Oclaro 10-Q 8 Nov 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 29, 2018	Nov. 05, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 29, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Trading Symbol	OCLR
Entity Registrant Name	OCLARO, INC.
Entity Central Index Key	1,110,647
Current Fiscal Year End Date	--06-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		171,609,087

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 337,920	$ 245,688
Short-term investments	3,997	77,440
Accounts receivable, net of allowances for doubtful accounts of $1,458 and $1,393 as of September 29, 2018 and June 30, 2018, respectively	108,720	100,482
Inventories	89,779	106,678
Prepaid expenses and other current assets	36,178	35,175
Total current assets	576,594	565,463
Property and equipment, net	131,721	137,438
Other intangible assets, net	19	61
Deferred tax assets	17,192	16,625
Other non-current assets	1,514	1,212
Total assets	727,040	720,799
Current liabilities:
Accounts payable	69,281	68,221
Accrued expenses and other liabilities	36,321	41,686
Capital lease obligations, current	530	2,386
Total current liabilities	106,132	112,293
Deferred gain on sale-leaseback	4,962	5,193
Capital lease obligations, non-current	702	857
Other non-current liabilities	10,373	10,440
Total liabilities	122,169	128,783
Commitments and contingencies (Note 6)
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; 171,601 shares issued and outstanding at September 29, 2018 and 170,675 shares issued and outstanding at June 30, 2018	1,715	1,706
Additional paid-in capital	1,705,945	1,703,331
Accumulated other comprehensive income	42,550	42,547
Accumulated deficit	(1,145,339)	(1,155,568)
Total stockholders’ equity	604,871	592,016
Total liabilities and stockholders’ equity	$ 727,040	$ 720,799

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,458	$ 1,393
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	275,000,000
Common stock, shares issued	171,601,000	170,675,000
Common stock, shares outstanding	171,601,000	170,675,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenues	$ 131,658	$ 155,598
Cost of revenues	86,064	92,894
Gross profit	45,594	62,704
Operating expenses:
Research and development	16,162	16,435
Selling, general and administrative	16,389	14,866
Amortization of other intangible assets	42	152
Restructuring and acquisition-related expenses	800	0
Loss on disposal of property and equipment	777	22
Total operating expenses	34,170	31,475
Operating income	11,424	31,229
Other income (expense):
Interest income (expense), net	200	434
(Loss) gain on foreign currency transactions, net	(193)	489
Other income (expense), net	1,357	574
Total other income (expense)	1,364	1,497
Income before income taxes	12,788	32,726
Income tax provision	2,559	6,237
Net income	$ 10,229	$ 26,489
Net income per share:
Basic (in USD per share)	$ 0.06	$ 0.16
Diluted (in USD per share)	$ 0.06	$ 0.16
Shares used in computing net income per share:
Basic (in shares)	171,046	168,137
Diluted (in shares)	173,127	170,849

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 10,229	$ 26,489
Other comprehensive income:
Unrealized gain on marketable securities	3	7
Currency translation adjustments	0	1,495
Total comprehensive income	$ 10,232	$ 27,991

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 10,229	$ 26,489
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred gain on sale-leaseback	(191)	(196)
Accretion of premiums on short-term investments	(54)	0
Depreciation and amortization	8,463	6,347
Change in deferred tax assets, net	(567)	5,745
Stock-based compensation expense	4,004	3,199
Loss on disposal of property and equipment	777	22
Other non-cash adjustments	40	0
Changes in operating assets and liabilities:
Accounts receivable, net	(8,303)	1,787
Inventories	17,188	(1,523)
Prepaid expenses and other current assets	(1,003)	(5,737)
Other non-current assets	(302)	(735)
Accounts payable	1,271	11,746
Accrued expenses and other liabilities	(5,434)	121
Net cash provided by operating activities	26,118	47,265
Cash flows from investing activities:
Purchases of property and equipment	(3,882)	(22,072)
Purchases of short-term investments	0	(74,871)
Maturities of short-term investments	73,500	25,500
Net cash provided by (used in) investing activities	69,618	(71,443)
Cash flows from financing activities:
Proceeds from the exercise of stock options	256	325
Shares repurchased for tax withholdings on vesting of restricted stock units	(1,926)	(1,756)
Payments on capital lease obligations	(1,780)	(168)
Net cash used in financing activities	(3,450)	(1,599)
Effect of exchange rate on cash, cash equivalents and restricted cash	(54)	(1,522)
Net increase (decrease) in cash, cash equivalents and restricted cash	92,232	(27,299)
Cash, cash equivalents and restricted cash at beginning of period	245,688	219,987
Cash, cash equivalents and restricted cash at end of period	337,920	192,688
Supplemental disclosures of non-cash transactions:
Unpaid property and equipment in accounts payable	5,722	5,934
Capital lease obligations incurred for purchases of property and equipment	$ 206	$ 0

BASIS OF PREPARATION

BASIS OF PREPARATION	3 Months Ended
	Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PREPARATION	BASIS OF PREPARATION Basis of Presentation Oclaro, Inc., a Delaware corporation, is sometimes referred to in this Quarterly Report on Form 10-Q as “Oclaro,” “we,” “us” or “our.” The accompanying unaudited condensed consolidated financial statements of Oclaro as of September 29, 2018 and for the three months ended September 29, 2018 and September 30, 2017 have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Oclaro and all of our subsidiaries. Accordingly, they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our consolidated financial position and results of operations have been included. The condensed consolidated results of operations for the three months ended September 29, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending June 29, 2019 . The condensed consolidated balance sheet as of June 30, 2018 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 30, 2018 (" 2018 Form 10-K"). Merger On March 11, 2018, Lumentum Holdings Inc., a Delaware corporation (“Lumentum”), Oclaro, Prota Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Lumentum (“Merger Sub”), and Prota Merger, LLC, a Delaware limited liability company and a wholly owned subsidiary of Lumentum (“Merger Sub LLC”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, the acquisition of Oclaro will be accomplished through a merger of Merger Sub with and into Oclaro (the “First Step Merger”) with Oclaro surviving the First Step Merger. As soon as reasonably practicable following the First Step Merger, Oclaro will merge with and into Merger Sub LLC with Merger Sub LLC continuing as the surviving entity and a wholly owned subsidiary of Lumentum (the “Second Step Merger,” and taken together with the First Step Merger, the “Merger”). Pursuant to the terms of the Merger Agreement, and subject to the terms and conditions set forth therein, at the effective time of the First Step Merger (the “Effective Time”), each share of the common stock of Oclaro (the “Oclaro Common Stock”) issued and outstanding immediately prior to the Effective Time (other than (x) shares of Oclaro Common Stock owned by Lumentum, Oclaro, or any direct or indirect wholly owned subsidiary of Lumentum or Oclaro or (y) shares of Oclaro Common Stock owned by stockholders who have properly exercised and perfected appraisal rights under Delaware law, in each case immediately prior to the Effective Time, will be cancelled and extinguished and automatically converted into the right to receive the following consideration (collectively, the “Merger Consideration”): (A) $5.60 in cash, without interest (the “Cash Consideration”), plus (B) 0.0636 of a validly issued, fully paid and nonassessable share of the common stock of Lumentum, par value $0.001 per share (“Lumentum Common Stock”) (such ratio, the “Exchange Ratio”). With regard to the Merger Consideration, if the aggregate number of shares of Lumentum Common Stock to be issued in connection with the Merger (including all Lumentum Common Stock which may be issued in the future pursuant to the conversion of Oclaro Options, Oclaro Restricted Stock Units, or Oclaro Restricted Stock (as defined below) would exceed 19.9 percent of the Lumentum Common Stock issued and outstanding immediately prior to the Effective Time (the “Stock Threshold”), (A) the Exchange Ratio will be reduced to the minimum extent necessary (rounded down to the nearest one thousandth) such that the aggregate number of shares of Lumentum Common Stock to be issued in connection with the Merger (including all shares of Lumentum Common Stock which may be issued after the Effective Time pursuant to company compensatory awards) does not exceed the Stock Threshold and (B) the Cash Consideration for all purposes will be increased on a per share basis by an amount equal to $68.975 , multiplied by the difference between the initial Exchange Ratio and the Exchange Ratio. Each Oclaro restricted stock unit award (an “Oclaro RSU”) that does not become vested at the closing will be converted into a Lumentum restricted stock unit award (a “Lumentum RSU”) with the same terms and conditions, including vesting, that were applicable to such Oclaro RSU, except that the number of Lumentum shares subject to the Lumentum RSU will equal the product of (i) the number of Oclaro shares subject to such Oclaro RSU (with any performance milestones deemed achieved based on the maximum level of achievement) multiplied by (ii) the sum of (A) the Exchange Ratio plus (B) the quotient obtained by dividing the Cash Consideration by Lumentum’s average closing price of the 10 trading days ending on the third trading day prior to the closing (such sum, the “Equity Award Exchange Ratio”), rounded down to the nearest whole share. Each Oclaro stock option (an “Oclaro Option”), whether vested or unvested, will be converted into a Lumentum stock option (a “Lumentum Option”) with the same terms and conditions, including vesting, that were applicable to such Oclaro Option, except that (i) the number of shares subject to the Lumentum Option will equal the product of (A) the number of Oclaro shares subject to such Oclaro Option multiplied by (B) the Equity Award Exchange Ratio, rounded down to the nearest whole share and (ii) the exercise price of the Lumentum Option will equal (A) the exercise price per share of the Oclaro Option divided by (B) the Equity Award Exchange Ratio, rounded up to the nearest whole cent. Notwithstanding the foregoing, any Oclaro Option that is held by an individual who is not an Oclaro employee as of immediately prior to the closing will be canceled and converted into the Merger Consideration for each net option share covered by such Oclaro Option, subject to applicable withholding taxes. In addition, each Oclaro restricted stock award (“Oclaro Restricted Stock Award”) and Oclaro RSU that becomes vested as of immediately prior to the closing (including each Oclaro Restricted Stock Award held by a non-employee director) will be converted into the right to receive the Merger Consideration in respect of each Oclaro share underlying such award, subject to applicable withholding taxes. Each Oclaro stock appreciation right (“Oclaro SAR”) will be canceled and converted into the right to receive a cash amount equal to the product of (i) the number of Oclaro shares subject to the Oclaro SAR multiplied by (ii) the positive difference of (A) the cash equivalent value of the Merger Consideration less (B) the strike price of the Oclaro SAR, subject to applicable withholding taxes. If Lumentum determines that the treatment of Oclaro equity awards described above would violate, in respect of the holder thereof, the applicable laws of a non-U.S. jurisdiction, Lumentum may treat such Oclaro equity award in a different manner so long as such treatment is no less favorable to the holder of such Oclaro equity award. The Boards of Directors of Lumentum and Oclaro have unanimously approved the Merger and the Merger Agreement. The transaction is subject to customary closing conditions, including the absence of certain legal impediments, the expiration or termination of the required waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act") and under applicable anti-trust laws in China, the effectiveness of a registration statement on Form S-4 registering the shares of Lumentum common stock to be issued in connection with the Merger, and approval of the Merger Agreement by the holders of a majority of the outstanding shares of Oclaro Common Stock. The transaction is not subject to any financing condition. On April 4, 2018, the U.S. Federal Trade Commission granted early termination of the waiting period under the HSR Act. On July 10, 2018, Oclaro's stockholders approved the Merger Agreement. The Merger Agreement contains customary representations, warranties and covenants of Lumentum, Oclaro, Merger Sub and Merger Sub LLC, including, (i) covenants by Oclaro concerning the conduct of its business in the ordinary course consistent with past practice during the interim period between the execution of the Merger Agreement and the consummation of the Merger, (ii) covenants by Lumentum concerning the conduct of its business in the ordinary course consistent with past practice during the interim period between the execution of the Merger Agreement and the consummation of the Merger, (iii) a covenant by Oclaro that, subject to certain exceptions, the Board of Directors of Oclaro will recommend to its shareholders adoption of the Merger Agreement, and (iv) a covenant that Oclaro will not solicit, initiate, or knowingly encourage, facilitate or induce the making of inquiry, offer or proposal that would reasonably be expected to lead to any Acquisition Proposal (as defined in the Merger Agreement). Further, the Merger Agreement prohibits us from paying dividends. The Merger Agreement contains certain termination rights for both Lumentum and Oclaro and further provides that upon termination of the Merger Agreement under specified circumstances (including termination by Oclaro to accept a superior proposal), Oclaro may be required to pay Lumentum a termination fee of $63 million . The Merger Agreement further provides that upon termination of the Merger Agreement under specified circumstances relating to failure to obtain regulatory approvals, Lumentum may be required to pay Oclaro a termination fee of $80 million . During the three months ended September 29, 2018 , we recorded acquisition-related costs of $0.3 million in restructuring and acquisition-related expenses within our condensed consolidated statements of operations. During the three months ended September 30, 2017 , we recorded no acquisition-related costs in restructuring and acquisition-related expenses. Termination of Denial Order and Reinstitution of ZTE's Export Privileges On April 16, 2018, the U.S. Department of Commerce ("DOC") changed and reactivated its previously suspended denial order and suspended the export privileges of Zhongxing Telecommunications Equipment Corporation ("ZTE Corporation") and its subsidiary, ZTE Kangxun Telecommunications Ltd. ("ZTE Kangxun") (collectively, "ZTE") after determining that ZTE made false statements to the DOC related to senior employee disciplinary actions ("Denial Order"). On July 13, 2018, following approval of a settlement agreement between the DOC and ZTE and ZTE's payment of certain amounts to the DOC, the Denial Order was terminated and ZTE was removed from the DOC's Denied Persons List. During the pendency of the Denial Order, ZTE was prohibited from participating in any way in any transaction subject to the Export Administration Regulations ("EAR") and U.S. companies were restricted from exporting or re-exporting to or on behalf of ZTE any item subject to the EAR or engaging in any transaction to service any item subject to the EAR that has been or will be exported from the U.S. and which was owned, possessed or controlled by ZTE. During the pendency of the Denial Order, we ceased shipment of products to ZTE, which has been one of our significant customers. During the first quarter of our fiscal 2019, we resumed shipments of products to ZTE. During the three months ended September 29, 2018 , we recorded a $0.5 million net benefit related to inventory that was sold in the quarter that had previously been written-down because of the uncertainty of whether it would be sold to ZTE or re-allocated to other customers. 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 valuation allowances for deferred tax assets, the fair value of stock-based compensation, the fair value of pension 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 2018 Form 10-K. Fiscal Years We operate on a 52/53 week year ending on the Saturday closest to June 30. Our fiscal year ending June 29, 2019 will be a 52 week year, with the quarter ended September 29, 2018 being a 13 week quarterly period. Our fiscal year ended June 30, 2018 was a 52 week year, with the quarter ended September 30, 2017 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, including an adjustment relating to an immaterial error of approximately $10.4 million , increasing cash flows from operations associated with changes in accounts payable and increasing cash flows used in investing activities associated with purchases of property and equipment, in our condensed consolidated statement of cash flows for the three months ended September 30, 2017 . We determined that the adjustment did not have a material impact to our prior period condensed consolidated financial statements. In connection with our adoption of Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows: Restricted Cash , we adjusted the beginning-of-period and end-of-period cash and cash equivalent balances within the condensed consolidated statement of cash flows for the three months ended September 30, 2017 to include restricted cash. The impact of this adoption was an increase of $0.4 million in net cash used in investing activities, an increase of $0.7 million to the beginning-of-period cash, cash equivalents and restricted cash balance and an increase of $0.3 million to the end-of-period cash, cash equivalents and restricted cash balance for the three months ended September 30, 2017 . None of these reclassifications affect our consolidated revenues, net income, cash and cash equivalents or stockholders’ equity as previously reported. Functional Currency Effective October 1, 2017, the functional currency for our worldwide operations is the U.S. dollar. Prior to October 1, 2017, the functional currency for each of our foreign subsidiaries was the respective local currency for that subsidiary. The change in our functional currency is a result of significant changes in economic facts and circumstances, including (i) a re-organization of our operating environment, which includes consolidating and integrating our sales, supply chain and manufacturing organizations; (ii) a transition to centrally negotiating worldwide supplier contracts and capital expenditures in U.S. dollars; and (iii) a shift to recording all intercompany transactions in U.S. dollars. Translation adjustments reported prior to October 1, 2017, remain as a component of accumulated other comprehensive income in our condensed consolidated balance sheet. The translated values for any non-monetary assets and liabilities as of October 1, 2017 became the new accounting basis for those assets. Effective October 1, 2017, monetary assets and liabilities denominated in currencies other than the U.S. dollar functional currency are re-measured each reporting period into U.S. dollars, with the resulting exchange gains and losses reported in (loss) gain on foreign currency transactions, net within our condensed consolidated statement of operations.

RECENT ACCOUNTING STANDARDS

RECENT ACCOUNTING STANDARDS	3 Months Ended
	Sep. 29, 2018
Accounting Policies [Abstract]
RECENT ACCOUNTING STANDARDS	RECENT ACCOUNTING STANDARDS Recently Adopted Accounting Standards Revenue Recognition In May 2014 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , respectively. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes previous revenue recognition guidance. We adopted this guidance on July 1, 2018, the start to our first quarter of fiscal 2019, using the modified retrospective method. There was no cumulative catch-up adjustment upon adoption of this guidance. Our revenue from contracts with customers is generated through the sale of products, which consists of a single performance obligation. We recognize revenue at a point in time in an amount that reflects the fair value of the consideration to be received for the products sold, net of sales tax and other tax amounts collected from customers for remittance to governmental authorities. We elected to account for shipping and handling activities as a fulfillment cost. Our contracts with customers are typically comprised of a customer purchase order and/or an executed agreement. Our payment terms vary by customer and location, however, the time period between when revenue is recognized and when payment is due is not significant. Before accepting a new customer, we review publicly available information and credit rating databases to provide ourselves with reasonable assurance that the new customer will pay all outstanding amounts in accordance with our standard terms. For existing customers, we monitor historic payment patterns and we perform ongoing credit evaluations to assess whether we can expect payment in accordance with the terms set forth in the agreement under which the sale was made. We satisfy the performance obligation and record revenues when transfer of control of our product has passed to the customer. We specify delivery terms in the agreement under which the sale was made and assess each shipment against those terms, and only recognize revenue when we are certain that the delivery terms have been met and transfer of control has occurred. Our sales terms do not allow for a right of return, except for matters related to manufacturing defects, which are covered under our warranty. Our warranties are considered an assurance-only type of service. See Note 11, Geographic Information, Product Groups, Market Applications and Customer Concentration Information , for a presentation of revenue disaggregated by geography and product group. We elected to apply the practical expedient to recognize the incremental costs of obtaining a contract, specifically sales commissions and other contract administration costs, when incurred because the amortization period for these costs is one year or less. Cash Flows In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash to standardize the presentation of transfers between cash and restricted cash in the cash flow statement. We adopted this guidance in the first quarter of 2019, and as a result, restricted cash has been included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets for the periods indicated that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: September 29, 2018 September 30, 2017 (Thousands) Cash and cash equivalents $ 337,920 $ 192,420 Restricted cash — 268 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 337,920 $ 192,688 Recent Accounting Standards Pending Adoption In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework , which amends the disclosure requirements for single-employer defined benefit plans, removing disclosures that are not considered cost-beneficial, clarifying the specific requirements of disclosures, and adding disclosure requirements identified as relevant. The guidance will be effective for us at the end of fiscal 2021, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework , which aims to improve the effectiveness of fair value measurement disclosures. The amendments ASU-2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements , including the consideration of costs and benefits. The guidance will be effective for us in the first quarter of fiscal 2021, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures. In February 2016, the FASB issued ASU 2016-02, Leases , which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-11, Leases: Targeted Improvements , which provide entities with an additional (and optional) transition method to adopt the new lease requirements by allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The guidance also provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if certain conditions are met. This guidance will be effective for us in the first quarter of fiscal 2020, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The guidance will be effective for us in the first quarter of fiscal 2020, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures.

BALANCE SHEET DETAILS

BALANCE SHEET DETAILS	3 Months Ended
	Sep. 29, 2018
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: September 29, 2018 June 30, 2018 (Thousands) Cash and cash equivalents: Cash-in-bank $ 64,686 $ 88,297 Money market funds 273,234 153,392 Commercial paper — 3,999 $ 337,920 $ 245,688 As of September 29, 2018 , $49.3 million of the $337.9 million of our cash and cash equivalents was held by our foreign subsidiaries. If these funds are needed for our operations in the United States, we could be required to accrue and pay additional taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S., except for specific entities in China and Germany where we decided to exit certain businesses. Short-Term Investments The following table provides details regarding our short-term investments at the dates indicated: September 29, 2018 June 30, 2018 Short-term investments (Thousands) U.S. Treasury securities $ 3,997 $ 31,939 Commercial paper — 41,401 Corporate bonds — 4,100 $ 3,997 $ 77,440 Inventories The following table provides details regarding our inventories at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Inventories: Raw materials $ 23,898 $ 30,488 Work-in-process 47,737 54,503 Finished goods 18,144 21,687 $ 89,779 $ 106,678 Property and Equipment, Net The following table provides details regarding our property and equipment, net at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Property and equipment, net: Buildings and improvements $ 12,086 $ 12,086 Plant and machinery 139,248 137,301 Fixtures, fittings and equipment 3,526 3,526 Computer equipment 22,420 22,721 177,280 175,634 Less: Accumulated depreciation (45,559 ) (38,196 ) $ 131,721 $ 137,438 Property and equipment includes assets under capital leases of $1.2 million and $3.2 million at September 29, 2018 and June 30, 2018 , respectively. Amortization associated with assets under capital leases is recorded in depreciation expense. During the three months ended September 29, 2018 , we recorded a loss on disposal of property and equipment of $0.8 million , related to the disposal of equipment related to certain legacy data communication products. Accrued Expenses and Other Liabilities The following table presents details regarding our accrued expenses and other liabilities at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Accrued expenses and other liabilities: Compensation and benefits related accruals $ 13,684 $ 14,167 Warranty accrual 3,861 3,879 Purchase commitments in excess of future demand, current 3,097 6,321 Deferred rent 2,018 2,040 Other accruals 13,661 15,279 $ 36,321 $ 41,686 Accumulated Other Comprehensive Income The following table presents the components of accumulated other comprehensive income at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Accumulated other comprehensive income: Currency translation adjustments $ 42,626 $ 42,626 Unrealized loss on marketable securities (1 ) (4 ) Japan defined benefit plan (101 ) (101 ) Other 26 26 $ 42,550 $ 42,547

FAIR VALUE

FAIR VALUE	3 Months Ended
	Sep. 29, 2018
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 and short-term investment instruments are generally classified within Level 1 or Level 2 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 money market funds, which are generally classified within Level 1 of the fair value hierarchy. The types of instruments valued based on other observable inputs include investment-grade corporate bonds, commercial paper, U.S. Treasury and agency securities, which are generally classified within Level 2 of the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments at September 29, 2018 and June 30, 2018 : Fair Value Measurement at September 29, 2018 Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds $ 273,234 $ — $ — $ 273,234 Short-term investments: U.S. Treasury securities — 3,997 — 3,997 Total assets measured at fair value $ 273,234 $ 3,997 $ — $ 277,231 (1) Excludes $64.7 million in cash held in our bank accounts at September 29, 2018 . Fair Value Measurement at June 30, 2018 Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds $ 153,392 $ — $ — $ 153,392 Commercial paper — 3,999 — 3,999 Short-term investments: Commercial paper — 41,401 — 41,401 Corporate bonds — 4,100 — 4,100 U.S. Treasury securities — 31,939 — 31,939 Total assets measured at fair value $ 153,392 $ 81,439 $ — $ 234,831 (1) Excludes $88.3 million in cash held in our bank accounts at June 30, 2018 .

POST-RETIREMENT BENEFITS

POST-RETIREMENT BENEFITS	3 Months Ended
	Sep. 29, 2018
Retirement Benefits [Abstract]
POST-RETIREMENT BENEFITS	POST-RETIREMENT BENEFITS We maintain a defined contribution plan and a defined benefit plan that provides retirement benefits to our employees in Japan. We also contribute to a U.K. based defined contribution pension scheme for employees. Japan Defined Contribution Plan Under the defined contribution plan in Japan, contributions are provided based on grade level and totaled $0.1 million and $0.1 million for the three months ended September 29, 2018 and September 30, 2017 , respectively. Employees can elect to receive the benefit as additional salary or contribute the benefit to the plan on a tax-deferred basis. Japan Defined Benefit Plan Under the defined benefit plan in Japan (the “Japan Plan”), we calculate benefits based on an employee’s individual grade level and years of service. Employees are entitled to a lump sum benefit upon retirement or upon certain instances of termination. As of September 29, 2018 , there were no plan assets associated with the Japan Plan. As of September 29, 2018 , there was $0.3 million in accrued expenses and other liabilities and $6.7 million in other non-current liabilities in our condensed consolidated balance sheet to account for the projected benefit obligations under the Japan Plan. Net periodic pension costs for the Japan Plan included the following: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Service cost $ 157 $ 157 Interest cost 5 5 Net periodic pension costs $ 162 $ 162 We made $0.1 million in benefit payments under the Japan Plan during the three months ended September 29, 2018 . We made no benefit payments during the three months ended September 30, 2017 . U.K. Defined Contribution Pension Scheme Under the defined contribution pension scheme, employer contributions totaled $0.3 million and $0.3 million for the three months ended September 29, 2018 and September 30, 2017 , respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 29, 2018
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. See Litigation - Oyster Optics Litigation below for additional details. Warranty Accrual We generally provide a warranty for our products for twelve months to thirty-six months from the date of sale, although warranties for certain of our products may be longer. We accrue for the estimated costs to provide warranty services at the time revenue is recognized. Our estimate of costs to service our warranty obligations is based on historical experience and expectation of future conditions. To the extent we experience increased warranty claim activity or increased costs associated with servicing those claims, our warranty costs would increase, resulting in a decrease in gross profit. The following table summarizes movements in the warranty accrual for the periods indicated: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Warranty provision—beginning of period $ 3,879 $ 4,124 Warranties issued 105 216 Warranties utilized or expired (112 ) (120 ) Currency translation and other adjustments (11 ) 51 Warranty provision—end of period $ 3,861 $ 4,271 Capital Leases In connection with our acquisition of Opnext on July 23, 2012, we assumed capital leases for certain capital equipment, which had lease terms that ranged from one to five years , and provided us with the option to purchase the equipment at the residual value upon expiration. For certain of these capital leases in Japan, we have entered into one year extensions. During the first quarter of fiscal 2019, we negotiated an early buyout of the remaining $2.0 million of these leases. In October 2015, we entered into a capital lease agreement for certain capital equipment. The lease term is for 5 years, after which time the ownership of the equipment will transfer from the lessor to us. During the lease term, we will make twenty equal installments of principal and interest, payable quarterly. Interest on the capital lease will accrue at 1.15 percent per annum. The following table shows the future minimum lease payments due under non-cancelable capital leases at September 29, 2018 : Capital Leases (Thousands) Fiscal Year Ending: 2019 (remaining) $ 419 2020 598 2021 258 2022 — 2023 — Thereafter — Total minimum lease payments 1,275 Less amount representing interest (43 ) Present value of capitalized payments 1,232 Less: current portion (530 ) Long-term portion $ 702 Purchase Commitments We purchase components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with suppliers and contract manufacturers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consist of firm, non-cancelable and unconditional commitments. We record a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of September 29, 2018 and June 30, 2018 , the liability for these purchase commitments was $3.1 million and $6.3 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 $2.5 million . These claims were made in connection with the export of finished goods from our contract manufacturing partner’s Malaysian facilities. We are currently appealing the denial of these claims, and believe that additional options may be available to us if we do not obtain a favorable resolution. 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, we may not be able to recover some of these GST amounts. Of the $2.5 million in GST claims, we recorded $0.7 million in prepaid expenses and other current assets in our condensed consolidated balance sheet at September 29, 2018 , net of reserves and certain offsetting payments from our contract manufacturing partner. 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, and even if we are ultimately successful in defending these claims, such claims may be expensive to defend and could distract our management team from other important business matters. Oyster Optics Litigation On November 23, 2016, Oyster Optics LLC (“Oyster”) filed a civil suit against Cisco Systems, Inc. (“Cisco”) and British Telecommunications PLC (“BT”), in the U.S. District Court for the Eastern District of Texas, Marshall Division, Case No. 2:16-CV-01301. In the complaint, Oyster alleges that Cisco and BT infringed seven patents owned by Oyster, which patents allegedly relate to certain Cisco optical platform products, some of which may incorporate Oclaro components. Oyster subsequently dismissed its claim against BT without prejudice. In January 2017, Cisco requested that Oclaro indemnify and defend it in this litigation, pursuant to our commercial agreements with Cisco. In May 2017, Oclaro and Cisco preliminarily agreed to an allocation of the responsibilities for the costs of defense associated with Oyster’s claims. However, due to the uncertainty regarding the infringement allegations that Oyster may present at trial and the resultant uncertainty regarding the number of Oclaro components that may be implicated by such infringement allegations, Oclaro and Cisco agreed to defer until the conclusion of the litigation the final determination of whether and to what extent Oclaro will indemnify Cisco for any amounts Cisco may be required to pay Oyster and Cisco’s related defense costs. After discovery, Oyster’s infringement case against Cisco involved claims of only one patent and did not involve Oclaro components that were the subject of our commercial agreements with Cisco. In June of 2018, Cisco communicated its determination that the Oyster litigation against it did not involve Oclaro. On October 25, 2018, the Court granted Oyster and Cisco’s joint motion to stay all deadlines in their case; as a result, no trial date is currently set. On November 1, 2018, Oyster and Cisco jointly moved to sever "all claims not resolved by the Court’s Order Granting Defendants’ Motion for Partial Summary Judgment Regarding Their Release Defense (Dkt. 826, sealed) . . . including any possible supplement or clarification thereto." They also jointly moved for those new actions to be stayed and administratively closed pending the resolution of any appeals from Oyster's current litigation with Cisco. Oyster and Cisco also jointly moved on November 1st for entry of final judgment in favor of Cisco and against Oyster, indicating that "[a]ssuming the Court grants the parties' contemporaneously filed motion to sever, there are no remaining issues in the [Oyster-Cisco] litigation to be resolved." Between June and September of 2017, Cisco and Oclaro filed eleven Petitions for inter partes review with the U.S. Patent Office of claims in six of the patents that Oyster originally asserted against Cisco. The Patent Office eventually instituted inter partes review for eight of the eleven Petitions involving claims of five of the six patents. Trials for the instituted Petitions are ongoing. On November 24, 2016, Oyster also filed a civil suit against Coriant America Inc. (“Coriant”) in the U.S. District Court for the Eastern District of Texas, Marshall Division, Case No. 2:16-cv-01302. In the complaint against Coriant, Oyster alleges that Coriant has infringed the same seven patents that were asserted against Cisco. On May 18, 2017, Oyster’s case against Coriant was consolidated with cases that Oyster brought against other parties, including Cisco. On December 21, 2017, Coriant requested that Oclaro indemnify and defend it in this litigation, pursuant to our commercial agreements with Coriant. Oclaro has refused this request for reasons including that Oyster’s claims against Coriant do not clearly implicate Oclaro products and that Coriant’s request was not timely made. Coriant has stated its disagreement with this position. As a result, Oclaro may have further discussions with Coriant regarding Coriant’s request for defense and indemnification. Oyster and Coriant informed the Court on April 12, 2018, that “all matters in controversy between the parties have been settled, in principle.” On July 3, 2018, the Court granted a joint motion from Oyster and Coriant to dismiss their case with prejudice. Oyster also filed a civil suit on November 24, 2016 against Ciena Corporation (“Ciena”) in the U.S. District Court for the Eastern District of Texas, Marshall Division, Case No. 2:16-CV-01300. In the complaint against Ciena, Oyster alleges that Ciena has infringed the same seven patents that were asserted against Cisco. Oyster’s case against Ciena was later transferred to the Northern District of California which granted a motion that Ciena filed to stay the case pending inter partes review of the Oyster patents. On June 1, 2018, the parties filed a joint status report reporting on the status of the inter partes review proceedings. Also on June 1, 2018, counsel for Oyster wrote the Court a letter indicating that because there are no further proceedings in the PTAB concerning one of the asserted patents, that Oyster requested that the litigation move forward as to the asserted claims of that patent only and that the Court set a scheduling conference. On June 4, 2018, the Court indicated that Oyster should file a noticed motion for any such relief and the case currently remains stayed. On October 16, 2017, Ciena requested that Oclaro indemnify and defend it in this litigation, pursuant to our commercial agreements with Ciena. Oclaro refused this request for reasons including that Oyster's claims against Ciena do not clearly implicate Oclaro products and that Ciena's request was not timely made. Ciena has stated its disagreement with this position. As a result, discussions with Ciena regarding Ciena’s request for defense and indemnification have not completed. Oclaro Merger Litigation Following announcement of the execution of the Merger Agreement on March 12, 2018, seven lawsuits were filed by purported stockholders of Oclaro challenging its proposed acquisition by Lumentum, Inc. The first suit, a putative class action styled as Nicholas Neinast v. Oclaro, Inc., et al. , No. 3:18-cv-03112-VC, was filed in the United States District Court for the Northern District of California on May 24, 2018, and was against Oclaro, its directors, Lumentum, Merger Sub, and Merger Sub LLC (the “ Neinast Lawsuit”). Five additional suits, styled as Gerald F. Wordehoff v. Oclaro, Inc., et al. , No. 5:18-cv-03148-NC (the “ Wordehoff Lawsuit”), Walter Ryan v. Oclaro, Inc., et al. , No. 3:18-cv-03174-VC (the “ Ryan Lawsuit”), and Jayme Walker v. Oclaro, Inc., et al., No. 3:18-cv-03203 (the “ Walker Lawsuit”), Kevin Garcia v. Oclaro, Inc., et al. , No. 5:18-cv-03262-VKD (the “ Garcia Lawsuit”), and Saisravan Bharadwaj Karri v. Oclaro, Inc., et al ., No. 3:18-cv-03435-JD (the “ Karri Lawsuit”) were also filed in the United States District Court for the Northern District of California on, respectively, May 25, 2018, May 29, 2018, May 30, 2018, May 31, 2018 and June 9, 2018. Each of the lawsuits name Oclaro and its directors as defendants. The Ryan Lawsuit and the Karri Lawsuit, like the Neinast Lawsuit, were putative class actions. A seventh suit, a putative class action styled as Adam Franchi v. Oclaro, Inc., et al ., Case 1:18-cv-00817-GMS, was filed in the United States District Court for the District of Delaware on May 30, 2018, and was against Oclaro, its directors, Lumentum, Merger Sub, and Merger Sub LLC (the “ Franchi Lawsuit” and, with the Neinast Lawsuit, the Wordehoff Lawsuit, the Ryan Lawsuit, the Walker Lawsuit, the Garcia Lawsuit, and the Karri Lawsuit, the “Lawsuits”). The Lawsuits alleged that Oclaro and its directors violated Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder because the Proxy Statement/Prospectus was incomplete and misleading. The Lawsuits further alleged that Oclaro’s directors violated Section 20(a) of the Exchange Act by failing to exercise proper control over the person(s) who violated Section 14(a) of the Exchange Act. The Neinast Lawsuit additionally alleged that Oclaro’s directors breached fiduciary duties by entering into the Merger, and also names Lumentum, Merger Sub, and Merger Sub LLC as violators of Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder. The Franchi Lawsuit additionally named Lumentum, Merger Sub, and Merger Sub LLC as violators of Section 20(a) of the Exchange Act. The Lawsuits sought, among other things, injunctive relief preventing the parties from consummating the merger, rescission of the transactions contemplated by the Merger Agreement should they be consummated, and litigation costs, including attorneys’ fees. The Lawsuits also sought damages to be awarded to the plaintiff and any class if the Merger were consummated. In addition, the Wordehoff Lawsuit sought injunctive relief directing defendants to disseminate a true and complete proxy statement/prospectus and declaratory relief that defendants violated Sections 14(a) and/or 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder. To avoid the risk of the Lawsuits delaying or adversely affecting the Merger and to minimize the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing and believing that the initial Proxy Statement/Prospectus disclosed all material information concerning the Merger and no supplemental disclosure was required under applicable law, Oclaro voluntarily filed with the SEC a supplement to the Proxy Statement/Prospectus on June 29, 2018. Thereafter, on July 25, 2018, the plaintiff in the Garcia Lawsuit dismissed his action, with prejudice as to the individual plaintiff. The plaintiffs in the Neinast , Franchi , Wordehoff , and Ryan Lawsuits dismissed these actions, with prejudice as to the respective individual plaintiffs, on July 27, 2018. The plaintiff in the Walker Lawsuit dismissed her action, with prejudice as to the individual plaintiff, on August 14, 2018. At the time the other complaints were being dismissed, counsel for plaintiff in the remaining lawsuit, the Karri Lawsuit, stated his intention to file an amended complaint. On September 27, 2018, the Court rejected, without hearing, the Karri plaintiff’s motion to be appointed lead counsel because plaintiff failed to follow the required notice procedure. Following this order, plaintiff renewed his public notice of filing of the lawsuit, but has taken no further action. If the Karri Lawsuit proceeds, Oclaro intends to defend the action vigorously.

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	3 Months Ended
	Sep. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE STOCK PLANS	EMPLOYEE STOCK PLANS Stock Incentive Plans As of September 29, 2018 , there were approximately 13.8 million shares of our common stock available for grant under the Fifth Amended and Restated 2001 Long-Term Stock Incentive Plan (the "Plan"). We generally grant restricted stock awards and restricted stock unit ("RSU") 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. We no longer grant stock options. We also have a minimal amount of stock appreciation rights ("SARs") outstanding as of September 29, 2018 , which we assumed in connection with our acquisition of Opnext. Performance-Based Restricted Stock Units ("PSUs") In August 2017, our board of directors approved a grant of 1.1 million PSUs to certain executive officers with an aggregate estimated grant date fair value of $9.5 million . These PSUs have service- and performance-based vesting conditions. One-third of the PSUs will vest subject to the achievement of $700.0 million of revenue over any four consecutive quarters through the end of fiscal 2020, subject to service conditions; one-third of the PSUs will vest upon the achievement of $100.0 million of free cash flow (defined as adjusted EBITDA less capital expenditures) over any four consecutive quarters through the end of fiscal 2020, subject to service conditions; and one-third of the PSUs will vest upon the achievement of $800.0 million of revenue in any one fiscal year from 2018 through 2020 and upon achievement of $100.0 million of free cash flow over any four consecutive quarters through the end of fiscal 2020, subject to service conditions. Upon attaining each performance condition, the service-based vesting condition is satisfied for that tranche as to 1/3 of the PSUs on the first anniversary of the vesting commencement date, and with respect to 1/12 of the underlying shares each subsequent quarter, such that all PSUs for that tranche are fully vested on the third anniversary of the vesting commencement date. As of September 29, 2018 , we determined that the achievement of the performance conditions associated with these PSUs was improbable. The performance conditions associated with these PSUs will be considered achieved upon the consummation of the merger with Lumentum. In August 2016, our board of directors approved a grant of 0.8 million PSUs to certain executive officers with an aggregate estimated grant date fair value of $4.8 million . Subject to the achievement of an aggregate of $25.0 million or more of free cash flow (defined as adjusted EBITDA less capital expenditures) over any consecutive four fiscal quarters ending on or before June 27, 2020, as determined by our board of directors, these PSUs will vest contingent upon service conditions being met through August 10, 2020. On July 25, 2017, the compensation committee of our board of directors certified that the performance condition for these PSUs was achieved. As a result, these PSUs vested with respect to 25 percent of the shares subject to the PSUs on August 10, 2017, and with respect to 6.25 percent of the underlying shares each subsequent quarter over the following three years, subject to continuous service. 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 adjusted EBITDA less capital expenditures) in any fiscal quarter ending prior to June 30, 2018, vesting of these PSUs is contingent upon service conditions being met through August 10, 2018. On October 29, 2015, the compensation committee of our board of directors certified that this performance condition was achieved during the first quarter of fiscal 2016. As a result, these PSUs vested with respect to 33.4 percent of the underlying shares on August 10, 2016, and will vest 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 August 2018, our board of directors approved a long term incentive grant of 0.5 million RSUs to certain executive officers and 1.8 million RSUs to other employees, which vest over four years. In August 2017, our board of directors approved a long term incentive grant of 0.6 million RSUs to certain executive officers and 1.6 million RSUs to other employees, which vest over four years. Stock Incentive Plan Activity The following table summarizes the combined activity under all of our equity incentive plans for the three months ended September 29, 2018 : Shares Available For Grant Stock Options / SARs Outstanding Weighted- Average Exercise Price Time and Performance-based Restricted Stock Awards / Units Outstanding Weighted- Average Grant Date Fair Value (Thousands) (Thousands) (Thousands) Balance at June 30, 2018 16,456 1,066 $ 7.75 6,586 $ 7.38 Granted (3,157 ) — — 2,255 8.59 Exercised or released 3 (72 ) 6.90 (1,104 ) 6.63 Forfeited or expired 456 (378 ) 13.39 (55 ) 7.76 Balance at September 29, 2018 13,758 616 $ 4.38 7,682 $ 7.84 Supplemental disclosure information about our stock options and SARs outstanding as of September 29, 2018 is as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (Thousands) (Years) (Thousands) Options and SARs exercisable 612 $ 4.40 3.3 $ 2,991 Options and SARs outstanding 616 $ 4.38 3.3 $ 3,018 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 $8.94 on September 28, 2018, which would have been received by the option holders had all option holders exercised their options as of that date. There were approximately 0.5 million shares of common stock subject to in-the-money options which were exercisable as of September 29, 2018 . We settle employee stock option exercises with newly issued shares of common stock.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 29, 2018
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. The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Stock-based compensation by category of expense: Cost of revenues $ 562 $ 438 Research and development 1,067 867 Selling, general and administrative 2,375 1,894 $ 4,004 $ 3,199 Stock-based compensation by type of award: Stock options $ 8 $ 32 Restricted stock awards 4,285 3,464 Inventory adjustment to cost of revenues (289 ) (297 ) $ 4,004 $ 3,199 Included in stock-based compensation for the three months ended September 29, 2018 and September 30, 2017 is approximately $0.3 million and $0.7 million , respectively, in stock-based compensation cost related to the issuance of PSUs granted in August 2015 and August 2016. We recorded no stock-based compensation expense related to the issuance of PSUs granted in August 2017 as we determined that the achievement of the performance conditions associated with these PSUs was not probable as of September 29, 2018 . 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 to 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. As of September 29, 2018 and June 30, 2018 , we capitalized $1.2 million and $0.9 million , respectively, of stock-based compensation in inventory. As of September 29, 2018 , we had minimal unrecognized stock-based compensation expense related to unvested stock options, that will be recognized over a weighted-average period of 0.2 years , and $46.9 million in unrecognized stock-based compensation expense related to unvested time-based and performance-based restricted stock awards that will be recognized over a weighted-average period of 2.7 years .

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 29, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The income tax provision of $2.6 million and $6.2 million for the three months ended September 29, 2018 and September 30, 2017 , respectively, relates primarily to our foreign operations. The total amount of our unrecognized tax benefits as of September 29, 2018 and June 30, 2018 , were approximately $3.1 million and $3.1 million , respectively. As of September 29, 2018 , we had $2.3 million of unrecognized tax benefits that, if recognized, would affect our effective tax rate. While it is often difficult to predict the final outcome of any particular uncertain tax position, we believe that unrecognized tax benefits could decrease by approximately $1.1 million in the next twelve months. On December 22, 2017, the Tax Cuts and Jobs Act ("TCJA") was signed into law. Among other things, the TCJA introduces new international tax provisions that will be effective in our fiscal 2019. including (i) a new provision designed to currently tax the global low-taxed income of our foreign subsidiaries, together with a deduction of up to 50 percent and a partial credit for foreign taxes incurred by the foreign subsidiaries; (ii) limitations on the deductibility of certain base eroding payments to foreign entities; and (iii) limitations on the use of foreign tax credits to reduce U.S. income tax liability. Our estimated fiscal 2019 annual global intangible low-tax income ("GILTI") inclusion income will be entirely offset by our net operating losses which are subject to a full valuation allowance. Accordingly, this inclusion does not impact to our interim income tax provision. We do not expect the other tax law changes to have a material impact to the interim income tax provision. Due to the complexity of the provision for the TCJA and the lack of the current guidance, under the guidance of Staff Accounting Bulletin 118, the accounting is incomplete and we have not estimated the GILTI impact on deferred taxes. Additionally, state and local authorities are reviewing federal conformity matters related to GILTI. Provisional amounts or adjustments to provisional amounts identified in the measurement period, would be included as an adjustment to tax expense or benefit from continuing operations in the period the amounts are determined. We have determined a reasonable estimate for the tax reform effects other than the impact of GILTI on our recognition of deferred tax assets, and reported the estimates as a provisional amount in our financial statements for which the accounting under ASC Topic 740 is completed. We will finalize the impact of the GILTI in fiscal year 2019. Our financial statements do not provide for tax on undistributed earnings of our foreign subsidiaries intended to be permanently reinvested outside the U.S. within our foreign operations. At September 29, 2018, the amount of undistributed earnings of profitable subsidiaries is approximately $139.7 million . If repatriated to the U.S. following the enactment of the TCJA, the distribution would not result in material additional U.S. taxes. However, we estimate that an additional $1.3 million in foreign withholding and other taxes would be incurred at the time of distribution.

NET INCOME PER SHARE

NET INCOME PER SHARE	3 Months Ended
	Sep. 29, 2018
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NET INCOME PER SHARE Basic net income per share is computed using only the weighted-average number of shares of common stock outstanding for the applicable period, while diluted net income per share is computed assuming conversion of all potentially dilutive securities, such as stock options and unvested restricted stock units and awards during such period. The following table presents the calculation of basic and diluted net income per share: Three Months Ended September 29, 2018 September 30, 2017 (Thousands, except per share amounts) Net income $ 10,229 $ 26,489 Weighted-average shares - Basic 171,046 168,137 Effect of dilutive potential common shares from: Stock options and stock appreciation rights 314 504 Restricted stock units and awards 1,767 2,208 Weighted-average shares - Diluted 173,127 170,849 Basic net income per share $ 0.06 $ 0.16 Diluted net income per share $ 0.06 $ 0.16 For the three months ended September 29, 2018 and September 30, 2017 , we excluded 0.2 million and 0.6 million , respectively, underlying outstanding stock options, stock appreciation rights and unvested restricted stock awards from the calculation of diluted net income per share because their effect would have been anti-dilutive.

GEOGRAPHIC INFORMATION, PRODUCT

GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION	3 Months Ended
	Sep. 29, 2018
Segment Reporting [Abstract]
GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION	GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION Geographic Information The following table shows revenues by geographic area based on the delivery locations of our products: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Asia-Pacific: China $ 50,804 $ 41,433 Thailand 19,384 18,075 Malaysia 4,124 2,087 Other Asia-Pacific 5,620 3,702 Total Asia-Pacific $ 79,932 $ 65,297 Americas: United States 14,720 37,690 Mexico 25,732 29,486 Other Americas 331 5,231 Total Americas $ 40,783 $ 72,407 EMEA: Italy 5,704 6,925 Germany 2,852 4,055 Other EMEA 1,374 4,816 Total EMEA $ 9,930 $ 15,796 Japan $ 1,013 $ 2,098 Total revenues $ 131,658 $ 155,598 Product Groups The following table sets forth revenues by product group: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) 100 Gb/s + transmission modules $ 107,386 $ 125,641 40 Gb/s and lower transmission modules 24,272 29,957 $ 131,658 $ 155,598 Market Applications The following table sets forth revenues by market application: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Data Communications/Client Side $ 57,009 $ 75,078 Telecommunications/Line Side 74,649 80,520 $ 131,658 $ 155,598 Significant Customers and Concentration of Credit Risk For the three months ended September 29, 2018 , four customers accounted for 10 percent or more of our revenues, representing approximately 16 percent , 15 percent , 14 percent and 12 percent of our revenues, respectively. For the three months ended September 30, 2017 , five customers accounted for 10 percent or more of our revenues, representing approximately 17 percent , 11 percent , 11 percent , 10 percent and 10 percent of our revenues, respectively. As of September 29, 2018 , four customers accounted for 10 percent or more of our accounts receivable, representing approximately 16 percent , 12 percent , 12 percent and 11 percent of our accounts receivable, respectively. As of June 30, 2018 , two customers accounted for 10 percent or more of our accounts receivable, representing approximately 22 percent and 14 percent of our accounts receivable, respectively.

BASIS OF PREPARATION (Policies)

BASIS OF PREPARATION (Policies)	3 Months Ended
	Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Oclaro, Inc., a Delaware corporation, is sometimes referred to in this Quarterly Report on Form 10-Q as “Oclaro,” “we,” “us” or “our.” The accompanying unaudited condensed consolidated financial statements of Oclaro as of September 29, 2018 and for the three months ended September 29, 2018 and September 30, 2017 have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Oclaro and all of our subsidiaries. Accordingly, they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our consolidated financial position and results of operations have been included. The condensed consolidated results of operations for the three months ended September 29, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending June 29, 2019 . The condensed consolidated balance sheet as of June 30, 2018 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 30, 2018 (" 2018 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 valuation allowances for deferred tax assets, the fair value of stock-based compensation, the fair value of pension 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 2018 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 June 29, 2019 will be a 52 week year, with the quarter ended September 29, 2018 being a 13 week quarterly period. Our fiscal year ended June 30, 2018 was a 52 week year, with the quarter ended September 30, 2017 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, including an adjustment relating to an immaterial error of approximately $10.4 million , increasing cash flows from operations associated with changes in accounts payable and increasing cash flows used in investing activities associated with purchases of property and equipment, in our condensed consolidated statement of cash flows for the three months ended September 30, 2017 . We determined that the adjustment did not have a material impact to our prior period condensed consolidated financial statements.
Functional Currency	Functional Currency Effective October 1, 2017, the functional currency for our worldwide operations is the U.S. dollar. Prior to October 1, 2017, the functional currency for each of our foreign subsidiaries was the respective local currency for that subsidiary. The change in our functional currency is a result of significant changes in economic facts and circumstances, including (i) a re-organization of our operating environment, which includes consolidating and integrating our sales, supply chain and manufacturing organizations; (ii) a transition to centrally negotiating worldwide supplier contracts and capital expenditures in U.S. dollars; and (iii) a shift to recording all intercompany transactions in U.S. dollars. Translation adjustments reported prior to October 1, 2017, remain as a component of accumulated other comprehensive income in our condensed consolidated balance sheet. The translated values for any non-monetary assets and liabilities as of October 1, 2017 became the new accounting basis for those assets. Effective October 1, 2017, monetary assets and liabilities denominated in currencies other than the U.S. dollar functional currency are re-measured each reporting period into U.S. dollars, with the resulting exchange gains and losses reported in (loss) gain on foreign currency transactions, net within our condensed consolidated statement of operations.
U.S. Tax Reform
New Accounting Standards	Recently Adopted Accounting Standards Revenue Recognition In May 2014 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , respectively. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes previous revenue recognition guidance. We adopted this guidance on July 1, 2018, the start to our first quarter of fiscal 2019, using the modified retrospective method. There was no cumulative catch-up adjustment upon adoption of this guidance. Our revenue from contracts with customers is generated through the sale of products, which consists of a single performance obligation. We recognize revenue at a point in time in an amount that reflects the fair value of the consideration to be received for the products sold, net of sales tax and other tax amounts collected from customers for remittance to governmental authorities. We elected to account for shipping and handling activities as a fulfillment cost. Our contracts with customers are typically comprised of a customer purchase order and/or an executed agreement. Our payment terms vary by customer and location, however, the time period between when revenue is recognized and when payment is due is not significant. Before accepting a new customer, we review publicly available information and credit rating databases to provide ourselves with reasonable assurance that the new customer will pay all outstanding amounts in accordance with our standard terms. For existing customers, we monitor historic payment patterns and we perform ongoing credit evaluations to assess whether we can expect payment in accordance with the terms set forth in the agreement under which the sale was made. We satisfy the performance obligation and record revenues when transfer of control of our product has passed to the customer. We specify delivery terms in the agreement under which the sale was made and assess each shipment against those terms, and only recognize revenue when we are certain that the delivery terms have been met and transfer of control has occurred. Our sales terms do not allow for a right of return, except for matters related to manufacturing defects, which are covered under our warranty. Our warranties are considered an assurance-only type of service. See Note 11, Geographic Information, Product Groups, Market Applications and Customer Concentration Information , for a presentation of revenue disaggregated by geography and product group. We elected to apply the practical expedient to recognize the incremental costs of obtaining a contract, specifically sales commissions and other contract administration costs, when incurred because the amortization period for these costs is one year or less. Cash Flows In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash to standardize the presentation of transfers between cash and restricted cash in the cash flow statement. We adopted this guidance in the first quarter of 2019, and as a result, restricted cash has been included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets for the periods indicated that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: September 29, 2018 September 30, 2017 (Thousands) Cash and cash equivalents $ 337,920 $ 192,420 Restricted cash — 268 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 337,920 $ 192,688 Recent Accounting Standards Pending Adoption In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework , which amends the disclosure requirements for single-employer defined benefit plans, removing disclosures that are not considered cost-beneficial, clarifying the specific requirements of disclosures, and adding disclosure requirements identified as relevant. The guidance will be effective for us at the end of fiscal 2021, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework , which aims to improve the effectiveness of fair value measurement disclosures. The amendments ASU-2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements , including the consideration of costs and benefits. The guidance will be effective for us in the first quarter of fiscal 2021, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures. In February 2016, the FASB issued ASU 2016-02, Leases , which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-11, Leases: Targeted Improvements , which provide entities with an additional (and optional) transition method to adopt the new lease requirements by allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The guidance also provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if certain conditions are met. This guidance will be effective for us in the first quarter of fiscal 2020, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The guidance will be effective for us in the first quarter of fiscal 2020, with early adoption permitted. We are currently evaluating the likely impact the implementation of this standard will have on our financial statements and footnote disclosures.

RECENT ACCOUNTING STANDARDS Rec

RECENT ACCOUNTING STANDARDS Recent Accounting Pronouncements (Tables)	3 Months Ended
	Sep. 29, 2018
Accounting Policies [Abstract]
Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets for the periods indicated that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows: September 29, 2018 September 30, 2017 (Thousands) Cash and cash equivalents $ 337,920 $ 192,420 Restricted cash — 268 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 337,920 $ 192,688

BALANCE SHEET DETAILS (Tables)

BALANCE SHEET DETAILS (Tables)	3 Months Ended
	Sep. 29, 2018
Balance Sheet Details [Abstract]
Schedule of Cash and Cash Equivalents	The following table provides details regarding our cash and cash equivalents at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Cash and cash equivalents: Cash-in-bank $ 64,686 $ 88,297 Money market funds 273,234 153,392 Commercial paper — 3,999 $ 337,920 $ 245,688
Schedule of Short-term Investments	The following table provides details regarding our short-term investments at the dates indicated: September 29, 2018 June 30, 2018 Short-term investments (Thousands) U.S. Treasury securities $ 3,997 $ 31,939 Commercial paper — 41,401 Corporate bonds — 4,100 $ 3,997 $ 77,440
Schedule of Inventories	The following table provides details regarding our inventories at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Inventories: Raw materials $ 23,898 $ 30,488 Work-in-process 47,737 54,503 Finished goods 18,144 21,687 $ 89,779 $ 106,678
Schedule of Property and Equipment, Net	The following table provides details regarding our property and equipment, net at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Property and equipment, net: Buildings and improvements $ 12,086 $ 12,086 Plant and machinery 139,248 137,301 Fixtures, fittings and equipment 3,526 3,526 Computer equipment 22,420 22,721 177,280 175,634 Less: Accumulated depreciation (45,559 ) (38,196 ) $ 131,721 $ 137,438
Schedule of Accrued Expenses and Other Liabilities	The following table presents details regarding our accrued expenses and other liabilities at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Accrued expenses and other liabilities: Compensation and benefits related accruals $ 13,684 $ 14,167 Warranty accrual 3,861 3,879 Purchase commitments in excess of future demand, current 3,097 6,321 Deferred rent 2,018 2,040 Other accruals 13,661 15,279 $ 36,321 $ 41,686
Components of Accumulated Other Comprehensive Income	The following table presents the components of accumulated other comprehensive income at the dates indicated: September 29, 2018 June 30, 2018 (Thousands) Accumulated other comprehensive income: Currency translation adjustments $ 42,626 $ 42,626 Unrealized loss on marketable securities (1 ) (4 ) Japan defined benefit plan (101 ) (101 ) Other 26 26 $ 42,550 $ 42,547

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Sep. 29, 2018
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments at September 29, 2018 and June 30, 2018 : Fair Value Measurement at September 29, 2018 Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds $ 273,234 $ — $ — $ 273,234 Short-term investments: U.S. Treasury securities — 3,997 — 3,997 Total assets measured at fair value $ 273,234 $ 3,997 $ — $ 277,231 (1) Excludes $64.7 million in cash held in our bank accounts at September 29, 2018 . Fair Value Measurement at June 30, 2018 Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total (Thousands) Assets: Cash and cash equivalents: (1) Money market funds $ 153,392 $ — $ — $ 153,392 Commercial paper — 3,999 — 3,999 Short-term investments: Commercial paper — 41,401 — 41,401 Corporate bonds — 4,100 — 4,100 U.S. Treasury securities — 31,939 — 31,939 Total assets measured at fair value $ 153,392 $ 81,439 $ — $ 234,831 (1) Excludes $88.3 million in cash held in our bank accounts at June 30, 2018 .

POST-RETIREMENT BENEFITS (Table

POST-RETIREMENT BENEFITS (Tables)	3 Months Ended
	Sep. 29, 2018
Retirement Benefits [Abstract]
Schedule of Net Periodic Pension Costs	Net periodic pension costs for the Japan Plan included the following: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Service cost $ 157 $ 157 Interest cost 5 5 Net periodic pension costs $ 162 $ 162

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 29, 2018
Commitments and Contingencies Disclosure [Abstract]
Movements in Warranty Accrual for Period	The following table summarizes movements in the warranty accrual for the periods indicated: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Warranty provision—beginning of period $ 3,879 $ 4,124 Warranties issued 105 216 Warranties utilized or expired (112 ) (120 ) Currency translation and other adjustments (11 ) 51 Warranty provision—end of period $ 3,861 $ 4,271
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 at September 29, 2018 : Capital Leases (Thousands) Fiscal Year Ending: 2019 (remaining) $ 419 2020 598 2021 258 2022 — 2023 — Thereafter — Total minimum lease payments 1,275 Less amount representing interest (43 ) Present value of capitalized payments 1,232 Less: current portion (530 ) Long-term portion $ 702

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	3 Months Ended
	Sep. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Combined Activity Under All of Our Equity Incentive Plans	The following table summarizes the combined activity under all of our equity incentive plans for the three months ended September 29, 2018 : Shares Available For Grant Stock Options / SARs Outstanding Weighted- Average Exercise Price Time and Performance-based Restricted Stock Awards / Units Outstanding Weighted- Average Grant Date Fair Value (Thousands) (Thousands) (Thousands) Balance at June 30, 2018 16,456 1,066 $ 7.75 6,586 $ 7.38 Granted (3,157 ) — — 2,255 8.59 Exercised or released 3 (72 ) 6.90 (1,104 ) 6.63 Forfeited or expired 456 (378 ) 13.39 (55 ) 7.76 Balance at September 29, 2018 13,758 616 $ 4.38 7,682 $ 7.84
Supplemental Disclosure Information About Stock Options and SAR's Outstanding	Supplemental disclosure information about our stock options and SARs outstanding as of September 29, 2018 is as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (Thousands) (Years) (Thousands) Options and SARs exercisable 612 $ 4.40 3.3 $ 2,991 Options and SARs outstanding 616 $ 4.38 3.3 $ 3,018

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Amounts Included in Cost of Revenues and Operating Expenses for Stock-Based Compensation	The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Stock-based compensation by category of expense: Cost of revenues $ 562 $ 438 Research and development 1,067 867 Selling, general and administrative 2,375 1,894 $ 4,004 $ 3,199 Stock-based compensation by type of award: Stock options $ 8 $ 32 Restricted stock awards 4,285 3,464 Inventory adjustment to cost of revenues (289 ) (297 ) $ 4,004 $ 3,199

NET INCOME PER SHARE Net Income

NET INCOME PER SHARE Net Income Per Share (Tables)	3 Months Ended
	Sep. 29, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The following table presents the calculation of basic and diluted net income per share: Three Months Ended September 29, 2018 September 30, 2017 (Thousands, except per share amounts) Net income $ 10,229 $ 26,489 Weighted-average shares - Basic 171,046 168,137 Effect of dilutive potential common shares from: Stock options and stock appreciation rights 314 504 Restricted stock units and awards 1,767 2,208 Weighted-average shares - Diluted 173,127 170,849 Basic net income per share $ 0.06 $ 0.16 Diluted net income per share $ 0.06 $ 0.16

GEOGRAPHIC INFORMATION, PRODU_2

GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION (Tables)	3 Months Ended
	Sep. 29, 2018
Segment Reporting [Abstract]
Revenues by Geographic Area	The following table shows revenues by geographic area based on the delivery locations of our products: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Asia-Pacific: China $ 50,804 $ 41,433 Thailand 19,384 18,075 Malaysia 4,124 2,087 Other Asia-Pacific 5,620 3,702 Total Asia-Pacific $ 79,932 $ 65,297 Americas: United States 14,720 37,690 Mexico 25,732 29,486 Other Americas 331 5,231 Total Americas $ 40,783 $ 72,407 EMEA: Italy 5,704 6,925 Germany 2,852 4,055 Other EMEA 1,374 4,816 Total EMEA $ 9,930 $ 15,796 Japan $ 1,013 $ 2,098 Total revenues $ 131,658 $ 155,598
Revenues by Product Group	The following table sets forth revenues by product group: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) 100 Gb/s + transmission modules $ 107,386 $ 125,641 40 Gb/s and lower transmission modules 24,272 29,957 $ 131,658 $ 155,598
Revenues by Market Application	The following table sets forth revenues by market application: Three Months Ended September 29, 2018 September 30, 2017 (Thousands) Data Communications/Client Side $ 57,009 $ 75,078 Telecommunications/Line Side 74,649 80,520 $ 131,658 $ 155,598

BASIS OF PREPARATION - Merger (

BASIS OF PREPARATION - Merger (Details) $ / shares in Units, $ in Thousands	Mar. 11, 2018USD ($)d$ / shares	Sep. 29, 2018USD ($)$ / shares	Sep. 30, 2017USD ($)	Jun. 30, 2018$ / shares
Business Combination, Separately Recognized Transactions [Line Items]
Cash consideration paid per cancelled share of Oclaro stock (in USD per share) | $ / shares	$ 5.60
Common stock, par value (in usd per share) | $ / shares		$ 0.01		$ 0.01
Increase in cash consideration per share included in Exchange ratio if threshold shares attained (in USD per share) | $ / shares	$ 68.975
Trading Days Included in Average Closing Price | d	10
Amount payable if Oclaro terminates the Merger Agreement | $	$ 63,000
Amount receivable if Lumentum terminates the Merger Agreement | $	$ 80,000
Restructuring and acquisition-related expenses | $		$ 800	$ 0
Lumentum
Business Combination, Separately Recognized Transactions [Line Items]
Conversion ratio of new shares to Company shares	0.0636
Common stock, par value (in usd per share) | $ / shares	$ 0.001
Merger consideration shares as percent of total pre-merger shares that would trigger an increase of the purchase price per share (percent)	19.90%
Restructuring and Acquisition-related Expenses
Business Combination, Separately Recognized Transactions [Line Items]
Restructuring and acquisition-related expenses | $		$ 300

BASIS OF PREPARATION - Reclassi

BASIS OF PREPARATION - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Jun. 30, 2018
Benefit related to inventory	$ 500
Net cash provided by operating activities	26,118	$ 47,265
Net cash used in investing activities	69,618	(71,443)
Cash and cash equivalents	337,920	192,420	$ 245,688
Reclassification
Net cash provided by operating activities		10,400
Net cash used in investing activities		(10,400)
Accounting Standards Update 2016-18
Net cash used in investing activities		$ 400
Cash and cash equivalents	$ 300		$ 700

RECENT ACCOUNTING STANDARDS - R

RECENT ACCOUNTING STANDARDS - Revenue Recognition (Details)	3 Months Ended
	Sep. 29, 2018USD ($)
Accounting Policies [Abstract]
Revenue from contract with customer, cumulative Catch-up adjustment	$ 0

RECENT ACCOUNTING STANDARDS - C

RECENT ACCOUNTING STANDARDS - Cash Flows (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018	Sep. 30, 2017	Jul. 01, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 337,920	$ 245,688	$ 192,420
Restricted cash	0		268
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 337,920	$ 245,688	$ 192,688	$ 219,987

BALANCE SHEET DETAILS - Schedul

BALANCE SHEET DETAILS - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Jun. 30, 2018	Jul. 01, 2017
Cash and Cash Equivalents [Line Items]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 337,920	$ 192,688	$ 245,688	$ 219,987
Gain (Loss) on Disposition of Property Plant Equipment	(777)	(22)
Cash and cash equivalents:
Cash and cash equivalents	337,920	$ 192,420	245,688
Cash-in-bank
Cash and cash equivalents:
Cash and cash equivalents	64,686		88,297
Money market funds
Cash and cash equivalents:
Cash and cash equivalents	273,234		153,392
Commercial paper
Cash and cash equivalents:
Cash and cash equivalents	0		$ 3,999
Foreign Subsidiaries
Cash and Cash Equivalents [Line Items]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 49,300

BALANCE SHEET DETAILS - Sched_2

BALANCE SHEET DETAILS - Schedule of Short-term Investments (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018
Investment [Line Items]
Short-term investments	$ 3,997	$ 77,440
Commercial paper
Investment [Line Items]
Short-term investments	0	41,401
US Treasury securities
Investment [Line Items]
Short-term investments	3,997	31,939
Corporate bonds
Investment [Line Items]
Short-term investments	$ 0	$ 4,100

BALANCE SHEET DETAILS - Sched_3

BALANCE SHEET DETAILS - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018
Inventories:
Raw materials	$ 23,898	$ 30,488
Work-in-process	47,737	54,503
Finished goods	18,144	21,687
Total Inventories	$ 89,779	$ 106,678

BALANCE SHEET DETAILS - Sched_4

BALANCE SHEET DETAILS - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018
Property and equipment, net:
Buildings and improvements	$ 12,086	$ 12,086
Plant and machinery	139,248	137,301
Fixtures, fittings and equipment	3,526	3,526
Computer equipment	22,420	22,721
Property and equipment, gross	177,280	175,634
Less: Accumulated depreciation	(45,559)	(38,196)
Total Property and equipment, net	$ 131,721	$ 137,438

BALANCE SHEET DETAILS - Sched_5

BALANCE SHEET DETAILS - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018
Accrued expenses and other liabilities:
Compensation and benefits related accruals	$ 13,684	$ 14,167
Warranty accrual	3,861	3,879
Purchase commitments in excess of future demand, current	3,097	6,321
Purchase commitments in excess of future demand, current	2,018	2,040
Other accruals	13,661	15,279
Total Accrued expenses and other liabilities	$ 36,321	$ 41,686

BALANCE SHEET DETAILS - Compone

BALANCE SHEET DETAILS - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018
Accumulated other comprehensive income:
Currency translation adjustments	$ 42,626	$ 42,626
Unrealized loss on marketable securities	(1)	(4)
Japan defined benefit plan	(101)	(101)
Other	26	26
Accumulated other comprehensive income	$ 42,550	$ 42,547

BALANCE SHEET DETAILS - Additio

BALANCE SHEET DETAILS - Additional Information (Details) - USD ($) $ in Millions	Sep. 29, 2018	Jun. 30, 2018
Balance Sheet Details [Abstract]
Assets under capital lease	$ 1.2	$ 3.2

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jun. 30, 2018	Sep. 30, 2017
Short-term Investments [Abstract]
Cash held in bank accounts, excluded	$ 337,920	$ 245,688	$ 192,420
Fair Value, Measurements, Recurring
Short-term Investments [Abstract]
Total assets measured at fair value	277,231	234,831
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Short-term Investments [Abstract]
Total assets measured at fair value	273,234	153,392
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Short-term Investments [Abstract]
Total assets measured at fair value	3,997	81,439
Commercial paper | Fair Value, Measurements, Recurring
Short-term Investments [Abstract]
Short-term investments		41,401
Commercial paper | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Short-term Investments [Abstract]
Short-term investments		41,401
Corporate bonds | Fair Value, Measurements, Recurring
Short-term Investments [Abstract]
Short-term investments		4,100
Corporate bonds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Short-term Investments [Abstract]
Short-term investments		4,100
US Treasury securities | Fair Value, Measurements, Recurring
Short-term Investments [Abstract]
Short-term investments	3,997	31,939
US Treasury securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Short-term Investments [Abstract]
Short-term investments	3,997	31,939
Money market funds
Short-term Investments [Abstract]
Cash held in bank accounts, excluded	273,234	153,392
Money market funds | Fair Value, Measurements, Recurring
Cash and cash equivalents:
Cash and cash equivalents	273,234	153,392
Money market funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash and cash equivalents:
Cash and cash equivalents	273,234	153,392
Commercial paper
Short-term Investments [Abstract]
Cash held in bank accounts, excluded	0	3,999
Commercial paper | Fair Value, Measurements, Recurring
Cash and cash equivalents:
Cash and cash equivalents		3,999
Commercial paper | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Cash and cash equivalents:
Cash and cash equivalents		3,999
Cash-in-bank
Short-term Investments [Abstract]
Cash held in bank accounts, excluded	$ 64,686	$ 88,297

POST-RETIREMENT BENEFITS - Addi

POST-RETIREMENT BENEFITS - Additional Information (Details) - Pension Plan - USD ($)	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Japan
Defined Benefit Plan Disclosure [Line Items]
Contributions made under defined contribution plan	$ 100,000	$ 100,000
Plan assets	0
Accrued expenses and other liabilities	300,000
Other non current liabilities	6,700,000
Benefits paid	100,000	0
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Contributions made under defined contribution plan	$ 300,000	$ 300,000

POST-RETIREMENT BENEFITS - Net

POST-RETIREMENT BENEFITS - Net Periodic Pension Costs (Details) - Pension Plan - Japan - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 157	$ 157
Interest cost	5	5
Net periodic pension costs	$ 162	$ 162

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Thousands	Mar. 12, 2018plaintiff	Nov. 24, 2016patent	Oct. 31, 2015installment	Sep. 29, 2018USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2018USD ($)
Contingencies And Commitments [Line Items]
Capital lease term			5 years
Early buyout of capital leases				$ 1,780	$ 168
Number of capital lease installment payments | installment			20
Interest rate on capital lease (percent)			1.15%
Malaysian goods and services tax refund claim				2,500
Number of allegedly infringed patents included in third party lawsuit which may incorporate Oclaro components | patent		7
Prepaid Expenses and Other Current Assets
Contingencies And Commitments [Line Items]
Malaysian goods and services tax refund claim				700
Inventory in Excess of Future Demand Forecasts | Accrued Expenses and Other Liabilities
Contingencies And Commitments [Line Items]
Purchase commitments				$ 3,100		$ 6,300
Minimum
Contingencies And Commitments [Line Items]
Warranty for products from date of sale				12 months
Capital lease term				1 year
Maximum
Contingencies And Commitments [Line Items]
Warranty for products from date of sale				36 months
Capital lease term				5 years
Japan
Contingencies And Commitments [Line Items]
Early buyout of capital leases				$ 2,000
Shareholder Lawsuits
Contingencies And Commitments [Line Items]
Number of plaintiffs | plaintiff	7

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Movements in Warranty Accrual for Period (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Warranty Provision Roll Forward:
Warranty provision—beginning of period	$ 3,879	$ 4,124
Warranties issued	105	216
Warranties utilized or expired	(112)	(120)
Currency translation and other adjustments	(11)	51
Warranty provision—end of period	$ 3,861	$ 4,271

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Summary of Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Details) $ in Thousands	Sep. 29, 2018USD ($)
Fiscal Year Ending:
2019 (remaining)	$ 419
2,020	598
2,021	258
2,022	0
2,023	0
Thereafter	0
Total minimum lease payments	1,275
Less amount representing interest	(43)
Present value of capitalized payments	1,232
Less: current portion	(530)
Long-term portion	$ 702

EMPLOYEE STOCK PLANS - Addition

EMPLOYEE STOCK PLANS - Additional Information (Details)	Aug. 10, 2016	Aug. 31, 2018shares	Aug. 31, 2017USD ($)yrquartershares	Aug. 31, 2016USD ($)quartershares	Aug. 31, 2015USD ($)shares	Sep. 29, 2018shares	Jun. 30, 2018shares	Dec. 29, 2017$ / shares
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of shares available under the ESPP (in shares) | shares						13,758,000	16,456,000
Closing price of common stock (in usd per share) | $ / shares								$ 8.94
Number of shares of common stock subject to in-the-money options (in shares) | shares						500,000
PSUs | Certain Executive Officers
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of granted shares (in shares) | shares			1,100,000	800,000	900,000
Aggregate estimated grant date fair value of PSU | $			$ 9,500,000	$ 4,800,000	$ 2,500,000
Free cash flow requirement | $				$ 25,000,000
Number of consecutive fiscal quarters | quarter				4
PSUs | Certain Executive Officers | Vesting over Consecutive Quarters through 2020
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Revenue requirement | $			$ 700,000,000
Percentage of shares that will vest (percent)			33.34%
Free cash flow requirement | $			$ 100,000,000
Number of consecutive fiscal quarters | quarter			4
PSUs | Certain Executive Officers | Vesting upon Achievement of Reveue Target in any Fiscal Year from 2018 through 2020
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Revenue requirement | $			$ 800,000,000
Number of fiscal years | yr			1
PSUs | Certain Executive Officers | Service-based Condition, Vesting on 1st Anniversary
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of shares that will vest (percent)			33.34%
PSUs | Certain Executive Officers | Service-based Condition, Vesting Every 3 Months after 1st Anniversary
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of shares that will vest (percent)			8.33%
PSUs | Certain Executive Officers | August 10, 2017
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of shares that will vest (percent)				25.00%
PSUs | Certain Executive Officers | Subsequent Quarter over Following Three Years
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period				3 years
Percentage of shares that will vest (percent)				6.25%
PSUs | Certain Executive Officers | August 10, 2016
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of shares that will vest (percent)	33.40%
PSUs | Certain Executive Officers | Subsequent Quarter Over the Next Two Years
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period					2 years
Percentage of shares that will vest (percent)					8.325%
RSUs
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period		4 years	4 years
RSUs | Certain Executive Officers
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of granted shares (in shares) | shares		500,000	600,000
RSUs | Employees
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Number of granted shares (in shares) | shares		1,800,000	1,600,000
Minimum | Restricted Stock Awards / Units Outstanding
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period						1 year
Maximum | Restricted Stock Awards / Units Outstanding
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Award vesting period						4 years

EMPLOYEE STOCK PLANS - Summariz

EMPLOYEE STOCK PLANS - Summarizes Combined Activity Under All of Our Equity Incentive Plans (Details) shares in Thousands	3 Months Ended
	Sep. 29, 2018$ / sharesshares
Shares Available For Grant
Balance at beginning of period (in shares)	16,456
Granted (in shares)	(3,157)
Exercised or released (in shares)	3
Forfeited or expired (in shares)	456
Balance at end of period (in shares)	13,758
Stock Options / SARs Outstanding
Balance at beginning of period (in shares)	1,066
Granted (in shares)	0
Exercised or released (in shares)	(72)
Forfeited or expired (in shares)	(378)
Balance at end of period (in shares)	616
Weighted- Average Exercise Price
Balance at beginning of period (in usd per share) | $ / shares	$ 7.75
Granted (in usd per share) | $ / shares	0
Exercised or released (in usd per share) | $ / shares	6.90
Forfeited or expired (in usd per share) | $ / shares	13.39
Balance at end of period (in usd per share) | $ / shares	4.38
Weighted- Average Grant Date Fair Value
Balance at beginning of period (in usd per share) | $ / shares	7.38
Granted (in usd per share) | $ / shares	8.59
Exercised or released (in usd per share) | $ / shares	6.63
Forfeited or expired (in usd per share) | $ / shares	7.76
Balance at end of period (in usd per share) | $ / shares	$ 7.84
Restricted Stock Awards / Units Outstanding
Time and Performance-based Restricted Stock Awards / Units Outstanding
Balance at beginning of period (in shares)	6,586
Granted (in shares)	2,255
Exercised or released (in shares)	(1,104)
Forfeited or expired (in shares)	(55)
Balance at end of period (in shares)	7,682

EMPLOYEE STOCK PLANS - Suppleme

EMPLOYEE STOCK PLANS - Supplemental Disclosure Information About Our Stock Options and SAR's Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 29, 2018	Jun. 30, 2018
Schedule Of Stock Options [Line Items]
Shares, Options and SARs exercisable	500
Shares, Options and SARs outstanding	616	1,066
Weighted-Average Exercise Price, Options and SARs outstanding (in usd per share)	$ 4.38	$ 7.75
Stock options and SARs
Schedule Of Stock Options [Line Items]
Shares, Options and SARs exercisable	612
Shares, Options and SARs outstanding	616
Weighted-Average Exercise Price, Options and SARs exercisable (in usd per share)	$ 4.40
Weighted-Average Exercise Price, Options and SARs outstanding (in usd per share)	$ 4.38
Weighted-Average Remaining Contractual Life, Options and SARs exercisable	3 years 3 months 20 days
Weighted-Average Remaining Contractual Life, Options and SARs outstanding	3 years 3 months 10 days
Aggregate Intrinsic Value, Options and SARs exercisable	$ 2,991
Aggregate Intrinsic Value, Options and SARs outstanding	$ 3,018

STOCK-BASED COMPENSATION - Amou

STOCK-BASED COMPENSATION - Amounts Included in Cost of Revenues and Operating Expenses for Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 4,004	$ 3,199
Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	8	32
Restricted stock awards
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	4,285	3,464
Inventory adjustment to cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	(289)	(297)
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	562	438
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	1,067	867
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share-based compensation expense	$ 2,375	$ 1,894

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 4,004	$ 3,199
Unrecognized stock-based compensation expense, weighted-average period for recognition	2 months 10 days
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 4,285	3,464
Unrecognized stock-based compensation expense, weighted-average period for recognition	2 years 7 months 28 days
Unrecognized stock-based compensation expense other than options	$ 46,900
Inventory
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation capitalized as inventory	1,200		$ 900
Additional Paid-in Capital | Accounting Standards Update 2016-09
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect adjustment	(300)
August 2015 and August 2016 | PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	300	$ 700
August 2017 | PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax provision	$ 2,559	$ 6,237
Unrecognized tax benefits	3,100		$ 3,100
Unrecognized tax benefits that would affect effective tax rate	2,300
Estimated decrease in unrecognized tax benefits	1,100
Undistributed earnings of profitable foreign subsidiaries	139,700
Foreign withholding and other tax liabilities	$ 1,300

NET INCOME PER SHARE - Calculat

NET INCOME PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 10,229	$ 26,489
Weighted-average shares - Basic (shares)	171,046	168,137
Effect of dilutive potential common shares from:
Stock options and stock appreciation rights (shares)	314	504
Restricted stock units and awards (shares)	1,767	2,208
Weighted-average shares - Diluted (shares)	173,127	170,849
Basic net income (loss) per share (in USD per share)	$ 0.06	$ 0.16
Diluted net income (loss) per share (in USD per share)	$ 0.06	$ 0.16

NET INCOME PER SHARE - Addition

NET INCOME PER SHARE - Additional Information (Details) - shares shares in Millions	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	0.2	0.6

GEOGRAPHIC INFORMATION, PRODU_3

GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Geographic Information [Line Items]
Revenues	$ 131,658	$ 155,598
Asia-Pacific:
Geographic Information [Line Items]
Revenues	79,932	65,297
China
Geographic Information [Line Items]
Revenues	50,804	41,433
Thailand
Geographic Information [Line Items]
Revenues	19,384	18,075
Malaysia
Geographic Information [Line Items]
Revenues	4,124	2,087
Other Asia-Pacific
Geographic Information [Line Items]
Revenues	5,620	3,702
Americas:
Geographic Information [Line Items]
Revenues	40,783	72,407
United States
Geographic Information [Line Items]
Revenues	14,720	37,690
Mexico
Geographic Information [Line Items]
Revenues	25,732	29,486
Other Americas
Geographic Information [Line Items]
Revenues	331	5,231
EMEA:
Geographic Information [Line Items]
Revenues	9,930	15,796
Italy
Geographic Information [Line Items]
Revenues	5,704	6,925
Germany
Geographic Information [Line Items]
Revenues	2,852	4,055
Other EMEA
Geographic Information [Line Items]
Revenues	1,374	4,816
Japan
Geographic Information [Line Items]
Revenues	$ 1,013	$ 2,098

GEOGRAPHIC INFORMATION, PRODU_4

GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Product Group (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Segment Information [Line Items]
Revenues	$ 131,658	$ 155,598
100 Gb/s transmission modules
Segment Information [Line Items]
Revenues	107,386	125,641
40 Gb/s and lower transmission modules
Segment Information [Line Items]
Revenues	$ 24,272	$ 29,957

GEOGRAPHIC INFORMATION, PRODU_5

GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Customer Group (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 131,658	$ 155,598
Data Communications/Client Side
Disaggregation of Revenue [Line Items]
Revenues	57,009	75,078
Telecommunications/Line Side
Disaggregation of Revenue [Line Items]
Revenues	$ 74,649	$ 80,520

GEOGRAPHIC INFORMATION, PRODU_6

GEOGRAPHIC INFORMATION, PRODUCT GROUPS, MARKET APPLICATIONS AND CUSTOMER CONCENTRATION INFORMATION - Additional Information (Details) - customer	3 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Jul. 01, 2017	Jun. 30, 2018
Revenues
Revenue, Major Customer [Line Items]
Number of major customers	4	5
Revenues | Customer A
Revenue, Major Customer [Line Items]
Percentage of revenues	16.00%	17.00%
Revenues | Customer B
Revenue, Major Customer [Line Items]
Percentage of revenues	15.00%	11.00%
Revenues | Customer C
Revenue, Major Customer [Line Items]
Percentage of revenues	14.00%	11.00%
Revenues | Customer D
Revenue, Major Customer [Line Items]
Percentage of revenues	12.00%	10.00%
Revenues | Customer E
Revenue, Major Customer [Line Items]
Percentage of revenues		10.00%
Accounts Receivable
Revenue, Major Customer [Line Items]
Number of major customers	4		2
Accounts Receivable | Customer A
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	16.00%			22.00%
Accounts Receivable | Customer B
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	12.00%			14.00%
Accounts Receivable | Customer C
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	12.00%
Accounts Receivable | Customer D
Revenue, Major Customer [Line Items]
Percentage of accounts receivable	11.00%