Oclaro 10-Q 5 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 26, 2015	Oct. 29, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 26, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	OCLR
Entity Registrant Name	OCLARO, INC.
Entity Central Index Key	1,110,647
Current Fiscal Year End Date	--07-02
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		110,756,328

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
Current assets:
Cash and cash equivalents	$ 105,142	$ 111,840
Restricted cash	2,526	3,275
Accounts receivable, net of allowances for doubtful accounts of $2,405 and $2,815 as of September 26, 2015 and June 27, 2015, respectively; and including $999 and $709 due from related parties as of September 26, 2015 and June 27, 2015, respectively	78,485	74,815
Inventories	67,237	66,342
Prepaid expenses and other current assets	20,390	22,746
Total current assets	273,780	279,018
Property and equipment, net	41,511	41,766
Other intangible assets, net	2,306	2,579
Other non-current assets	2,514	2,521
Total assets	320,111	325,884
Current liabilities:
Accounts payable, including $4,713 and $4,831 due to related parties at September 26, 2015 and June 27, 2015, respectively	51,480	53,133
Accrued expenses and other liabilities	35,625	35,648
Capital lease obligations, current	3,667	3,580
Total current liabilities	90,772	92,361
Deferred gain on sale-leaseback	8,452	8,978
Convertible notes payable	61,449	61,246
Capital lease obligations, non-current	749	1,167
Other non-current liabilities	9,269	9,132
Total liabilities	$ 170,691	$ 172,884
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock: 1,000 shares authorized; none issued and outstanding	$ 0	$ 0
Common stock: $0.01 par value per share; 175,000 shares authorized; 110,748 shares issued and outstanding at September 26, 2015 and 109,889 shares issued and outstanding at June 27, 2015	1,107	1,099
Additional paid-in capital	1,466,382	1,464,567
Accumulated other comprehensive income	39,633	41,526
Accumulated deficit	(1,357,702)	(1,354,192)
Total stockholders’ equity	149,420	153,000
Total liabilities and stockholders’ equity	$ 320,111	$ 325,884

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,405	$ 2,815
Accounts receivable, due from related parties	999	709
Accounts payable, due to related parties	$ 4,713	$ 4,831
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	110,748,000	109,889,000
Common stock, shares outstanding	110,748,000	109,889,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Income Statement [Abstract]
Revenues, including $892 and $1,177 from related parties for the three months ended September 26, 2015 and September 27, 2014, respectively	$ 87,550	$ 89,241
Cost of revenues	64,853	74,832
Gross profit	22,697	14,409
Operating expenses:
Research and development	10,945	13,913
Selling, general and administrative	13,208	15,414
Amortization of other intangible assets	251	418
Restructuring, acquisition and related (income) expense, net	32	1,730
Loss on sale of property and equipment	213	397
Total operating expenses	24,649	31,872
Operating loss	(1,952)	(17,463)
Other income (expense):
Interest income (expense), net	(1,276)	(104)
Gain (loss) on foreign currency transactions, net	504	(2,010)
Other income (expense), net	113	555
Total other income (expense)	(659)	(1,559)
Loss from continuing operations before income taxes	(2,611)	(19,022)
Income tax provision	899	954
Loss from continuing operations	(3,510)	(19,976)
Loss from discontinued operations, net of tax	0	(378)
Net loss	$ (3,510)	$ (20,354)
Basic and diluted net loss per share:
Loss per share from continuing operations (in usd per share)	$ (0.03)	$ (0.19)
Loss per share from discontinued operations (in usd per share)	0	0
Basic and diluted net loss per share (in usd per share)	$ (0.03)	$ (0.19)
Shares used in computing net loss per share:
Basic (in shares)	109,458	107,249
Diluted (in shares)	109,458	107,249

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Income Statement [Abstract]
Revenues from related parties	$ 892	$ 1,177

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,510)	$ (20,354)
Other comprehensive income (loss):
Unrealized loss on marketable securities	0	(19)
Currency translation adjustments	(1,883)	(1,709)
Pension adjustment, net of tax benefits	(10)	503
Total comprehensive loss	$ (5,403)	$ (21,579)

CONDENSED CONSOLIDATED STATEME7

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 loss	$ (3,510)	$ (20,354)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred gain on sale-leaseback	(223)	(238)
Amortization of debt discount and issuance costs in connection with convertible notes payable	203	0
Depreciation and amortization	4,098	5,122
Stock-based compensation expense	1,824	1,286
Other non-cash adjustments	213	412
Changes in operating assets and liabilities:
Accounts receivable, net	(4,698)	2,531
Inventories	(1,737)	(6,603)
Prepaid expenses and other current assets	1,878	(117)
Other non-current assets	(13)	(6)
Accounts payable	(1,190)	(1,632)
Accrued expenses and other liabilities	218	13,910
Net cash used in operating activities	(2,937)	(5,689)
Cash flows from investing activities:
Purchases of property and equipment	(3,826)	(4,693)
Transfer from restricted cash	676	393
Net cash used in investing activities	(3,150)	(4,300)
Cash flows from financing activities:
Proceeds from issuance of common stock, net	9	1
Payments on capital lease obligations	(765)	(1,094)
Net cash used in financing activities	(756)	(1,093)
Effect of exchange rate on cash and cash equivalents	145	1,418
Net decrease in cash and cash equivalents	(6,698)	(9,664)
Cash and cash equivalents at beginning of period	111,840	98,973
Cash and cash equivalents at end of period	$ 105,142	$ 89,309

BASIS OF PREPARATION

BASIS OF PREPARATION	3 Months Ended
	Sep. 26, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PREPARATION	BASIS OF PREPARATION Basis of Presentation Oclaro, Inc., a Delaware corporation, is sometimes referred to in this Quarterly Report on Form 10-Q as “Oclaro,” “we,” “us” or “our.” The accompanying unaudited condensed consolidated financial statements of Oclaro as of September 26, 2015 and for the three months ended September 26, 2015 and September 27, 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Oclaro and all of our subsidiaries. Accordingly, they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our consolidated financial position and results of operations have been included. The condensed consolidated results of operations for the three months ended September 26, 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending July 2, 2016 . The condensed consolidated balance sheet as of June 27, 2015 has been derived from our audited financial statements as of such date, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K for the year ended June 27, 2015 (" 2015 Form 10-K"). On August 5, 2014, we entered into a separation agreement to sell our industrial and consumer business of Oclaro Japan located at our Komoro, Japan facility to Ushio Opto Semiconductors, Inc. ("Ushio Opto"). On October 27, 2014, the sale was completed. This transaction is more fully discussed in Note 5, Business Combinations and Dispositions . On November 1, 2013, we sold our optical amplifier and micro-optics business (the “Amplifier Business”) to II-VI Incorporated ("II-VI"). On September 12, 2013, we sold our Oclaro Switzerland GmbH subsidiary and associated laser diodes and pump business (the “Zurich Business”) to II-VI. These sales are reported as discontinued operations, which require retrospective restatement of prior periods to classify the results of operations as discontinued operations. The notes to our condensed consolidated financial statements relate to our continuing operations only, unless otherwise indicated. These transactions are more fully discussed in Note 5, Business Combinations and Dispositions . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. Examples of significant estimates and assumptions made by management involve the fair value of other intangible assets and long-lived assets, valuation allowances for deferred tax assets, the fair value of stock-based compensation, the fair value of embedded derivatives related to convertible debt, the fair value of pension liabilities, estimates used to determine facility lease loss liabilities, estimates for allowances for doubtful accounts and valuation of excess and obsolete inventories. These judgments can be subjective and complex and consequently actual results could differ materially from those estimates and assumptions. Descriptions of the key estimates and assumptions are included in our 2015 Form 10-K. Out-of-Period Adjustment In the quarter ended September 27, 2014, we recorded out-of-period adjustments of approximately $2.0 million in cost of goods sold in our condensed consolidated statements of operations. The adjustments, which increased cost of goods sold in fiscal year 2015, also increased accrued liabilities and decreased inventory, and were made to correct our inventory valuation and the value of our purchase commitment accrual from fiscal year 2014. We determined that the adjustments did not have a material impact to any of the prior period consolidated financial statements. Fiscal Years We operate on a 52/53 week year ending on the Saturday closest to June 30. Our fiscal year ending July 2, 2016 will be a 53 week year, with the quarter ended September 26, 2015 being a 13 week quarterly period. Our fiscal year ended June 27, 2015 was a 52 week year, with the quarter ended September 27, 2014 being a 13 week quarterly period. Reclassifications For presentation purposes, we have reclassified certain prior period amounts to conform to the current period financial statement presentation. These reclassifications did not affect our consolidated revenues, net loss, cash flows, cash and cash equivalents or stockholders’ equity as previously reported.

RECENT ACCOUNTING STANDARDS

RECENT ACCOUNTING STANDARDS	3 Months Ended
	Sep. 26, 2015
Accounting Policies [Abstract]
RECENT ACCOUNTING STANDARDS	RECENT ACCOUNTING STANDARDS In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments. This amendment requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for us prospectively in the first quarter of fiscal year 2017. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . Under ASU 2015-03, debt issuance costs are required to be presented as a direct deduction of debt balances on the balance sheet. This new standard does not affect the recognition and measurement of debt issuance costs. We elected to early adopt ASU No. 2015-03 in the fourth quarter of fiscal year 2015, as permitted. The impact of the early adoption on our condensed consolidated balance sheets at September 26, 2015 and June 27, 2015 is to decrease prepaid expenses and other current assets by $0.6 million and decrease convertible notes payable by $0.6 million . This guidance is effective on a retrospective basis, as a change in accounting principle. In August 2015, the FASB issued ASU No. 2015-15, Interest – Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . ASU 2015-15 provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The adoption of this guidance does not have a material impact on our financial statements and footnote disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, deferring the effective date of ASU 2014-09 by one year, to annual periods, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted for periods beginning after December 15, 2016. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In July 2015, the FASB issued ASU No. 2015-11, Inventory: Simplifying the Measurement of Inventory. Under ASU 2015-11, we are required to measure inventory at the lower of cost and net realizable value. The new guidance clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for us prospectively in the first quarter of fiscal year 2017, with early application permitted.We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements . ASU 2015-10 covers a wide range of Topics in the Codification. The amendments in this ASU represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. This guidance is effective for us prospectively in the first quarter of fiscal year 2017, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In April 2015, the FASB issued ASU No. 2015-04, Compensation – Retirement Benefits: Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets . ASU 2015-04 provides a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. This guidance is effective for us prospectively in the first quarter of fiscal year 2017, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items . This ASU eliminates from U.S. GAAP the concept of extraordinary items. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. This guidance is effective for us prospectively in the first quarter of fiscal year 2017. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern. The update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. This guidance is effective for us beginning with our annual financial statements for the fiscal year ended July 1, 2017, and interim periods thereafter. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures.

BALANCE SHEET DETAILS

BALANCE SHEET DETAILS	3 Months Ended
	Sep. 26, 2015
Balance Sheet Details [Abstract]
BALANCE SHEET DETAILS	BALANCE SHEET DETAILS The following table provides details regarding our cash and cash equivalents at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Cash and cash equivalents: Cash-in-bank $ 103,467 $ 110,196 Money market funds 1,675 1,644 $ 105,142 $ 111,840 As of September 26, 2015 , we had restricted cash of $2.8 million , including $0.2 million in other non-current assets, consisting of collateral for the performance of our obligations under certain lease facility agreements, collateral to secure certain of our credit card accounts and deposits for value-added taxes in foreign jurisdictions, and $0.9 million (equivalent to approximately RMB 5.4 million ) of cash held in Oclaro Shenzhen’s bank account in China that was frozen by the Xi'an Court in connection with our litigation with Xi’an Raysung Photonics Inc. (see Note 8, Commitments and Contingencies , for additional details regarding this litigation.) The following table provides details regarding our inventories at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Inventories: Raw materials $ 20,786 $ 19,610 Work-in-process 23,377 19,812 Finished goods 23,074 26,920 $ 67,237 $ 66,342 The following table provides details regarding our property and equipment, net at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Property and equipment, net: Buildings and improvements $ 11,687 $ 11,837 Plant and machinery 35,161 33,603 Fixtures, fittings and equipment 5,328 4,785 Computer equipment 12,179 12,401 64,355 62,626 Less: Accumulated depreciation (22,844 ) (20,860 ) $ 41,511 $ 41,766 Property and equipment includes assets under capital leases of $4.4 million at September 26, 2015 and $4.7 million at June 27, 2015 , respectively. Amortization associated with assets under capital leases is recorded in depreciation expense. The following table summarizes the activity related to our other intangible assets for the three months ended September 26, 2015 : Core and Development Customer Patent Other Amortization Total (Thousands) Balance at June 27, 2015 $ 6,249 $ 4,595 $ 2,402 $ 915 $ 3,338 $ (14,920 ) $ 2,579 Amortization — — — — — (251 ) (251 ) Translations and adjustments (2 ) (19 ) (1 ) — — — (22 ) Balance at September 26, 2015 $ 6,247 $ 4,576 $ 2,401 $ 915 $ 3,338 $ (15,171 ) $ 2,306 We expect the amortization of intangible assets to be $1.0 million for fiscal year 2016, $0.8 million for fiscal year 2017, $0.6 million for fiscal year 2018 and $0.1 million for fiscal year 2019, based on the current level of our other intangible assets as of September 26, 2015 . The following table presents details regarding our accrued expenses and other liabilities at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Accrued expenses and other liabilities: Trade payables $ 6,736 $ 5,250 Compensation and benefits related accruals 13,138 11,298 Warranty accrual 3,168 2,932 Accrued restructuring, current 392 712 Purchase commitments in excess of future demand, current 3,015 3,162 Other accruals 9,176 12,294 $ 35,625 $ 35,648 The following table summarizes the activity related to our accrued restructuring charges for the three months ended September 26, 2015 : Lease Cancellations, Commitments and Other Charges Termination Payments to Employees and Related Costs Total Accrued Restructuring Charges (Thousands) Balance at June 27, 2015 $ 228 $ 484 $ 712 Charged to restructuring costs — 259 259 Paid or other adjustments (95 ) (484 ) (579 ) Balance at September 26, 2015 $ 133 $ 259 $ 392 Current portion 133 259 392 Non-current portion — — — The current portion of accrued restructuring liabilities is included in the caption accrued expenses and other liabilities in the condensed consolidated balance sheet. During the first quarter of fiscal year 2014, we initiated a restructuring plan to simplify our operating footprint, reduce our cost structure and focus our research and development investment in the optical communications market where we can leverage our core competencies. During the three months ended September 26, 2015 and September 27, 2014 , we recorded restructuring charges of $0.3 million and $0.8 million , respectively, in connection with this restructuring plan. The restructuring charges for the three months ended September 26, 2015 relate to workforce reductions. The restructuring charges for the three months ended September 27, 2014 include $0.2 million related to workforce reductions and $0.6 million related to revised estimates for lease cancellations and commitments. During the three months ended September 26, 2015 and September 27, 2014 , we made scheduled payments of $0.4 million and $1.4 million , respectively. As of September 26, 2015 , we had $0.4 million in accrued restructuring liabilities related to this restructuring plan. During fiscal year 2012, we initiated a restructuring plan in connection with the transfer of a portion of our Shenzhen, China manufacturing operations to Venture Corporation Limited ("Venture"). This transition occurred in a phased and gradual transfer of certain products and was completed in fiscal year 2015. In connection with this transition, we recorded restructuring charges related to employee separation charges of $0.9 million during the three months ended September 27, 2014 and made scheduled payments of $1.3 million to settle a portion of these restructuring liabilities. As of September 26, 2015 and June 27, 2015 , we had no remaining accrued restructuring liabilities related to this restructuring plan. The following table presents the components of accumulated other comprehensive income at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Accumulated other comprehensive income: Currency translation adjustments $ 39,468 $ 41,351 Japan defined benefit plan 165 175 $ 39,633 $ 41,526

FAIR VALUE

FAIR VALUE	3 Months Ended
	Sep. 26, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE We define fair value as the estimated price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. We apply the following fair value hierarchy, which ranks the quality and reliability of the information used to determine fair values: Level 1- Quoted prices in active markets for identical assets or liabilities. Level 2- Inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices of identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets), 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 to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Our cash equivalents are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The types of instruments valued based on quoted market prices in active markets include most marketable securities and money market securities. The contingent obligation related to the make-whole premium on our 6.00% Convertible Senior Notes was valued using a binomial lattice valuation model which estimated the value based on the probability and timing of conversion. As of February 19, 2015, the date of the debt issuance, and as of September 26, 2015, the fair value of this contingent obligation is estimated at zero . The contingent obligation will continue to be revalued each reporting period and classified within Level 3 of the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments at September 26, 2015 and June 27, 2015 : Fair Value Measurement at September 26, 2015 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds 1,675 — — 1,675 Restricted cash: Money market funds 1,215 — — 1,215 Total assets measured at fair value $ 2,890 $ — $ — $ 2,890 (1) Excludes $103.5 million in cash held in our bank accounts at September 26, 2015 . Fair Value Measurement at June 27, 2015 Using Quoted Prices Significant Significant Total Assets: (Thousands) Cash and cash equivalents: (1) Money market funds 1,644 — — 1,644 Restricted cash: Money market funds 1,215 — — 1,215 Total assets measured at fair value $ 2,859 $ — $ — $ 2,859 (1) Excludes $110.2 million in cash held in our bank accounts at June 27, 2015 .

BUSINESS COMBINATIONS AND DISPO

BUSINESS COMBINATIONS AND DISPOSITIONS	3 Months Ended
	Sep. 26, 2015
Business Combinations and Dispositions [Abstract]
BUSINESS COMBINATIONS AND DISPOSITIONS	BUSINESS COMBINATIONS AND DISPOSITIONS Sale of Komoro, Japan Industrial and Consumer Business ("Komoro Business") On August 5, 2014, Oclaro Japan, Inc., our wholly-owned subsidiary (“Oclaro Japan”), entered into a Master Separation Agreement (“MSA”) with Ushio Opto and Ushio, Inc. (“Ushio”), whereby Ushio Opto agreed to acquire the industrial and consumer business of Oclaro Japan located at its Komoro, Japan facility (the “Komoro Business”), by means of an absorption-type demerger under the Japanese Companies Act. On October 27, 2014, the sale was completed. In connection with the sale of the Komoro Business, we transferred net assets with a book value of $6.3 million to Ushio Opto. Initial consideration for this transaction consisted of 1.85 billion Japanese yen (approximately $17.1 million based on the exchange rate on October 27, 2014) in cash, of which 1.6 billion Japanese yen (approximately $14.8 million based on the exchange rate on October 27, 2014) was paid at the closing and 250 million Japanese yen (approximately $2.1 million based on the exchange rate on April 24, 2015) was paid into escrow and was released to Oclaro Japan on April 24, 2015. In addition, under the MSA, we were subject to a post-closing net asset valuation adjustment. We determined that based on the net assets transferred to Ushio Opto during the second quarter of fiscal year 2015, we owed Ushio Opto a post-closing net asset valuation adjustment of $1.4 million , which was paid to Ushio Opto in the third quarter of fiscal year 2015. We completed the transfer of net assets in the second quarter of fiscal year 2015 and recognized a gain of $8.3 million within restructuring, acquisition and related (income) expense, net in the condensed consolidated statements of operations. Income from continuing operations before income taxes attributable to the Komoro Business was $1.6 million for the three months ended September 27, 2014 . This sale is more fully discussed in Note 3, Business Combinations and Dispositions , to our consolidated financial statements included in our 2015 Form 10-K. Sale of Amplifier Business On October 10, 2013, Oclaro Technology Limited entered into an Asset Purchase Agreement with II-VI, whereby Oclaro Technology Limited agreed to sell to II-VI and certain of its affiliates its Amplifier Business for $88.6 million in cash. The transaction closed on November 1, 2013. We classified the sale of our Amplifier Business as a discontinued operation as of September 12, 2013, the date management committed to sell the business. Consideration, valued initially at $88.6 million , consisted of $79.6 million in cash, which was received on November 1, 2013, $4.0 million which was subject to hold-back by II-VI until December 31, 2014 to address any post-closing claims and $5.0 million related to the exclusive option, which was received on September 12, 2013 and was credited against the purchase price upon closing of the sale. On December 30, 2014, Oclaro Technology Limited entered into a Settlement Agreement with II-VI and II-VI Holdings B.V. regarding disposition of the amounts held back by the II-VI parties pursuant to the Asset Purchase Agreement. Of the $4.0 million subject to hold-back until December 31, 2014, we received $0.9 million in January 2015 and we released II-VI from the remaining $3.1 million . In connection with the Settlement Agreement, we also agreed with the II-VI parties to a mutual release of certain claims related to the Asset Purchase Agreement, and certain related documents and transactions. The following table presents the statements of operations for the discontinued operations of the Amplifier Business: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Revenues $ — $ — Cost of revenues — — Gross profit — — Operating expenses — 215 Other income (expense), net — — Loss from discontinued operations before income taxes — (215 ) Income tax provision — — Loss from discontinued operations $ — $ (215 ) This sale is more fully discussed in Note 3, Business Combinations and Dispositions , to our consolidated financial statements included in our 2015 Form 10-K. Sale of Zurich Business On September 12, 2013, we completed a Share and Asset Purchase Agreement with II-VI, pursuant to which we sold our Oclaro Switzerland GmbH subsidiary and associated laser diodes and pump business to II-VI, which includes the GaAs fabrication facility, and also the corresponding high power laser diodes, VCSEL and 980 nm pump laser product lines, including intellectual property, inventory, equipment and a related research and development facility in Tucson. Also, as part of the agreement, II-VI purchased certain pieces of equipment which are located in our Caswell facility. We continue to operate this equipment on behalf of II-VI, and provide certain wafer processing services in Caswell as part of an ongoing manufacturing services agreement. We have classified the sale of our Zurich Business as a discontinued operation. We received proceeds of $90.6 million in cash on September 12, 2013, and $2.9 million in cash during the third quarter of fiscal year 2014 which related to a post-closing working capital adjustment. We were also scheduled to receive an additional $6.0 million subject to hold-back by II-VI until December 31, 2014 to address any further post-closing adjustments or claims. On December 30, 2014, we entered into a Settlement Agreement with II-VI and II-VI Holdings B.V. regarding disposition of the amounts held back by the II-VI parties pursuant to the Share and Asset Purchase Agreement. Of the $6.0 million subject to hold-back until December 31, 2014, we received $1.4 million in January 2015 and we released II-VI from the remaining $4.6 million . In connection with the Settlement Agreement, we also agreed with the II-VI parties to a mutual release of certain claims related to the Share and Asset Purchase Agreement, and certain related documents and transactions. The following table presents the statements of operations for the discontinued operations of the Zurich Business: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Revenues $ — $ — Cost of revenues — 163 Gross loss — (163 ) Operating expenses — — Other income (expense), net — — Loss from discontinued operations before income taxes — (163 ) Income tax provision — — Loss from discontinued operations $ — $ (163 ) This acquisition is more fully discussed in Note 3, Business Combinations and Dispositions , to our consolidated financial statements included in our 2015 Annual Report on Form 10-K.

CREDIT LINE AND NOTES

CREDIT LINE AND NOTES	3 Months Ended
	Sep. 26, 2015
Debt Disclosure [Abstract]
CREDIT LINE AND NOTES	CREDIT LINE AND NOTES 6.00% Convertible Senior Notes due 2020 (" 6.00% Notes") On February 12, 2015, we entered into a Purchase Agreement (the “Purchase Agreement”), with Jefferies LLC (the “Initial Purchaser”), pursuant to which we agreed to issue and sell to the Initial Purchaser up to $65.0 million in aggregate principal Convertible Senior Notes due 2020 (the “ 6.00% Notes”). On February 19, 2015, we closed the private placement of $65.0 million aggregate principal amount of the 6.00% Notes. The 6.00% Notes were sold at 100 percent of par, resulting in net proceeds of approximately $61.6 million , after deducting the Initial Purchaser’s discounts of $3.4 million . We also incurred offering expenses of $0.6 million . The net proceeds of this offering will be used for general corporate purposes, including working capital for, among other things, investing in development of new products and technologies. The Notes will mature on February 15, 2020 and will bear interest at a fixed rate of 6.00 percent per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2015. During the three months ended September 26, 2015 , we recorded $1.2 million in interest expense, including the amortization of the debt discount and the issuance costs, and made interest payments of $1.9 million related to the 6.00% Notes. The Purchase Agreement contains customary representations and warranties of the parties and indemnification and contribution provisions under which we, on the one hand, and the Initial Purchaser, on the other, have agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). The 6.00% Notes are governed by an Indenture, dated February 19, 2015 (the “Indenture”), entered into between us and U.S. Bank National Association, as trustee (the “Trustee”). The Indenture contains affirmative and negative covenants that, among other things, limits our ability to incur, assume or guarantee additional indebtedness; create liens; sell or otherwise dispose of substantially all of our assets; and enter into mergers and consolidations. The Indenture also contains customary events of default. Upon the occurrence of certain events of default, the Trustee or the holders of the 6.00% Notes may declare all of the outstanding 6.00% Notes to be due and payable immediately. Prior to February 15, 2018, in the event that the last reported sale price of our common stock for 20 or more trading days (whether or not consecutive) in a period of 30 consecutive trading days ending within five trading days immediately prior to the date we receive a notice of conversion exceeds the conversion price in effect on each such trading day, we will, in addition to delivering shares upon conversion by the holder of 6.00% Notes, together with cash in lieu of fractional shares, make an interest make-whole payment in cash equal to the sum of the remaining scheduled payments of interest on the 6.00% Notes to be converted through February 15, 2018. Any holder that converts its 6.00% Notes in connection with a make-whole fundamental change, as defined in the Indenture, will not receive the interest make-whole payment but will instead receive the additional shares set forth in the Indenture. Prior to February 15, 2018, we may not redeem the 6.00% Notes. On or after February 15, 2018, we may redeem for cash all of the 6.00% Notes if the last reported sale price per share of our common stock has been at least 130 percent of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period ending within five trading days prior to the date on which we provide notice of redemption. The redemption price will equal (i) 100 percent of the principal amount of the Notes being redeemed, plus (ii) accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date plus (iii) the sum of the present values of each of the remaining scheduled payments of interest that would have been made on the 6.00% Notes to be redeemed had such 6.00% Notes remained outstanding from the redemption date to the maturity date (excluding interest accrued to, but excluding, the redemption date that is otherwise paid pursuant to the immediately preceding clause (ii)). Upon the occurrence of a fundamental change, subject to certain conditions, each holder of the 6.00% Notes will have the option to require that we purchase all or a portion of such holder’s Notes in cash at a purchase price equal to 100 percent of the principal amount of the 6.00% Notes to be purchased plus any accrued and unpaid interest, including additional interest, if any, to, but excluding, the fundamental change purchase date. Our contingent obligation to make a make-whole payment in the event of an early conversion by the holders of the 6.00% Notes, or at our election to redeem the 6.00% Notes for cash, are both considered embedded derivatives. As of February 19, 2015, the date of the debt issuance, and as of September 26, 2015 , the fair value of the embedded derivatives is estimated at zero . The estimated fair value of the embedded derivatives was determined by using a binomial lattice approach to determine the probability and timing of a conversion or redemption. On February 19, 2015, we also entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Initial Purchaser to provide the holders of the 6.00% Notes with registration rights with respect to shares of common stock that have been issued upon conversion of the 6.00% Notes and are then outstanding, but only if Rule 144 under the Securities Act is unavailable to holders of the 6.00% Notes who are not affiliates of ours on and following the date that is six months after the original issuance date of the 6.00% Notes. On February 19, 2015, we entered into a Consent and First Loan Modification Agreement (the “Amendment”) with Silicon Valley Bank (“SVB”). The Amendment modifies the Loan and Security Agreement, dated as of March 28, 2014, by and among us, Oclaro Technology Limited and SVB to allow the cash payments provided for in the Indenture and the 6.00% Notes and include the 6.00% Notes as permitted indebtedness. The following table sets forth balance sheet information related to the 6.00% Notes at September 26, 2015 and June 27, 2015 : September 26, 2015 June 27, 2015 (Thousands) Principal value of the liability component $ 65,000 $ 65,000 Unamortized value of the debt discount and issuance costs (3,551 ) (3,754 ) Net carrying value of the liability component $ 61,449 $ 61,246 At September 26, 2015 , the $3.0 million debt discount and the $0.6 million issuance costs are recorded as a contra-liability in convertible notes payable within the condensed consolidated balance sheet. Silicon Valley Bank Credit Facility On March 28, 2014, we entered into a loan and security agreement (the “Loan Agreement”) with Silicon Valley Bank (the “Bank”) pursuant to which the Bank provided us with a three -year revolving credit facility of up to $40.0 million . Under the Loan Agreement, advances are available based on up to 80 percent of “eligible accounts” as defined in the Loan Agreement. The Loan Agreement has a $10.0 million sub-facility for letters of credit, foreign exchange contracts and cash management services. Borrowings made under the Loan Agreement bear interest at a rate based on either the London Interbank Offered Rate plus 2.25 percent or Wall Street Journal’s prime rate plus 1.00 percent . If the sum of (a) our unrestricted cash and cash equivalents that are subject to the Bank’s liens less (b) the amount outstanding to the Bank under the Loan Agreement (such sum being “Net Cash”) is less than $15.0 million , then the interest rates are increased by 0.75 percent until Net Cash exceeds $15.0 million for a calendar month. If interest paid under the Loan Agreement is less than $45,000 in any fiscal quarter, we are required to pay the Bank an additional amount equal to the difference between $45,000 and the actual interest paid during such fiscal quarter. The minimum interest payment is in lieu of a stand-by charge. If the Loan Agreement terminates prior to its maturity date, we will pay a termination fee equal to 1.00 percent of the total credit facility if such termination occurs in the first year after closing, 0.75 percent of the total credit facility if such termination occurs in the second year after closing and 0.50 percent of the total credit facility if such termination occurs in the third year after closing. The maturity date of the Loan Agreement is March 28, 2017. At September 26, 2015 and June 27, 2015 , there were no amounts outstanding under the Loan Agreement. On September 17, 2015, we entered into an amendment to the Loan Agreement with the Bank increasing from $5 million to $15 million the amount of equipment liens that may qualify as "Permitted Liens" thereunder. The Loan Agreement is more fully discussed in Note 7, Credit Line and Notes , to our consolidated financial statements included in our 2015 Form 10-K.

POST-RETIREMENT BENEFITS

POST-RETIREMENT BENEFITS	3 Months Ended
	Sep. 26, 2015
Compensation and Retirement Disclosure [Abstract]
POST-RETIREMENT BENEFITS	POST-RETIREMENT BENEFITS Japan Defined Contribution Plan In connection with our acquisition of Opnext, we assumed a defined contribution plan and a defined benefit plan that provides retirement benefits to our employees in Japan. Under the defined contribution plan, contributions are provided based on grade level and totaled $0.1 million and $0.2 million for the three months ended September 26, 2015 and September 27, 2014 , respectively. Employees can elect to receive the benefit as additional salary or contribute the benefit to the plan on a tax-deferred basis. Japan Defined Benefit Plan Under the defined benefit plan in Japan (the “Japan Plan”), we calculate benefits based on an employee’s individual grade level and years of service. Employees are entitled to a lump sum benefit upon retirement or upon certain instances of termination. During the second quarter of fiscal year 2015, we sold our Komoro Business, and as part of the sale transferred a portion of our Japan Plan covering employees of the Komoro Business to Ushio Opto. As of September 26, 2015 , there were no plan assets associated with the Japan Plan. As of September 26, 2015 , there was $0.1 million in accrued expenses and other liabilities and $4.9 million in other non-current liabilities in our condensed consolidated balance sheet to account for the projected benefit obligations under the Japan Plan. Net periodic pension costs for the Japan Plan included the following: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Service cost $ 122 $ 199 Interest cost 10 20 Net amortization — 15 Net periodic pension costs $ 132 $ 234 We made benefit payments under the Japan Plan of $0.1 million and $0.3 million during the three months ended September 26, 2015 and September 27, 2014 , respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 26, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Loss Contingencies We are involved in various lawsuits, claims, and proceedings that arise in the ordinary course of business. We record a loss provision when we believe it is both probable that a liability has been incurred and the amount can be reasonably estimated. Guarantees We indemnify our directors and certain employees as permitted by law, and have entered into indemnification agreements with our directors and executive officers. We have not recorded a liability associated with these indemnification arrangements, as we historically have not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that we maintain, however, such insurance may not cover any, or may cover only a portion of, the amounts we may be required to pay. In addition, we may not be able to maintain such insurance coverage in the future. We also have indemnification clauses in various contracts that we enter into in the normal course of business, such as indemnifications in favor of customers in respect of liabilities they may incur as a result of purchasing our products should such products infringe the intellectual property rights of a third party. We have not historically paid out any material amounts related to these indemnifications; therefore, no accrual has been made for these indemnifications. Warranty Accrual We generally provide a warranty for our products for twelve months to thirty-six months from the date of sale, although warranties for certain of our products may be longer. We accrue for the estimated costs to provide warranty services at the time revenue is recognized. Our estimate of costs to service our warranty obligations is based on historical experience and expectation of future conditions. To the extent we experience increased warranty claim activity or increased costs associated with servicing those claims, our warranty costs would increase, resulting in a decrease in gross profit. The following table summarizes movements in the warranty accrual for the periods indicated: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Warranty provision—beginning of period $ 2,932 $ 4,672 Warranties issued 504 129 Warranties utilized or expired (253 ) (675 ) Currency translation and other adjustments (15 ) (72 ) Warranty provision—end of period $ 3,168 $ 4,054 Capital Leases In connection with our acquisition of Opnext, we assumed certain capital leases with Hitachi Capital Corporation, a related party, for certain equipment. The terms of the leases generally range from one to five years and the equipment can be purchased at the residual value upon expiration. We can terminate the leases at our discretion in return for a penalty payment as stated in the lease contracts. The following table shows the future minimum lease payments due under non-cancelable capital leases with Hitachi Capital Corporation at September 26, 2015 : Capital Leases (Thousands) Fiscal Year Ending: 2016 (remaining) $ 3,011 2017 1,463 2018 43 2019 29 2020 72 Thereafter — Total minimum lease payments 4,618 Less amount representing interest (202 ) Present value of capitalized payments 4,416 Less: current portion (3,667 ) Long-term portion $ 749 Purchase Commitments We purchase components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with suppliers and contract manufacturers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consist of firm, non-cancelable and unconditional commitments. We record a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of September 26, 2015 and June 27, 2015 , the liability for these purchase commitments was $3.0 million and $3.2 million , respectively, and was included in accrued expenses and other liabilities in our condensed consolidated balance sheets. Litigation Overview In the ordinary course of business, we are involved in various legal proceedings, and we anticipate that additional actions will be brought against us in the future. The most significant of these proceedings are described below. These legal proceedings, as well as other matters, involve various aspects of our business and a variety of claims in various jurisdictions. Complex legal proceedings frequently extend for several years, and a number of the matters pending against us are at very early stages of the legal process. As a result, some pending matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to determine whether the proceeding is material to us or to estimate a range of possible loss, if any. Unless otherwise disclosed, we are unable to estimate the possible loss or range of loss for the legal proceedings described below. While it is not possible to accurately predict or determine the eventual outcomes of these items, an adverse determination in one or more of these items currently pending could have a material adverse effect on our results of operations, financial position or cash flows. Raysung Commercial Litigation On October 23, 2013, Xi’an Raysung Photonics Inc., or Raysung, filed a civil suit against our wholly-owned subsidiary, Oclaro Technology (Shenzhen) Co., Ltd. (formerly known as Bookham Technology (Shenzhen) Co., Ltd.), or Oclaro Shenzhen, in the Xi’an Intermediate People’s Court in Shaanxi Province of the People’s Republic of China, or the Xi’an Court. The complaint filed by Raysung alleges that Oclaro Shenzhen terminated its purchase order pursuant to which Raysung had supplied certain products and was to supply certain products to Oclaro Shenzhen. Raysung initially requested that the court award damages of approximately RMB 4.8 million (equivalent to approximately $0.8 million at the exchange rate in effect September 26, 2015 ), and requested that Oclaro Shenzhen take the finished products that are now stored in Raysung’s warehouse (the value of the finished product is approximately RMB 13.5 million (equivalent to approximately $2.2 million at the exchange rate in effect September 26, 2015 )) and requested that Oclaro Shenzhen pay its court fees in connection with this suit. The Xi’an Court delivered an Asset Preservation Order which was served on Oclaro Shenzhen and the local Customs office. According to the Asset Preservation Order, Oclaro Shenzhen was ordered to maintain RMB 15.0 million (equivalent to approximately $2.5 million at the exchange rate in effect September 26, 2015 ) or assets equivalent to the said amount during the litigation process, and the Customs office was ordered to restrict Oclaro Shenzhen's equipment from being exported before the Asset Preservation Order is lifted. On November 11, 2013, Oclaro Shenzhen entered into a settlement agreement. Under the terms of this settlement agreement, Oclaro Shenzhen agreed to pay $0.5 million in payment of invoices for certain materials to Raysung and to work with Raysung to requalify it as a vendor for certain Oclaro Shenzhen manufacturing requirements, in consideration of which Raysung agreed to submit the settlement agreement to the Xi’an Court so it could issue a civil mediation agreement, apply for a discharge of the Asset Preservation Order and waive the right to bring any legal actions against Oclaro Shenzhen relating to these matters. Oclaro Shenzhen performed its obligations under the settlement agreement, however, on January 15, 2014, Raysung applied to the Xi’an Court to terminate the settlement agreement and add Oclaro, Inc. as a co-defendant in the original civil suit. On March 26, 2014, the Xi’an Court froze RMB 15.0 million (equivalent to approximately $2.5 million at the exchange rate in effect September 26, 2015 ) of cash held in Oclaro Shenzhen’s bank account in China. On April 30, 2014, Oclaro Shenzhen submitted a challenge to the jurisdiction of the Xi'an Court. On May 26, 2014, the Xi'an Court overruled the jurisdictional challenge. On June 4, 2014, Oclaro Shenzhen filed an appeal with the Shaanxi High Court to revoke the civil order of the Xi'an Court overruling Oclaro Shenzhen's jurisdictional challenge. The Shaanxi High Court held hearings on July 15, 2014 and July 30, 2014, and on August 20, 2014 sustained the Xi'an Court's civil order on jurisdiction and transferred the case back to the Xi'an Court for substantive proceedings. On September 22, 2014, Raysung amended its complaint in the Xi'an Court proceeding by increasing its claims to RMB 36.2 million (equivalent to approximately $5.9 million at the exchange rate in effect on September 26, 2015 ). On October 22, 2014, the Xi'an Court conducted a hearing on the substantive elements of Raysung's claims. At the same hearing, Oclaro Shenzhen filed counterclaims against Raysung for RMB 7.4 million (equivalent to approximately $1.2 million at the exchange rate in effect on September 26, 2015 ) of losses resulting from supply of products with unqualified materials. On December 17, 2014, the Xi'an Court conducted a hearing on the substantive elements of each party's claims against the other party. On April 2, 2015, the Xi'an Court released RMB 5.0 million of cash (equivalent to approximately $0.8 million at the exchange rate in effect September 26, 2015) previously frozen in Oclaro Shenzhen's bank account in exchange for a new lien on physical assets located at Oclaro Shenzhen's facility with an equivalent appraised value. The Asset Preservation Order is currently in effect until March 2016. On April 10, 2015, the Xi'an Court issued a decision, ruling that Oclaro Shenzhen should pay Raysung RMB 11.4 million (equivalent to approximately $1.9 million at the exchange rate in effect September 26, 2015). The Xi'an Court also dismissed Raysung's other claims and each of Oclaro Shenzhen's counterclaims. On April 24, 2015, Oclaro Shenzhen filed an appeal of the Xi'an Court decision with the Shaanxi High Court, on the basis of both factual and legal error in the underlying decision. On June 30, 2015, the Shaanxi High Court conducted an appeal hearing, at which time Oclaro Shenzhen and Raysung presented arguments supporting their respective positions and rebutting each other's claims. During July 2015, the Shaanxi High Court conducted ex parte meetings with each of Oclaro Shenzhen and Raysung and asked for additional information, but did not subsequently schedule or hold any additional hearings with both parties present. On August 21, 2015, the Shaanxi High Court's judgment was delivered to Oclaro Shenzhen's Chinese counsel and became effective on this date. The Shaanxi High Court found that Oclaro Shenzhen was the breaching party and, therefore, required that Oclaro Shenzhen pay Raysung a total of approximately RMB 15.0 million (equivalent to approximately $2.5 million at the exchange rate in effect September 26, 2015 ), which includes damages and fees. We determined to make the payment required by the judgment of the Shaanxi High Court and to close this matter. Following the delivery of the Shaanxi High Court judgment to Oclaro Shenzhen on August 21, 2015, we recorded a $2.5 million charge in selling, general and administrative expense within our statement of operations for fiscal year 2015 and $2.5 million in accrued expenses and other liabilities in our condensed consolidated balance sheet at June 27, 2015. During the first quarter of fiscal year 2016, we made payments of RMB 10.3 million (equivalent to approximately $1.6 million at the exchange rate in effect September 26, 2015) in partial satisfaction of the judgment and recorded RMB 5.4 million (equivalent to approximately $0.9 million at the exchange rate in effect September 26, 2015) in accrued expenses and other liabilities within our condensed consolidated balance sheet at September 26, 2015 . Payments in satisfaction of substantially all of the remaining judgment balance were made in October 2015. Kunst Worker Compensation Matter On June 18, 2015, Gerald Kunst, or Kunst, filed a civil suit against us and Travelers Property Casualty Company of America, or Travelers, in Massachusetts Superior Court, Civil Action No. SUCV2015-01818F. Travelers is our general liability insurance carrier. The complaint filed by Kunst, an employee of a third party service provider, alleges that he was injured while performing air conditioning repair services on the premises of our Acton, Massachusetts facility and seeks judgment in an amount to be determined by the court or jury, together with interest and costs. On July 24, 2015, we filed an answer to the complaint, which included our affirmative defenses. The parties have begun to conduct initial discovery. As of November 4, 2015, no hearing has been scheduled in this matter. We intend to vigorously defend against this litigation.

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	3 Months Ended
	Sep. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE STOCK PLANS	EMPLOYEE STOCK PLANS Stock Incentive Plans As of September 26, 2015 , there were 4.7 million shares of our common stock available for grant under the Fifth Amended and Restated 2001 Long-Term Stock Incentive Plan (the "Plan"). We generally grant stock options that vest over a two to four year service period, and restricted stock awards and restricted stock unit awards that vest over a one to four year service period, and in certain cases each may vest earlier based upon the achievement of specific performance-based objectives as set by our board of directors or the compensation committee of our board of directors. Performance Stock Units In July 2011, our board of directors approved the grant of 0.2 million performance-based restricted stock units ("PSUs") to certain executive officers with an aggregate estimated grant date fair value of $0.9 million . In October 2013, the board of directors determined that achievement of the performance conditions was reached at the 100 percent target level. Approximately 0.1 million of the grants outstanding, or 50 percent , vested on October 22, 2013, with the remaining 50 percent scheduled to vest upon a two -year service condition through August 2015. As of September 26, 2015 , there were no PSUs outstanding related to this grant. In March 2014, our board of directors approved a grant of 0.2 million PSUs to certain executive officers with an aggregate estimated grant date fair value of $0.5 million . These PSUs vest upon the achievement of non-GAAP operating income break-even for calendar year 2015. Vesting is also contingent upon service conditions being met through February 2018. If the performance condition is not achieved, then the corresponding PSUs will be forfeited in the third quarter of fiscal year 2016. As of September 26, 2015 , there were 0.1 million PSUs outstanding related to this grant, after adjustments for forfeitures due to terminations, with an aggregate estimated grant date fair value of $0.4 million . During the second quarter of fiscal year 2015, we determined that the achievement of the performance conditions associated with these PSUs was improbable and reversed approximately $0.1 million in previously recognized stock-based compensation expense related to these PSUs. As of September 26, 2015 , we continue to believe that the achievement of the performance conditions associated with these PSUs is improbable. In August 2014, our board of directors approved a grant of 0.5 million PSUs to certain executive officers with an aggregate estimated grant date fair value of $0.9 million . These PSUs will vest at 100 percent upon the achievement of two consecutive quarters with positive earnings before interest, taxes, depreciation and amortization ("EBITDA") on or before the end of our fiscal year 2017. If the performance condition is not achieved, then the corresponding PSUs will be forfeited in the first quarter of fiscal year 2018. In August 2015, our board of directors approved a grant of 0.9 million PSUs to certain executive officers with an aggregate estimated grant date fair value of $2.5 million . Subject to the achievement of positive free cash flow (defined as EBITDA less capital expenditures) in any fiscal quarter ending prior to June 30, 2018, vesting of these PSUs is contingent upon service conditions being met through August 10, 2018. The compensation committee of our board of directors certified that this performance condition was achieved during the quarter ended September 26, 2015. As a result, these PSUs will cliff vest with respect to 33.4 percent of the underlying shares on August 10, 2016, and with respect to 8.325 percent of the underlying shares each subsequent quarter over the following two years , subject to continuous service. Restricted Stock Units In July 2015, our board of directors approved a retention grant of 0.9 million restricted stock units ("RSUs") to certain executive officers and 1.5 million RSUs to other employees, which vest over three years. Stock Incentive Plan Activity The following table summarizes the combined activity under all of our equity incentive plans for the three months ended September 26, 2015 : Shares Available For Grant Stock Options / SARs Outstanding Weighted- Average Exercise Price Restricted Stock Awards / Units Outstanding Weighted- Average Grant Date Fair Value (Thousands) (Thousands) (Thousands) Balance at June 27, 2015 8,921 3,381 $ 7.07 4,545 $ 1.80 Granted (4,614 ) — — 3,296 1.96 Exercised or released 156 (3 ) 1.22 (1,016 ) 1.81 Forfeited or expired 204 (112 ) 9.80 (66 ) 2.32 Balance at September 26, 2015 4,667 3,266 6.99 6,759 1.87 Supplemental disclosure information about our stock options and stock appreciation rights ("SARs") outstanding as of September 26, 2015 is as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (Thousands) (Years) (Thousands) Options and SARs exercisable 2,899 $ 7.61 4.1 $ 96 Options and SARs outstanding 3,266 6.99 4.5 228 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on the closing price of our common stock of $2.35 on September 25, 2015, which would have been received by the option holders had all option holders exercised their options as of that date. There were approximately 0.1 million shares of common stock subject to in-the-money options which were exercisable as of September 26, 2015 . We settle employee stock option exercises with newly issued shares of common stock.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION We recognize stock-based compensation expense in our condensed consolidated statement of operations related to all share-based awards, including grants of stock options, based on the grant date fair value of such share-based awards. Estimating the grant date fair value of such share-based awards requires us to make judgments in the determination of inputs into the Black-Scholes stock option pricing model which we use to arrive at an estimate of the grant date fair value for such awards. The assumptions used in this model to value stock option grants were as follows: Three Months Ended September 26, 2015 September 27, 2014 Stock options: Expected life N/A 5.3 years Risk-free interest rate N/A 1.6% Volatility N/A 77.5% Dividend yield N/A — The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Stock-based compensation by category of expense: Cost of revenues $ 456 $ 330 Research and development 424 332 Selling, general and administrative 944 624 $ 1,824 $ 1,286 Stock-based compensation by type of award: Stock options $ 62 $ 142 Restricted stock awards 1,761 1,185 Inventory adjustment to cost of revenues 1 (41 ) $ 1,824 $ 1,286 As of September 26, 2015 and June 27, 2015 , we had capitalized approximately $0.5 million and $0.5 million , respectively, of stock-based compensation as inventory. As of September 26, 2015 , we had $0.4 million in unrecognized stock-based compensation expense related to unvested stock options, net of estimated forfeitures, that will be recognized over a weighted-average period of 2.5 years , and $11.1 million in unrecognized stock-based compensation expense related to unvested restricted stock awards, net of estimated forfeitures, that will be recognized over a weighted-average period of 1.9 years . The amount of stock-based compensation expense recognized in any one period related to PSUs can vary based on the achievement or anticipated achievement of the performance conditions. If the performance conditions are not met or not expected be met, no compensation cost would be recognized on the shares underlying the PSUs, and any previously recognized compensation expense related to those PSUs would be reversed. During the three months ended September 26, 2015 , we recorded $0.2 million in stock-based compensation in connection with the PSUs issued in July 2011, March 2014, August 2014 and August 2015. During the three months ended September 27, 2014 , we recorded minimal stock-based compensation expense in connection with the PSUs issued in July 2011, March 2014 and August 2014.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 26, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The income tax provision of $0.9 million and $1.0 million for the three months ended September 26, 2015 and September 27, 2014 , respectively, relates primarily to our foreign operations. The total amount of our unrecognized tax benefits as of September 26, 2015 and June 27, 2015 were approximately $4.5 million and $4.1 million , respectively. As of September 26, 2015 , we had $2.8 million of unrecognized tax benefits that, if recognized, would affect our effective tax rate. While it is often difficult to predict the final outcome of any particular uncertain tax position, we believe that unrecognized tax benefits could decrease by approximately $1.0 million in the next twelve months.

NET LOSS PER SHARE

NET LOSS PER SHARE	3 Months Ended
	Sep. 26, 2015
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE Basic net income (loss) per share is computed using only the weighted-average number of shares of common stock outstanding for the applicable period, while diluted net income (loss) per share is computed assuming conversion of all potentially dilutive securities, such as stock options, unvested restricted stock awards, warrants and convertible notes during such period. For the three months ended September 26, 2015 and September 27, 2014 , we excluded 42.1 million and 8.4 million , respectively, of outstanding stock options, stock appreciation rights, unvested restricted stock awards and shares issuable in connection with convertible notes from the calculation of diluted net loss per share because their effect would have been anti-dilutive.

GEOGRAPHIC INFORMATION, PRODUCT

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION	3 Months Ended
	Sep. 26, 2015
Segment Reporting [Abstract]
GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION	GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION Geographic Information The following table shows revenues by geographic area based on the delivery locations of our products: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) China $ 33,056 $ 20,722 United States 13,051 14,537 Mexico 12,338 11,991 Malaysia 7,853 15,700 Italy 7,071 4,135 Germany 4,942 8,154 Japan 1,622 3,744 Rest of world 7,617 10,258 $ 87,550 $ 89,241 Product Groups The following table sets forth revenues by product group: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) 100 Gb/s transmission modules $ 40,828 $ 21,330 40 Gb/s transmission modules 10,828 22,166 10 Gb/s and lower transmission modules 35,894 38,226 Industrial and consumer — 7,519 $ 87,550 $ 89,241 During the second quarter of fiscal year 2015, we sold our Komoro Business, which included the industrial and consumer product group of Oclaro Japan. Significant Customers and Concentration of Credit Risk For the three months ended September 26, 2015 , two customers accounted for 10 percent or more of our revenues, each representing approximately 16 percent of our revenues. For the three months ended September 27, 2014 , three customers accounted for 10 percent or more of our revenues, representing approximately 26 percent , 13 percent and 11 percent of our revenues, respectively. As of September 26, 2015 , three customers accounted for 10 percent or more of our accounts receivable, representing approximately 19 percent , 12 percent and 11 percent of our accounts receivable, respectively. As of June 27, 2015 , four customers accounted for 10 percent of our accounts receivable, representing approximately 24 percent , 13 percent , 11 percent and 11 percent of our accounts receivable, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Sep. 26, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As of September 26, 2015 , Hitachi, Ltd. ("Hitachi") held approximately 11 percent of our outstanding common stock based on Hitachi’s Schedule 13G filed with the Securities and Exchange Commission on February 12, 2014. Hitachi acquired these shares as a result of our acquisition of Opnext on July 23, 2012. We continue to enter into transactions with Hitachi in the normal course of business. Sales to Hitachi were $0.9 million and $1.2 million for the three months ended September 26, 2015 and September 27, 2014 , respectively. Purchases from Hitachi were $4.9 million and $3.4 million for the three months ended September 26, 2015 and September 27, 2014 , respectively. At September 26, 2015 , we had $1.0 million accounts receivable due from Hitachi and $4.7 million accounts payable due to Hitachi. At June 27, 2015 we had $0.7 million accounts receivable due from Hitachi and $4.8 million accounts payable due to Hitachi. We also have certain capital equipment leases with Hitachi Capital Corporation as described in Note 8, Commitments and Contingencies . We are party to a research and development agreement and intellectual property license agreements with Hitachi.

BASIS OF PREPARATION (Policies)

BASIS OF PREPARATION (Policies)	3 Months Ended
	Sep. 26, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Oclaro, Inc., a Delaware corporation, is sometimes referred to in this Quarterly Report on Form 10-Q as “Oclaro,” “we,” “us” or “our.” The accompanying unaudited condensed consolidated financial statements of Oclaro as of September 26, 2015 and for the three months ended September 26, 2015 and September 27, 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Oclaro and all of our subsidiaries. Accordingly, they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our consolidated financial position and results of operations have been included. The condensed consolidated results of operations for the three months ended September 26, 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending July 2, 2016 . The condensed consolidated balance sheet as of June 27, 2015 has been derived from our audited financial statements as of such date, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K for the year ended June 27, 2015 (" 2015 Form 10-K").
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. Examples of significant estimates and assumptions made by management involve the fair value of other intangible assets and long-lived assets, valuation allowances for deferred tax assets, the fair value of stock-based compensation, the fair value of embedded derivatives related to convertible debt, the fair value of pension liabilities, estimates used to determine facility lease loss liabilities, estimates for allowances for doubtful accounts and valuation of excess and obsolete inventories. These judgments can be subjective and complex and consequently actual results could differ materially from those estimates and assumptions. Descriptions of the key estimates and assumptions are included in our 2015 Form 10-K.
Fiscal Years	Fiscal Years We operate on a 52/53 week year ending on the Saturday closest to June 30. Our fiscal year ending July 2, 2016 will be a 53 week year, with the quarter ended September 26, 2015 being a 13 week quarterly period. Our fiscal year ended June 27, 2015 was a 52 week year, with the quarter ended September 27, 2014 being a 13 week quarterly period.
Reclassifications	Reclassifications For presentation purposes, we have reclassified certain prior period amounts to conform to the current period financial statement presentation. These reclassifications did not affect our consolidated revenues, net loss, cash flows, cash and cash equivalents or stockholders’ equity as previously reported.
Recent Accounting Standards	RECENT ACCOUNTING STANDARDS In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments. This amendment requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for us prospectively in the first quarter of fiscal year 2017. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . Under ASU 2015-03, debt issuance costs are required to be presented as a direct deduction of debt balances on the balance sheet. This new standard does not affect the recognition and measurement of debt issuance costs. We elected to early adopt ASU No. 2015-03 in the fourth quarter of fiscal year 2015, as permitted. The impact of the early adoption on our condensed consolidated balance sheets at September 26, 2015 and June 27, 2015 is to decrease prepaid expenses and other current assets by $0.6 million and decrease convertible notes payable by $0.6 million . This guidance is effective on a retrospective basis, as a change in accounting principle. In August 2015, the FASB issued ASU No. 2015-15, Interest – Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . ASU 2015-15 provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The adoption of this guidance does not have a material impact on our financial statements and footnote disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, deferring the effective date of ASU 2014-09 by one year, to annual periods, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted for periods beginning after December 15, 2016. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In July 2015, the FASB issued ASU No. 2015-11, Inventory: Simplifying the Measurement of Inventory. Under ASU 2015-11, we are required to measure inventory at the lower of cost and net realizable value. The new guidance clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for us prospectively in the first quarter of fiscal year 2017, with early application permitted.We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements . ASU 2015-10 covers a wide range of Topics in the Codification. The amendments in this ASU represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. This guidance is effective for us prospectively in the first quarter of fiscal year 2017, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In April 2015, the FASB issued ASU No. 2015-04, Compensation – Retirement Benefits: Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets . ASU 2015-04 provides a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. This guidance is effective for us prospectively in the first quarter of fiscal year 2017, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items . This ASU eliminates from U.S. GAAP the concept of extraordinary items. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. This guidance is effective for us prospectively in the first quarter of fiscal year 2017. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern. The update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. This guidance is effective for us beginning with our annual financial statements for the fiscal year ended July 1, 2017, and interim periods thereafter. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures.

BALANCE SHEET DETAILS (Tables)

BALANCE SHEET DETAILS (Tables)	3 Months Ended
	Sep. 26, 2015
Balance Sheet Details [Abstract]
Schedule of Cash and Cash Equivalents	The following table provides details regarding our cash and cash equivalents at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Cash and cash equivalents: Cash-in-bank $ 103,467 $ 110,196 Money market funds 1,675 1,644 $ 105,142 $ 111,840
Schedule of Inventories	The following table provides details regarding our inventories at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Inventories: Raw materials $ 20,786 $ 19,610 Work-in-process 23,377 19,812 Finished goods 23,074 26,920 $ 67,237 $ 66,342
Schedule of Property and Equipment, Net	The following table provides details regarding our property and equipment, net at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Property and equipment, net: Buildings and improvements $ 11,687 $ 11,837 Plant and machinery 35,161 33,603 Fixtures, fittings and equipment 5,328 4,785 Computer equipment 12,179 12,401 64,355 62,626 Less: Accumulated depreciation (22,844 ) (20,860 ) $ 41,511 $ 41,766
Summary of Other Intangible Assets	The following table summarizes the activity related to our other intangible assets for the three months ended September 26, 2015 : Core and Development Customer Patent Other Amortization Total (Thousands) Balance at June 27, 2015 $ 6,249 $ 4,595 $ 2,402 $ 915 $ 3,338 $ (14,920 ) $ 2,579 Amortization — — — — — (251 ) (251 ) Translations and adjustments (2 ) (19 ) (1 ) — — — (22 ) Balance at September 26, 2015 $ 6,247 $ 4,576 $ 2,401 $ 915 $ 3,338 $ (15,171 ) $ 2,306
Schedule of Accrued Expenses and Other Liabilities	The following table presents details regarding our accrued expenses and other liabilities at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Accrued expenses and other liabilities: Trade payables $ 6,736 $ 5,250 Compensation and benefits related accruals 13,138 11,298 Warranty accrual 3,168 2,932 Accrued restructuring, current 392 712 Purchase commitments in excess of future demand, current 3,015 3,162 Other accruals 9,176 12,294 $ 35,625 $ 35,648
Activity Related to Our Restructuring Liability	The following table summarizes the activity related to our accrued restructuring charges for the three months ended September 26, 2015 : Lease Cancellations, Commitments and Other Charges Termination Payments to Employees and Related Costs Total Accrued Restructuring Charges (Thousands) Balance at June 27, 2015 $ 228 $ 484 $ 712 Charged to restructuring costs — 259 259 Paid or other adjustments (95 ) (484 ) (579 ) Balance at September 26, 2015 $ 133 $ 259 $ 392 Current portion 133 259 392 Non-current portion — — —
Components of Accumulated Other Comprehensive Income	The following table presents the components of accumulated other comprehensive income at the dates indicated: September 26, 2015 June 27, 2015 (Thousands) Accumulated other comprehensive income: Currency translation adjustments $ 39,468 $ 41,351 Japan defined benefit plan 165 175 $ 39,633 $ 41,526

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Sep. 26, 2015
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments at September 26, 2015 and June 27, 2015 : Fair Value Measurement at September 26, 2015 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds 1,675 — — 1,675 Restricted cash: Money market funds 1,215 — — 1,215 Total assets measured at fair value $ 2,890 $ — $ — $ 2,890 (1) Excludes $103.5 million in cash held in our bank accounts at September 26, 2015 . Fair Value Measurement at June 27, 2015 Using Quoted Prices Significant Significant Total Assets: (Thousands) Cash and cash equivalents: (1) Money market funds 1,644 — — 1,644 Restricted cash: Money market funds 1,215 — — 1,215 Total assets measured at fair value $ 2,859 $ — $ — $ 2,859 (1) Excludes $110.2 million in cash held in our bank accounts at June 27, 2015 .

BUSINESS COMBINATIONS AND DIS25

BUSINESS COMBINATIONS AND DISPOSITIONS (Tables)	3 Months Ended
	Sep. 26, 2015
Amplifier Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Statements of Operations for Discontinued Operations	The following table presents the statements of operations for the discontinued operations of the Amplifier Business: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Revenues $ — $ — Cost of revenues — — Gross profit — — Operating expenses — 215 Other income (expense), net — — Loss from discontinued operations before income taxes — (215 ) Income tax provision — — Loss from discontinued operations $ — $ (215 )
Zurich Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Statements of Operations for Discontinued Operations	The following table presents the statements of operations for the discontinued operations of the Zurich Business: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Revenues $ — $ — Cost of revenues — 163 Gross loss — (163 ) Operating expenses — — Other income (expense), net — — Loss from discontinued operations before income taxes — (163 ) Income tax provision — — Loss from discontinued operations $ — $ (163 )

CREDIT LINE AND NOTES (Tables)

CREDIT LINE AND NOTES (Tables)	3 Months Ended
	Sep. 26, 2015
Debt Disclosure [Abstract]
Component of 6.00% Notes	The following table sets forth balance sheet information related to the 6.00% Notes at September 26, 2015 and June 27, 2015 : September 26, 2015 June 27, 2015 (Thousands) Principal value of the liability component $ 65,000 $ 65,000 Unamortized value of the debt discount and issuance costs (3,551 ) (3,754 ) Net carrying value of the liability component $ 61,449 $ 61,246

POST-RETIREMENT BENEFITS (Table

POST-RETIREMENT BENEFITS (Tables)	3 Months Ended
	Sep. 26, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of Net Periodic Pension Costs	Net periodic pension costs for the Japan Plan included the following: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Service cost $ 122 $ 199 Interest cost 10 20 Net amortization — 15 Net periodic pension costs $ 132 $ 234

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 26, 2015
Commitments and Contingencies Disclosure [Abstract]
Movements in Warranty Accrual for Period	The following table summarizes movements in the warranty accrual for the periods indicated: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Warranty provision—beginning of period $ 2,932 $ 4,672 Warranties issued 504 129 Warranties utilized or expired (253 ) (675 ) Currency translation and other adjustments (15 ) (72 ) Warranty provision—end of period $ 3,168 $ 4,054
Summary of Future Minimum Lease Payments Due under Non-cancelable Capital Leases	The following table shows the future minimum lease payments due under non-cancelable capital leases with Hitachi Capital Corporation at September 26, 2015 : Capital Leases (Thousands) Fiscal Year Ending: 2016 (remaining) $ 3,011 2017 1,463 2018 43 2019 29 2020 72 Thereafter — Total minimum lease payments 4,618 Less amount representing interest (202 ) Present value of capitalized payments 4,416 Less: current portion (3,667 ) Long-term portion $ 749

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	3 Months Ended
	Sep. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Combined Activity Under All of Our Equity Incentive Plans	The following table summarizes the combined activity under all of our equity incentive plans for the three months ended September 26, 2015 : Shares Available For Grant Stock Options / SARs Outstanding Weighted- Average Exercise Price Restricted Stock Awards / Units Outstanding Weighted- Average Grant Date Fair Value (Thousands) (Thousands) (Thousands) Balance at June 27, 2015 8,921 3,381 $ 7.07 4,545 $ 1.80 Granted (4,614 ) — — 3,296 1.96 Exercised or released 156 (3 ) 1.22 (1,016 ) 1.81 Forfeited or expired 204 (112 ) 9.80 (66 ) 2.32 Balance at September 26, 2015 4,667 3,266 6.99 6,759 1.87
Supplemental Disclosure Information About Stock Options and SAR's Outstanding	Supplemental disclosure information about our stock options and stock appreciation rights ("SARs") outstanding as of September 26, 2015 is as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (Thousands) (Years) (Thousands) Options and SARs exercisable 2,899 $ 7.61 4.1 $ 96 Options and SARs outstanding 3,266 6.99 4.5 228

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Assumptions Used to Value Stock Option Grants	The assumptions used in this model to value stock option grants were as follows: Three Months Ended September 26, 2015 September 27, 2014 Stock options: Expected life N/A 5.3 years Risk-free interest rate N/A 1.6% Volatility N/A 77.5% Dividend yield N/A —
Amounts Included in Cost of Revenues and Operating Expenses for Stock-Based Compensation	The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) Stock-based compensation by category of expense: Cost of revenues $ 456 $ 330 Research and development 424 332 Selling, general and administrative 944 624 $ 1,824 $ 1,286 Stock-based compensation by type of award: Stock options $ 62 $ 142 Restricted stock awards 1,761 1,185 Inventory adjustment to cost of revenues 1 (41 ) $ 1,824 $ 1,286

GEOGRAPHIC INFORMATION, PRODU31

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION (Tables)	3 Months Ended
	Sep. 26, 2015
Segment Reporting [Abstract]
Revenues by Geographic Area	The following table shows revenues by geographic area based on the delivery locations of our products: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) China $ 33,056 $ 20,722 United States 13,051 14,537 Mexico 12,338 11,991 Malaysia 7,853 15,700 Italy 7,071 4,135 Germany 4,942 8,154 Japan 1,622 3,744 Rest of world 7,617 10,258 $ 87,550 $ 89,241
Revenues by Product Group	The following table sets forth revenues by product group: Three Months Ended September 26, 2015 September 27, 2014 (Thousands) 100 Gb/s transmission modules $ 40,828 $ 21,330 40 Gb/s transmission modules 10,828 22,166 10 Gb/s and lower transmission modules 35,894 38,226 Industrial and consumer — 7,519 $ 87,550 $ 89,241

BASIS OF PREPARATION (Details)

BASIS OF PREPARATION (Details) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Jul. 02, 2016	Sep. 26, 2015	Sep. 27, 2014	Jun. 27, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Fiscal period		91 days	91 days	364 days
Scenario, Forecast
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Fiscal period	371 days
Cost of revenues
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prior period reclassification adjustment			$ 2

RECENT ACCOUNTING STANDARDS (De

RECENT ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Prepaid expenses and other current assets	$ (20,390)	$ (22,746)
Convertible notes payable	(61,449)	(61,246)
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Prepaid expenses and other current assets	600	600
Convertible notes payable	$ 600	$ 600

BALANCE SHEET DETAILS - Schedul

BALANCE SHEET DETAILS - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015	Sep. 27, 2014	Jun. 28, 2014
Cash and cash equivalents:
Cash-in-bank	$ 103,467	$ 110,196
Money market funds	1,675	1,644
Total Cash and cash equivalents	$ 105,142	$ 111,840	$ 89,309	$ 98,973

BALANCE SHEET DETAILS - Sched35

BALANCE SHEET DETAILS - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
Inventories:
Raw materials	$ 20,786	$ 19,610
Work-in-process	23,377	19,812
Finished goods	23,074	26,920
Total Inventories	$ 67,237	$ 66,342

BALANCE SHEET DETAILS - Sched36

BALANCE SHEET DETAILS - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
Property and equipment, net:
Buildings and improvements	$ 11,687	$ 11,837
Plant and machinery	35,161	33,603
Fixtures, fittings and equipment	5,328	4,785
Computer equipment	12,179	12,401
Property and equipment, gross	64,355	62,626
Less: Accumulated depreciation	(22,844)	(20,860)
Total Property and equipment, net	$ 41,511	$ 41,766

BALANCE SHEET DETAILS - Summary

BALANCE SHEET DETAILS - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Other Intangible Assets, Gross:
Translations and adjustments	$ (22)
Other Intangible Assets, Accumulated Amortization:
Beginning balance, Accumulated amortization	(14,920)
Amortization	(251)	$ (418)
Ending balance, Accumulated amortization	(15,171)
Other Intangible Assets, Net:
Beginning balance	2,579
Amortization	(251)	$ (418)
Translations and adjustments	(22)
Beginning balance	2,306
Core and Current Technology
Other Intangible Assets, Gross:
Beginning balance	6,249
Translations and adjustments	(2)
Ending balance	6,247
Other Intangible Assets, Net:
Translations and adjustments	(2)
Development and Supply Agreements
Other Intangible Assets, Gross:
Beginning balance	4,595
Translations and adjustments	(19)
Ending balance	4,576
Other Intangible Assets, Net:
Translations and adjustments	(19)
Customer Relationships
Other Intangible Assets, Gross:
Beginning balance	2,402
Translations and adjustments	(1)
Ending balance	2,401
Other Intangible Assets, Net:
Translations and adjustments	(1)
Patent Portfolio
Other Intangible Assets, Gross:
Beginning balance	915
Translations and adjustments	0
Ending balance	915
Other Intangible Assets, Net:
Translations and adjustments	0
Other Intangibles
Other Intangible Assets, Gross:
Beginning balance	3,338
Translations and adjustments	0
Ending balance	3,338
Other Intangible Assets, Net:
Translations and adjustments	$ 0

BALANCE SHEET DETAILS - Sched38

BALANCE SHEET DETAILS - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
Accrued expenses and other liabilities:
Trade payables	$ 6,736	$ 5,250
Compensation and benefits related accruals	13,138	11,298
Warranty accrual	3,168	2,932
Accrued restructuring, current	392	712
Purchase commitments in excess of future demand, current	3,015	3,162
Other accruals	9,176	12,294
Total Accrued expenses and other liabilities	$ 35,625	$ 35,648

BALANCE SHEET DETAILS - Summa39

BALANCE SHEET DETAILS - Summary of Accrued Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Jun. 27, 2015
Restructuring Reserve [Roll Forward]
Beginning balance	$ 712
Charged to restructuring costs	259
Paid or other adjustments	(579)
Ending balance	392
Current portion	392	$ 712
Non-current portion	0
Lease Cancellations, Commitments and Other Charges
Restructuring Reserve [Roll Forward]
Beginning balance	228
Charged to restructuring costs	0
Paid or other adjustments	(95)
Ending balance	133
Current portion	133
Non-current portion	0
Termination Payments to Employees and Related Costs
Restructuring Reserve [Roll Forward]
Beginning balance	484
Charged to restructuring costs	259
Paid or other adjustments	(484)
Ending balance	259
Current portion	259
Non-current portion	$ 0

BALANCE SHEET DETAILS - Compone

BALANCE SHEET DETAILS - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
Accumulated other comprehensive income:
Currency translation adjustments	$ 39,468	$ 41,351
Japan defined benefit plan	165	175
Accumulated other comprehensive income	$ 39,633	$ 41,526

BALANCE SHEET DETAILS - Additio

BALANCE SHEET DETAILS - Additional Information (Details) ¥ in Millions	3 Months Ended
	Sep. 26, 2015USD ($)	Sep. 27, 2014USD ($)	Sep. 26, 2015CNY (¥)	Jun. 27, 2015USD ($)	Mar. 26, 2014USD ($)	Mar. 26, 2014CNY (¥)
Balance Sheet Components [Line Items]
Restricted cash and cash equivalents	$ 2,800,000
Assets under capital lease	4,400,000			$ 4,700,000
Expected amortization of intangible assets in fiscal year 2016	1,000,000
Expected amortization of intangible assets in fiscal year 2017	800,000
Expected amortization of intangible assets in fiscal year 2018	600,000
Expected amortization of intangible assets in fiscal year 2019	100,000
Restructuring charges	259,000
Payment for restructuring liabilities	579,000
Accrued restructuring liabilities	392,000			712,000
Shenzhen
Balance Sheet Components [Line Items]
Payment for restructuring liabilities		$ 1,300,000
Accrued restructuring liabilities	0			$ 0
Workforce Reduction
Balance Sheet Components [Line Items]
Restructuring charges		200,000
Lease Cancellations and Commitments
Balance Sheet Components [Line Items]
Restructuring charges		600,000
Employee Separation Charges | Shenzhen
Balance Sheet Components [Line Items]
Restructuring charges		900,000
Restructuring
Balance Sheet Components [Line Items]
Restructuring charges	300,000	800,000
Payment for restructuring liabilities	400,000	$ 1,400,000
Accrued restructuring liabilities	400,000
China | Xi'an Raysung Photonics Inc.
Balance Sheet Components [Line Items]
Cash held in foreign bank	900,000		¥ 5.4		$ 2,500,000	¥ 15
Other non-current assets
Balance Sheet Components [Line Items]
Restricted cash and cash equivalents noncurrent	$ 200,000

FAIR VALUE - Additional Informa

FAIR VALUE - Additional Information (Details) - Convertible Notes - 6.00% Convertible Senior Notes due 2020 - USD ($)	Sep. 26, 2015	Feb. 19, 2015
Debt Instrument [Line Items]
Fixed interest rate	6.00%	6.00%
Contingent obligation for the make-whole premiums	$ 0	$ 0

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 26, 2015	Jun. 27, 2015
Cash and cash equivalents:
Cash and cash equivalents, Money market funds	$ 1,675	$ 1,644
Restricted cash:
Restricted cash, Money market funds	1,215	1,215
Total assets measured at fair value	2,890	2,859
Cash held in bank accounts	103,467	110,196
Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash and cash equivalents:
Cash and cash equivalents, Money market funds	1,675	1,644
Restricted cash:
Restricted cash, Money market funds	1,215	1,215
Total assets measured at fair value	$ 2,890	$ 2,859

BUSINESS COMBINATIONS AND DIS44

BUSINESS COMBINATIONS AND DISPOSITIONS - Additional Information (Details) $ in Thousands, ¥ in Millions	Oct. 27, 2014USD ($)	Oct. 27, 2014JPY (¥)	Nov. 01, 2013USD ($)	Sep. 12, 2013USD ($)	Jan. 31, 2015USD ($)	Sep. 26, 2015USD ($)	Dec. 27, 2014USD ($)	Sep. 27, 2014USD ($)
Komoro Business
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Net assets transferred	$ 6,300
Proceed from sale of business	17,100	¥ 1,850
Proceeds from sale of business paid upon closing	14,800	1,600
Proceeds from sale of business paid into escrow	$ 2,100	¥ 250
Post-closing net asset valuation adjustment							$ 1,400
Income from continuing operations before income taxes								$ 1,600
Komoro Business | Restructuring, Acquisition and Related (Income) Expense, Net
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Gain from transfer of net assets							$ 8,300
Amplifier Business
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Proceed from sale of business			$ 79,600
Income from continuing operations before income taxes						$ 0		(215)
Cost to sell amplifier business including option price			88,600
Post closing adjustment receivable			$ 4,000
Cash received from exercise of options				$ 5,000
Proceeds from holdback on sale of business					$ 900
Release of holdback amount					3,100
Zurich Business
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Proceed from sale of business				90,600
Income from continuing operations before income taxes						$ 0		$ (163)
Post closing adjustment receivable				6,000
Proceeds from holdback on sale of business					1,400
Release of holdback amount					$ 4,600
Post closing working capital adjustment				$ 2,900

BUSINESS COMBINATIONS AND DIS45

BUSINESS COMBINATIONS AND DISPOSITIONS - Statements of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Amplifier Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 0	$ 0
Cost of revenues	0	0
Gross profit	0	0
Operating expenses	0	215
Other income (expense), net	0	0
Loss from discontinued operations before income taxes	0	(215)
Income tax provision	0	0
Loss from discontinued operations	0	(215)
Zurich Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	0	0
Cost of revenues	0	163
Gross profit	0	(163)
Operating expenses	0	0
Other income (expense), net	0	0
Loss from discontinued operations before income taxes	0	(163)
Income tax provision	0	0
Loss from discontinued operations	$ 0	$ (163)

CREDIT LINE AND NOTES - 6.00% C

CREDIT LINE AND NOTES - 6.00% Convertible Senior Notes (Details)	Feb. 19, 2015USD ($)d	Sep. 26, 2015USD ($)	Jun. 27, 2015USD ($)
Debt Instrument [Line Items]
Net carrying value of the liability component		$ 61,449,000	$ 61,246,000
Convertible Notes | 6.00% Convertible Senior Notes due 2020
Debt Instrument [Line Items]
Fixed interest rate	6.00%	6.00%
Percentage of stock price the Notes were sold	100.00%
Proceeds from the sale of convertible notes, net	$ 61,600,000
Offering expenses	$ 600,000
Interest expense		$ 1,200,000
Interest payments		1,900,000
Number of threshold trading days | d	20
Consecutive trading days	30 days
Threshold trading days	5 days
Threshold percentage of stock price trigger	130.00%
Redemption price, percentage	100.00%
Contingent obligation for the make-whole premiums	$ 0	0
Principal value of the liability component	65,000,000	65,000,000	65,000,000
Unamortized value of the debt discount and issuance costs	$ (3,400,000)	(3,551,000)	(3,754,000)
Net carrying value of the liability component		61,449,000	$ 61,246,000
Convertible Notes | 6.00% Convertible Senior Notes due 2020 | Convertible Notes Payable, Contra-liability
Debt Instrument [Line Items]
Unamortized value of the debt discount and issuance costs		(3,000,000)
Debt issuance costs		$ 600,000

CREDIT LINE AND NOTES - Silicon

CREDIT LINE AND NOTES - Silicon Valley Bank Credit Facility (Details) - Oclaro Technology Limited - Silicon Valley Bank - USD ($)	Mar. 28, 2014	Sep. 26, 2015	Sep. 17, 2015	Sep. 16, 2015	Jun. 27, 2015
Ceded Credit Risk [Line Items]
Minimum net cash required under Loan Agreement	$ 15,000,000
Increase in interest rate under Loan Agreement	0.75%
Minimum
Ceded Credit Risk [Line Items]
Interest paid under Loan Agreement	$ 45,000
LIBOR
Ceded Credit Risk [Line Items]
Basis spread on variable rate	2.25%
Prime Rate
Ceded Credit Risk [Line Items]
Basis spread on variable rate	1.00%
Loan Agreement
Ceded Credit Risk [Line Items]
Percentage of eligible accounts for advances	80.00%
Loan Agreement | First Year after Closing
Ceded Credit Risk [Line Items]
Termination fee, percent	1.00%
Loan Agreement | Second Year after Closing
Ceded Credit Risk [Line Items]
Termination fee, percent	0.75%
Loan Agreement | Third Year after Closing
Ceded Credit Risk [Line Items]
Termination fee, percent	0.50%
Loan Agreement | Revolving Credit Facility
Ceded Credit Risk [Line Items]
Debt term	3 years
Line of credit, maximum borrowing capacity	$ 40,000,000
Amounts outstanding under credit agreement		$ 0			$ 0
Equipment liens that may qualify as Permitted Liens			$ 15,000,000	$ 5,000,000
Loan Agreement | Letters of Credit, Foreign Exchange Contracts and Cash Management Services
Ceded Credit Risk [Line Items]
Line of credit, maximum borrowing capacity	$ 10,000,000

POST-RETIREMENT BENEFITS - Addi

POST-RETIREMENT BENEFITS - Additional Information (Details) - USD ($)	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Total contribution provided	$ 100,000	$ 200,000
Japan Plan
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0
Accrued expenses and other liabilities	100,000
Other non current liabilities	4,900,000
Defined benefit plan, benefits paid	$ 100,000	$ 300,000

POST-RETIREMENT BENEFITS - Net

POST-RETIREMENT BENEFITS - Net Periodic Pension Costs (Details) - Japan Plan - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 122	$ 199
Interest cost	10	20
Net amortization	0	15
Net periodic pension costs	$ 132	$ 234

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) ¥ in Millions, $ in Millions

Aug. 21, 2015USD ($)

Aug. 21, 2015CNY (¥)

Apr. 10, 2015USD ($)

Apr. 10, 2015CNY (¥)

Apr. 02, 2015USD ($)

Apr. 02, 2015CNY (¥)

Oct. 22, 2014USD ($)

Oct. 22, 2014CNY (¥)

Sep. 22, 2014USD ($)

Sep. 22, 2014CNY (¥)

Nov. 11, 2013USD ($)

Oct. 23, 2013USD ($)

Oct. 23, 2013CNY (¥)

Sep. 26, 2015USD ($)

Sep. 26, 2015CNY (¥)

Jun. 27, 2015USD ($)

Jun. 27, 2015USD ($)

Sep. 26, 2015CNY (¥)

Mar. 26, 2014USD ($)

Mar. 26, 2014CNY (¥)

Contingencies And Commitments [Line Items]

Damages complaint sought

$ 1.2

¥ 7.4

$ 5.9

¥ 36.2

$ 0.8

¥ 4.8

Litigation settlement

$ 0.5

Xi'an Raysung Photonics Inc.

Contingencies And Commitments [Line Items]

Litigation settlement

$ 2.5

¥ 15

$ 1.9

¥ 11.4

Cash released in exchange of new lien on physical assets

$ 0.8

¥ 5

Xi'an Raysung Photonics Inc. | Selling, General and Administrative Expense

Contingencies And Commitments [Line Items]

Litigation settlement

$ 2.5

$ 2.5

China | Xi'an Raysung Photonics Inc.

Contingencies And Commitments [Line Items]

Cash held in foreign bank

$ 0.9

¥ 5.4

$ 2.5

¥ 15

Payments for litigation settlement

1.6

¥ 10.3

Damages from Product Defects

Contingencies And Commitments [Line Items]

Damages complaint sought

$ 2.2

¥ 13.5

Accrued Expenses and Other Liabilities | Xi'an Raysung Photonics Inc.

Contingencies And Commitments [Line Items]

Accrued expenses and other liabilities

2.5

2.5

Accrued Expenses and Other Liabilities | China | Xi'an Raysung Photonics Inc.

Contingencies And Commitments [Line Items]

Litigation settlement accrual

0.9

¥ 5.4

Inventory in Excess of Future Demand Forecasts | Accrued Expenses and Other Liabilities

Contingencies And Commitments [Line Items]

Purchase commitments

$ 3

$ 3.2

$ 3.2

Minimum

Contingencies And Commitments [Line Items]

Warranty for products from date of sale

12 months

12 months

Capital lease term

1 year

1 year

Maximum

Contingencies And Commitments [Line Items]

Warranty for products from date of sale

36 months

36 months

Capital lease term

5 years

5 years

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES - Movements in Warranty Accrual for Period (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Warranty Provision Roll Forward:
Warranty provision—beginning of period	$ 2,932	$ 4,672
Warranties issued	504	129
Warranties utilized or expired	(253)	(675)
Currency translation and other adjustments	(15)	(72)
Warranty provision—end of period	$ 3,168	$ 4,054

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES - Summary of Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Details) $ in Thousands	Sep. 26, 2015USD ($)
Fiscal Year Ending:
2016 (remaining)	$ 3,011
2,017	1,463
2,018	43
2,019	29
2,020	72
Thereafter	0
Total minimum lease payments	4,618
Less amount representing interest	(202)
Present value of capitalized payments	4,416
Less: current portion	(3,667)
Long-term portion	$ 749

EMPLOYEE STOCK PLANS - Addition

EMPLOYEE STOCK PLANS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 22, 2013	Aug. 31, 2015	Jul. 31, 2015	Aug. 31, 2014	Mar. 31, 2014	Jul. 31, 2011	Sep. 26, 2015	Dec. 27, 2014	Sep. 25, 2015	Jun. 27, 2015	Oct. 31, 2013
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of shares issued under the ESPP							4,667,000			8,921,000
Performance stock units, grants outstanding (in shares)							0
Closing price of common stock (in usd per share)									$ 2.35
Number of shares of common stock subject to in-the-money options (in shares)							100,000
Restricted Stock Awards / Units Outstanding
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Units outstanding after adjustments (in shares)							6,759,000			4,545,000
PSUs
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period	2 years
Number of granted shares						200,000
Aggregate estimated grant date fair value of PSU						$ 0.9
Achievement of performance condition associated with PSUs (as a percent)											100.00%
Performance stock units, grants outstanding (in shares)	100,000
Performance stock units vesting percentage upon meeting service conditions	50.00%
Performance stock units, vesting percentage	50.00%
Outstanding PSUs (in shares)							0
PSUs | Certain Executive Officers
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period		2 years
Number of granted shares		900,000		500,000	200,000
Aggregate estimated grant date fair value of PSU		$ 2.5		$ 0.9	$ 0.5
Units outstanding after adjustments (in shares)							100,000
Aggregate estimated grant date fair value of PSUs outstanding							$ 0.4
Reversal of previously recognized stock-based compensation expense								$ 0.1
PSUs | Certain Executive Officers | August 10, 2016
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of shares that will vest							33.40%
PSUs | Certain Executive Officers | Subsequent Quarter Over the Next Two Years
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of shares that will vest							8.325%
RSUs
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period			3 years
RSUs | Certain Executive Officers
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of granted shares			900,000
RSUs | Employees
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of granted shares			1,500,000
Minimum | Stock Options
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period							2 years
Minimum | Restricted Stock Awards / Units Outstanding
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period							1 year
Maximum | Stock Options
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period							4 years
Maximum | Restricted Stock Awards / Units Outstanding
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period							4 years
Maximum | PSUs | Certain Executive Officers
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Performance stock units, vesting percentage				100.00%

EMPLOYEE STOCK PLANS - Summariz

EMPLOYEE STOCK PLANS - Summarizes Combined Activity Under All of Our Equity Incentive Plans (Details) shares in Thousands	3 Months Ended
	Sep. 26, 2015$ / sharesshares
Shares Available For Grant
Balance at beginning of period (in shares)	8,921
Granted (in shares)	(4,614)
Exercised or released (in shares)	156
Forfeited or expired (in shares)	204
Balance at end of period (in shares)	4,667
Stock Options / SARs Outstanding
Balance at beginning of period (in shares)	3,381
Granted (in shares)	0
Exercised or released (in shares)	(3)
Forfeited or expired (in shares)	(112)
Balance at end of period (in shares)	3,266
Weighted- Average Exercise Price
Balance at beginning of period (in usd per share) | $ / shares	$ 7.07
Granted (in usd per share) | $ / shares	0
Exercised or released (in usd per share) | $ / shares	1.22
Forfeited or expired (in usd per share) | $ / shares	9.80
Balance at end of period (in usd per share) | $ / shares	6.99
Weighted- Average Grant Date Fair Value
Balance at beginning of period (in usd per share) | $ / shares	1.80
Granted (in usd per share) | $ / shares	1.96
Exercised or released (in usd per share) | $ / shares	1.81
Forfeited or expired (in usd per share) | $ / shares	2.32
Balance at end of period (in usd per share) | $ / shares	$ 1.87
Restricted Stock Awards / Units Outstanding
Restricted Stock Awards / Units Outstanding
Balance at beginning of period (in shares)	4,545
Granted (in shares)	3,296
Exercised or released (in shares)	(1,016)
Forfeited or expired (in shares)	(66)
Balance at end of period (in shares)	6,759

EMPLOYEE STOCK PLANS - Suppleme

EMPLOYEE STOCK PLANS - Supplemental Disclosure Information About Our Stock Options and SAR's Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 26, 2015	Jun. 27, 2015
Schedule Of Stock Options [Line Items]
Shares, Options and SARs exercisable	100
Shares, Options and SARs outstanding	3,266	3,381
Weighted-Average Exercise Price, Options and SARs outstanding (in usd per share)	$ 6.99	$ 7.07
Stock options and SARs
Schedule Of Stock Options [Line Items]
Shares, Options and SARs exercisable	2,899
Shares, Options and SARs outstanding	3,266
Weighted-Average Exercise Price, Options and SARs exercisable (in usd per share)	$ 7.61
Weighted-Average Exercise Price, Options and SARs outstanding (in usd per share)	$ 6.99
Weighted-Average Remaining Contractual Life, Options and SARs exercisable	4 years 1 month
Weighted-Average Remaining Contractual Life, Options and SARs outstanding	4 years 6 months
Aggregate Intrinsic Value, Options and SARs exercisable	$ 96
Aggregate Intrinsic Value, Options and SARs outstanding	$ 228

STOCK-BASED COMPENSATION - Assu

STOCK-BASED COMPENSATION - Assumptions Used to Value Stock Option Grants (Details) - Stock options	3 Months Ended
	Sep. 27, 2014
Stock options:
Expected life	5 years 3 months
Risk-free interest rate	1.60%
Volatility	77.50%
Dividend yield	0.00%

STOCK-BASED COMPENSATION - Amou

STOCK-BASED COMPENSATION - Amounts Included in Cost of Revenues and Operating Expenses for Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 1,824	$ 1,286
Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	62	142
Restricted stock awards
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	1,761	1,185
Inventory adjustment to cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	1	(41)
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	456	330
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	424	332
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 944	$ 624

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Jun. 27, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation capitalized as inventory	$ 500		$ 500
Unrecognized stock-based compensation expense	$ 400
Unrecognized stock-based compensation expense, weighted-average period for recognition	2 years 6 months
Allocated share-based compensation expense	$ 1,824	$ 1,286
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, weighted-average period for recognition	1 year 10 months 10 days
Unrecognized stock-based compensation expense other than options	$ 11,100
Allocated share-based compensation expense	1,761	$ 1,185
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 200

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Jun. 27, 2015
Income Tax Disclosure [Abstract]
Income tax provision	$ 899	$ 954
Unrecognized tax benefits	4,500		$ 4,100
Unrecognized tax benefits that would affect effective tax rate	2,800
Estimated decrease in unrecognized tax benefits	$ 1,000

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - shares shares in Millions	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	42.1	8.4

GEOGRAPHIC INFORMATION, PRODU61

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Geographic Information [Line Items]
Revenues	$ 87,550	$ 89,241
China
Geographic Information [Line Items]
Revenues	33,056	20,722
United States
Geographic Information [Line Items]
Revenues	13,051	14,537
Mexico
Geographic Information [Line Items]
Revenues	12,338	11,991
Malaysia
Geographic Information [Line Items]
Revenues	7,853	15,700
Italy
Geographic Information [Line Items]
Revenues	7,071	4,135
Germany
Geographic Information [Line Items]
Revenues	4,942	8,154
Japan
Geographic Information [Line Items]
Revenues	1,622	3,744
Rest of world
Geographic Information [Line Items]
Revenues	$ 7,617	$ 10,258

GEOGRAPHIC INFORMATION, PRODU62

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Product Group (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014
Segment Information [Line Items]
Revenues	$ 87,550	$ 89,241
100 Gb/s transmission modules
Segment Information [Line Items]
Revenues	40,828	21,330
40 Gb/s transmission modules
Segment Information [Line Items]
Revenues	10,828	22,166
10 Gb/s and lower transmission modules
Segment Information [Line Items]
Revenues	35,894	38,226
Industrial and consumer
Segment Information [Line Items]
Revenues	$ 0	$ 7,519

GEOGRAPHIC INFORMATION, PRODU63

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION - Additional Information (Details) - customer	3 Months Ended		12 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Jun. 27, 2015
Revenues
Revenue, Major Customer [Line Items]
Number of major customers	2	3
Percentage of revenues	16.00%
Revenues | Customer A
Revenue, Major Customer [Line Items]
Percentage of revenues		26.00%
Revenues | Customer B
Revenue, Major Customer [Line Items]
Percentage of revenues		13.00%
Revenues | Customer C
Revenue, Major Customer [Line Items]
Percentage of revenues		11.00%
Accounts Receivable
Revenue, Major Customer [Line Items]
Number of major customers	3		4
Accounts Receivable | Customer A
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	19.00%		24.00%
Accounts Receivable | Customer B
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	12.00%		13.00%
Accounts Receivable | Customer C
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	11.00%		11.00%
Accounts Receivable | Customer D
Revenue, Major Customer [Line Items]
Percentage of accounts receivable			11.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Hitachi Ltd - USD ($) $ in Millions	3 Months Ended
	Sep. 26, 2015	Sep. 27, 2014	Jun. 27, 2015
Related Party Transaction [Line Items]
Percentage of outstanding common stock	11.00%
Sales to Hitachi	$ 0.9	$ 1.2
Purchases from Hitachi	4.9	$ 3.4
Accounts receivable due from Hitachi	1		$ 0.7
Accounts payable due to Hitachi	$ 4.7		$ 4.8