core developed technology 12,831 (10,836 ) 1,995 13,251 (10,726 ) 2,525 Total amortizable purchased intangible assets 18,676 (15,804 ) 2,872 19,259 (15,588 ) 3,671 SaRonix trade name 362 - 362 386 - 386 Total purchased intangible assets $ 19,038 $ (15,804 ) $ 3,234 $ 19,645 $ (15,588 ) $ 4,057 |
Summary of future amortization expense associated with intangible assets | Months from September 26, 2015 (in thousands) Next 12 13-24 Over 24 Months Months Months Total Customer relationships $ 877 $ - $ - $ 877 Core developed technology 1,744 251 - 1,995 Total $ 2,621 $ 251 $ - $ 2,872 |
Income Per Share (Tables)
Income Per Share (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Income Per Share [Abstract] | |
Computation of basic and diluted income per share | Three Months Ended September 26, September 27, (in thousands, except per share data) 2015 2014 Net income $ 3,559 $ 2,495 Computation of common shares outstanding – basic earnings per share: Weighted average shares of common stock 21,955 21,936 Basic earnings per share $ 0.16 $ 0.11 Computation of common shares outstanding – diluted earnings per share: Weighted average shares of common stock 21,955 21,936 Dilutive shares using the treasury stock method 568 326 Shares used in computing diluted earnings per share 22,523 22,262 Diluted earnings per share $ 0.16 $ 0.11 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Inventories [Abstract] | |
Summary of Inventories | September 26, June 27, (in thousands) 2015 2015 Raw materials $ 7,448 $ 6,249 Work in process 3,150 2,812 Finished goods 4,585 4,552 Total inventories $ 15,183 $ 13,613 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued liabilities | September 26, June 27, (in thousands) 2015 2015 Accrued compensation $ 6,192 $ 6,489 Income taxes payable 2,207 2,280 Sales commissions 396 347 Other accrued expenses 1,347 2,309 Total accrued liabilities $ 10,142 $ 11,425 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum commitments | Months from September 26, 2015 (in thousands) Less than 12-24 24-36 Over 36 48-60 Over 60 12 Months Months Months Months Months Months Total Operating lease payments $ 427 $ 315 $ 185 $ 8 $ 8 $ 2 $ 945 Capital equipment purchase commitments 11 - - - - - 11 Facility modification commitments 330 - - - - 330 Total $ 768 $ 315 $ 185 $ 8 $ 8 $ 2 $ 1,286 |
Industry and Segment Informat30
Industry and Segment Information (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Industry and Segment Information [Abstract] | |
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | Net Revenues Three Months Ended September 26, September 27, 2015 2014 Customer A 19 % 12 % Customer B 16 % 29 % All others 65 % 59 % 100 % 100 % Accounts Receivable September 26, June 27, 2015 2015 Customer A 27 % 23 % Customer B 14 % 16 % All others 59 % 61 % 100 % 100 % |
Schedule of net revenues and net book value of long-lived assets by geographical segment | Net Revenues Three Months Ended September 26, September 27, 2015 2014 China (including Hong Kong) $ 14,847 $ 16,178 Taiwan 11,297 10,805 United States 1,078 1,462 Other (less than 10% each) 4,348 4,814 Total net revenues $ 31,570 $ 33, September 26, June 27, 2015 2015 China (including Hong Kong) $ 29,866 $ 31,211 United States 14,178 14,392 Taiwan 10,349 10,974 Korea 1,349 1,024 Others (less than 10% each) 205 145 Total long-lived assets $ 55,947 $ 57,746 |
Shareholders' Equity and Shar31
Shareholders' Equity and Share-Based Compensation (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Shareholders' Equity and Share-Based Compensation [Abstract] | |
Schedule of stock option activity | Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (years) (in thousand) Options outstanding as of June 27, 2015 1,249 $ 10.92 4.67 $ 4,501 Granted - - Exercised (14 ) 11.19 Cancelled or expired - - Options outstanding as of September 26, 2015 1,235 $ 10.92 4.44 $ 7,872 Options vested and expected to vest as of September 26, 2015 1,222 $ 10.95 4.40 $ 7,759 Options exercisable as of September 26, 2015 1,050 $ 11.29 3.76 $ 6,302 |
Schedule of options outstanding and exercisable | Options Outstanding Exercisable Options Weighted Number Average Weighted Number Weighted Outstanding as Remaining Average Exercisable as Average Range of Exercise of September Contractual Exercise of September Exercise Prices 26, 2015 Term Price 26, 2015 Price $ 5.48 $ 8.10 249,000 6.77 $ 7.65 158,000 $ 7.62 8.11 8.85 261,000 4.50 8.56 231,000 8.54 8.86 10.25 254,000 4.84 9.83 211,000 9.96 10.26 15.45 305,000 3.39 13.56 284,000 13.61 15.46 18.10 166,000 2.14 16.36 166,000 16.36 $ 5.48 $ 18.10 1,235,000 4.44 $ 10.92 1,050,000 $ 11.29 |
Summary of activity of restricted stock units (RSUs) | Weighted Weighted Average Aggregate Average Remaining Intrinsic Award Contractual Value Shares Date Fair Term (in (in thousands) Value (years) thousands) RSUs and PSUs outstanding as of June 27, 2015 769 $ 9.76 1.33 $ 10,792 Awarded 334 14.64 Released (174 ) 9.17 Forfeited (3 ) 10.66 RSUs and PSUs outstanding as of September 26, 2015 926 $ 11.63 1.54 $ 15,990 RSUs and PSUs expected to vest after September 26, 2015 790 $ 11.41 1.40 $ 13,653 |
Summary of share based compensation expenses classified by consolidated statement of operations | Three Months Ended September 26, September 27, (in thousands) 2015 2014 Cost of goods sold $ 63 $ 33 Research and development 287 218 Selling, general and administrative 610 458 Pre-tax share-based compensation expense 960 709 Income tax impact 321 230 Net share-based compensation expense $ 639 $ 479 |
Investment in Unconsolidated 32
Investment in Unconsolidated Affiliate (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Investments in Unconsolidated Affiliate [Abstract] | |
Investment in unconsolidated affiliate | September 26, June 27, (in thousands) 2015 2015 Jiyuan Crystal Photoelectric Frequency Technology Ltd. $ 2,289 $ 2,311 |
Investments in Marketable Sec33
Investments in Marketable Securities (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Investments In Marketable Securities [Abstract] | |
Summary of investments by major security type | As of September 26, 2015 Net Unrealized Amortized Unrealized Unrealized Gains (in thousands) Cost Gains Losses (Losses) Fair Value Available-for-Sale Securities Time deposits $ 19,264 $ - $ - $ - $ 19,264 Repurchase agreements - - - - - National government and agency securities 3,180 61 - 61 3,241 State and municipal bond obligations 5,201 50 (9 ) 41 5,242 Corporate bonds and notes 39,386 76 (274 ) (198 ) 39,188 Asset backed securities 7,634 12 (27 ) (15 ) 7,619 Mortgage backed securities 4,419 2 (17 ) (15 ) 4,404 Total $ 79,084 $ 201 $ (327 ) $ (126 ) $ 78,958 As of June 27, 2015 Net Unrealized Amortized Unrealized Unrealized Gains (in thousands) Cost Gains Losses (Losses) Fair Value Available-for-Sale Securities Time deposits $ 22,157 $ - $ - $ - $ 22,157 National government and agency securities 4,612 64 (3 ) 61 4,673 State and municipal bond obligations 4,488 13 (11 ) 2 4,490 Corporate bonds and notes 46,889 168 (200 ) (32 ) 46,857 Asset backed securities 6,994 12 (20 ) (8 ) 6,986 Mortgage backed securities 5,143 11 (13 ) (2 ) 5,141 Total $ 90,283 $ 268 $ (247 ) $ 21 $ 90,304 |
Gross unrealized losses and fair market values of the Company's investments | Continuous Unrealized Losses at September 26, 2015 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses National government and agency securities $ - $ - $ - $ - $ - $ - State and municipal bond obligations 593 6 607 3 1,200 9 Corporate bonds and notes 18,266 239 1,758 35 20,024 274 Asset backed securities 2,404 12 424 15 2,828 27 Mortgage backed securities 3,200 17 - - 3,200 17 Total $ 24,463 $ 274 $ 2,789 $ 53 $ 27,252 $ 327 Continuous Unrealized Losses at June 27, 2015 Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses National government and agency securities $ 1,411 $ 3 $ 190 $ - $ 1,601 $ 3 State and municipal bond obligations 928 4 1,077 7 2,005 11 Corporate bonds and notes 20,621 188 2,893 12 23,514 200 Asset backed securities 1,961 16 1,061 4 3,022 20 Mortgage backed securities 2,023 12 336 1 2,359 13 $ 26,944 $ 223 $ 5,557 $ 24 $ 32,501 $ 247 |
Fair market value of short and long-term investments | September 26, (in thousands) 2015 Contractual Maturities Less than 12 months $ 21,985 One to three years 35,128 Over three years 16,699 Multiple dates 5,146 Total $ 78,958 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 26, 2015 | |
Fair Value Measurements [Abstract] | |
Fair value measurement | As of September 26, 2015 (in thousands) Fair Value Level 1 Level 2 Level 3 Investments Time deposits $ 40,062 $ - $ 40,062 $ - Repurchase Agreements 754 - 754 - National government and agency securities 3,241 - 3,241 - State and municipal bond obligations 5,242 - 5,242 - Corporate bonds and notes 39,188 - 39,188 - Asset backed securities 7,619 - 7,619 - Mortgage backed securities 4,404 - 4,404 - Total $ 100,510 $ - $ 100,510 $ - |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Sep. 26, 2015USD ($) | |
Basis of Presentation [Textual] | |
Converted amount | $ 17 |
Termination fee | $ 15,000,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Jun. 27, 2015 |
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ||
Finite lived intangible assets, Gross | $ 18,676 | $ 19,259 |
Finite lived intangible assets, Accumulated Amortization | (15,804) | (15,588) |
Total | 2,872 | 3,671 |
Purchased intangible assets, Gross | 19,038 | 19,645 |
Purchased intangible assets, Accumulated Amortization | (15,804) | (15,588) |
Purchased intangible assets, Net | 3,234 | 4,057 |
Customer relationships [Member] | ||
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ||
Finite lived intangible assets, Gross | 5,845 | 6,008 |
Finite lived intangible assets, Accumulated Amortization | (4,968) | (4,862) |
Total | 877 | 1,146 |
Core developed technology [Member] | ||
Summary of components of other intangible assets and related accumulated amortization as part of business combinations | ||
Finite lived intangible assets, Gross | 12,831 | 13,251 |
Finite lived intangible assets, Accumulated Amortization | (10,836) | (10,726) |
Total | 1,995 | 2,525 |
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 | $ 362 | $ 386 |
Indefinite lived intangible assets, Accumulated Amortization | ||
Indefinite lived intangible assets, Net | $ 362 | $ 386 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) $ in Thousands | Sep. 26, 2015 | Jun. 27, 2015 |
Summary of future amortization expense associated with intangible assets | ||
Next 12 Months | $ 2,621 | |
13-24 Months | $ 251 | |
25-36 Months | ||
Over 36 Months | ||
Total | $ 2,872 | $ 3,671 |
Customer relationships [Member] | ||
Summary of future amortization expense associated with intangible assets | ||
Next 12 Months | $ 877 | |
13-24 Months | ||
25-36 Months | ||
Over 36 Months | ||
Total | $ 877 | 1,146 |
Core developed technology [Member] | ||
Summary of future amortization expense associated with intangible assets | ||
Next 12 Months | 1,744 | |
13-24 Months | $ 251 | |
25-36 Months | ||
Over 36 Months | ||
Total | $ 1,995 | $ 2,525 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Intangible Assets (Textual) | ||
Amortization expense related to finite-lived purchased intangible assets | $ 721,000 | $ 725,000 |
Impairment of intangible assets | $ 0 | |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible Assets (Textual) | ||
Finite lived intangible assets weighted average useful lives | 1 year | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible Assets (Textual) | ||
Finite lived intangible assets weighted average useful lives | 2 years |
Income Per Share (Details)
Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Computation of basic and diluted income per share | ||
Net income | $ 3,559 | $ 2,495 |
Computation of common shares outstanding - basic earnings per share: | ||
Weighted average shares of common stock | 21,955 | 21,936 |
Basic earnings per share | $ 0.16 | $ 0.11 |
Computation of common shares outstanding - diluted earnings per share: | ||
Weighted average shares of common stock | 21,955 | 21,936 |
Dilutive shares using the treasury stock method | 568 | 326 |
Shares used in computing diluted earnings per share | 22,523 | 22,262 |
Diluted earnings per share | $ 0.16 | $ 0.11 |
Income Per Share (Details Textu
Income Per Share (Details Textual) - shares | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Common Stock [Member] | ||
Income Per Share (Textual) | ||
Number of shares excluded from the computation of diluted net earnings per share | 340,000 | 1,256,000 |
Restricted Stock [Member] | ||
Income Per Share (Textual) | ||
Number of shares excluded from the computation of diluted net earnings per share | 29,000 | 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Jun. 27, 2015 |
Inventories | ||
Raw materials | $ 7,448 | $ 6,249 |
Work in process | 3,150 | 2,812 |
Finished goods | 4,585 | 4,552 |
Total inventories | $ 15,183 | $ 13,613 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 26, 2015 | Jun. 27, 2015 | |
Inventories (Textual) | ||
Raw material inventory reserves, Description | The Company considers raw material inventory obsolete and reserves for it if the raw material has not been placed into production within 365 days. The Company reviews its assembled devices for excess and records a reserve if the quantity of assembled devices in inventory is in excess of the greater of the quantity shipped in the previous twelve months, the quantity in backlog or the quantity forecasted to be shipped in the following twelve months. | |
Inventory reserved | $ 2.4 | $ 2.8 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Jun. 27, 2015 |
Schedule of accrued liabilities | ||
Accrued compensation | $ 6,192 | $ 6,489 |
Income taxes payable | 2,207 | 2,280 |
Sales commissions | 396 | 347 |
Other accrued expenses | 1,347 | 2,309 |
Total accrued liabilities | $ 10,142 | $ 11,425 |
Commitments and Contingencies44
Commitments and Contingencies (Details) $ in Thousands | Sep. 26, 2015USD ($) |
Schedule of future minimum commitments | |
Less than 12 Months | $ 768 |
12-24 Months | 315 |
24-36 Months | 185 |
Over 36 Months | 8 |
48-60 Months | 8 |
Over 60 Months | 2 |
Total | 1,286 |
Operating lease payments [Member] | |
Schedule of future minimum commitments | |
Less than 12 Months | 427 |
12-24 Months | 315 |
24-36 Months | 185 |
Over 36 Months | 8 |
48-60 Months | 8 |
Over 60 Months | 2 |
Total | 945 |
Capital equipment purchase commitments [Member] | |
Schedule of future minimum commitments | |
Less than 12 Months | $ 11 |
12-24 Months | |
24-36 Months | |
Over 36 Months | |
48-60 Months | |
Over 60 Months | |
Total | $ 11 |
Facility modification commitments [Member] | |
Schedule of future minimum commitments | |
Less than 12 Months | $ 330 |
12-24 Months | |
24-36 Months | |
Over 36 Months | |
48-60 Months | |
Over 60 Months | |
Total | $ 330 |
Industry and Segment Informat45
Industry and Segment Information (Details) | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Net Revenues [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 100.00% | 100.00% |
Net Revenues [Member] | Customer A [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 19.00% | 12.00% |
Net Revenues [Member] | Customer B [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 16.00% | 29.00% |
Net Revenues [Member] | All others [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 65.00% | 59.00% |
Accounts Receivable [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 100.00% | 100.00% |
Accounts Receivable [Member] | Customer A [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 27.00% | 23.00% |
Accounts Receivable [Member] | Customer B [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 14.00% | 16.00% |
Accounts Receivable [Member] | All others [Member] | ||
Summary of net revenues and accounts receivable in excess of 10 percent with any single customer | ||
Net revenues and accounts receivable in excess of 10 percent with any single customer | 59.00% | 61.00% |
Industry and Segment Informat46
Industry and Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Jun. 27, 2015 | |
Schedule of net revenues and long-lived assets by geographical segment | |||
Total net revenues | $ 31,570 | $ 33,259 | |
Total long-lived assets | 55,947 | $ 57,746 | |
China (including Hong Kong) [Member] | |||
Schedule of net revenues and long-lived assets by geographical segment | |||
Total net revenues | 14,847 | 16,178 | |
Total long-lived assets | 29,866 | 31,211 | |
Taiwan [Member] | |||
Schedule of net revenues and long-lived assets by geographical segment | |||
Total net revenues | 11,297 | 10,805 | |
Total long-lived assets | 10,349 | 10,974 | |
United States [Member] | |||
Schedule of net revenues and long-lived assets by geographical segment | |||
Total net revenues | 1,078 | 1,462 | |
Total long-lived assets | 14,178 | 14,392 | |
Korea [Member] | |||
Schedule of net revenues and long-lived assets by geographical segment | |||
Total long-lived assets | 1,349 | 1,024 | |
Others (less than 10% each) [Member] | |||
Schedule of net revenues and long-lived assets by geographical segment | |||
Total net revenues | 4,348 | $ 4,814 | |
Total long-lived assets | $ 205 | $ 145 |
Industry and Segment Informat47
Industry and Segment Information (Details Textual) | 3 Months Ended |
Sep. 26, 2015Segment | |
Segment Reporting (Textual) | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Net revenues and accounts receivable in excess rate | 10.00% |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Apr. 24, 2014 | |
Stock Repurchase Program (Textual) | |||
Common stock value authorized to repurchase under share repurchase program | $ 20 | ||
Stock repurchased during period, Shares | 464,957 | 250,547 | |
Stock repurchased during period, Value | $ 5.8 | $ 2.3 | |
Remaining shares authorized to repurchase under the 2014 share repurchase program | $ 10 |
Shareholders' Equity and Shar49
Shareholders' Equity and Share-Based Compensation (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 26, 2015USD ($)$ / sharesshares | |
Schedule of stock option plan activity | |
Beginning balance, Options outstanding | shares | 1,249 |
Options outstanding, Granted | shares | |
Option outstanding, Exercised | shares | (14) |
Option outstanding, Cancelled or expired | shares | |
Ending balance, Option outstanding | shares | 1,235 |
Option outstanding, Options vested and expected to vest | shares | 1,222 |
Option outstanding, Options exercisable | shares | 1,050 |
Beginning balance, Weighted Average Exercise Price | $ 10.92 |
Weighted Average Exercise Price, Granted | |
Weighted Average Exercise Price, Exercised | $ 11.19 |
Weighted Average Exercise Price, Cancelled or expired | |
Ending balance, Weighted Average Exercise Price | $ 10.92 |
Weighted Average Exercise Price, Options vested and expected to vest | 10.95 |
Weighted Average Exercise Price, Options exercisable | $ 11.29 |
Weighted Average Remaining Contractual Term, Options outstanding, Beginning balance | 4 years 8 months 1 day |
Weighted Average Remaining Contractual Term, Options outstanding, Ending balance | 4 years 5 months 9 days |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | 4 years 4 months 24 days |
Weighted Average Remaining Contractual Term, Options exercisable | 3 years 9 months 4 days |
Beginning balance, Aggregate Intrinsic Value | $ | $ 4,501 |
Ending balance, Aggregate Intrinsic Value | $ | 7,872 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 7,759 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 6,302 |
Shareholders' Equity and Shar50
Shareholders' Equity and Share-Based Compensation (Details 1) | 3 Months Ended |
Sep. 26, 2015$ / sharesshares | |
Exercise price range one [Member] | |
Schedule of options outstanding and exercisable | |
Range of Exercise Prices, Lower range limit | $ 5.48 |
Range of Exercise Prices, Upper range limit | $ 8.10 |
Option Outstanding, Number outstanding | shares | 249,000 |
Option Outstanding, Weighted Average Remaining Contractual Term | 6 years 9 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $ 7.65 |
Exercisable Options, Number Exercisable | shares | 158,000 |
Exercisable Options, Weighted Average Exercise Price | $ 7.62 |
Exercise price range two [Member] | |
Schedule of options outstanding and exercisable | |
Range of Exercise Prices, Lower range limit | 8.11 |
Range of Exercise Prices, Upper range limit | $ 8.85 |
Option Outstanding, Number outstanding | shares | 261,000 |
Option Outstanding, Weighted Average Remaining Contractual Term | 4 years 6 months |
Options Outstanding, Weighted Average Exercise Price | $ 8.56 |
Exercisable Options, Number Exercisable | shares | 231,000 |
Exercisable Options, Weighted Average Exercise Price | $ 8.54 |
Exercise price range three [Member] | |
Schedule of options outstanding and exercisable | |
Range of Exercise Prices, Lower range limit | 8.86 |
Range of Exercise Prices, Upper range limit | $ 10.25 |
Option Outstanding, Number outstanding | shares | 254,000 |
Option Outstanding, Weighted Average Remaining Contractual Term | 4 years 10 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 9.83 |
Exercisable Options, Number Exercisable | shares | 211,000 |
Exercisable Options, Weighted Average Exercise Price | $ 9.96 |
Exercise price range four [Member] | |
Schedule of options outstanding and exercisable | |
Range of Exercise Prices, Lower range limit | 10.26 |
Range of Exercise Prices, Upper range limit | $ 15.45 |
Option Outstanding, Number outstanding | shares | 305,000 |
Option Outstanding, Weighted Average Remaining Contractual Term | 3 years 4 months 21 days |
Options Outstanding, Weighted Average Exercise Price | $ 13.56 |
Exercisable Options, Number Exercisable | shares | 284,000 |
Exercisable Options, Weighted Average Exercise Price | $ 13.61 |
Exercise price range five [Member] | |
Schedule of options outstanding and exercisable | |
Range of Exercise Prices, Lower range limit | 15.46 |
Range of Exercise Prices, Upper range limit | $ 18.10 |
Option Outstanding, Number outstanding | shares | 166,000 |
Option Outstanding, Weighted Average Remaining Contractual Term | 2 years 1 month 21 days |
Options Outstanding, Weighted Average Exercise Price | $ 16.36 |
Exercisable Options, Number Exercisable | shares | 166,000 |
Exercisable Options, Weighted Average Exercise Price | $ 16.36 |
Exercise price range six [Member] | |
Schedule of options outstanding and exercisable | |
Range of Exercise Prices, Lower range limit | 5.48 |
Range of Exercise Prices, Upper range limit | $ 18.10 |
Option Outstanding, Number outstanding | shares | 1,235,000 |
Option Outstanding, Weighted Average Remaining Contractual Term | 4 years 5 months 9 days |
Options Outstanding, Weighted Average Exercise Price | $ 10.92 |
Exercisable Options, Number Exercisable | shares | 1,050,000 |
Exercisable Options, Weighted Average Exercise Price | $ 11.29 |
Shareholders' Equity and Shar51
Shareholders' Equity and Share-Based Compensation (Details 2) - Restricted Stock Units and Performance Stock Units [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 26, 2015USD ($)$ / sharesshares | |
Summary of activity of restricted stock units (RSUs) | |
RSUs and PSUs outstanding, Beginning balance | 769 |
RSUs and PSUs outstanding, Awarded | 334 |
RSUs and PSUs outstanding, Released | (174) |
RSUs and PSUs outstanding, Forfeited | (3) |
RSUs and PSUs outstanding, Ending balance | 926 |
RSU's and PSUs expected to vest, after September 26,2015 | 790 |
RSUs and PSUs outstanding, Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 9.76 |
Weighted average grant date fair value, Awarded | $ / shares | 14.64 |
Weighted average grant date fair value, Released | $ / shares | 9.17 |
Weighted average grant date fair value, Forfeited | $ / shares | 10.66 |
RSUs and PSUs outstanding, Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 11.63 |
RSUs and PSUs outstanding, Weighted Average Remaining Contractual Term, Beginning balance | 1 year 3 months 29 days |
RSUs and PSUs outstanding, Weighted Average Remaining Contractual Term, Ending balance | 1 year 6 months 15 days |
RSU's vested and expected to vested, Weighted Average Remaing Contractual Term | 1 year 4 months 24 days |
RSUs and PSUs outstanding, Aggregate Intrinsic Value, Beginning balance | $ | $ 10,792 |
RSUs and PSUs outstanding, Aggregate Intrinsic Value, Ending balance | $ | 15,990 |
RSUs and PSUs expected to vest after September 26, 2015 Aggregate Intrinsic Value | $ | $ 13,653 |
Shareholders' Equity and Shar52
Shareholders' Equity and Share-Based Compensation (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Summary of share based compensation expenses classified by consolidated statement of operations | ||
Pre-tax share-based compensation expense | $ 960 | $ 709 |
Income tax impact | 321 | 230 |
Net share-based compensation expense | 639 | 479 |
Cost of goods sold [Member] | ||
Summary of share based compensation expenses classified by consolidated statement of operations | ||
Pre-tax share-based compensation expense | 63 | 33 |
Research and development [Member] | ||
Summary of share based compensation expenses classified by consolidated statement of operations | ||
Pre-tax share-based compensation expense | 287 | 218 |
Selling, general and administrative [Member] | ||
Summary of share based compensation expenses classified by consolidated statement of operations | ||
Pre-tax share-based compensation expense | $ 610 | $ 458 |
Shareholders' Equity and Shar53
Shareholders' Equity and Share-Based Compensation (Details Textual) | 3 Months Ended |
Sep. 26, 2015USD ($)Stock_Option_PlanStockpurchaseplanshares | |
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 |
Number of shares awarded during the period | 235,000 |
Performance Stock Units [Member] | |
Shareholders' Equity and Share-Based Compensation (Textual) | |
Options vesting period | 12 months |
Restricted Stock Units And Performance Stock Units [Member] | |
Shareholders' Equity and Share-Based Compensation (Textual) | |
Unamortized sharebased compensation expense | $ | $ 7,200,000 |
Weighted average period of recognition | 2 years 7 months 6 days |
Number of shares awarded during the period | 334,000 |
Stock Option Plan [Member] | |
Shareholders' Equity and Share-Based Compensation (Textual) | |
Number of stock option plan | Stock_Option_Plan | 3 |
Number of stock purchase plan | Stockpurchaseplan | 1 |
Reserve of common stock for issuance to employees and officers | $ | $ 6,200,000 |
Options vesting period | 48 months |
Option expiration period | 10 years |
Unamortized sharebased compensation expense | $ | $ 626,000 |
Weighted average period of recognition | 2 years |
Shares available for future grant | 2,900,000 |
Aggregate intrinsic value of options exercised | $ | $ 78,000 |
2010 Employee Stock Purchase Plan [Member] | |
Shareholders' Equity and Share-Based Compensation (Textual) | |
Reserve of common stock for issuance to employees and officers | $ | 2,000,000 |
Unamortized sharebased compensation expense | $ | $ 19,000 |
Shares available for future grant | 1,500,000 |
Purchase option for participants in purchase period | Participants in the ESPP may purchase stock at 85% of the lower of the stock's fair market value on the first day and last day of the offering period. |
Maximum number of common stock by employees in purchase period | 1,500 |
Maximum amount that can be accrued in offering period for stock purchased | $ | $ 15,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Jun. 27, 2015 | |
Income Taxes (Textual) | |||
Income tax expense | $ 535,000 | $ 1,010,000 | |
Effective income tax rate | 13.00% | 29.00% | |
Valuation allowance | $ 4,400,000 | $ 4,400,000 | |
Unrecognized tax benefits | 2,300,000 | ||
Unrecognized tax benefits that would affect the Company's effective tax rate if recognized | 1,100,000 | ||
Accrued interest and penalties related to unrecognized tax benefits | $ 240,000 | ||
Income tax examination, description | The Company is subject to examination by federal, foreign, and various state jurisdictions for the years 2009 through 2015. |
Investment in Unconsolidated 55
Investment in Unconsolidated Affiliate (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Jun. 27, 2015 |
Investment in unconsolidated affiliate | ||
Jiyuan Crystal Photoelectric Frequency Technology Ltd. | $ 2,289 | $ 2,311 |
Investment in Unconsolidated 56
Investment in Unconsolidated Affiliate (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Investment in Unconsolidated Affiliate (Textual) | ||
Allocated portion of JCP's income | $ 26 | $ 39 |
Jiyuan Crystal Photoelectric Frequency Technology Ltd [Member] | ||
Investment in Unconsolidated Affiliate (Textual) | ||
Equity interest | 49.00% |
Equity and Comprehensive Inco57
Equity and Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 26, 2015 | Jun. 27, 2015 | |
Equity and Comprehensive Income (Textual) | ||
Accumulated other comprehensive income | $ 4,119,000 | $ 9,015,000 |
Accumulated currency translation gains included in accumulated other comprehensive income | 4,200,000 | 9,000,000 |
Net unrealized losses on available-for-sale investments | 127,000 | 21,000 |
Tax provision/benefit | $ 2,000 | $ 2,000 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 03, 2015 | Jul. 28, 2015 |
Dividends (Textual) | ||
Cash dividend payable in per share | $ 0.06 | |
Payment of cash dividends | $ 1.3 |
Short-Term Debt (Details)
Short-Term Debt (Details) - 3 months ended Sep. 26, 2015 - PSE-TW [Member] TWD in Millions, $ in Millions | USD ($) | TWD |
Unsecured Facility One [Member] | ||
Short-Term Debt (Textual) | ||
Unsecured debt | $ 3 | TWD 100 |
Maximum borrowing capacity | $ 2.1 | 70 |
Taiwan Interbank Offered Rate | 1.25% | |
Unsecured and secured facility term period | Loans under this facility are limited to $70 million NTD (U.S. $2.1 million), 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. | |
Unsecured Facility Two [Member] | ||
Short-Term Debt (Textual) | ||
Unsecured debt | $ 2.4 | 80 |
Maximum borrowing capacity | $ 1.8 | 60 |
Unsecured and secured facility term period | Loans under this facility are limited to $60 million NTD (U.S. $1.8 million), are for up to 180 days, with the interest rate determined on a case by case basis, and may be in NTD, USD, or JPY. | |
Secured facility [Member] | ||
Short-Term Debt (Textual) | ||
Secured facility | $ 6 | TWD 200 |
Collateral for secured loan and credit facility | $ 4 | |
Unsecured and secured facility term period | The loans are for up to 180 days, and may be in NTD, USD, JPY or other currencies, with the interest rate based on a spread over various benchmark rates depending upon the currency. |
Industrial Development Subsidy
Industrial Development Subsidy (Details) - USD ($) | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Industrial Development Subsidy (Textual) | ||
Subsidy recieved | $ 11,600,000 | |
Remaining subsidy | $ 5,000,000 | |
Period over which remaining subsidy to be recognized | Five to seven years | |
Subsidy as a reduction in cost of goods sold | $ 186,000 | $ 188,000 |
Subsidy as a reduction of operating expenses | $ 42,000 | $ 47,000 |
Investments in Marketable Sec61
Investments in Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 26, 2015 | Jun. 27, 2015 | |
Available-for-Sale Securities | ||
Amortized Cost | $ 79,084 | $ 90,283 |
Unrealized Gains | 201 | 268 |
Unrealized Losses | (327) | (247) |
Net Unrealized Gains (Losses) | (126) | 21 |
Fair Value | 78,958 | 90,304 |
Time deposits [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | $ 19,264 | $ 22,157 |
Unrealized Gains | ||
Unrealized Losses | ||
Net Unrealized Gains (Losses) | ||
Fair Value | $ 19,264 | $ 22,157 |
Repurchase agreements [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | ||
Unrealized Gains | ||
Unrealized Losses | ||
Net Unrealized Gains (Losses) | ||
Fair Value | ||
National government and agency securities [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | $ 3,180 | 4,612 |
Unrealized Gains | $ 61 | 64 |
Unrealized Losses | (3) | |
Net Unrealized Gains (Losses) | $ 61 | 61 |
Fair Value | 3,241 | 4,673 |
State and municipal bond obligations [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 5,201 | 4,488 |
Unrealized Gains | 50 | 13 |
Unrealized Losses | (9) | (11) |
Net Unrealized Gains (Losses) | 41 | 2 |
Fair Value | 5,242 | 4,490 |
Corporate bonds and notes [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 39,386 | 46,889 |
Unrealized Gains | 76 | 168 |
Unrealized Losses | (274) | (200) |
Net Unrealized Gains (Losses) | (198) | (32) |
Fair Value | 39,188 | 46,857 |
Asset backed securities [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 7,364 | 6,994 |
Unrealized Gains | 12 | 12 |
Unrealized Losses | (27) | (20) |
Net Unrealized Gains (Losses) | (15) | (8) |
Fair Value | 7,619 | 6,986 |
Mortgage backed securities [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 4,419 | 5,143 |
Unrealized Gains | 2 | 11 |
Unrealized Losses | (17) | (13) |
Net Unrealized Gains (Losses) | (15) | (2) |
Fair Value | $ 4,404 | $ 5,141 |
Investments in Marketable Sec62
Investments in Marketable Securities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 26, 2015 | Jun. 27, 2015 | |
Continuous unrealized losses and fair market values of the Company's investments | ||
Less Than 12 months, Fair Value | $ 24,463 | $ 26,944 |
Less Than 12 Months, Unrealized Losses | 274 | 223 |
12 Months or Longer, Fair Value | 2,789 | 5,557 |
12 Months or Longer, Unrealized Losses | 53 | 24 |
Total, Fair Value | 27,252 | 32,501 |
Total, Unrealized Losses | $ 327 | 247 |
National government and agency securities [Member] | ||
Continuous unrealized losses and fair market values of the Company's investments | ||
Less Than 12 months, Fair Value | 1,411 | |
Less Than 12 Months, Unrealized Losses | 3 | |
12 Months or Longer, Fair Value | $ 190 | |
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | $ 1,601 | |
Total, Unrealized Losses | 3 | |
State and municipal bond obligations [Member] | ||
Continuous unrealized losses and fair market values of the Company's investments | ||
Less Than 12 months, Fair Value | $ 593 | 928 |
Less Than 12 Months, Unrealized Losses | 6 | 4 |
12 Months or Longer, Fair Value | 607 | 1,077 |
12 Months or Longer, Unrealized Losses | 3 | 7 |
Total, Fair Value | 1,200 | 2,005 |
Total, Unrealized Losses | 9 | 11 |
Corporate bonds and notes [Member] | ||
Continuous unrealized losses and fair market values of the Company's investments | ||
Less Than 12 months, Fair Value | 18,266 | 20,621 |
Less Than 12 Months, Unrealized Losses | 239 | 188 |
12 Months or Longer, Fair Value | 1,758 | 2,893 |
12 Months or Longer, Unrealized Losses | 35 | 12 |
Total, Fair Value | 20,024 | 23,514 |
Total, Unrealized Losses | 274 | 200 |
Asset backed securities [Member] | ||
Continuous unrealized losses and fair market values of the Company's investments | ||
Less Than 12 months, Fair Value | 2,404 | 1,961 |
Less Than 12 Months, Unrealized Losses | 12 | 16 |
12 Months or Longer, Fair Value | 424 | 1,061 |
12 Months or Longer, Unrealized Losses | 15 | 4 |
Total, Fair Value | 2,828 | 3,022 |
Total, Unrealized Losses | 27 | 20 |
Mortgage backed securities [Member] | ||
Continuous unrealized losses and fair market values of the Company's investments | ||
Less Than 12 months, Fair Value | 3,200 | 2,023 |
Less Than 12 Months, Unrealized Losses | $ 17 | 12 |
12 Months or Longer, Fair Value | 336 | |
12 Months or Longer, Unrealized Losses | 1 | |
Total, Fair Value | $ 3,200 | 2,359 |
Total, Unrealized Losses | $ 17 | $ 13 |
Investments in Marketable Sec63
Investments in Marketable Securities (Details 2) $ in Thousands | Sep. 26, 2015USD ($) |
Fair market value of short and long-term investments | |
Less than 12 months | $ 21,985 |
One to three years | 35,128 |
Over three years | 16,699 |
Multiple dates | 5,146 |
Total | $ 78,958 |
Investments in Marketable Sec64
Investments in Marketable Securities (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 26, 2015 | Sep. 27, 2014 | |
Investments in Marketable Securities (Textual) | ||
Proceeds from maturities and sales of available-for-sale investments | $ 20,826,000 | $ 15,292,000 |
Loss on sale of investments | $ 37,000 | $ 6,000 |
Short-term investments, Description | Securities with maturities over multiple dates are mortgage-backed securities ("MBS") or asset-backed securities ("ABS") featuring periodic principle paydowns through 2042. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | Sep. 26, 2015USD ($) | [1] |
Level 1 [Member] | ||
Fair value measurement | ||
Total | ||
Level 1 [Member] | Time deposits [Member] | ||
Fair value measurement | ||
Total | ||
Level 1 [Member] | Repurchase Agreements [Member] | ||
Fair value measurement | ||
Total | ||
Level 1 [Member] | National government and agency securities [Member] | ||
Fair value measurement | ||
Total | ||
Level 1 [Member] | State and municipal bond obligations [Member] | ||
Fair value measurement | ||
Total | ||
Level 1 [Member] | Corporate bonds and notes [Member] | ||
Fair value measurement | ||
Total | ||
Level 1 [Member] | Asset backed securities [Member] | ||
Fair value measurement | ||
Total | ||
Level 1 [Member] | Mortgage backed securities [Member] | ||
Fair value measurement | ||
Total | ||
Level 2 [Member] | ||
Fair value measurement | ||
Total | $ 100,510 | |
Level 2 [Member] | Time deposits [Member] | ||
Fair value measurement | ||
Total | 40,062 | |
Level 2 [Member] | Repurchase Agreements [Member] | ||
Fair value measurement | ||
Total | 754 | |
Level 2 [Member] | National government and agency securities [Member] | ||
Fair value measurement | ||
Total | 3,241 | |
Level 2 [Member] | State and municipal bond obligations [Member] | ||
Fair value measurement | ||
Total | 5,242 | |
Level 2 [Member] | Corporate bonds and notes [Member] | ||
Fair value measurement | ||
Total | 39,188 | |
Level 2 [Member] | Asset backed securities [Member] | ||
Fair value measurement | ||
Total | 7,619 | |
Level 2 [Member] | Mortgage backed securities [Member] | ||
Fair value measurement | ||
Total | $ 4,404 | |
Level 3 [Member] | ||
Fair value measurement | ||
Total | ||
Level 3 [Member] | Time deposits [Member] | ||
Fair value measurement | ||
Total | ||
Level 3 [Member] | Repurchase Agreements [Member] | ||
Fair value measurement | ||
Total | ||
Level 3 [Member] | National government and agency securities [Member] | ||
Fair value measurement | ||
Total | ||
Level 3 [Member] | State and municipal bond obligations [Member] | ||
Fair value measurement | ||
Total | ||
Level 3 [Member] | Corporate bonds and notes [Member] | ||
Fair value measurement | ||
Total | ||
Level 3 [Member] | Asset backed securities [Member] | ||
Fair value measurement | ||
Total | ||
Level 3 [Member] | Mortgage backed securities [Member] | ||
Fair value measurement | ||
Total | ||
Fair Value [Member] | ||
Fair value measurement | ||
Total | $ 100,510 | |
Fair Value [Member] | Time deposits [Member] | ||
Fair value measurement | ||
Total | 40,062 | |
Fair Value [Member] | Repurchase Agreements [Member] | ||
Fair value measurement | ||
Total | 754 | |
Fair Value [Member] | National government and agency securities [Member] | ||
Fair value measurement | ||
Total | 3,241 | |
Fair Value [Member] | State and municipal bond obligations [Member] | ||
Fair value measurement | ||
Total | 5,242 | |
Fair Value [Member] | Corporate bonds and notes [Member] | ||
Fair value measurement | ||
Total | 39,188 | |
Fair Value [Member] | Asset backed securities [Member] | ||
Fair value measurement | ||
Total | 7,619 | |
Fair Value [Member] | Mortgage backed securities [Member] | ||
Fair value measurement | ||
Total | $ 4,404 | |
[1] | $20,798,000 of the time deposits and $754,000 of the repurchase agreements are included in cash and cash equivalents; the balance of the investments are included in short-term investments in marketable securities on our consolidated balance sheet. |
Fair Value Measurements (Deta66
Fair Value Measurements (Details Textual) | Sep. 26, 2015USD ($) |
Time deposits [Member] | |
Fair Value Measurements (Textual) | |
Deposits | $ 20,798,000 |
Repurchase Agreements [Member] | |
Fair Value Measurements (Textual) | |
Cash and cash equivalents | $ 754,000 |