Oclaro 10-Q 5 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 26, 2016	Apr. 28, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 26, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		112,147,088

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 26, 2016	Jun. 27, 2015
Current assets:
Cash and cash equivalents	$ 106,081	$ 111,840
Restricted cash	715	3,275
Accounts receivable, net of allowances for doubtful accounts of $2,296 and $2,815 as of March 26, 2016 and June 27, 2015, respectively; and including $757 and $709 due from related parties as of March 26, 2016 and June 27, 2015, respectively	84,704	74,815
Inventories	72,491	66,342
Prepaid expenses and other current assets	21,034	22,746
Total current assets	285,025	279,018
Property and equipment, net	54,376	41,766
Other intangible assets, net	1,770	2,579
Other non-current assets	2,205	2,521
Total assets	343,376	325,884
Current liabilities:
Accounts payable, including $5,450 and $4,831 due to related parties at March 26, 2016 and June 27, 2015, respectively	63,526	53,133
Accrued expenses and other liabilities	42,308	35,648
Capital lease obligations, current	3,813	3,580
Total current liabilities	109,647	92,361
Deferred gain on sale-leaseback	7,442	8,978
Convertible notes payable	61,855	61,246
Capital lease obligations, non-current	2,017	1,167
Other non-current liabilities	9,475	9,132
Total liabilities	$ 190,436	$ 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; 275,000 shares authorized, 112,095 shares issued and outstanding at March 26, 2016; and 175,000 shares authorized, 109,889 shares issued and outstanding at June 27, 2015	1,121	1,099
Additional paid-in capital	1,469,645	1,464,567
Accumulated other comprehensive income	39,630	41,526
Accumulated deficit	(1,357,456)	(1,354,192)
Total stockholders’ equity	152,940	153,000
Total liabilities and stockholders’ equity	$ 343,376	$ 325,884

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 26, 2016	Jun. 27, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,296	$ 2,815
Accounts receivable, due from related parties	757	709
Accounts payable, due to related parties	$ 5,450	$ 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	275,000,000	175,000,000
Common stock, shares issued	112,095,000	109,889,000
Common stock, shares outstanding	112,095,000	109,889,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Income Statement [Abstract]
Revenues, including $719 and $2,618 from related parties for the three and nine months ended March 26, 2016, respectively, and $794 and $1,971 from related parties for the three and nine months ended March 28, 2015, respectively	$ 101,050	$ 83,023	$ 282,729	$ 259,084
Cost of revenues	74,114	70,323	206,488	218,209
Gross profit	26,936	12,700	76,241	40,875
Operating expenses:
Research and development	11,379	11,732	33,399	37,366
Selling, general and administrative	13,055	12,048	39,054	41,108
Amortization of other intangible assets	247	194	748	881
Restructuring, acquisition and related (income) expense, net	(59)	2,246	(21)	(4,062)
(Gain) loss on sale of property and equipment	(145)	(138)	22	233
Total operating expenses	24,477	26,082	73,202	75,526
Operating income (loss)	2,459	(13,382)	3,039	(34,651)
Other income (expense):
Interest income (expense), net	(1,203)	(599)	(3,726)	(792)
Gain (loss) on foreign currency transactions, net	(865)	2,892	(861)	207
Other income (expense), net	174	366	644	1,250
Total other income (expense)	(1,894)	2,659	(3,943)	665
Income (loss) from continuing operations before income taxes	565	(10,723)	(904)	(33,986)
Income tax (benefit) provision	476	(537)	2,360	379
Income (loss) from continuing operations	89	(10,186)	(3,264)	(34,365)
Loss from discontinued operations, net of tax	0	0	0	(8,458)
Net income (loss)	$ 89	$ (10,186)	$ (3,264)	$ (42,823)
Basic net income (loss) per share:
Income (loss) per share from continuing operations (in usd per share)	$ 0	$ (0.09)	$ (0.03)	$ (0.32)
Loss per share from discontinued operations (in usd per share)	0	0	0	(0.08)
Basic net income (loss) per share (in usd per share)	0	(0.09)	(0.03)	(0.40)
Diluted net income (loss) per share:
Income (loss) per share from continuing operations (in usd per share)	0	(0.09)	(0.03)	(0.32)
Loss per share from discontinued operations (in usd per share)	0	0	0	(0.08)
Diluted net income (loss) per share (in usd per share)	$ 0	$ (0.09)	$ (0.03)	$ (0.40)
Shares used in computing net income (loss) per share:
Basic (in shares)	110,882	108,357	110,212	107,818
Diluted (in shares)	113,699	108,357	110,212	107,818

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Income Statement [Abstract]
Revenues from related parties	$ 719	$ 794	$ 2,618	$ 1,971

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 89	$ (10,186)	$ (3,264)	$ (42,823)
Other comprehensive income (loss):
Unrealized gain on marketable securities	0	224	0	209
Currency translation adjustments	593	(4,945)	(1,886)	(8,528)
Pension adjustment, net of tax benefits	0	11	(10)	590
Total comprehensive income (loss)	$ 682	$ (14,896)	$ (5,160)	$ (50,552)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015
Cash flows from operating activities:
Net loss	$ (3,264)	$ (42,823)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Amortization of deferred gain on sale-leaseback	(648)	(684)
Amortization of debt discount and issuance costs in connection with convertible notes payable	609	99
Gain on sale of Komoro Business	0	(8,315)
Adjustment to the hold-backs related to the sales of the Zurich and Amplifier Businesses	0	7,650
Gain on sale of assets	0	223
Depreciation and amortization	12,198	14,122
Stock-based compensation expense	6,440	4,617
Other non-cash adjustments	22	161
Changes in operating assets and liabilities:
Accounts receivable, net	(12,969)	(7,887)
Inventories	(7,553)	(4,639)
Prepaid expenses and other current assets	502	7,001
Other non-current assets	264	(925)
Accounts payable	1,433	499
Accrued expenses and other liabilities	5,959	(8,370)
Net cash (used in) provided by operating activities	2,993	(39,271)
Cash flows from investing activities:
Purchases of property and equipment	(12,362)	(13,809)
Proceeds from sale of short-term investments and other assets	0	141
Transfer from restricted cash	2,453	940
Net cash (used in) provided by investing activities	(9,909)	1,957
Cash flows from financing activities:
Proceeds from issuance of common stock, net	179	21
Proceeds from the sale of convertible notes, net	0	61,587
Shares repurchased for tax withholdings on vesting of restricted stock units	(1,504)	0
Payments on capital lease obligations	(2,303)	(2,953)
Net cash used in financing activities	(3,628)	58,655
Effect of exchange rate on cash and cash equivalents	4,785	(505)
Net increase (decrease) in cash and cash equivalents	(5,759)	20,836
Cash and cash equivalents at beginning of period	111,840	98,973
Cash and cash equivalents at end of period	106,081	119,809
Supplemental disclosures of non-cash transactions:
Capital lease obligations incurred for purchases of property and equipment	(2,392)	0
Purchases of property and equipment funded by accounts payable	(9,567)	0
Komoro Business
Cash flows from investing activities:
Proceeds from sale of business	0	12,335
Amplifier Business
Cash flows from investing activities:
Proceeds from sale of business	0	940
Zurich Business
Cash flows from investing activities:
Proceeds from sale of business	$ 0	$ 1,410

BASIS OF PREPARATION

BASIS OF PREPARATION	9 Months Ended
	Mar. 26, 2016
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 March 26, 2016 and for the three and nine months ended March 26, 2016 and March 28, 2015 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 and nine months ended March 26, 2016 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 March 26, 2016 being a 13 week quarterly period. Our fiscal quarter ending July 2, 2016 will have 14 weeks. Our fiscal year ended June 27, 2015 was a 52 week year, with the quarter ended March 28, 2015 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 income (loss), cash flows, cash and cash equivalents or stockholders’ equity as previously reported.

RECENT ACCOUNTING STANDARDS

RECENT ACCOUNTING STANDARDS	9 Months Ended
	Mar. 26, 2016
Accounting Policies [Abstract]
RECENT ACCOUNTING STANDARDS	RECENT ACCOUNTING STANDARDS In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation: Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards, and classification on the the statement of cash flows. This guidance will be effective for us in the first quarter of fiscal 2018, 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 February 2016, the FASB issued ASU No. 2016-02, Leases , which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance will be effective for us in the first quarter of fiscal 2020, 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 November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes . This amendment eliminates the requirement to bifurcate deferred taxes between current and non-current on the balance sheet and requires that deferred tax liabilities and assets be classified as non-current on the balance sheet. We elected to early adopt this guidance in the second quarter of fiscal year 2016. The implementation of this guidance did not have a material impact on our financial statements and footnote disclosures. In September 2015, the FASB issued 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 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	9 Months Ended
	Mar. 26, 2016
Balance Sheet Details [Abstract]
BALANCE SHEET DETAILS	BALANCE SHEET DETAILS Cash and Cash Equivalents The following table provides details regarding our cash and cash equivalents at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Cash and cash equivalents: Cash-in-bank $ 81,080 $ 110,196 Money market funds 25,001 1,644 $ 106,081 $ 111,840 Restricted Cash As of March 26, 2016 , we had restricted cash of $1.0 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. Inventories The following table provides details regarding our inventories at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Inventories: Raw materials $ 21,656 $ 19,610 Work-in-process 30,317 19,812 Finished goods 20,518 26,920 $ 72,491 $ 66,342 Property and Equipment, Net The following table provides details regarding our property and equipment, net at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Property and equipment, net: Buildings and improvements $ 11,493 $ 11,837 Plant and machinery 58,574 37,215 Fixtures, fittings and equipment 1,971 1,173 Computer equipment 10,798 12,401 82,836 62,626 Less: Accumulated depreciation (28,460 ) (20,860 ) $ 54,376 $ 41,766 Property and equipment includes assets under capital leases of $5.8 million at March 26, 2016 and $4.7 million at June 27, 2015 , respectively. Amortization associated with assets under capital leases is recorded in depreciation expense. Other Intangibles Assets, Net The following table summarizes the activity related to our other intangible assets for the nine months ended March 26, 2016 : 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 — — — — — (748 ) (748 ) Translations and adjustments (5 ) (54 ) (2 ) — — — (61 ) Balance at March 26, 2016 $ 6,244 $ 4,541 $ 2,400 $ 915 $ 3,338 $ (15,668 ) $ 1,770 We expect the amortization of intangible assets to be $0.3 million for the remainder of 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 March 26, 2016 . Accrued Expenses and Other Liabilities The following table presents details regarding our accrued expenses and other liabilities at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Accrued expenses and other liabilities: Trade payables $ 10,046 $ 5,250 Compensation and benefits related accruals 13,991 11,298 Warranty accrual 3,127 2,932 Accrued restructuring, current 188 712 Purchase commitments in excess of future demand, current 3,101 3,162 Other accruals 11,855 12,294 $ 42,308 $ 35,648 Accrued Restructuring The following table summarizes the activity related to our accrued restructuring charges for the nine months ended March 26, 2016 : 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 — 324 324 Paid or other adjustments (228 ) (620 ) (848 ) Balance at March 26, 2016 $ — $ 188 $ 188 Current portion — 188 188 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 March 26, 2016 , we recorded minimal restructuring charges. During the nine months ended March 26, 2016 , we recorded restructuring charges of $0.3 million in connection with this restructuring plan, which related to workforce reductions. During the three months ended March 26, 2016 , we made minimal scheduled payments. During the nine months ended March 26, 2016 , we made scheduled payments of $0.5 million . As of March 26, 2016 , we had $0.2 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 $0.8 million and $2.6 million during the three and nine months ended March 28, 2015 , respectively and made scheduled payments of $0.2 million and $2.3 million , respectively, to settle a portion of these restructuring liabilities. As of March 26, 2016 and June 27, 2015 , we had no remaining accrued restructuring liabilities related to this restructuring plan. Common Stock On November 10, 2015, our stockholders approved an amendment to our Restated Certificate of Incorporation, increasing the number of authorized shares of our common stock from 175.0 million shares to 275.0 million shares. Accumulated Other Comprehensive Income The following table presents the components of accumulated other comprehensive income at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Accumulated other comprehensive income: Currency translation adjustments $ 39,465 $ 41,351 Japan defined benefit plan 165 175 $ 39,630 $ 41,526

FAIR VALUE

FAIR VALUE	9 Months Ended
	Mar. 26, 2016
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 March 26, 2016 , 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 March 26, 2016 and June 27, 2015 : Fair Value Measurement at March 26, 2016 Using Quoted Prices Significant Significant Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds $ 25,001 $ — $ — $ 25,001 Restricted cash: Money market funds 712 — — 712 Total assets measured at fair value $ 25,713 $ — $ — $ 25,713 (1) Excludes $81.1 million in cash held in our bank accounts at March 26, 2016 . 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	9 Months Ended
	Mar. 26, 2016
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”). 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 $1.3 million for the nine months ended March 28, 2015 (up through October 27, 2014, the date the sale was completed). 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 an exclusive option to buy the assets, 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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Revenues $ — $ — $ — $ — Cost of revenues — — — — Gross profit — — — — Operating expenses — — — 161 Other income (expense), net — — — (3,060 ) Loss from discontinued operations before income taxes — — — (3,221 ) Income tax provision — — — — Loss from discontinued operations $ — $ — $ — $ (3,221 ) 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 included 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 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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) (Thousands) Revenues $ — $ — $ — $ — Cost of revenues — — — 163 Gross loss — — — (163 ) Operating expenses — — — 484 Other income (expense), net — — — (4,590 ) Loss from discontinued operations before income taxes — — — (5,237 ) Income tax provision — — — — Loss from discontinued operations $ — $ — $ — $ (5,237 ) 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	9 Months Ended
	Mar. 26, 2016
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 and nine months ended March 26, 2016 , we recorded $1.2 million and $3.5 million , respectively, in interest expense, including the amortization of the debt discount and the issuance costs, and made interest payments of $3.9 million related to the 6.00% Notes during the nine months ended March 26, 2016 . 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. 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)). Once notified, the holders of the 6.00% Notes could elect to convert, at which point they would receive their shares of common stock based on the initial exchange rate plus up to an additional 11.2 million shares. 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. 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. 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 March 26, 2016 , 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 March 26, 2016 and June 27, 2015 : March 26, 2016 June 27, 2015 (Thousands) Principal value of the liability component $ 65,000 $ 65,000 Unamortized value of the debt discount and issuance costs (3,145 ) (3,754 ) Net carrying value of the liability component $ 61,855 $ 61,246 At March 26, 2016 , the $2.6 million debt discount and the $0.5 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 March 26, 2016 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 $5.0 million to $15.0 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	9 Months Ended
	Mar. 26, 2016
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 $0.3 million for the three and nine months ended March 26, 2016 , respectively, and $0.1 million and $0.4 million for the three and nine months ended March 28, 2015 , 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 expected 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 March 26, 2016 , there were no plan assets associated with the Japan Plan. As of March 26, 2016 , there was $0.1 million in accrued expenses and other liabilities and $5.5 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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Service cost $ 132 $ 177 $ 376 $ 553 Interest cost 11 18 32 56 Net amortization — 10 — 37 Net periodic pension costs $ 143 $ 205 $ 408 $ 646 We made benefit payments under the Japan Plan of zero and $0.1 million during the three and nine months ended March 26, 2016 , respectively, and $0.1 million and $0.2 million during the three and nine months ended March 28, 2015 , respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Mar. 26, 2016
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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Warranty provision—beginning of period $ 3,097 $ 3,474 $ 2,932 $ 4,672 Warranties issued 615 185 1,472 1,078 Warranties utilized or expired (553 ) (377 ) (1,241 ) (2,236 ) Currency translation and other adjustments (32 ) (12 ) (36 ) (244 ) Warranty provision—end of period $ 3,127 $ 3,270 $ 3,127 $ 3,270 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. In October 2015, we entered into a capital lease agreement with Hitachi High-Technologies Corporation, a related party, for certain capital equipment. The lease term is for 5 years, after which time the ownership of the equipment will transfer from Hitachi High-Technologies Corporation. During the lease term, we will make twenty equal installments of principal and interest, payable quarterly. Interest on the capital equipment will accrue at 1.15 percent per annum. The following table shows the future minimum lease payments due under non-cancelable capital leases with Hitachi Capital Corporation and Hitachi High-Technologies Corporation at March 26, 2016 : Capital Leases (Thousands) Fiscal Year Ending: 2016 (remaining) $ 1,174 2017 3,027 2018 554 2019 532 2020 571 Thereafter 246 Total minimum lease payments 6,104 Less amount representing interest (274 ) Present value of capitalized payments 5,830 Less: current portion (3,813 ) Long-term portion $ 2,017 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 March 26, 2016 and June 27, 2015 , the liability for these purchase commitments was $3.1 million and $3.2 million , respectively, and was included in accrued expenses and other liabilities in our condensed consolidated balance sheets. Malaysian Goods and Services Tax (“GST”) In February 2016, the Malaysian tax authorities preliminarily denied our Malaysia GST refund claims representing approximately $2.4 million . These claims were made in connection with the export of finished goods from our contract manufacturing partner’s Malaysian facilities. We are currently contesting the denial of these claims before a Malaysian administrative review panel, and believe that additional appeal options may be available to us if we do not obtain a favorable ruling. Although we have taken action to minimize the impact of the GST with respect to our ongoing operations, we believe it is reasonably possible that, ultimately, our refund claims may be partially or fully rejected. We have accounted for the $2.4 million GST claims as a receivable classified in prepaid expenses and other current assets in our condensed consolidated balance sheet at March 26, 2016 . 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. 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 continue to conduct initial discovery. As of May 5, 2016, no hearing has been scheduled in this matter. We intend to vigorously defend against this litigation.

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	9 Months Ended
	Mar. 26, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE STOCK PLANS	EMPLOYEE STOCK PLANS Stock Incentive Plans On November 10, 2015, our stockholders approved an amendment to the Fifth Amended and Restated 2001 Long-Term Stock Incentive Plan (the "Plan"), adding 8.0 million shares of our common stock to the share reserve under the Plan. As of March 26, 2016 , there were 12.9 million shares of our common stock available for grant under 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-Based Restricted Stock Units In August 2014, our board of directors approved a grant of 0.5 million performance-based restricted stock units ("PSUs") to certain executive officers with an aggregate estimated grant date fair value of $0.9 million . These PSUs vest at 100 percent upon the achievement of two consecutive quarters with positive adjusted earnings before interest, taxes, depreciation and amortization ("AEBITDA") on or before the end of our fiscal year 2017. During the second quarter of fiscal year 2016, the performance condition related to these PSUs was achieved. On February 2, 2016, the compensation committee of our board of directors certified that the performance condition was achieved and the PSUs immediately vested at 100 percent . 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 AEBITDA 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. On October 29 2015, 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 nine months ended March 26, 2016 : 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 Increase in share reserve 8,000 — — — — Granted (5,270 ) — — 3,764 2.84 Exercised or released 605 (56 ) 2.81 (2,789 ) 2.12 Forfeited or expired 607 (220 ) 10.91 (258 ) 1.31 Balance at March 26, 2016 12,863 3,105 6.88 5,262 2.58 Supplemental disclosure information about our stock options and stock appreciation rights ("SARs") outstanding as of March 26, 2016 is as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (Thousands) (Years) (Thousands) Options and SARs exercisable 2,832 $ 7.34 3.7 $ 1,907 Options and SARs outstanding 3,105 6.88 3.9 2,797 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 $5.31 on March 24, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. There were approximately 1.3 million shares of common stock subject to in-the-money options which were exercisable as of March 26, 2016 . We settle employee stock option exercises with newly issued shares of common stock.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Mar. 26, 2016
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 (assumptions are not applicable for the three and nine months ended March 26, 2016, as there were no stock options granted during those periods): Three Months Ended Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 Stock options: Expected life N/A N/A N/A 5.3 years Risk-free interest rate N/A N/A N/A 1.6% Volatility N/A N/A N/A 76.9% Dividend yield N/A N/A N/A — The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows: Three Months Ended Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Stock-based compensation by category of expense: Cost of revenues $ 523 $ 434 $ 1,451 $ 1,340 Research and development 455 396 1,370 1,138 Selling, general and administrative 1,095 745 3,619 2,139 $ 2,073 $ 1,575 $ 6,440 $ 4,617 Stock-based compensation by type of award: Stock options $ 52 $ 87 $ 167 $ 317 Restricted stock awards 1,962 1,497 6,258 4,233 Inventory adjustment to cost of revenues 59 (9 ) 15 67 $ 2,073 $ 1,575 $ 6,440 $ 4,617 As of March 26, 2016 and June 27, 2015 , we had capitalized approximately $0.4 million and $0.5 million , respectively, of stock-based compensation as inventory. As of March 26, 2016 , we had $0.3 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 2.1 years , and $7.9 million in unrecognized stock-based compensation expense related to unvested time-based restricted stock awards, net of estimated forfeitures, that will be recognized over a weighted-average period of 1.8 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 and nine months ended March 26, 2016 , we recorded $0.2 million and $1.2 million , respectively, in stock-based compensation in connection with the PSUs issued in July 2011, March 2014, August 2014 and August 2015, including approximately $0.5 million related to the acceleration of the stock-based compensation in connection with the PSUs issued in August 2014 upon the achievement of the performance conditions. During the three and nine months ended March 28, 2015 , we recorded $0.1 million and $0.2 million , respectively, in stock-based compensation expense in connection with the PSUs issued in July 2011, March 2014 and August 2014.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Mar. 26, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The income tax provision of $0.5 million and $2.4 million for the three and nine months ended March 26, 2016 , respectively, and the income tax benefit of $0.5 million and the income tax provision of $0.4 million for the three and nine months ended March 28, 2015 , respectively, relates primarily to our foreign operations. The total amount of our unrecognized tax benefits as of March 26, 2016 and June 27, 2015 were approximately $4.1 million and $4.1 million , respectively. As of March 26, 2016 , we had $2.4 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 $0.9 million in the next twelve months.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Mar. 26, 2016
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NET INCOME (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 units and awards, warrants and convertible notes during such period. The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands, except per share amounts) Net income (loss) $ 89 $ (10,186 ) $ (3,264 ) $ (42,823 ) Weighted-average shares - Basic 110,882 108,357 110,212 107,818 Effect of dilutive potential common shares from: Stock options and stock appreciation rights 280 — — — Restricted stock units and awards 2,537 — — — Weighted-average shares - Diluted 113,699 108,357 110,212 107,818 Basic net income (loss) per share $ — $ (0.09 ) $ (0.03 ) $ (0.40 ) Diluted net income (loss) per share $ — $ (0.09 ) $ (0.03 ) $ (0.40 ) For the three and nine months ended March 26, 2016 , we excluded 35.5 million and 38.3 million , respectively, of outstanding stock options, stock appreciation rights, unvested restricted stock awards and units, 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. For the three and nine months ended March 28, 2015 , we excluded 22.4 million and 13.5 million , respectively, of outstanding stock options, stock appreciation rights, unvested restricted stock awards and units, 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	9 Months Ended
	Mar. 26, 2016
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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) China $ 43,935 $ 29,433 $ 112,170 $ 75,686 United States 15,913 12,429 45,880 40,352 Mexico 10,015 8,139 36,549 31,029 Malaysia 7,986 10,845 24,146 40,306 Italy 6,353 6,429 20,242 17,332 Germany 5,686 5,781 14,638 20,168 Japan 2,167 2,189 5,133 7,637 Rest of world 8,995 7,778 23,971 26,574 $ 101,050 $ 83,023 $ 282,729 $ 259,084 Product Groups The following table sets forth revenues by product group: Three Months Ended Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) 100 Gb/s transmission modules $ 58,569 $ 30,221 $ 148,951 $ 85,221 40 Gb/s and lower transmission modules 42,481 52,802 133,778 164,499 Industrial and consumer — — — 9,364 $ 101,050 $ 83,023 $ 282,729 $ 259,084 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 March 26, 2016 , four customers accounted for 10 percent or more of our revenues, representing approximately 20 percent , 14 percent , 12 percent and 11 percent of our revenues, respectively. For the nine months ended March 26, 2016 , three customers accounted for 10 percent or more of our revenues, representing approximately 19 percent , 14 percent and 10 percent of our revenues, respectively. For the three months ended March 28, 2015 , four customers accounted for 10 percent or more of our revenues, representing approximately 19 percent , 16 percent , 11 percent and 10 percent of our revenues, respectively. For the nine months ended March 28, 2015 , three customers accounted for 10 percent or more of our revenues, representing approximately 22 percent , 14 percent and 10 percent of our revenues, respectively. As of March 26, 2016 , four customers accounted for 10 percent or more of our accounts receivable, representing approximately 21 percent , 19 percent , 13 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	9 Months Ended
	Mar. 26, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As of March 26, 2016 , Hitachi, Ltd. ("Hitachi") held slightly less than 5 percent of our outstanding common stock based on Hitachi’s Schedule 13G filed with the Securities and Exchange Commission on December 2, 2015. During the second quarter of fiscal year 2016, Hitachi sold approximately 6.6 million shares of our common stock. Hitachi initially 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 $1.0 million and $2.9 million for the three and nine months ended March 26, 2016 , respectively, and $1.2 million and $3.1 million for the three and nine months ended March 28, 2015 , respectively. Purchases from Hitachi were $5.8 million and $16.2 million for the three and nine months ended March 26, 2016 , respectively, and $4.2 million and $11.5 million for the three and nine months ended March 28, 2015 , respectively. At March 26, 2016 , we had $1.3 million accounts receivable due from Hitachi and $5.5 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)	9 Months Ended
	Mar. 26, 2016
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 March 26, 2016 and for the three and nine months ended March 26, 2016 and March 28, 2015 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 and nine months ended March 26, 2016 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 March 26, 2016 being a 13 week quarterly period. Our fiscal quarter ending July 2, 2016 will have 14 weeks. Our fiscal year ended June 27, 2015 was a 52 week year, with the quarter ended March 28, 2015 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 income (loss), cash flows, cash and cash equivalents or stockholders’ equity as previously reported.
Recent Accounting Standards	RECENT ACCOUNTING STANDARDS In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation: Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards, and classification on the the statement of cash flows. This guidance will be effective for us in the first quarter of fiscal 2018, 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 February 2016, the FASB issued ASU No. 2016-02, Leases , which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance will be effective for us in the first quarter of fiscal 2020, 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 November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes . This amendment eliminates the requirement to bifurcate deferred taxes between current and non-current on the balance sheet and requires that deferred tax liabilities and assets be classified as non-current on the balance sheet. We elected to early adopt this guidance in the second quarter of fiscal year 2016. The implementation of this guidance did not have a material impact on our financial statements and footnote disclosures. In September 2015, the FASB issued 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 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)	9 Months Ended
	Mar. 26, 2016
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: March 26, 2016 June 27, 2015 (Thousands) Cash and cash equivalents: Cash-in-bank $ 81,080 $ 110,196 Money market funds 25,001 1,644 $ 106,081 $ 111,840
Schedule of Inventories	The following table provides details regarding our inventories at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Inventories: Raw materials $ 21,656 $ 19,610 Work-in-process 30,317 19,812 Finished goods 20,518 26,920 $ 72,491 $ 66,342
Schedule of Property and Equipment, Net	The following table provides details regarding our property and equipment, net at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Property and equipment, net: Buildings and improvements $ 11,493 $ 11,837 Plant and machinery 58,574 37,215 Fixtures, fittings and equipment 1,971 1,173 Computer equipment 10,798 12,401 82,836 62,626 Less: Accumulated depreciation (28,460 ) (20,860 ) $ 54,376 $ 41,766
Summary of Other Intangible Assets	The following table summarizes the activity related to our other intangible assets for the nine months ended March 26, 2016 : 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 — — — — — (748 ) (748 ) Translations and adjustments (5 ) (54 ) (2 ) — — — (61 ) Balance at March 26, 2016 $ 6,244 $ 4,541 $ 2,400 $ 915 $ 3,338 $ (15,668 ) $ 1,770
Schedule of Accrued Expenses and Other Liabilities	The following table presents details regarding our accrued expenses and other liabilities at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Accrued expenses and other liabilities: Trade payables $ 10,046 $ 5,250 Compensation and benefits related accruals 13,991 11,298 Warranty accrual 3,127 2,932 Accrued restructuring, current 188 712 Purchase commitments in excess of future demand, current 3,101 3,162 Other accruals 11,855 12,294 $ 42,308 $ 35,648
Activity Related to Our Restructuring Liability	The following table summarizes the activity related to our accrued restructuring charges for the nine months ended March 26, 2016 : 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 — 324 324 Paid or other adjustments (228 ) (620 ) (848 ) Balance at March 26, 2016 $ — $ 188 $ 188 Current portion — 188 188 Non-current portion — — —
Components of Accumulated Other Comprehensive Income	The following table presents the components of accumulated other comprehensive income at the dates indicated: March 26, 2016 June 27, 2015 (Thousands) Accumulated other comprehensive income: Currency translation adjustments $ 39,465 $ 41,351 Japan defined benefit plan 165 175 $ 39,630 $ 41,526

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Mar. 26, 2016
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 March 26, 2016 and June 27, 2015 : Fair Value Measurement at March 26, 2016 Using Quoted Prices Significant Significant Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds $ 25,001 $ — $ — $ 25,001 Restricted cash: Money market funds 712 — — 712 Total assets measured at fair value $ 25,713 $ — $ — $ 25,713 (1) Excludes $81.1 million in cash held in our bank accounts at March 26, 2016 . 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)	9 Months Ended
	Mar. 26, 2016
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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Revenues $ — $ — $ — $ — Cost of revenues — — — — Gross profit — — — — Operating expenses — — — 161 Other income (expense), net — — — (3,060 ) Loss from discontinued operations before income taxes — — — (3,221 ) Income tax provision — — — — Loss from discontinued operations $ — $ — $ — $ (3,221 )
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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) (Thousands) Revenues $ — $ — $ — $ — Cost of revenues — — — 163 Gross loss — — — (163 ) Operating expenses — — — 484 Other income (expense), net — — — (4,590 ) Loss from discontinued operations before income taxes — — — (5,237 ) Income tax provision — — — — Loss from discontinued operations $ — $ — $ — $ (5,237 )

CREDIT LINE AND NOTES (Tables)

CREDIT LINE AND NOTES (Tables)	9 Months Ended
	Mar. 26, 2016
Debt Disclosure [Abstract]
Balance Sheet Information Related to 6.00% Notes	The following table sets forth balance sheet information related to the 6.00% Notes at March 26, 2016 and June 27, 2015 : March 26, 2016 June 27, 2015 (Thousands) Principal value of the liability component $ 65,000 $ 65,000 Unamortized value of the debt discount and issuance costs (3,145 ) (3,754 ) Net carrying value of the liability component $ 61,855 $ 61,246

POST-RETIREMENT BENEFITS (Table

POST-RETIREMENT BENEFITS (Tables)	9 Months Ended
	Mar. 26, 2016
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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Service cost $ 132 $ 177 $ 376 $ 553 Interest cost 11 18 32 56 Net amortization — 10 — 37 Net periodic pension costs $ 143 $ 205 $ 408 $ 646

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Mar. 26, 2016
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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Warranty provision—beginning of period $ 3,097 $ 3,474 $ 2,932 $ 4,672 Warranties issued 615 185 1,472 1,078 Warranties utilized or expired (553 ) (377 ) (1,241 ) (2,236 ) Currency translation and other adjustments (32 ) (12 ) (36 ) (244 ) Warranty provision—end of period $ 3,127 $ 3,270 $ 3,127 $ 3,270
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 and Hitachi High-Technologies Corporation at March 26, 2016 : Capital Leases (Thousands) Fiscal Year Ending: 2016 (remaining) $ 1,174 2017 3,027 2018 554 2019 532 2020 571 Thereafter 246 Total minimum lease payments 6,104 Less amount representing interest (274 ) Present value of capitalized payments 5,830 Less: current portion (3,813 ) Long-term portion $ 2,017

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	9 Months Ended
	Mar. 26, 2016
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 nine months ended March 26, 2016 : 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 Increase in share reserve 8,000 — — — — Granted (5,270 ) — — 3,764 2.84 Exercised or released 605 (56 ) 2.81 (2,789 ) 2.12 Forfeited or expired 607 (220 ) 10.91 (258 ) 1.31 Balance at March 26, 2016 12,863 3,105 6.88 5,262 2.58
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 March 26, 2016 is as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (Thousands) (Years) (Thousands) Options and SARs exercisable 2,832 $ 7.34 3.7 $ 1,907 Options and SARs outstanding 3,105 6.88 3.9 2,797

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Mar. 26, 2016
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 (assumptions are not applicable for the three and nine months ended March 26, 2016, as there were no stock options granted during those periods): Three Months Ended Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 Stock options: Expected life N/A N/A N/A 5.3 years Risk-free interest rate N/A N/A N/A 1.6% Volatility N/A N/A N/A 76.9% Dividend yield N/A N/A 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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) Stock-based compensation by category of expense: Cost of revenues $ 523 $ 434 $ 1,451 $ 1,340 Research and development 455 396 1,370 1,138 Selling, general and administrative 1,095 745 3,619 2,139 $ 2,073 $ 1,575 $ 6,440 $ 4,617 Stock-based compensation by type of award: Stock options $ 52 $ 87 $ 167 $ 317 Restricted stock awards 1,962 1,497 6,258 4,233 Inventory adjustment to cost of revenues 59 (9 ) 15 67 $ 2,073 $ 1,575 $ 6,440 $ 4,617

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Mar. 26, 2016
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Net Income (Loss) Per Share	The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands, except per share amounts) Net income (loss) $ 89 $ (10,186 ) $ (3,264 ) $ (42,823 ) Weighted-average shares - Basic 110,882 108,357 110,212 107,818 Effect of dilutive potential common shares from: Stock options and stock appreciation rights 280 — — — Restricted stock units and awards 2,537 — — — Weighted-average shares - Diluted 113,699 108,357 110,212 107,818 Basic net income (loss) per share $ — $ (0.09 ) $ (0.03 ) $ (0.40 ) Diluted net income (loss) per share $ — $ (0.09 ) $ (0.03 ) $ (0.40 )

GEOGRAPHIC INFORMATION, PRODU32

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION (Tables)	9 Months Ended
	Mar. 26, 2016
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 Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) China $ 43,935 $ 29,433 $ 112,170 $ 75,686 United States 15,913 12,429 45,880 40,352 Mexico 10,015 8,139 36,549 31,029 Malaysia 7,986 10,845 24,146 40,306 Italy 6,353 6,429 20,242 17,332 Germany 5,686 5,781 14,638 20,168 Japan 2,167 2,189 5,133 7,637 Rest of world 8,995 7,778 23,971 26,574 $ 101,050 $ 83,023 $ 282,729 $ 259,084
Revenues by Product Group	The following table sets forth revenues by product group: Three Months Ended Nine Months Ended March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 (Thousands) 100 Gb/s transmission modules $ 58,569 $ 30,221 $ 148,951 $ 85,221 40 Gb/s and lower transmission modules 42,481 52,802 133,778 164,499 Industrial and consumer — — — 9,364 $ 101,050 $ 83,023 $ 282,729 $ 259,084

BASIS OF PREPARATION (Details)

BASIS OF PREPARATION (Details) $ in Millions	3 Months Ended
	Sep. 27, 2014USD ($)
Cost of revenues
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Prior period reclassification adjustment	$ 2

BALANCE SHEET DETAILS - Schedul

BALANCE SHEET DETAILS - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 26, 2016	Jun. 27, 2015	Mar. 28, 2015	Jun. 28, 2014
Cash and cash equivalents:
Cash-in-bank	$ 81,080	$ 110,196
Money market funds	25,001	1,644
Total Cash and cash equivalents	$ 106,081	$ 111,840	$ 119,809	$ 98,973

BALANCE SHEET DETAILS - Additio

BALANCE SHEET DETAILS - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015	Jun. 27, 2015
Balance Sheet Components [Line Items]
Restricted cash and cash equivalents		$ 1,000,000
Assets under capital lease		5,800,000		$ 4,700,000
Expected amortization of intangible assets in fiscal year 2016		300,000
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		324,000
Payment for restructuring liabilities		500,000
Accrued restructuring liabilities		$ 188,000		$ 712,000
Common stock, shares authorized		275,000,000		175,000,000
Shenzhen
Balance Sheet Components [Line Items]
Payment for restructuring liabilities	$ 200,000		$ 2,300,000
Accrued restructuring liabilities		$ 0		$ 0
Employee Separation Charges | Shenzhen
Balance Sheet Components [Line Items]
Restructuring charges	$ 800,000		$ 2,600,000
Other non-current assets
Balance Sheet Components [Line Items]
Restricted cash and cash equivalents included in other non-current assets		$ 200,000

BALANCE SHEET DETAILS - Sched36

BALANCE SHEET DETAILS - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 26, 2016	Jun. 27, 2015
Inventories:
Raw materials	$ 21,656	$ 19,610
Work-in-process	30,317	19,812
Finished goods	20,518	26,920
Total Inventories	$ 72,491	$ 66,342

BALANCE SHEET DETAILS - Sched37

BALANCE SHEET DETAILS - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 26, 2016	Jun. 27, 2015
Property and equipment, net:
Buildings and improvements	$ 11,493	$ 11,837
Plant and machinery	58,574	37,215
Fixtures, fittings and equipment	1,971	1,173
Computer equipment	10,798	12,401
Property and equipment, gross	82,836	62,626
Less: Accumulated depreciation	(28,460)	(20,860)
Total Property and equipment, net	$ 54,376	$ 41,766

BALANCE SHEET DETAILS - Summary

BALANCE SHEET DETAILS - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Other Intangible Assets, Gross:
Translations and adjustments			$ (61)
Other Intangible Assets, Accumulated Amortization:
Beginning balance, Accumulated amortization			(14,920)
Amortization	$ (247)	$ (194)	(748)	$ (881)
Ending balance, Accumulated amortization	(15,668)		(15,668)
Other Intangible Assets, Net:
Beginning balance			2,579
Amortization	(247)	$ (194)	(748)	$ (881)
Translations and adjustments			(61)
Beginning balance	1,770		1,770
Core and Current Technology
Other Intangible Assets, Gross:
Beginning balance			6,249
Translations and adjustments			(5)
Ending balance	6,244		6,244
Other Intangible Assets, Net:
Translations and adjustments			(5)
Development and Supply Agreements
Other Intangible Assets, Gross:
Beginning balance			4,595
Translations and adjustments			(54)
Ending balance	4,541		4,541
Other Intangible Assets, Net:
Translations and adjustments			(54)
Customer Relationships
Other Intangible Assets, Gross:
Beginning balance			2,402
Translations and adjustments			(2)
Ending balance	2,400		2,400
Other Intangible Assets, Net:
Translations and adjustments			(2)
Patent Portfolio
Other Intangible Assets, Gross:
Beginning balance			915
Translations and adjustments			0
Ending balance	915		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		3,338
Other Intangible Assets, Net:
Translations and adjustments			$ 0

BALANCE SHEET DETAILS - Sched39

BALANCE SHEET DETAILS - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 26, 2016	Jun. 27, 2015
Accrued expenses and other liabilities:
Trade payables	$ 10,046	$ 5,250
Compensation and benefits related accruals	13,991	11,298
Warranty accrual	3,127	2,932
Accrued restructuring, current	188	712
Purchase commitments in excess of future demand, current	3,101	3,162
Other accruals	11,855	12,294
Total Accrued expenses and other liabilities	$ 42,308	$ 35,648

BALANCE SHEET DETAILS - Summa40

BALANCE SHEET DETAILS - Summary of Accrued Restructuring Charges (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 26, 2016	Jun. 27, 2015
Restructuring Reserve [Roll Forward]
Beginning balance	$ 712
Charged to restructuring costs	324
Paid or other adjustments	(848)
Ending balance	188
Current portion	188	$ 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	(228)
Ending balance	0
Current portion	0
Non-current portion	0
Termination Payments to Employees and Related Costs
Restructuring Reserve [Roll Forward]
Beginning balance	484
Charged to restructuring costs	324
Paid or other adjustments	(620)
Ending balance	188
Current portion	188
Non-current portion	$ 0

BALANCE SHEET DETAILS - Compone

BALANCE SHEET DETAILS - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Mar. 26, 2016	Jun. 27, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income	$ 152,940	$ 153,000
Currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income	39,465	41,351
Japan defined benefit plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income	(165)	(175)
Accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income	$ 39,630	$ 41,526

FAIR VALUE - Additional Informa

FAIR VALUE - Additional Information (Details) - Convertible Notes - 6.00% Convertible Senior Notes due 2020 - USD ($)	Mar. 26, 2016	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	Mar. 26, 2016	Jun. 27, 2015
Cash and cash equivalents:
Money market funds	$ 25,001	$ 1,644
Restricted cash:
Money market funds	712	1,215
Total assets measured at fair value	25,713	2,859
Cash held in bank accounts	81,080	110,196
Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash and cash equivalents:
Money market funds	25,001	1,644
Restricted cash:
Money market funds	712	1,215
Total assets measured at fair value	25,713	2,859
Significant Other Observable Inputs (Level 2)
Cash and cash equivalents:
Money market funds	0	0
Restricted cash:
Money market funds	0	0
Total assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3)
Cash and cash equivalents:
Money market funds	0	0
Restricted cash:
Money market funds	0	0
Total assets measured at fair value	$ 0	$ 0

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 ($)	Jan. 31, 2015USD ($)	Mar. 26, 2016USD ($)	Mar. 28, 2015USD ($)	Dec. 27, 2014USD ($)	Mar. 26, 2016USD ($)	Mar. 28, 2015USD ($)	Mar. 29, 2014USD ($)
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Adjustment to the hold-backs related to the sales of the Zurich and Amplifier Businesses									$ 0	$ 7,650
Komoro Business
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Net assets transferred	$ 6,300
Proceeds from sale of Komoro 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 (loss) from continuing operations before income taxes										1,300
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]
Proceeds from sale of Komoro Business			$ 79,600
Income (loss) from continuing operations before income taxes						$ 0	$ 0		0	(3,221)
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
Adjustment to the hold-backs related to the sales of the Zurich and Amplifier Businesses					3,100
Zurich Business
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Proceeds from sale of Komoro Business				90,600
Income (loss) from continuing operations before income taxes						$ 0	$ 0		$ 0	$ (5,237)
Post closing adjustment receivable				$ 6,000
Proceeds from holdback on sale of business					1,400
Adjustment to the hold-backs related to the sales of the Zurich and Amplifier Businesses					$ 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		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Amplifier Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0
Cost of revenues	0	0	0	0
Gross profit	0	0	0	0
Operating expenses	0	0	0	161
Other income (expense), net	0	0	0	(3,060)
Loss from discontinued operations before income taxes	0	0	0	(3,221)
Income tax provision	0	0	0	0
Loss from discontinued operations	0	0	0	(3,221)
Zurich Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	0	0	0	0
Cost of revenues	0	0	0	163
Gross profit	0	0	0	(163)
Operating expenses	0	0	0	484
Other income (expense), net	0	0	0	(4,590)
Loss from discontinued operations before income taxes	0	0	0	(5,237)
Income tax provision	0	0	0	0
Loss from discontinued operations	$ 0	$ 0	$ 0	$ (5,237)

CREDIT LINE AND NOTES - 6.00% C

CREDIT LINE AND NOTES - 6.00% Convertible Senior Notes (Details) shares in Millions	Feb. 19, 2015USD ($)dshares	Mar. 26, 2016USD ($)	Mar. 26, 2016USD ($)	Mar. 28, 2015USD ($)	Jun. 27, 2015USD ($)
Debt Instrument [Line Items]
Proceeds from the sale of convertible notes, net			$ 0	$ 61,587,000
Net carrying value of the liability component		$ 61,855,000	$ 61,855,000		$ 61,246,000
Convertible Notes | 6.00% Convertible Senior Notes due 2020
Debt Instrument [Line Items]
Fixed interest rate	6.00%	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	$ 3,500,000
Interest payments			3,900,000
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%
Number of additional shares that can be converted (up to) | shares	11.2
Contingent obligation for the make-whole premiums	$ 0	0	0
Principal value of the liability component	65,000,000	65,000,000	65,000,000		65,000,000
Unamortized value of the debt discount and issuance costs	$ (3,400,000)	(3,145,000)	(3,145,000)		(3,754,000)
Net carrying value of the liability component		61,855,000	61,855,000		$ 61,246,000
Convertible Notes | 6.00% Convertible Senior Notes due 2020 | Convertible Notes
Debt Instrument [Line Items]
Unamortized value of the debt discount and issuance costs		(2,600,000)	(2,600,000)
Debt issuance costs		$ 500,000	$ 500,000

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	Mar. 26, 2016	Sep. 17, 2015	Sep. 16, 2015	Jun. 27, 2015
Ceded Credit Risk [Line Items]
Minimum net cash required	$ 15,000,000
Increase in interest rate (as a percent)	0.75%
Minimum
Ceded Credit Risk [Line Items]
Interest paid	$ 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 (up to)	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		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Compensation and Retirement Disclosure [Abstract]
Total contribution provided	$ 100,000	$ 100,000	$ 300,000	$ 400,000
Japan Plan
Defined Benefit Plan Disclosure [Line Items]
Plan assets			0
Accrued expenses and other liabilities	100,000		100,000
Other non current liabilities	5,500,000		5,500,000
Defined benefit plan, benefits paid	$ 0	$ 100,000	$ 100,000	$ 200,000

POST-RETIREMENT BENEFITS - Net

POST-RETIREMENT BENEFITS - Net Periodic Pension Costs (Details) - Japan Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 132	$ 177	$ 376	$ 553
Interest cost	11	18	32	56
Net amortization	0	10	0	37
Net periodic pension costs	$ 143	$ 205	$ 408	$ 646

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions	1 Months Ended	9 Months Ended
	Oct. 31, 2015installment	Mar. 26, 2016USD ($)	Feb. 29, 2016USD ($)	Jun. 27, 2015USD ($)
Prepaid Expenses and Other Current Assets | Internal Revenue Board of Malaysia
Contingencies And Commitments [Line Items]
Refund claims receivable			$ 2.4
Inventory in Excess of Future Demand Forecasts | Accrued Expenses and Other Liabilities
Contingencies And Commitments [Line Items]
Purchase commitments		$ 3.1		$ 3.2
Affiliated Entity | Hitachi High-Technologies Corporation
Contingencies And Commitments [Line Items]
Capital lease term	5 years
Number of equal installments of principal and interest | installment	20
Interest rate on capital equipment	1.15%
Minimum
Contingencies And Commitments [Line Items]
Warranty for products from date of sale		12 months
Minimum | Affiliated Entity | Hitachi Capital Corporation
Contingencies And Commitments [Line Items]
Capital lease term		1 year
Maximum
Contingencies And Commitments [Line Items]
Warranty for products from date of sale		36 months
Maximum | Affiliated Entity | Hitachi Capital Corporation
Contingencies And Commitments [Line Items]
Capital lease term		5 years

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES - Movements in Warranty Accrual for Period (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Warranty Provision Roll Forward:
Warranty provision—beginning of period	$ 3,097	$ 3,474	$ 2,932	$ 4,672
Warranties issued	615	185	1,472	1,078
Warranties utilized or expired	(553)	(377)	(1,241)	(2,236)
Currency translation and other adjustments	(32)	(12)	(36)	(244)
Warranty provision—end of period	$ 3,127	$ 3,270	$ 3,127	$ 3,270

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES - Summary of Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Details) $ in Thousands	Mar. 26, 2016USD ($)
Fiscal Year Ending:
2016 (remaining)	$ 1,174
2,017	3,027
2,018	554
2,019	532
2,020	571
Thereafter	246
Total minimum lease payments	6,104
Less amount representing interest	(274)
Present value of capitalized payments	5,830
Less: current portion	(3,813)
Long-term portion	$ 2,017

EMPLOYEE STOCK PLANS - Addition

EMPLOYEE STOCK PLANS - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	Nov. 10, 2015	Aug. 31, 2015	Jul. 31, 2015	Aug. 31, 2014	Mar. 26, 2016	Mar. 24, 2016	Jun. 27, 2015
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of additional shares authorized under the ESPP	8,000				8,000
Number of shares available for grant under the ESPP					12,863		8,921
Closing price of common stock (in usd per share)						$ 5.31
Number of shares of common stock subject to in-the-money options (in shares)					1,300
Stock Options | Minimum
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period					2 years
Stock Options | Maximum
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period					4 years
Restricted Stock Awards / Units Outstanding | Minimum
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period					1 year
Restricted Stock Awards / Units Outstanding | Maximum
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period					4 years
PSUs | Certain Executive Officers
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period					2 years
Number of granted shares		900		500
Aggregate estimated grant date fair value of PSU		$ 2.5		$ 0.9
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%
PSUs | Maximum | Certain Executive Officers
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Performance stock units, vesting percentage				100.00%
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
RSUs | Employees
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of granted shares			1,500

EMPLOYEE STOCK PLANS - Summariz

EMPLOYEE STOCK PLANS - Summarizes Combined Activity Under All of Our Equity Incentive Plans (Details) - $ / shares	Nov. 10, 2015	Mar. 26, 2016	Mar. 26, 2016
Shares Available For Grant
Balance at beginning of period (in shares)			8,921,000
Increase in share reserve (in shares)	8,000,000		8,000,000
Granted (in shares)			(5,270,000)
Exercised or released (in shares)			605,000
Forfeited or expired (in shares)			607,000
Balance at end of period (in shares)		12,863,000	12,863,000
Stock Options / SARs Outstanding
Balance at beginning of period (in shares)			3,381,000
Increase in share reserve (in shares)			0
Granted (in shares)		0	0
Exercised or released (in shares)			(56,000)
Forfeited or expired (in shares)			(220,000)
Balance at end of period (in shares)		3,105,000	3,105,000
Weighted- Average Exercise Price
Balance at beginning of period (in usd per share)			$ 7.07
Increase in share reserve (in usd per share)			0
Granted (in usd per share)			0
Exercised or released (in usd per share)			2.81
Forfeited or expired (in usd per share)			10.91
Balance at end of period (in usd per share)		$ 6.88	$ 6.88
Restricted Stock Awards / Units Outstanding
Restricted Stock Awards / Units Outstanding
Balance at beginning of period (in shares)			4,545,000
Increase in share reserve (in shares)			0
Granted (in shares)			3,764,000
Exercised or released (in shares)			(2,789,000)
Forfeited or expired (in shares)			(258,000)
Balance at end of period (in shares)		5,262,000	5,262,000
Weighted- Average Grant Date Fair Value
Balance at beginning of period (in usd per share)			$ 1.80
Increase in share reserve (in usd per share)			0
Granted (in usd per share)			2.84
Exercised or released (in usd per share)			2.12
Forfeited or expired (in usd per share)			1.31
Balance at end of period (in usd per share)		$ 2.58	$ 2.58

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	9 Months Ended
	Mar. 26, 2016	Jun. 27, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Options and SARs exercisable	1,300
Shares, Options and SARs outstanding	3,105	3,381
Weighted-Average Exercise Price, Options and SARs outstanding (in usd per share)	$ 6.88	$ 7.07
Stock options and SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Options and SARs exercisable	2,832
Shares, Options and SARs outstanding	3,105
Weighted-Average Exercise Price, Options and SARs exercisable (in usd per share)	$ 7.34
Weighted-Average Exercise Price, Options and SARs outstanding (in usd per share)	$ 6.88
Weighted-Average Remaining Contractual Life, Options and SARs exercisable	3 years 7 months 25 days
Weighted-Average Remaining Contractual Life, Options and SARs outstanding	3 years 10 months 10 days
Aggregate Intrinsic Value, Options and SARs exercisable	$ 1,907
Aggregate Intrinsic Value, Options and SARs outstanding	$ 2,797

STOCK-BASED COMPENSATION - Assu

STOCK-BASED COMPENSATION - Assumptions Used to Value Stock Option Grants (Details) - Stock options	9 Months Ended
	Mar. 28, 2015
Stock options:
Expected life	5 years 3 months
Risk-free interest rate	1.60%
Volatility	76.90%
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		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 2,073	$ 1,575	$ 6,440	$ 4,617
Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	52	87	167	317
Restricted stock awards
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,962	1,497	6,258	4,233
Inventory adjustment to cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	59	(9)	15	67
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	523	434	1,451	1,340
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	455	396	1,370	1,138
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 1,095	$ 745	$ 3,619	$ 2,139

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015	Jun. 27, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	0		0
Stock-based compensation capitalized as inventory			$ 400		$ 500
Unrecognized stock-based compensation expense	$ 300		300
Allocated share-based compensation expense	2,073	$ 1,575	$ 6,440	$ 4,617
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, weighted-average period for recognition			2 years 1 month
Allocated share-based compensation expense	52	87	$ 167	317
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 9 months
Unrecognized stock-based compensation expense other than options	7,900		$ 7,900
Allocated share-based compensation expense	1,962	1,497	6,258	4,233
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 200	$ 100	1,200	$ 200
Acceleration of stock-based compensation			$ 500

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015	Jun. 27, 2015
Income Tax Disclosure [Abstract]
Income tax (benefit) provision	$ 476	$ (537)	$ 2,360	$ 379
Unrecognized tax benefits	4,100		4,100		$ 4,100
Unrecognized tax benefits that would affect effective tax rate	2,400		2,400
Estimated decrease in unrecognized tax benefits	$ 900		$ 900

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ 89	$ (10,186)	$ (3,264)	$ (42,823)
Weighted-average shares - Basic (in shares)	110,882	108,357	110,212	107,818
Effect of dilutive potential common shares from:
Weighted-average shares - Diluted (in shares)	113,699	108,357	110,212	107,818
Basic net income (loss) per share (in usd per share)	$ 0	$ (0.09)	$ (0.03)	$ (0.40)
Diluted net income (loss) per share (in usd per share)	$ 0	$ (0.09)	$ (0.03)	$ (0.40)
Antidilutive securities excluded from computation of earnings per share (in shares)	35,500	22,400	38,300	13,500
Stock options and stock appreciation rights
Effect of dilutive potential common shares from:
Stock awards (in shares)	280	0	0	0
Restricted stock awards
Effect of dilutive potential common shares from:
Stock awards (in shares)	2,537	0	0	0

GEOGRAPHIC INFORMATION, PRODU61

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Geographic Information [Line Items]
Revenues	$ 101,050	$ 83,023	$ 282,729	$ 259,084
China
Geographic Information [Line Items]
Revenues	43,935	29,433	112,170	75,686
United States
Geographic Information [Line Items]
Revenues	15,913	12,429	45,880	40,352
Mexico
Geographic Information [Line Items]
Revenues	10,015	8,139	36,549	31,029
Malaysia
Geographic Information [Line Items]
Revenues	7,986	10,845	24,146	40,306
Italy
Geographic Information [Line Items]
Revenues	6,353	6,429	20,242	17,332
Germany
Geographic Information [Line Items]
Revenues	5,686	5,781	14,638	20,168
Japan
Geographic Information [Line Items]
Revenues	2,167	2,189	5,133	7,637
Rest of world
Geographic Information [Line Items]
Revenues	$ 8,995	$ 7,778	$ 23,971	$ 26,574

GEOGRAPHIC INFORMATION, PRODU62

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Product Group (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015
Segment Information [Line Items]
Revenues	$ 101,050	$ 83,023	$ 282,729	$ 259,084
100 Gb/s transmission modules
Segment Information [Line Items]
Revenues	58,569	30,221	148,951	85,221
40 Gb/s and lower transmission modules
Segment Information [Line Items]
Revenues	42,481	52,802	133,778	164,499
Industrial and consumer
Segment Information [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 9,364

GEOGRAPHIC INFORMATION, PRODU63

GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION - Additional Information (Details) - customer	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 26, 2016	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015	Jun. 27, 2015
Revenues
Revenue, Major Customer [Line Items]
Number of major customers	4	4	3	3
Revenues | Customer A
Revenue, Major Customer [Line Items]
Percentage of revenues	20.00%	19.00%	19.00%	22.00%
Revenues | Customer B
Revenue, Major Customer [Line Items]
Percentage of revenues	14.00%	16.00%	14.00%	14.00%
Revenues | Customer C
Revenue, Major Customer [Line Items]
Percentage of revenues	12.00%	11.00%	10.00%	10.00%
Revenues | Customer D
Revenue, Major Customer [Line Items]
Percentage of revenues	11.00%	10.00%
Accounts Receivable
Revenue, Major Customer [Line Items]
Number of major customers			4		4
Accounts Receivable | Customer A
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	21.00%		21.00%		24.00%
Accounts Receivable | Customer B
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	19.00%		19.00%		13.00%
Accounts Receivable | Customer C
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	13.00%		13.00%		11.00%
Accounts Receivable | Customer D
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	11.00%		11.00%		11.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Affiliated Entity - Hitachi Ltd - USD ($) shares in Millions, $ in Millions	3 Months Ended			9 Months Ended
	Mar. 26, 2016	Dec. 26, 2015	Mar. 28, 2015	Mar. 26, 2016	Mar. 28, 2015	Jun. 27, 2015
Related Party Transaction [Line Items]
Percentage of outstanding common stock (less than)	5.00%			5.00%
Number of shares sold by Hitachi		6.6
Sales to Hitachi	$ 1		$ 1.2	$ 2.9	$ 3.1
Purchases from Hitachi	5.8		$ 4.2	16.2	$ 11.5
Accounts receivable due from Hitachi	1.3			1.3		$ 0.7
Accounts payable due to Hitachi	$ 5.5			$ 5.5		$ 4.8