Silicon Graphics International (SGI) 10-Q 30 Oct 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Sep. 25, 2015	Oct. 27, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	SILICON GRAPHICS INTERNATIONAL CORP.
Entity Central Index Key	1,316,625
Current Fiscal Year End Date	--06-24
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 25, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		35,465,536

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Revenue
Product	$ 94,090	$ 75,002
Service	32,217	36,699
Total revenue	126,307	111,701
Cost of revenue
Product	79,910	58,893
Service	17,933	20,436
Total cost of revenue	97,843	79,329
Gross profit	28,464	32,372
Operating expenses:
Research and development	13,180	13,200
Sales and marketing	12,568	15,861
General and administrative	11,907	13,305
Restructuring	0	116
Total operating expenses	37,655	42,482
Loss from operations	(9,191)	(10,110)
Total other income, net:
Interest expense, net	(2,029)	(42)
Other (expense) income, net	(103)	143
Total other (expense) income, net	(2,132)	101
Loss before income taxes	(11,323)	(10,009)
Income tax provision	249	324
Net loss	$ (11,572)	$ (10,333)
Basic and diluted net (loss) income per share
Basic and diluted net loss per share (in dollars per share)	$ (0.33)	$ (0.30)
Shares used in computing basic and diluted net (loss) income per share
Shares used in computing basic and diluted net loss per share (in shares)	35,174	34,420

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Net loss	$ (11,572,000)	$ (10,333,000)
Other comprehensive income (loss):
Unrecognized gain on defined benefit plans, net of zero tax	2,000	69,000
Unrecognized gain on defined benefit plans, tax	0	0
Unrealized gain on derivatives instruments, net of zero tax	95,000	583,000
Change in unrealized losses on derivatives instruments, tax	0	0
Unrealized loss (gain) on derivative instruments reclassified into income, net of zero tax	134,000	(101,000)
Unrealized losses on derivative instruments reclassified into earnings, tax	0	0
Foreign currency translation adjustment, net of zero tax	407,000	(1,119,000)
Foreign currency translation adjustment, tax	0	0
Other comprehensive income (loss)	638,000	(568,000)
Total comprehensive loss	$ (10,934,000)	$ (10,901,000)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Current assets:
Cash and cash equivalents	$ 94,911	$ 67,191
Current portion of restricted cash	2,109	2,109
Accounts receivable, net of allowance for doubtful accounts of $94 and $190 as of September 25, 2015 and June 26, 2015, respectively	55,658	118,219
Inventories	92,168	82,832
Current portion of deferred cost of revenue	12,019	12,108
Prepaid expenses and other current assets	12,304	17,547
Total current assets	269,169	300,006
Non-current portion of restricted cash	2,224	2,251
Property and equipment, net	39,869	38,480
Goodwill and intangible assets, net	11,202	11,303
Non-current portion of deferred cost of revenue	9,535	9,648
Other non-current assets	26,937	25,896
Total assets	358,936	387,584
Current liabilities:
Accounts payable	49,126	48,677
Accrued compensation	15,871	17,797
Short-term debt	4,004	3,096
Current portion of deferred revenue	84,311	96,473
Other current liabilities	24,607	33,180
Total current liabilities	177,919	199,223
Long-term debt, net of unamortized debt issuance costs of $1,965 and $2,232 as of September 25, 2015 and June 26, 2015, respectively	66,243	65,581
Non-current portion of deferred revenue	42,311	43,781
Long-term income taxes payable	7,839	8,420
Retirement benefit obligations	9,273	9,330
Other non-current liabilities	7,777	7,871
Total liabilities	$ 311,362	$ 334,206
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001 per share; 12,000 shares authorized; none outstanding	$ 0	$ 0
Common stock, par value $0.001 per share; 120,000 shares authorized; 37,765 shares and 37,225 shares issued at September 25, 2015 and June 26, 2015, respectively	38	37
Additional paid-in capital	548,627	543,498
Treasury stock, at cost (2,315 shares at September 25, 2015 and at June 26, 2015)	(22,899)	(22,899)
Accumulated other comprehensive loss	(4,631)	(5,269)
Accumulated deficit	(473,561)	(461,989)
Total stockholders' equity	47,574	53,378
Total liabilities and stockholders' equity	$ 358,936	$ 387,584

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parentheticals - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Current assets:
Allowance for doubtful accounts	$ 94	$ 190
Stockholders' Equity:
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	12,000,000	12,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	37,765,000	37,225,000
Treasury stock (in shares)	2,315,000	2,315,000
Deferred Finance Costs, Current, Net	$ 1,075	$ 1,074
Deferred Finance Costs, Noncurrent, Net	$ 1,965	$ 2,232

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (11,572)	$ (10,333)
Depreciation and amortization	2,658	2,656
Share-based compensation	3,907	3,499
Other	(15)	117
Changes in operating assets and liabilities:
Accounts receivable	63,018	(5,997)
Inventories	(10,022)	(19,321)
Deferred cost of revenue	429	258
Prepaid expenses and other assets	5,150	11,229
Accounts payable	140	10,049
Deferred revenue	(14,367)	5,762
Other liabilities	(12,044)	(15,277)
Net cash provided by (used in) operating activities	27,282	(17,358)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2,396)	(1,192)
Other	27	(39)
Net cash used in investing activities	(2,369)	(1,231)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of Term Loan	(438)	0
Funding of restricted stock units withheld for taxes	(486)	(522)
Purchase of treasury stock	0	(1,101)
Proceeds from issuance of common stock upon exercise of stock options	3	298
Proceeds from issuance of common stock under employee stock purchase plan	1,706	1,572
Proceeds from draw-down of Japan loans	1,615	0
Net cash provided by financing activities	2,400	247
Effect of exchange rate changes on cash	407	(1,463)
Net increase (decrease) in cash	27,720	(19,805)
Cash-beginning of period	67,191	109,297
Cash-end of period	94,911	89,492
SUPPLEMENTAL DISCLOSURE OF OTHER CASH FLOW INFORMATION:
Income taxes refunded	(340)	(251)
Cash paid for interest	1,786	39
NON CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases in accounts payable	74	125
Inventory transfers to property and equipment	$ 1,109	$ 849

Description of Business (Notes)

Description of Business (Notes)	3 Months Ended
	Sep. 25, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	DESCRIPTION OF BUSINESS Silicon Graphics International Corp. ("SGI" or the "Company", "we", "us" or "our") is a global leader in high performance solutions for compute, data analytics and data management. We are focused on helping customers solve their most demanding business and technology challenges by delivering high performance computing, data management and data analytics solutions that accelerate time to discovery, innovation and profitability. The Company develops, markets and sells a broad line of low cost, mid-range and high-end scale-out and scale-up servers, differentiating software and designed-to-order solutions for large-scale deployments, coupled with global support and highly experienced professional services. SGI solutions are designed to deliver high impact results with lower total cost of ownership and to achieve industry-leading speed, scale and efficiency. The Company's solutions are utilized by scientific, business and government communities to fulfill highly compute intensive application needs in petascale and exascale environments. Delivering industry-leading computing power and fast and efficient data movement, both within the computing system and to and from large-scale data storage and data management installations, SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time. The vertical markets the Company serves include the federal government, defense and strategic systems, weather and climate, physical and life sciences, energy (including oil and gas), aerospace, automotive manufacturing, internet, financial services, education and research institutions and media and entertainment. The Company's headquarters is located in Milpitas, California and its sole manufacturing facility is located in Chippewa Falls, Wisconsin.

Condensed Consolidated Financia

Condensed Consolidated Financial Statements (Notes)	3 Months Ended
	Sep. 25, 2015
Condensed Consolidated Financial Statements [Abstract]
Condensed Consolidated Financial Statements	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation. The accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) applicable to interim financial information. The results for the interim periods are not necessarily indicative of results for the entire year or any future periods. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the fiscal year ended June 26, 2015 , which are included in the Company's Annual Report on Form 10-K filed with the SEC on September 9, 2015 . The preparation of unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses as presented in the accompanying unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Fiscal Year. The Company has a 52 or 53 -week fiscal year ending on the last Friday in June. The current fiscal year 2016 will be comprised of 52 weeks and will end on June 24, 2016 . Fiscal year 2015 was comprised of 52 weeks and ended on June 26, 2015 . In fiscal year 2016, the Company's fiscal quarters end on September 25, 2015 (first quarter), December 25, 2015 (second quarter), March 25, 2016 (third quarter) and June 24, 2016 (fourth quarter). In fiscal year 2015, the Company's fiscal quarters ended on September 26, 2014 (first quarter), December 26, 2014 (second quarter), March 27, 2015 (third quarter) and June 26, 2015 (fourth quarter). Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany accounts and transactions have been eliminated.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Notes)	3 Months Ended
	Sep. 25, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no changes in the Company's significant accounting policies for the three months ended September 25, 2015 as compared to those disclosed in the Company's Annual Report on Form 10-K for the year ended June 26, 2015 . Recently Issued Accounting Standards . Simplifying the Measurement of Inventory. In July 2015, Financial Accounting Standard Board ("FASB") issued guidance to simplify the accounting for inventory and to more closely align their guidance with international accounting standards. The amendments in this update apply to companies which use inventory valuation methods other than last in, first-out and the retail inventory method to change the way that they subsequently measure the value of inventory on their balance sheet. Under the new guidance, inventory should be valued at the lower of cost and net realizable value rather than the lower of cost and market. The amendments in this update are effective for fiscal years beginning after December 15, 2016, and for interim periods beginning after December 15, 2017. We do not expect to have an impact to our consolidated financial statements by adopting this amended guidance, as the new guidance aligns with our current practice. Technical Corrections and Improvements. In June 2015, the FASB issued Accounting Standard Update ("ASU") 2015-10, "Technical Corrections and Improvements," which covers a wide range of Topics in the Codification. The amendments in ASU 2015-10 include changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in ASU 2015-10 are effective for all entities for fiscal years and interim periods within those fiscal year, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this update. The Company is currently evaluating the effects, if any, which the adoption of this guidance will have on the Company’s consolidated financial statements. Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. In April 2015, the FASB issued ASU 2015-04, "Compensation-Retirement Benefits-Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Asset," which permits the entity with a fiscal year-end that does not coincide with a month-end, to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year for all plans. The amendments in ASU 2015-04 are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. This guidance will be effective for the Company in fiscal 2017. The Company is currently evaluating the effects, if any, which the adoption of this guidance will have on the Company’s consolidated financial statements. Revenue from Contracts with Customers. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early application not permitted. This guidance will be effective for the Company in fiscal 2019.

Financial Instruments and Fair

Financial Instruments and Fair Value (Notes)	3 Months Ended
	Sep. 25, 2015
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value	FINANCIAL INSTRUMENTS AND FAIR VALUE The Company measures its assets and liabilities at fair value based upon the expected exit price, representing the amount that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value reflects the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and/or the risks inherent in the inputs to the model. The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and • Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Company’s assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are a few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company's assets that are measured at fair value on a recurring basis (in thousands): September 25, 2015 Carrying Fair Value Measured Using Total Value Level 1 Level 2 Level 3 Balance Assets Money market funds $ 130 $ 130 $ — $ — $ 130 Pension investments held by insurance companies - German Plan 2,222 — 2,222 — 2,222 Pension investments held by insurance companies - Japan Plan 2,539 — 2,539 — 2,539 Derivative assets 584 — 584 — 584 Total assets measured at fair value $ 5,475 $ 130 $ 5,345 $ — $ 5,475 Liabilities Derivative liabilities $ 889 $ — $ 889 $ — $ 889 Total liabilities measured at fair value $ 889 $ — $ 889 $ — $ 889 June 26, 2015 Carrying Fair Value Measured Using Total Value Level 1 Level 2 Level 3 Balance Assets Money market funds $ 130 $ 130 $ — $ — $ 130 Pension investments held by insurance companies - German Plan 2,222 — 2,222 — 2,222 Pension investments held by insurance companies - Japan Plan 2,539 — 2,539 — 2,539 Derivatives assets 6,467 — 6,467 — 6,467 Total assets measured at fair value $ 11,358 $ 130 $ 11,228 $ — $ 11,358 Liabilities Derivative liabilities $ 5,443 $ — $ 5,443 $ — $ 5,443 Total liabilities measured at fair value $ 5,443 $ — $ 5,443 $ — $ 5,443 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during both the three and three months ended September 25, 2015 and September 26, 2014 . The Company’s cash equivalents, consisting of money market funds, are classified within Level 1 of the fair value hierarchy as they were valued using quoted market prices of the identical underlying securities in active markets. Level 2 assets include investments that are pooled with other investments held by insurance companies within their general funds for our pension plans. The investments held by the insurance companies are valued by taking the percentage owned by the plan in the underlying net asset value of the insurance company's general fund. The valuation of the underlying net assets of the insurance company's general fund is based on quoted market prices of the investments in active markets or for quoted market prices in active markets of similar assets. The market inputs used to value these instruments generally consist of market yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Pricing sources include industry standard data providers, security master files from large financial institutions and other third party sources. Our derivative financial instruments are classified within Level 2, as there is not an active market for each hedge contract, but the inputs used to calculate the value of the instruments are tied to active markets. The fair values of accounts receivable, accounts payable, and accrued liabilities and borrowings under short-term credit lines due within one year approximates their carrying values because of their short-term nature. The fair values of our Term Loan was approximately $69.1 million and $70.6 million as September 25, 2015 and June 26, 2015 , respectively and are classified within Level 2 of the fair value hierarchy. Other non-current assets include life insurance contracts related to our pension plans. These life insurance contracts are carried at cash surrender values, which due to their ability to be converted to cash at that amount, approximate their fair values. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis The Company does not have any assets or liabilities measured at fair value on a non-recurring basis as of September 25, 2015 and June 26, 2015 .

Derivatives (Notes)

Derivatives (Notes)	3 Months Ended
	Sep. 25, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVES The Company is exposed to foreign currency exchange rate fluctuations in the normal course of its business. As part of the Company's risk management strategy, the Company uses derivative instruments, primarily forward contracts to hedge economic exposures resulting from changes in foreign currency exchange rates. Cash Flow Hedges The Company implements a cash flow hedging strategy to protect anticipated non-functional currency revenues and expenses. The Company uses forward contracts designated as cash flow hedges to hedge a portion of future forecasted non-U.S. Dollar ("USD") cash flows. In general, these foreign exchange contracts, carried at fair value, have maturities between one and twelve months. As of September 25, 2015 , the Company had 4 open hedges in an aggregate notional amount in USD equivalent to approximately $36.0 million . The Company currently designates hedges for the Euro, British Pound, and Czech Koruna. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance. All amounts related to gains / losses on designated hedges, currently in accumulated other comprehensive income ("AOCI") are expected to be reclassified into earnings over the next 12 months. For derivative instruments that are designated and qualify as cash flow hedges under Accounting Standards Codification ("ASC") No. 815- Derivatives and Hedging , the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings into the same financial statement line as the item being hedged. SGI assesses the prospective and retrospective effectiveness of its hedge programs using statistical analysis. The Company uses the spot-to-spot method to measure ineffectiveness in the hedge relationship. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in other income (expense), net. For derivative instruments that are not designated as hedging instruments under ASC No. 815 or that have been de-designated following recognition of the hedge item, gains and losses are recognized in other income (expense), net. Balance Sheet Hedges Additionally, the Company enters into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of its subsidiaries. These foreign exchange contracts are carried at fair value and do not qualify for hedge accounting treatment and are not designated as hedging instruments. Changes in fair value of these derivatives are recognized in other income (expense), net in the condensed consolidated statement of operations, in the current period, along with the offsetting foreign currency gain or loss on the underlying assets or liabilities. As of September 25, 2015 , the Company had 4 open non-designated hedges in an aggregate USD-equivalent notional amount totalling approximately $16.5 million . The before tax effect of derivative instruments for foreign exchange contracts designated as hedging instruments and non-designated hedging instruments in our condensed consolidated statement of operations during the three months ended September 25, 2015 and September 26, 2014 was as follows (in thousands): Three Months Ended Location September 25, September 26, Designated Derivatives Cash Flow Hedges: Foreign exchange contracts (Effective portion) Amount recognized in AOCI $ 95 $ 583 Foreign exchange contracts (Effective portion) Net revenues (134 ) 163 Foreign exchange contracts (Effective portion) Operating expenses — (63 ) Foreign exchange contracts (Effective portion) Other income (expense), net 6 (4 ) Total $ (33 ) $ 679 Non-designated Derivatives Foreign exchange contracts Other income (expense), net $ 224 $ 903 Total $ 224 $ 903 The Company's use of derivative instruments exposes it to non-performance risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company does, however, seek to mitigate such risks by limiting its counterparties to major financial institutions which are selected based on their credit ratings and other factors. The Company has established policies and procedures for mitigating non-performance risk that include establishing counterparty credit limits, monitoring credit exposures, and continually assessing the creditworthiness of counterparties. Therefore the Company does not consider counterparty non-performance risk a material risk at this time. A number of the Company's derivative agreements contain threshold limits to the net liability position with counterparties and are dependent on the Company's corporate credit rating determined by the major credit rating agencies. The counterparties to the derivative instruments may request collateralization, in accordance with derivative agreements, on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of September 25, 2015 , was $0.3 million . The credit-risk-related contingent features underlying these agreements had not been triggered as of September 25, 2015 . As of September 25, 2015 , the Company has designated derivatives with notional values of approximately $36.0 million and non-designated derivatives with notional values of approximately $16.5 million in Euro, British Pound, Czech Koruna, the Australian Dollar and Japanese Yen. Derivative instruments are subject to master netting arrangements and are disclosed gross in the statement of financial position. The gross fair values and location of derivative instruments included in the condensed consolidated statement of financial position as of September 25, 2015 and June 26, 2015 , were as follows (in thousands): Offsetting of Derivative Assets Gross Amount Offset In the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position As of September 25, 2015 Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivatives Foreign currency forward contracts $ 584 $ — $ — $ (584 ) $ — $ — Total $ 584 $ — $ — $ (584 ) $ — $ — As of June 26, 2015 Derivatives Foreign currency forward contracts $ 6,467 $ — $ — $ (5,443 ) $ — $ 1,024 Total $ 6,467 $ — $ — $ (5,443 ) $ — $ 1,024 Offsetting of Derivative Liabilities Gross Amount Offset In the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position As of September 25, 2015 Gross Amount of Recognized Liabilities Gross Amount Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Pledged Net Amount Derivatives Foreign currency forward contracts $ (889 ) $ — $ — $ 584 $ — $ (305 ) Total $ (889 ) $ — $ — $ 584 $ — $ (305 ) As of June 26, 2015 Derivatives Foreign currency forward contracts $ (5,443 ) $ — $ — $ 5,443 $ — $ — Total $ (5,443 ) $ — $ — $ 5,443 $ — $ — The gross fair value and location of derivative instruments held in the condensed consolidated statement of financial position as of September 25, 2015 and June 26, 2015 were as follows (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Location September 25, June 26, Location September 25, June 26, Designated Derivatives: Foreign exchange contracts Foreign exchange contracts Other current assets $ 30 $ 167 Other current liabilities $ 220 $ 628 Non- designated Derivatives: Foreign exchange contracts Foreign exchange contracts Other current assets 554 6,300 Other current liabilities 669 4,815 Total derivatives $ 584 $ 6,467 $ 889 $ 5,443 The following table provides the balances and changes in the accumulated other comprehensive loss (income) related to derivative instruments during the three months ended September 25, 2015 (in thousands): Amount AOCI - Beginning balance of losses $ 408 Unrecognized gain on derivatives (95 ) Unrealized loss on derivative instruments reclassified to income (134 ) AOCI - Ending balance of losses $ 179 See Statement of Comprehensive Loss and Note 4 for more information regarding derivatives.

Inventories (Notes)

Inventories (Notes)	3 Months Ended
	Sep. 25, 2015
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consist of the following (in thousands): September 25, June 26, Finished goods $ 56,360 $ 36,772 Work in process 13,407 25,562 Raw materials 22,401 20,498 Total inventories $ 92,168 $ 82,832 Finished goods include inventory in transit, at customer sites undergoing installation, or testing prior to customer acceptance; such amounts were approximately $43.4 million at September 25, 2015 and $30.2 million at June 26, 2015 .

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets (Notes)	3 Months Ended
	Sep. 25, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following (in thousands): September 25, June 26, Value-added tax receivable $ 6,435 $ 5,179 Derivatives (see Note 5) 584 6,467 Prepaid taxes 393 178 Other prepaid and current assets 4,892 5,723 Total prepaid expenses and other current assets $ 12,304 $ 17,547

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net (Notes)	3 Months Ended
	Sep. 25, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	INTANGIBLE ASSETS, NET The following table represents the goodwill allocated to the Company's reportable segments as of and during the three months ended September 25, 2015 (in thousands): Product Service Total Goodwill as of June 26, 2015 $ 7,508 $ 1,076 $ 8,584 Goodwill arising from acquisitions — — — Goodwill as of September 25, 2015 $ 7,508 $ 1,076 $ 8,584 The Company reviews goodwill for impairment annually in the fourth quarter of its fiscal year, or more frequently if impairment indicators arise. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using the income approach that uses discounted cash flows. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss. As of September 25, 2015 there was a substantial decline in the market capitalization of the Company from June 26, 2015, the end of the Company's most recent fiscal year. Based on this impairment indicator, the Company performed a formal impairment analysis of the carrying value of goodwill as of September 25, 2015. As part of our analysis, we reconciled the computed fair values of our reporting units to our overall market capitalization and we concluded that the computed fair value of each of our reporting units was well in excess of the net book value, and accordingly no impairment existed as of September 25, 2015. We will continue to evaluate goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairment was recorded for the both of the three months ended September 25, 2015 and September 26, 2014. Intangible assets by major asset class consist of the following (in thousands): Intangible Asset Class Weighted Average Useful Life (in Years) September 25, 2015 Gross Carrying Amount Accumulated Amortization and Impairment Net Customer relationships 5 $ 7,300 $ (7,300 ) $ — Purchased technology 5 12,200 (11,675 ) 525 Customer backlog (a) 10,540 (10,415 ) 125 Trademark/trade name portfolio 5 3,767 (3,767 ) — Patents and other (b) 2,097 (130 ) 1,967 Total $ 35,904 $ (33,287 ) $ 2,617 Intangible Asset Class Weighted Average Useful Life (in Years) June 26, 2015 Gross Carrying Amount Accumulated Amortization and Impairment Net Customer relationships 5 $ 7,300 $ (7,300 ) $ — Purchased technology 5 12,200 (11,600 ) 600 Customer backlog (a) 10,540 (10,388 ) 152 Trademark/trade name portfolio 5 3,767 (3,767 ) — Patents and other (b) 2,097 (130 ) 1,967 Total $ 35,904 $ (33,185 ) $ 2,719 (a) The customer backlog intangible asset is amortized as revenue recognition criteria is met for a particular customer order, reflecting the use of the asset. (b) Includes in-process Research and Development for which amortization has not commenced. The Company reviews the carrying values of long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the assets to the estimated undiscounted future cash flows expected to be generated by the assets. Intangible assets amortization and impairment expense was $0.1 million and $0.2 million in the three months ended September 25, 2015 and September 26, 2014 , respectively. As of September 25, 2015 , expected amortization expense for intangible assets with a finite life was as follows (in thousands): Fiscal Year Amortization Expense 2016 (remaining nine months) $ 287 2017 363 $ 650

Other Assets (Notes)

Other Assets (Notes)	3 Months Ended
	Sep. 25, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	OTHER NON-CURRENT ASSETS Other non-current assets consist of the following (in thousands): September 25, June 26, Long-term service inventory $ 16,034 $ 16,015 Restricted pension plan assets 6,706 6,726 Deferred tax assets 758 758 Long-term refundable deposits 1,804 1,763 Other assets 1,635 634 Total other non-current assets $ 26,937 $ 25,896

Other Current Liabilities (Note

Other Current Liabilities (Notes)	3 Months Ended
	Sep. 25, 2015
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	OTHER CURRENT LIABILITIES Other current liabilities consist of the following (in thousands): September 25, June 26, Accrued sales and use tax payable $ 7,693 $ 8,670 Accrued professional services fees 4,325 3,597 Accrued warranty, current portion 3,431 3,402 Accrued restructuring and severance 1,847 2,239 Derivatives (see Note 5) 889 5,443 Other current liabilities 6,422 9,829 Total other current liabilities $ 24,607 $ 33,180

Other Non-current Liabilities (

Other Non-current Liabilities (Notes)	3 Months Ended
	Sep. 25, 2015
Other Liabilities Disclosure [Abstract]
Other Non-current Liabilities	OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following (in thousands): September 25, June 26, Accrued warranty, non-current portion $ 1,365 $ 1,374 Deferred rent 5,387 5,526 Other non-current liabilities 1,025 971 Total other non-current liabilities $ 7,777 $ 7,871

Warranty Reserve (Notes)

Warranty Reserve (Notes)	3 Months Ended
	Sep. 25, 2015
Guarantees [Abstract]
Warranty Reserve	WARRANTY RESERVE Activity in the warranty reserve, which is included in other current and non-current liabilities, was as follows (in thousands): Three Months Ended September 25, 2015 September 26, 2014 Balance at beginning of period $ 4,776 $ 6,044 Current period provision 1,069 673 Warranty expenditures incurred (1,031 ) (1,176 ) Changes in accrual for pre-existing warranties (18 ) 93 Balance at end of period $ 4,796 $ 5,634

Restructuring and Severance Act

Restructuring and Severance Activity (Notes)	3 Months Ended
	Sep. 25, 2015
Restructuring and Related Activities [Abstract]
Restructuring and Severance Activity	RESTRUCTURING AND SEVERANCE ACTIVITY Fiscal 2012 Restructuring Action On March 16, 2012, the Company's Board of Directors approved a restructuring action to reduce approximately 25% of the Company's European workforce and close certain legal entities and offices in Europe. The Company implemented restructuring actions to streamline operations and reduce operating expenses. This restructuring action was complete as of December 26, 2014. Restructuring expense for the three months ended September 26, 2014 was immaterial and no expense was recorded for the three months ended September 25, 2015. Restructuring expenses are included in operating expenses in the accompanying condensed consolidated statements of operations. As of September 25, 2015 , there was no liability balance remaining for this restructuring action. Severance Activity During the three months ended September 25, 2015 , the Company incurred approximately $0.9 million of severance charges, respectively, associated with planned worldwide cost reductions. During the three months ended September 26, 2014 , the Company incurred approximately $1.0 million of severance charges, respectively, associated with planned worldwide cost reductions. As of September 25, 2015 , the remaining liability for these cost reduction programs was approximately $1.8 million .

Short-Term Debt (Notes)

Short-Term Debt (Notes)	3 Months Ended
	Sep. 25, 2015
Debt Disclosure [Abstract]
Short-Term Debt	SHORT-TERM DEBT Term Loan As of September 25, 2015 , the Company's short-term debt includes the current portion of the outstanding balance of $69.1 million Term Loan with Morgan Stanley Senior Funding, Inc. and Tennenbaum Capital Partners, LLC of $0.7 million net of unamortized debt issuance costs of $1.1 million . Japan Loans The Company has unsecured unguaranteed loans with Mizuho Bank, Ltd. ("Japan Loans") for 500 million yen or $4.1 million at TIBOR (Tokyo Interbank Offered Rate) plus 1% per annum, of which approximately $3.3 million was classified as short-term debt as of September 25, 2015 . See Note 15, Long-term Debt, for more information about the Term Loan and Japan Loans.

Term Loan (Notes)

Term Loan (Notes)	3 Months Ended
	Sep. 25, 2015
Debt Disclosure [Abstract]
Term Loan	On January 27, 2015 , the Company entered into a new credit agreement (the "Term Loan") among the Company, certain lenders and Morgan Stanley Senior Funding, Inc., as administrative and collateral agent and lead arranger. The Term Loan provided an aggregate principal amount of $70.0 million with a term of three and a half years , bearing interest at the LIBO Rate (as defined in the Credit Agreement), subject to a 1.0% minimum, plus 9.0% per annum. The Term Loan provided $66.2 million of cash, net of borrowing and origination costs of approximately $3.8 million , which was used to pay off the prior credit facility and provide cash and cash equivalents sufficient to fund working capital requirements, capital expenditures and operations. The Company was in compliance with all covenants under the Term Loan, as of September 25, 2015 . Pursuant to the Term Loan, certain wholly-owned domestic subsidiaries of the Company (the “Guarantors”) have guaranteed the obligations of the Company under the Term Loan. The Term Loan and related loan documents replaced the Company’s prior Credit Agreement dated December 5, 2011, by and among the Company, certain lenders party thereto, and Wells Fargo Capital Finance, LLC, as administrative agent (as amended from time to time, the “Prior Credit Facility”). All commitments under the Prior Credit Facility were terminated and all borrowings thereunder were repaid, effective January 27, 2015. The remaining obligations of Company and guarantor party to the Prior Credit Facility and related loan documents are limited to certain remaining contingent indemnification obligations under such facility. The Term Loan and related loan documents contain covenants that limit the ability of the Company and certain of its subsidiaries, among other things, to: • issue any preferred stock; • incur or guarantee indebtedness; • create, incur, assume, or permit liens to exist; • consummate asset sales, acquisitions or mergers; • dispose of property; • pay dividends or repurchase stock; • make investments; • enter into transactions with affiliates; or • enter into or permit certain type of agreements to exist. The Term Loan also requires compliance with a minimum adjusted current ratio and a $10.0 million minimum unrestricted cash balance, calculated as set forth in the Term Loan. The Term Loan contains customary events of default, including: • failure to make required payments; • material breaches of representations and warranties; • failure to comply with certain agreements or covenants; • failure to pay, or default under, certain other indebtedness; • certain events of bankruptcy and insolvency; • failure to pay certain judgments; and • a change of control. The Company may not prepay the loan during the first year and may only prepay the loan during the second year at a premium. After such time, the Company may prepay the loan without penalty. As of September 25, 2015 , the Company had an outstanding principal balance on the Term Loan, of which was classified as follows: Term Loan Long-Term Short-Term Total (in thousands) Principal amount $ 67,375 $ 1,750 $ 69,125 Less unamortized debt issuance costs (1,965 ) (1,075 ) (3,040 ) $ 65,410 $ 675 $ 66,085 Japan Loans As of September 25, 2015 , the Company has unsecured unguaranteed loans with Mizuho Bank, Ltd. ("Japan Loans") amounting to 500 million yen or $4.1 million at TIBOR plus 1% per annum, of which approximately $0.8 million was classified as long-term debt as of September 25, 2015 .

Credit Facility (Notes)

Credit Facility (Notes)	3 Months Ended
	Sep. 25, 2015
Debt Disclosure [Abstract]
Credit Facility	CREDIT FACILITY On December 5, 2011, the Company entered into a 5 -year senior secured credit facility with aggregate principal amount of $25.0 million , as amended. The credit facility included a $10.0 million letter of credit subfacility. The Company paid off the outstanding balance of $15.0 million on the December 2011 credit facility with the net proceeds received from the new Term Loan entered into on January 27, 2015, and terminated the December 2011 agreement. See Note 15, Long-term Debt, for more information regarding the Term Loan.

Share-Based Compensation (Notes

Share-Based Compensation (Notes)	3 Months Ended
	Sep. 25, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	SHARE-BASED COMPENSATION The Company granted restricted stock units to employees under its equity incentive plans and issued shares of the Company's common stock to participating employees under its employee stock purchase plan during both the three months ended September 25, 2015 and September 26, 2014 . Stock options were not granted during these respective periods. Total share-based compensation expense was as follows (in thousands): Three Months Ended September 25, 2015 September 26, 2014 Cost of revenue $ 525 $ 466 Research and development 706 559 Sales and marketing 518 801 General and administrative 2,158 1,673 Total share-based compensation expense $ 3,907 $ 3,499 Determining Fair Value The fair value of share-based awards was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions for the following periods: Three Months Ended September 25, September 26, ESPP Plan shares Risk-free interest rate 0.5% 0.2% Volatility 47.0% 49.0% Weighted average expected life (in years) 1.25 1.25 Expected dividend yield — — Weighted average fair value $1.83 $3.21 Stock Option Activity A summary of stock option activity for the three months ended September 25, 2015 was as follows: Options Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual term in years Aggregate Intrinsic Value (in thousands) Balance at June 26, 2015 1,386,570 $ 10.41 Options granted — — Options exercised (584 ) 5.34 Options cancelled (47,833 ) 10.71 Balance at September 25, 2015 1,338,153 $ 10.40 4.68 $ — Vested and expected to vest at September 25, 2015 1,335,141 $ 10.41 4.67 $ — Exercisable at September 25, 2015 1,267,630 $ 10.53 4.58 $ — The total intrinsic value of options exercised in the three months ended September 25, 2015 and September 26, 2014 was zero and $0.1 million , respectively. The total fair value of shares vested during the three months ended September 25, 2015 and September 26, 2014 was $0.2 million and $0.3 million , respectively. As of September 25, 2015 , unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted average period of 0.30 years , was immaterial. Restricted Stock Unit Activity The following table summarizes the Company's activity with respect to restricted stock units (“RSUs”) for the three months ended September 25, 2015 : Number of Shares Balance at June 26, 2015 1,706,073 Awarded 1,147,363 Released (253,953 ) Forfeited (153,381 ) Balance at September 25, 2015 2,446,102 Vested and expected to vest at September 25, 2015 1,857,886 In August 2015, the Company granted time-based RSUs to its employees and to members of the Company's executive management team. The RSUs begin immediate, quarterly vesting over a period of four years. The Company also granted performance-based RSUs ("2015 executive PSUs") to members of the Company's executive management team. The PSUs initially vest as to one-fourth of their amount on the day following Compensation Committee review of Company goal attainment for the fiscal year ending June 24, 2016. The PSU grants may be increased or decreased depending on the level of attainment by the Company of the performance metrics established by the Compensation Committee. In order for the PSUs to vest in full, the Company must meet metrics related to (i) total stockholder return ( 50% weighting) and (ii) two strategic objectives related to top line revenue and gross margin ( 50% weighting). Achievement of the aforementioned performance criteria results in a vesting percentage determined in accordance with a payout matrix. At attainment of below 75% , PSU vesting would be 0% . At 75% attainment, vesting would be 50% . At 100% attainment, vesting would be 100% . Attainment at 125% and above would result in 150% vesting. If the conditions for initial vesting of the PSUs are met, the remaining portion of the PSU grant would vest in twelve equal, successive quarterly installments over an additional three years, subject to continued service through each vesting date. The Company estimated the fair value of its 2015 executive PSUs using a Monte Carlo simulation model with the assumptions discussed above, along with the fair value at the date of grant. For purposes of reporting and determining the share-based compensation expense as of September 25, 2015, the company estimated that 100% of the PSUs will be awarded. The Company assesses the achievement of these performance metrics on a quarterly basis. As of September 25, 2015 , there was $8.6 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average period of 1.51 years . RSUs are converted into common stock upon vesting. Upon the vesting of restricted stock, the Company generally uses the net share settlement approach, which withholds a portion of the shares to cover the applicable taxes and decreases the shares issued to the employee by a corresponding value. The withholding tax obligations are based upon the fair market value of the Company's common stock on the vesting date. The number and the value of the shares netted for employee taxes are summarized in the table below (in thousands except share amounts): Three Months Ended September 25, 2015 September 26, 2014 RSUs shares withheld for taxes 90,621 58,610 RSUs amounts withheld for taxes $ 480 $ 545 Employee Stock Purchase Plan At September 25, 2015 , the total unrecognized compensation cost related to options to purchase the Company's common stock under the employee stock purchase plan ("ESPP") was approximately $1.7 million . This cost will be amortized on a straight-line basis over approximately 1.9 years . The following table shows the shares issued and their respective weighted-average purchase price per share, pursuant to the ESPP, during the three months ended September 25, 2015 and September 26, 2014 . Three Months Ended September 25, September 26, Shares issued 376,569 209,631 Weighted-average purchase price per share $ 4.53 $ 7.50

Stock Repurchase Program (Notes

Stock Repurchase Program (Notes)	3 Months Ended
	Sep. 25, 2015
Equity [Abstract]
Stock Repurchase Program	STOCK REPURCHASE PROGRAM In January 2013, the Company's board of directors approved a plan for the Company to repurchase shares of its common stock with a market value of up to $15.0 million . In November 2013, the Company announced an increase in the authorized repurchased amount to $30.0 million and in November 2014, the Company announced that it had extended its repurchase program through December 31, 2015. The Company's common stock may be repurchased in the open market or through negotiated transactions, including 10b5-1 trading plans that would enable the Company to repurchase its shares during periods outside of its normal trading windows. Purchases will cease if the authorized funds are spent or the program is discontinued. The Company is not obligated to acquire any particular amount of stock, and the program may be suspended or terminated at any time at the Company's discretion. Since the inception of the repurchase plan in January 2013, the Company has repurchased approximately 1,566,000 shares of its common stock for approximately $18.0 million . As of September 25, 2015 , the Company had a remaining authorization of approximately $12.0 million for future share repurchases; however the new credit agreement signed in January 2015 restricts the ability of the Company to repurchase stock while borrowings under the agreement remain outstanding. SGI does not anticipate repurchasing stock while such debt is outstanding. See Note 15, Long-Term Debt, for more information about the Term Loan agreement.

Earnings Per Share (Notes)

Earnings Per Share (Notes)	3 Months Ended
	Sep. 25, 2015
Earnings Per Share [Abstract]
Earnings Per Share	PER SHARE Basic net income (loss) per common share is computed by dividing unaudited consolidated net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing unaudited consolidated net income (loss) by the weighted average number of common shares outstanding and dilutive common shares outstanding during the period. For both of the three months ended September 25, 2015 and September 26, 2014 , the effect of outstanding options and RSUs were anti-dilutive to loss per share and were therefore excluded from the calculation of diluted loss per share. The dilutive effect of outstanding options and RSUs is reflected in diluted net income per share, but not diluted loss per share, by application of the treasury stock method. As the Company had a net loss in both the three months ended September 25, 2015 and September 26, 2014 , basic and diluted net loss per share are the same for these periods. The following table sets forth the computation of basic and diluted net loss per share for the three months ended September 25, 2015 and September 26, 2014 (in thousands, except per share amount): Three Months Ended September 25, September 26, Numerator: Net loss $ (11,572 ) $ (10,333 ) Denominator: Weighted-average common shares used in computing basic and diluted net loss per share 35,174 34,420 Basic and diluted net loss per share $ (0.33 ) $ (0.30 ) The following potentially dilutive securities have been excluded from the dilutive net loss per share calculations, as their effect would have been anti-dilutive (in thousands): Three Months Ended September 25, September 26, Options, RSUs, and ESPP 4,487 4,013

Retirement Benefit Plan (Notes)

Retirement Benefit Plan (Notes)	3 Months Ended
	Sep. 25, 2015
Compensation and Retirement Disclosure [Abstract]
Retirement Benefit Plan	RETIREMENT BENEFIT PLAN Defined Benefit Plans The Company sponsors defined benefit plans covering certain of its employees in Germany ("German plan") and Japan ("Japan plan"). The net periodic benefit cost of the German and Japan plans were comprised of the following components (in thousands): Three Months Ended September 25, September 26, Net periodic benefit cost Service cost $ 78 $ 89 Interest expense 72 110 Expected return on plan assets (35 ) (36 ) Amortization of actuarial losses 2 69 Net periodic benefit cost $ 117 $ 232

Income Taxes (Notes)

Income Taxes (Notes)	3 Months Ended
	Sep. 25, 2015
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company recorded tax provision of approximately $0.2 million the three months ended September 25, 2015 . The tax expense primarily was comprised of tax liability computed based on the Company’s projected full-year foreign taxes, state taxes, interest for unrecognized tax benefits and U.S. deferred tax liability related to nondeductible goodwill, partially offset by tax benefits from expiring statute of limitations. The effective tax rate differed from the combined federal and net state statutory income tax rate for the three months ended September 25, 2015 , primarily due to the tax rate differential of the Company's foreign operations and utilization of net operating losses not previously recognized. The Company recorded tax provision of approximately $0.3 million for the three months ended September 26, 2014 . The tax expense primarily was comprised of tax liability computed based on the Company’s projected full-year foreign taxes, state taxes and interest for unrecognized tax benefits, partially offset by a refund of taxes in Korea. The effective tax rate differed from the combined federal and net state statutory income tax rate for the three months ended September 26, 2014 primarily due to the tax rate differential of the Company's foreign operations and utilization of net operating losses not previously recognized. As of September 25, 2015 , the Company has provided a partial valuation allowance against its net deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. The Company had approximately $5.8 million of gross unrecognized tax benefit as of September 25, 2015 , of which $1.5 million will impact the effective tax rate when recognized. The Company recognizes interest expense and penalties related to the unrecognized tax benefits within income tax expense. As of September 25, 2015 , the Company also had approximately $6.6 million of interest and penalties attributable to the gross unrecognized tax benefits. It is reasonably possible that over the next twelve-month period the Company may experience an increase or decrease in its unrecognized tax benefits.

Segment Information (Notes)

Segment Information (Notes)	3 Months Ended
	Sep. 25, 2015
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION The Company's operating segments are determined based upon several criteria including: the Company's internal organizational structure; the manner in which the Company's operations are managed; the criteria used by the Company's Chief Operating Officer, the Chief Operating Decision Maker (“CODM”), to evaluate segment performance; and the Company's availability of separate financial information. A description of the Company's two reportable segments is as follows: Product— The Product segment is comprised of our Compute and Storage solutions. Compute solutions include our scale-out computing, scale-up computing and software solutions. Compute solutions also include integrated third-party hardware and software products that we sell to provide a single source solution for our customers. Our compute solutions are designed to minimize the number and complexity of interconnects for power and data transfer to improve reliability, speed of implementation and serviceability. Storage solutions include both hardware and software offerings to address virtually every type of data storage and management requirement. Products range from entry-level disk arrays to complex storage systems, with innovative technology and hardware. Our storage solutions are designed to provide extreme scale, broad flexibility and to minimize the cost to store data. Service— The Service segment is comprised of customer service support and professional services. Our customer support organization provides ongoing maintenance and technical support for our products and some third-party products, as well as contracted maintenance services, hardware deployment services (install and de-install), time and materials-based services and spare parts. Our professional services organization provides value added services associated with technology consulting, project management and customer education, all of which help our customers realize the full value of their information technology investments. The Company's CODM evaluates the performance of its operating segments based on revenue and operating profit (loss). Revenues are generally allocated based on the type of products and service provided to our customers. Operating profit (loss) for each segment includes related cost of sales and operating expenses directly attributable to the segment. A portion of the segments' expenses arise from shared services and infrastructure that the Company provides to the segments in order to realize economies of scale and to efficiently use resources. These expenses, collectively called corporate charges, include costs of centralized research and development and other corporate infrastructure expenses. The corporate charges that are directly attributable to the segments are allocated and are reassessed on a periodic basis. The allocations have been determined on a basis that the Company considers to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. The profitability of each of the segments is measured after excluding share-based compensation expenses, amortization and impairment of intangibles, restructuring charges, manufacturing transition costs, general and administration charges, other unallocated corporate charges and other items as noted in the reconciliation below as management does not include this information in its measurement of the performance of the operating segments. Segment Results Summary information by operating segment for the three months ended September 25, 2015 and September 26, 2014 is as follows (in thousands): Three Months Ended September 25, September 26, Total net revenue Product $ 94,090 $ 75,002 Service 32,217 36,699 Total net revenue $ 126,307 $ 111,701 Operating profit (loss) from reportable segments Product $ 141 $ 391 Service 12,930 14,698 Total operating profit from reportable segments (1) $ 13,071 $ 15,089 (1) The profitability of each of the segments is measured after excluding unallocated corporate charges, restructuring and severance, amortization and intangibles, share-based compensation expenses, and other items as noted in the reconciliation below. The following table reconciles segment results to our total company results from operations before taxes: Three Months Ended September 25, September 26, (in thousands) Total reportable segments' operating profit $ 13,071 $ 15,089 All other corporate charges: Unallocated operating expenses 16,036 19,843 Restructuring and severance 944 1,092 Amortization and impairment of intangibles 92 215 Share-based compensation 3,907 3,499 Other 1,283 550 Total all other corporate charges 22,262 25,199 Loss from operations, as reported $ (9,191 ) $ (10,110 ) The segment information is presented on the basis which the Company's CODM evaluates the performance of its operating segments. The Company's assets are located primarily in the United States and are not allocated to any specific region. The Company does not measure the performance of its business segments on any asset-based metrics. Therefore, reportable segment information is presented only for revenue and operating profit (loss). Customer information A significant portion of the Company's revenue was generated from a limited number of customers. For the three months ended September 25, 2015 , various agencies of the United States government, excluding system integrators (collectively, U.S. government) and one customer, accounted for approximately 30% and 10% of the Company's revenue, respectively. For the three months ended September 26, 2014 , various agencies of the United States government, excluding system integrators (collectively, U.S. government) accounted for approximately 21% of the Company's revenue. At September 25, 2015 , one customer accounted for approximately 17% of the Company's accounts receivable. At June 26, 2015 , four customers accounted for approximately 56% of the Company's accounts receivable. Geographic Information The following table presents revenue by geographic region for the three months ended September 25, 2015 and September 26, 2014 (in thousands except percentages): Three Months Ended September 25, September 26, Americas $ 80,459 $ 67,670 As a percent of total net revenue 63.7 % 60.5 % EMEA 25,543 17,613 As a percent of total net revenue 20.2 % 15.8 % APJ 20,305 26,418 As a percent of total net revenue 16.1 % 23.7 % Total revenue $ 126,307 $ 111,701 The Americas geographic region includes both North and South America. The Europe geographic region ("EMEA") includes European countries. The Asia-Pacific geographic region ("APJ") includes Australia, Japan and all other Asian countries. International sales to Japan, the only single foreign country which accounted for 10% or more of total revenue, were approximately $16.4 million or 13% and $20.1 million or 18% for the three months ended September 25, 2015 , and September 26, 2014 , respectively. No other individual foreign country's revenue accounted for 10% or more of revenues in the three months ended September 25, 2015 and September 26, 2014 .

Financial Guarantees (Notes)

Financial Guarantees (Notes)	3 Months Ended
	Sep. 25, 2015
Guarantees [Abstract]
Financial Guarantees	FINANCIAL GUARANTEES The Company has issued financial guarantees to cover rent on leased facilities and equipment, to government authorities for value-added tax and other taxes and to various other parties to support payments in advance of future delivery on goods and services. The majority of the Company's financial guarantees have terms of one year or more. The maximum potential obligation under financial guarantees at September 25, 2015 was $4.5 million for which the Company has $4.3 million of assets held as collateral. The full amount of the assets held as collateral are included in short-term and long-term restricted cash in the accompanying unaudited condensed consolidated balance sheets.

Commitments and Contingencies (

Commitments and Contingencies (Notes)	3 Months Ended
	Sep. 25, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Off Balance Sheet Arrangement As of September 25, 2015 , the Company had a $2.0 million outstanding letter of credit with Wells Fargo Bank to back the Company's obligation to pay or perform when required to do so pursuant to the requirements of an underlying agreement or the provision of goods or services to a supplier. Indemnification Agreements The Company enters into standard indemnification agreements with its customers and certain other business partners in the ordinary course of business. These agreements include provisions for indemnifying the customer against any claim brought by a third party to the extent any such claim alleges that the Company's product infringes a patent, copyright or trademark, or misappropriates a trade secret, of that third-party. The agreements generally limit the scope of the available remedies in a variety of industry-standard methods, including, but not limited to, product usage and geography-based limitations, a right to control the defense or settlement of any claim and a right to replace or modify the infringing products to make them non-infringing. The Company has not incurred significant expenses related to these indemnification agreements and no material claims for such indemnifications were outstanding as of September 25, 2015 . As a result, the Company believes the estimated fair value of these indemnification agreements, if any, to be immaterial; accordingly, no liability has been recorded with respect to such indemnifications as of September 25, 2015 . Contingencies The Company may, from time to time, be involved in legal proceedings and disputes that arise in the normal course of business. These matters include product liability actions, patent infringement actions, contract disputes, domestic and international federal, state and local tax reviews and audits and other matters. The Company also may be subject to litigation and/or adverse rulings or judgments as a result of certain contractual indemnification obligations. The Company records a provision for a liability when management believes that it is both probable that a liability has been incurred and it can reasonably estimate the amount of the loss. The Company believes it has adequate provisions for any such matters. The Company reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Third parties in the past have asserted, and may in the future assert, intellectual property infringement claims against the Company, and such future claims, if proven, could require the Company to pay substantial damages or to redesign its existing products or pay fees to obtain cross-license agreements. Litigation may be necessary in the future to enforce or defend the Company's intellectual property rights, to protect the Company's trade secrets or to determine the validity and scope of its proprietary rights or the proprietary rights of others. Any such litigation could result in substantial costs and diversion of management resources, either of which could harm the Company's business, operating results and financial condition. Further, many of the Company's current and potential competitors have the ability to dedicate substantially greater resources to enforcing and defending their intellectual property rights than the Company. Additionally, from time to time, the Company receives inquiries from regulatory agencies informally requesting information or documentation. There can be no assurance in any given case that such informal review will not lead to further proceedings involving the Company in the future. The Company is not aware of any pending disputes, including those outlined above, that would be likely to have a material adverse effect, either individually or in the aggregate, on its consolidated financial condition, results of operations or liquidity. However, litigation is subject to inherent uncertainties and costs and unfavorable outcomes could occur. An unfavorable outcome could include the payment of monetary damages, cash or other settlement, or an injunction prohibiting it from selling one or more products. If an unfavorable resolution were to occur, there exists the possibility of a material adverse impact on the Company's consolidated financial condition, results of operations or cash flows of the period in which the resolution occurs or on future periods. Other Commitments For a description of significant leases and purchase commitments see Note 24 of the Company's Annual Report on Form 10-K filed with the SEC on September 9, 2015 .

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 25, 2015
Accounting Policies [Abstract]
Basis of Accounting	Basis of Presentation. The accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented.
Fiscal Period	Fiscal Year. The Company has a 52 or 53 -week fiscal year ending on the last Friday in June. The current fiscal year 2016 will be comprised of 52 weeks and will end on June 24, 2016 . Fiscal year 2015 was comprised of 52 weeks and ended on June 26, 2015 . In fiscal year 2016, the Company's fiscal quarters end on September 25, 2015 (first quarter), December 25, 2015 (second quarter), March 25, 2016 (third quarter) and June 24, 2016 (fourth quarter). In fiscal year 2015, the Company's fiscal quarters ended on September 26, 2014 (first quarter), December 26, 2014 (second quarter), March 27, 2015 (third quarter) and June 26, 2015 (fourth quarter).
Consolidation	Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany accounts and transactions have been eliminated.
Recently Issued Accounting Standards	Recently Issued Accounting Standards . Simplifying the Measurement of Inventory. In July 2015, Financial Accounting Standard Board ("FASB") issued guidance to simplify the accounting for inventory and to more closely align their guidance with international accounting standards. The amendments in this update apply to companies which use inventory valuation methods other than last in, first-out and the retail inventory method to change the way that they subsequently measure the value of inventory on their balance sheet. Under the new guidance, inventory should be valued at the lower of cost and net realizable value rather than the lower of cost and market. The amendments in this update are effective for fiscal years beginning after December 15, 2016, and for interim periods beginning after December 15, 2017. We do not expect to have an impact to our consolidated financial statements by adopting this amended guidance, as the new guidance aligns with our current practice. Technical Corrections and Improvements. In June 2015, the FASB issued Accounting Standard Update ("ASU") 2015-10, "Technical Corrections and Improvements," which covers a wide range of Topics in the Codification. The amendments in ASU 2015-10 include changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in ASU 2015-10 are effective for all entities for fiscal years and interim periods within those fiscal year, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this update. The Company is currently evaluating the effects, if any, which the adoption of this guidance will have on the Company’s consolidated financial statements. Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. In April 2015, the FASB issued ASU 2015-04, "Compensation-Retirement Benefits-Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Asset," which permits the entity with a fiscal year-end that does not coincide with a month-end, to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year for all plans. The amendments in ASU 2015-04 are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. This guidance will be effective for the Company in fiscal 2017. The Company is currently evaluating the effects, if any, which the adoption of this guidance will have on the Company’s consolidated financial statements. Revenue from Contracts with Customers. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early application not permitted. This guidance will be effective for the Company in fiscal 2019.

Financial Instruments and Fai32

Financial Instruments and Fair Value (Tables)	3 Months Ended
	Sep. 25, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents the Company's assets that are measured at fair value on a recurring basis (in thousands): September 25, 2015 Carrying Fair Value Measured Using Total Value Level 1 Level 2 Level 3 Balance Assets Money market funds $ 130 $ 130 $ — $ — $ 130 Pension investments held by insurance companies - German Plan 2,222 — 2,222 — 2,222 Pension investments held by insurance companies - Japan Plan 2,539 — 2,539 — 2,539 Derivative assets 584 — 584 — 584 Total assets measured at fair value $ 5,475 $ 130 $ 5,345 $ — $ 5,475 Liabilities Derivative liabilities $ 889 $ — $ 889 $ — $ 889 Total liabilities measured at fair value $ 889 $ — $ 889 $ — $ 889 June 26, 2015 Carrying Fair Value Measured Using Total Value Level 1 Level 2 Level 3 Balance Assets Money market funds $ 130 $ 130 $ — $ — $ 130 Pension investments held by insurance companies - German Plan 2,222 — 2,222 — 2,222 Pension investments held by insurance companies - Japan Plan 2,539 — 2,539 — 2,539 Derivatives assets 6,467 — 6,467 — 6,467 Total assets measured at fair value $ 11,358 $ 130 $ 11,228 $ — $ 11,358 Liabilities Derivative liabilities $ 5,443 $ — $ 5,443 $ — $ 5,443 Total liabilities measured at fair value $ 5,443 $ — $ 5,443 $ — $ 5,443

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Sep. 25, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments Designated as Hedging and Non-designated	The before tax effect of derivative instruments for foreign exchange contracts designated as hedging instruments and non-designated hedging instruments in our condensed consolidated statement of operations during the three months ended September 25, 2015 and September 26, 2014 was as follows (in thousands): Three Months Ended Location September 25, September 26, Designated Derivatives Cash Flow Hedges: Foreign exchange contracts (Effective portion) Amount recognized in AOCI $ 95 $ 583 Foreign exchange contracts (Effective portion) Net revenues (134 ) 163 Foreign exchange contracts (Effective portion) Operating expenses — (63 ) Foreign exchange contracts (Effective portion) Other income (expense), net 6 (4 ) Total $ (33 ) $ 679 Non-designated Derivatives Foreign exchange contracts Other income (expense), net $ 224 $ 903 Total $ 224 $ 903
Offsetting of Derivative Assets	D
Offsetting of Derivative Liabilities	Offsetting of Derivative Liabilities Gross Amount Offset In the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position As of September 25, 2015 Gross Amount of Recognized Liabilities Gross Amount Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Pledged Net Amount Derivatives Foreign currency forward contracts $ (889 ) $ — $ — $ 584 $ — $ (305 ) Total $ (889 ) $ — $ — $ 584 $ — $ (305 ) As of June 26, 2015 Derivatives Foreign currency forward contracts $ (5,443 ) $ — $ — $ 5,443 $ — $ — Total $ (5,443 ) $ — $ — $ 5,443 $ — $ —
Schedule of Derivative Instruments Held in Statement of Financial Position at Fair Value	The gross fair value and location of derivative instruments held in the condensed consolidated statement of financial position as of September 25, 2015 and June 26, 2015 were as follows (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Location September 25, June 26, Location September 25, June 26, Designated Derivatives: Foreign exchange contracts Foreign exchange contracts Other current assets $ 30 $ 167 Other current liabilities $ 220 $ 628 Non- designated Derivatives: Foreign exchange contracts Foreign exchange contracts Other current assets 554 6,300 Other current liabilities 669 4,815 Total derivatives $ 584 $ 6,467 $ 889 $ 5,443
Schedule of Changes in AOCI Related to Derivatives	The following table provides the balances and changes in the accumulated other comprehensive loss (income) related to derivative instruments during the three months ended September 25, 2015 (in thousands): Amount AOCI - Beginning balance of losses $ 408 Unrecognized gain on derivatives (95 ) Unrealized loss on derivative instruments reclassified to income (134 ) AOCI - Ending balance of losses $ 179

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 25, 2015
Inventory Disclosure [Abstract]
Components of inventory	Inventories consist of the following (in thousands): September 25, June 26, Finished goods $ 56,360 $ 36,772 Work in process 13,407 25,562 Raw materials 22,401 20,498 Total inventories $ 92,168 $ 82,832

Prepaid Expenses and Other Cu35

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Sep. 25, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of prepaid expenses and other current assets	Prepaid expenses and other current assets consist of the following (in thousands): September 25, June 26, Value-added tax receivable $ 6,435 $ 5,179 Derivatives (see Note 5) 584 6,467 Prepaid taxes 393 178 Other prepaid and current assets 4,892 5,723 Total prepaid expenses and other current assets $ 12,304 $ 17,547

Goodwill and Intangible Asset36

Goodwill and Intangible Assets, Net (Tables)	3 Months Ended
	Sep. 25, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table represents the goodwill allocated to the Company's reportable segments as of and during the three months ended September 25, 2015 (in thousands): Product Service Total Goodwill as of June 26, 2015 $ 7,508 $ 1,076 $ 8,584 Goodwill arising from acquisitions — — — Goodwill as of September 25, 2015 $ 7,508 $ 1,076 $ 8,584
Components of intangible assets by major asset class	Intangible assets by major asset class consist of the following (in thousands): Intangible Asset Class Weighted Average Useful Life (in Years) September 25, 2015 Gross Carrying Amount Accumulated Amortization and Impairment Net Customer relationships 5 $ 7,300 $ (7,300 ) $ — Purchased technology 5 12,200 (11,675 ) 525 Customer backlog (a) 10,540 (10,415 ) 125 Trademark/trade name portfolio 5 3,767 (3,767 ) — Patents and other (b) 2,097 (130 ) 1,967 Total $ 35,904 $ (33,287 ) $ 2,617 Intangible Asset Class Weighted Average Useful Life (in Years) June 26, 2015 Gross Carrying Amount Accumulated Amortization and Impairment Net Customer relationships 5 $ 7,300 $ (7,300 ) $ — Purchased technology 5 12,200 (11,600 ) 600 Customer backlog (a) 10,540 (10,388 ) 152 Trademark/trade name portfolio 5 3,767 (3,767 ) — Patents and other (b) 2,097 (130 ) 1,967 Total $ 35,904 $ (33,185 ) $ 2,719 (a) The customer backlog intangible asset is amortized as revenue recognition criteria is met for a particular customer order, reflecting the use of the asset. (b) Includes in-process Research and Development for which amortization has not commenced.
Expected amortization expense for all intangible assets	As of September 25, 2015 , expected amortization expense for intangible assets with a finite life was as follows (in thousands): Fiscal Year Amortization Expense 2016 (remaining nine months) $ 287 2017 363 $ 650

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Sep. 25, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of other assets	Other non-current assets consist of the following (in thousands): September 25, June 26, Long-term service inventory $ 16,034 $ 16,015 Restricted pension plan assets 6,706 6,726 Deferred tax assets 758 758 Long-term refundable deposits 1,804 1,763 Other assets 1,635 634 Total other non-current assets $ 26,937 $ 25,896

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Sep. 25, 2015
Other Liabilities Disclosure [Abstract]
Components of other current liabilities	Other current liabilities consist of the following (in thousands): September 25, June 26, Accrued sales and use tax payable $ 7,693 $ 8,670 Accrued professional services fees 4,325 3,597 Accrued warranty, current portion 3,431 3,402 Accrued restructuring and severance 1,847 2,239 Derivatives (see Note 5) 889 5,443 Other current liabilities 6,422 9,829 Total other current liabilities $ 24,607 $ 33,180

Other Non-current Liabilities39

Other Non-current Liabilities (Tables)	3 Months Ended
	Sep. 25, 2015
Other Liabilities Disclosure [Abstract]
Components of other non-current liabilites	Other non-current liabilities consist of the following (in thousands): September 25, June 26, Accrued warranty, non-current portion $ 1,365 $ 1,374 Deferred rent 5,387 5,526 Other non-current liabilities 1,025 971 Total other non-current liabilities $ 7,777 $ 7,871

Warranty Reserve (Tables)

Warranty Reserve (Tables)	3 Months Ended
	Sep. 25, 2015
Guarantees [Abstract]
Activity in warranty reserve	Activity in the warranty reserve, which is included in other current and non-current liabilities, was as follows (in thousands): Three Months Ended September 25, 2015 September 26, 2014 Balance at beginning of period $ 4,776 $ 6,044 Current period provision 1,069 673 Warranty expenditures incurred (1,031 ) (1,176 ) Changes in accrual for pre-existing warranties (18 ) 93 Balance at end of period $ 4,796 $ 5,634

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Sep. 25, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total share-based compensation expense	otal share-based compensation expense was as follows (in thousands): Three Months Ended September 25, 2015 September 26, 2014 Cost of revenue $ 525 $ 466 Research and development 706 559 Sales and marketing 518 801 General and administrative 2,158 1,673 Total share-based compensation expense $ 3,907 $ 3,499
Weighted-average assumptions used in calculation of fair value of certain share-based awards	The fair value of share-based awards was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions for the following periods: Three Months Ended September 25, September 26, ESPP Plan shares Risk-free interest rate 0.5% 0.2% Volatility 47.0% 49.0% Weighted average expected life (in years) 1.25 1.25 Expected dividend yield — — Weighted average fair value $1.83 $3.21
Summary of stock option activity	A summary of stock option activity for the three months ended September 25, 2015 was as follows: Options Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual term in years Aggregate Intrinsic Value (in thousands) Balance at June 26, 2015 1,386,570 $ 10.41 Options granted — — Options exercised (584 ) 5.34 Options cancelled (47,833 ) 10.71 Balance at September 25, 2015 1,338,153 $ 10.40 4.68 $ — Vested and expected to vest at September 25, 2015 1,335,141 $ 10.41 4.67 $ — Exercisable at September 25, 2015 1,267,630 $ 10.53 4.58 $ —
Summary of RSA activity	The following table summarizes the Company's activity with respect to restricted stock units (“RSUs”) for the three months ended September 25, 2015 : Number of Shares Balance at June 26, 2015 1,706,073 Awarded 1,147,363 Released (253,953 ) Forfeited (153,381 ) Balance at September 25, 2015 2,446,102 Vested and expected to vest at September 25, 2015 1,857,886
Summary of number and value of shares netted for employee taxes	The number and the value of the shares netted for employee taxes are summarized in the table below (in thousands except share amounts): Three Months Ended September 25, 2015 September 26, 2014 RSUs shares withheld for taxes 90,621 58,610 RSUs amounts withheld for taxes $ 480 $ 545
Shares issued and weighted-average purchase price for Employee Stock Purchase Plan	The following table shows the shares issued and their respective weighted-average purchase price per share, pursuant to the ESPP, during the three months ended September 25, 2015 and September 26, 2014 . Three Months Ended September 25, September 26, Shares issued 376,569 209,631 Weighted-average purchase price per share $ 4.53 $ 7.50

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	3 Months Ended
	Sep. 25, 2015
Equity [Abstract]
Total number of shares repurchased

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Sep. 25, 2015
Earnings Per Share [Abstract]
Computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted net loss per share for the three months ended September 25, 2015 and September 26, 2014 (in thousands, except per share amount): Three Months Ended September 25, September 26, Numerator: Net loss $ (11,572 ) $ (10,333 ) Denominator: Weighted-average common shares used in computing basic and diluted net loss per share 35,174 34,420 Basic and diluted net loss per share $ (0.33 ) $ (0.30 )
Potential shares of common stock excluded from the calculation of diluted earnings per share	The following potentially dilutive securities have been excluded from the dilutive net loss per share calculations, as their effect would have been anti-dilutive (in thousands): Three Months Ended September 25, September 26, Options, RSUs, and ESPP 4,487 4,013

Retirement Benefit Plan (Tables

Retirement Benefit Plan (Tables)	3 Months Ended
	Sep. 25, 2015
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit costs	The net periodic benefit cost of the German and Japan plans were comprised of the following components (in thousands): Three Months Ended September 25, September 26, Net periodic benefit cost Service cost $ 78 $ 89 Interest expense 72 110 Expected return on plan assets (35 ) (36 ) Amortization of actuarial losses 2 69 Net periodic benefit cost $ 117 $ 232

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 25, 2015
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Summary information by operating segment for the three months ended September 25, 2015 and September 26, 2014 is as follows (in thousands): Three Months Ended September 25, September 26, Total net revenue Product $ 94,090 $ 75,002 Service 32,217 36,699 Total net revenue $ 126,307 $ 111,701 Operating profit (loss) from reportable segments Product $ 141 $ 391 Service 12,930 14,698 Total operating profit from reportable segments (1) $ 13,071 $ 15,089 (1) The profitability of each of the segments is measured after excluding unallocated corporate charges, restructuring and severance, amortization and intangibles, share-based compensation expenses, and other items as noted in the reconciliation below. The following table reconciles segment results to our total company results from operations before taxes: Three Months Ended September 25, September 26, (in thousands) Total reportable segments' operating profit $ 13,071 $ 15,089 All other corporate charges: Unallocated operating expenses 16,036 19,843 Restructuring and severance 944 1,092 Amortization and impairment of intangibles 92 215 Share-based compensation 3,907 3,499 Other 1,283 550 Total all other corporate charges 22,262 25,199 Loss from operations, as reported $ (9,191 ) $ (10,110 )
Schedule of Revenue by Geographic Region	The following table presents revenue by geographic region for the three months ended September 25, 2015 and September 26, 2014 (in thousands except percentages): Three Months Ended September 25, September 26, Americas $ 80,459 $ 67,670 As a percent of total net revenue 63.7 % 60.5 % EMEA 25,543 17,613 As a percent of total net revenue 20.2 % 15.8 % APJ 20,305 26,418 As a percent of total net revenue 16.1 % 23.7 % Total revenue $ 126,307 $ 111,701

Financial Instruments and Fai46

Financial Instruments and Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2015	Jun. 26, 2015
Assets
Derivative assets	$ 584	$ 6,467
Liabilities
Derivative liabilities	$ 889	5,443
Term fair value of assets and liabilities approximate carrying value	1 year
Recurring | Level 1
Assets
Derivative assets	$ 0	0
Total assets measured at fair value	130	130
Liabilities
Derivative liabilities	0	0
Total liabilities measured at fair value	0	0
Recurring | Level 1 | Money market funds
Assets
Money market funds	130	130
Recurring | Level 2
Assets
Derivative assets	584	6,467
Total assets measured at fair value	5,345	11,228
Liabilities
Derivative liabilities	889	5,443
Total liabilities measured at fair value	889	5,443
Recurring | Level 2 | Money market funds
Assets
Money market funds	0	0
Recurring | Level 3
Assets
Derivative assets	0	0
Total assets measured at fair value	0	0
Liabilities
Derivative liabilities	0	0
Total liabilities measured at fair value	0	0
Recurring | Level 3 | Money market funds
Assets
Money market funds	0	0
Recurring | Carrying Value
Assets
Derivative assets	584	6,467
Total assets measured at fair value	5,475	11,358
Liabilities
Derivative liabilities	889	5,443
Total liabilities measured at fair value	889	5,443
Recurring | Carrying Value | Money market funds
Assets
Money market funds	130	130
Recurring | Total
Assets
Derivative assets	584	6,467
Total assets measured at fair value	5,475	11,358
Liabilities
Derivative liabilities	889	5,443
Total liabilities measured at fair value	889	5,443
Recurring | Total | Money market funds
Assets
Money market funds	130	130
Japan Plan | Recurring | Level 1
Assets
Pension investments held by insurance companies	0	0
Japan Plan | Recurring | Level 2
Assets
Pension investments held by insurance companies	2,539	2,539
Japan Plan | Recurring | Level 3
Assets
Pension investments held by insurance companies	0	0
Japan Plan | Recurring | Carrying Value
Assets
Pension investments held by insurance companies	2,539	2,539
Japan Plan | Recurring | Total
Assets
Pension investments held by insurance companies	2,539	2,539
German Plan | Recurring | Level 1
Assets
Pension investments held by insurance companies	0	0
German Plan | Recurring | Level 2
Assets
Pension investments held by insurance companies	2,222	2,222
German Plan | Recurring | Level 3
Assets
Pension investments held by insurance companies	0	0
German Plan | Recurring | Carrying Value
Assets
Pension investments held by insurance companies	2,222	2,222
German Plan | Recurring | Total
Assets
Pension investments held by insurance companies	2,222	2,222
Term Loan Facility
Liabilities
Long-term Debt, Fair Value	$ 69,100	$ 70,600

Derivatives (Narrative) (Detail

Derivatives (Narrative) (Details) $ in Thousands	3 Months Ended
	Sep. 25, 2015USD ($)instrument	Jun. 26, 2015USD ($)
Derivative [Line Items]
Fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position	$ 305	$ 0
Designated as hedging instrument
Derivative [Line Items]
Derivatives, notional values	36,000
Not designated as hedging instrument
Derivative [Line Items]
Derivatives, notional values	16,500
Foreign exchange contract | Not designated as hedging instrument
Derivative [Line Items]
Derivatives, notional values	$ 16,500
Foreign exchange contract | Cash flow hedge | Designated as hedging instrument
Derivative [Line Items]
Derivative, lower maturity range	1 month
Derivative, higher maturity range	12 months
Number of derivative instruments held (per quarter) | instrument	4
Foreign exchange contract | Balance Sheet Hedges [Member] | Not designated as hedging instrument
Derivative [Line Items]
Number of derivative instruments held (per quarter) | instrument	4
Foreign currency forward contracts
Derivative [Line Items]
Derivative instrument, fair value, net asset position	$ 0	1,024
Fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position	$ 305	$ 0

Derivatives (Designated and Non

Derivatives (Designated and Non-designated) (Details) - USD ($)	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net, before tax	$ (33,000)	$ 679,000
Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net, before tax	224,000	903,000
Foreign exchange contract | Designated as hedging instrument | Net revenues
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net, before tax	(134,000)	163,000
Foreign exchange contract | Designated as hedging instrument | Operating expenses
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net, before tax	0	(63,000)
Foreign exchange contract | Designated as hedging instrument | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net, before tax	6,000	(4,000)
Foreign exchange contract | Designated as hedging instrument | Amount recognized in AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net, before tax	95,000	583,000
Foreign exchange contract | Not designated as hedging instrument | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net, before tax	$ 224,000	$ 903,000

Derivatives (Master Netting Arr

Derivatives (Master Netting Arrangements) (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Offsetting Assets [Line Items]
Gross Amount of Recognized Assets	$ 584	$ 6,467
Gross Amount Offset in the Statement of Financial Position	0	0
Net Amounts of Assets Presented in the Statement of Financial Position	0	0
Financial Instruments	(584)	(5,443)
Cash Collateral Received	0	0
Offsetting Liabilities [Line Items]
Gross Amount of Recognized Liabilities	(889)	(5,443)
Gross Amount Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	0	0
Financial Instruments	584	5,443
Cash Collateral Pledged	0	0
Net Amount	(305)	0
Foreign currency forward contracts
Offsetting Assets [Line Items]
Gross Amount of Recognized Assets	584	6,467
Gross Amount Offset in the Statement of Financial Position	0	0
Net Amounts of Assets Presented in the Statement of Financial Position	0	0
Financial Instruments	(584)	(5,443)
Cash Collateral Received	0	0
Net Amount	0	1,024
Offsetting Liabilities [Line Items]
Gross Amount of Recognized Liabilities	(889)	(5,443)
Gross Amount Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	0	0
Financial Instruments	584	5,443
Cash Collateral Pledged	0	0
Net Amount	$ (305)	$ 0

Derivatives (Gross Fair Value a

Derivatives (Gross Fair Value and Location) (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Derivatives, Fair Value [Line Items]
Derivative assets	$ 584	$ 6,467
Derivative liabilities	889	5,443
Foreign exchange contract | Designated as hedging instrument | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	30	167
Foreign exchange contract | Designated as hedging instrument | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	220	628
Foreign exchange contract | Not designated as hedging instrument | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	554	6,300
Foreign exchange contract | Not designated as hedging instrument | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 669	$ 4,815

Derivatives (Changes in AOCI) (

Derivatives (Changes in AOCI) (Details) $ in Thousands	3 Months Ended
	Sep. 25, 2015USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI - Beginning balance of losses	$ (5,269)
AOCI - Ending balance of losses	(4,631)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI - Beginning balance of losses	408
Unrecognized gain on derivatives	(95)
Unrealized loss on derivative instruments reclassified to income	(134)
AOCI - Ending balance of losses	$ 179

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Inventory, net:
Finished goods	$ 56,360	$ 36,772
Work in process	13,407	25,562
Raw materials	22,401	20,498
Total inventories	92,168	82,832
Finished goods inventory at customer sites undergoing installation testing	$ 43,400	$ 30,200

Prepaid Expenses and Other Cu53

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Value-added tax receivable	$ 6,435	$ 5,179
Derivatives (see Note 5)	584	6,467
Prepaid taxes	393	178
Other prepaid and current assets	4,892	5,723
Total prepaid expenses and other current assets	$ 12,304	$ 17,547

Goodwill and Intangible Asset54

Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 25, 2015	Jun. 28, 2013	Jun. 26, 2015
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 8,584
Goodwill arising from acquisitions	0
Goodwill, ending balance	8,584
Intangible assets by major asset class:
Accumulated amortization	(33,287)		$ (33,185)
Finite-lived intangible assets, net	650
Intangible assets, gross	35,904		35,904
Intangible assets, net	$ 2,617		2,719
Customer relationships
Intangible assets by major asset class:
Finite-lived intangible assets, weighted average useful life	5 years	5 years
Finite-lived intangible assets, gross carrying amount	$ 7,300		7,300
Accumulated amortization	(7,300)		(7,300)
Finite-lived intangible assets, net	$ 0		0
Purchased technology
Intangible assets by major asset class:
Finite-lived intangible assets, weighted average useful life	5 years	5 years
Finite-lived intangible assets, gross carrying amount	$ 12,200		12,200
Accumulated amortization	(11,675)		(11,600)
Finite-lived intangible assets, net	525		600
Customer backlog
Intangible assets by major asset class:
Finite-lived intangible assets, gross carrying amount	10,540		10,540
Accumulated amortization	(10,415)		(10,388)
Finite-lived intangible assets, net	$ 125		152
Trademark/ trade name portfolio
Intangible assets by major asset class:
Finite-lived intangible assets, weighted average useful life	5 years	5 years
Finite-lived intangible assets, gross carrying amount	$ 3,767		3,767
Accumulated amortization	(3,767)		(3,767)
Finite-lived intangible assets, net	0		0
Patents and other
Intangible assets by major asset class:
Finite-lived intangible assets, gross carrying amount	2,097		2,097
Accumulated amortization	(130)		(130)
Finite-lived intangible assets, net	1,967		$ 1,967
Product
Goodwill [Roll Forward]
Goodwill, beginning balance	7,508
Goodwill arising from acquisitions	0
Goodwill, ending balance	7,508
Service
Goodwill [Roll Forward]
Goodwill, beginning balance	1,076
Goodwill arising from acquisitions	0
Goodwill, ending balance	$ 1,076

Goodwill and Intangible Asset55

Goodwill and Intangible Assets, Net (Future Amortization) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization and impairment of intangibles	$ 100	$ 200
Expected amortization expense:
Remaining FY16 year (9 months)	287
FY 2,017	363
Finite-lived intangible assets, net	$ 650

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Long-term service inventory	$ 16,034	$ 16,015
Restricted pension plan assets	6,706	6,726
Deferred tax assets	758	758
Long-term refundable deposits	1,804	1,763
Other assets	1,635	634
Total other assets	$ 26,937	$ 25,896

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Other current liabilities:
Accrued sales and use tax payable	$ 7,693	$ 8,670
Accrued professional services fees	4,325	3,597
Accrued warranty, current portion	3,431	3,402
Accrued restructuring and severance	1,847	2,239
Derivatives (see Note 5)	889	5,443
Other	6,422	9,829
Total other current liabilities	$ 24,607	$ 33,180

Other Non-current Liabilities58

Other Non-current Liabilities (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Other non-current liabilities:
Accrued warranty, non-current portion	$ 1,365	$ 1,374
Deferred rent	5,387	5,526
Other non-current liabilities	1,025	971
Total other non-current liabilities	$ 7,777	$ 7,871

Warranty Reserve (Details)

Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Activity in warranty reserve:
Balance at beginning of period	$ 4,776	$ 6,044
Current period accrual	1,069	673
Warranty expenditures charged to accrual	(1,031)	(1,176)
Changes in accrual for pre-existing warranties	(18)	93
Balance at end of period	$ 4,796	$ 5,634

Restructuring and Severance A60

Restructuring and Severance Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014	Mar. 16, 2012
Restructuring activity:
Costs incurred	$ 0	$ 116
Restructuring reserve	1,800
Employee severance
Restructuring activity:
Costs incurred	900	$ 1,000
Fiscal 2012 Restructuring Action
Restructuring activity:
Restructuring reserve	$ 0
Fiscal 2012 Restructuring Action | Europe
Restructuring activity:
Percentage of workforce planned to be reduced			25.00%

Short-Term Debt (Details)

Short-Term Debt (Details)	3 Months Ended
	Sep. 25, 2015USD ($)	Sep. 25, 2015JPY (¥)	Jun. 26, 2015USD ($)	Jan. 27, 2015USD ($)
Short-term Debt [Line Items]
Short term portion of debt	$ 4,004,000		$ 3,096,000
Deferred Finance Costs, Current, Net	1,075,000		$ 1,074,000
Term Loan
Short-term Debt [Line Items]
Short term portion of debt	1,750,000
Deferred Finance Costs, Current, Net	1,075,000
Term Loan | Morgan Stanley Senior Funding, Inc.
Short-term Debt [Line Items]
Term loan, face amount	69,100,000			$ 70,000,000
Short term portion of debt	700,000
Deferred Finance Costs, Current, Net	1,100,000
Japan Loans | Mizuho Bank, Ltd.
Short-term Debt [Line Items]
Unsecured Debt, Current	3,300,000
Japan Loans | Unsecured Debt | Mizuho Bank, Ltd.
Short-term Debt [Line Items]
Term loan, face amount	$ 4,100,000	¥ 500,000,000
Japan Loans | Unsecured Debt | Mizuho Bank, Ltd. | Tokyo Interbank Offered Rate (TIBOR)
Short-term Debt [Line Items]
Basis spread on variable rate (percent)	1.00%

Term Loan Long term portion of

Term Loan Long term portion of term loan (Details)	Jan. 27, 2015USD ($)	Sep. 25, 2015USD ($)	Sep. 25, 2015JPY (¥)
Term Loan
Debt Instrument [Line Items]
Term loan, term	3 years 6 months
Proceeds from Term loan	$ 66,200,000
Borrowing and origination costs	3,800,000
Term loan, outstanding principal balance		$ 69,125,000
Term loan, covenant, minimum unrestricted cash balance	$ 10,000,000
Term Loan | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Term loan, stated rate, minimum (percent)	1.00%
Basis spread on variable rate (percent)	9.00%
Morgan Stanley Senior Funding, Inc. | Term Loan
Debt Instrument [Line Items]
Term loan, aggregate principal amount	$ 70,000,000	69,100,000
Japan Loans | Mizuho Bank, Ltd.
Debt Instrument [Line Items]
Current portion of term loan		800,000
Japan Loans | Mizuho Bank, Ltd. | Unsecured Debt
Debt Instrument [Line Items]
Term loan, aggregate principal amount		$ 4,100,000	¥ 500,000,000
Japan Loans | Mizuho Bank, Ltd. | Unsecured Debt | Tokyo Interbank Offered Rate (TIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)		1.00%

Term Loan Long-term debt balanc

Term Loan Long-term debt balance (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Jun. 26, 2015
Debt Instrument [Line Items]
Long term portion of debt	$ 66,243	$ 65,581
Short term portion of debt	4,004	3,096
Deferred Finance Costs, Noncurrent, Net	(1,965)	(2,232)
Deferred Finance Costs, Current, Net	(1,075)	$ (1,074)
Term Loan Facility
Debt Instrument [Line Items]
Long term portion of debt	67,375
Short term portion of debt	1,750
Total debt	69,125
Deferred Finance Costs, Noncurrent, Net	(1,965)
Deferred Finance Costs, Current, Net	(1,075)
Deferred Finance Costs, Net	3,040
Long-term Debt, Excluding Current Maturities, Net of Debt Issuance Costs	65,410
Net short term debt, current portion of unamortized loan costs	675
Total debt, net	$ 66,085

Credit Facility (Details)

Credit Facility (Details) - Line of credit - Senior secured credit facility - USD ($)	Jan. 27, 2015	Dec. 05, 2011
Credit facility:
Term of credit facility		5 years
Revolving credit facility
Credit facility:
Maximum borrowing capacity		$ 25,000,000
Repayment of credit facility	$ 15,000,000
Letter of credit
Credit facility:
Maximum borrowing capacity		$ 10,000,000

Share-Based Compensation (Detai

Share-Based Compensation (Details) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended
	Aug. 31, 2015Intstallmentgoal	Aug. 31, 2014	Sep. 25, 2015USD ($)$ / sharesshares	Sep. 26, 2014USD ($)$ / sharesshares
Share-based compensation:
Share-based compensation | $			$ 3,907	$ 3,499
Options outstanding, shares:
Options outstanding, beginning of period (in shares)			1,386,570
Options granted (in shares)			0
Options exercised (in shares)			(584)
Options cancelled (in shares)			(47,833)
Options outstanding, end of period (in shares)			1,338,153
Vested and expected to vest (in shares)			1,335,141
Exercisable (in shares)			1,267,630
Options outstanding, weighted average exercise price:
Options outstanding, beginning balance, weighted average exercise price (USD per share) | $ / shares			$ 10.41
Options granted, weighted average exercise price (USD per share) | $ / shares			0
Options exercised, weighted average exercise price (USD per shares) | $ / shares			5.34
Options cancelled, weighted average exercise price (USD per share) | $ / shares			10.71
Options outstanding, ending balance, weighted average exercise price (USD per share) | $ / shares			10.40
Vested and expected to vest, weighted average exercise price (USD per share) | $ / shares			10.41
Exercisable, weighted average exercise price (USD per share) | $ / shares			$ 10.53
Options outstanding, weighted average remaining contractual term			4 years 8 months 5 days
Vested and expected to vest, weighted average remaining contractual term			4 years 8 months 1 day
Options outstanding, aggregate intrinsic value | $			$ 0
Vested and expected to vest, aggregate intrinsic value | $			0
Exercisable, aggregate intrinsic value | $			0
Restricted stock activity, number of shares:
Amounts withheld for taxes | $			$ 486	$ 522
Employee Stock Purchase Plan:
Shares issued (in shares)			376,569	209,631
Weighted-average purchase price per share (USD per share) | $ / shares			$ 4.53	$ 7.50
2015 Executive PSUs | Executive | Initial vesting term
Restricted stock activity, number of shares:
Award vesting period		3 days
PSU vesting at attainment of 75%		25.00%
Stock options
Options outstanding, weighted average exercise price:
Exercisable, weighted average remaining contractual term			4 years 6 months 29 days
Total intrinsic value of options exercised in period | $			$ 0	$ 100
Total fair value of shares vested during period | $			$ 200	$ 300
Total compensation cost related to non-vested awards, period for recognition			3 months 20 days
Time-based RSUs | Executive and Employee
Restricted stock activity, number of shares:
Award vesting period	4 years
Restricted stock units (RSUs)
Options outstanding, weighted average exercise price:
Total compensation cost related to non-vested awards, period for recognition			1 year 6 months 3 days
Restricted stock activity, number of shares:
Equity instruments other than options, outstanding, beginning of period (in shares)			1,706,073
Equity instruments other than options, awarded (in shares)			1,147,363
Equity instruments other than options, released (in shares)			(253,953)
Equity instruments other than options, forfeited (in shares)			(153,381)
Equity instruments other than options, outstanding, end of period (in shares)			2,446,102
Equity instruments other than options, vested and expected to vest (in shares)			1,857,886
Shares withheld for taxes			90,621	58,610
Amounts withheld for taxes | $			$ 480	$ 545
Total unrecognized compensation cost related to non-vested awards, equity instruments other than options | $			$ 8,600
2015 Executive PSUs | Restricted stock units (RSUs)
Restricted stock activity, number of shares:
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant, Percent			1
2015 Executive PSUs | Restricted stock units (RSUs) | Executive
Restricted stock activity, number of shares:
Award vesting period	3 years
Number of goals | goal	2
Number of installments | Intstallment	12
2015 Executive PSUs | Restricted stock units (RSUs) | Executive | Total stockholder return
Restricted stock activity, number of shares:
Total stockholder return and strategic objectives related to top line revenue and gross margin (as a percent)	50.00%
2015 Executive PSUs | Restricted stock units (RSUs) | Executive | Below 75%
Restricted stock activity, number of shares:
Achievement of performance criteria (percent)	75.00%
PSU vesting at attainment below 75%	0.00%
PSU vesting at attainment of 75%	50.00%
2015 Executive PSUs | Restricted stock units (RSUs) | Executive | 100% to 125%
Restricted stock activity, number of shares:
Achievement of performance criteria (percent)	100.00%
PSU vesting at attainment of 75%	100.00%
2015 Executive PSUs | Restricted stock units (RSUs) | Executive | 125% and above
Restricted stock activity, number of shares:
Achievement of performance criteria (percent)	125.00%
PSU vesting at attainment of 75%	150.00%
Employee Stock Purchase Plan - 2005
Weighted average fair value assumptions:
Risk-free interest rate			0.50%	0.20%
Volatility			47.00%	49.00%
Weighted average expected life			1 year 3 months	1 year 3 months
Expected dividend yield			0.00%	0.00%
Weighted average fair value (USD per share) | $ / shares			$ 1.83	$ 3.21
Employee Stock Purchase Plan - 2005 | Employee Stock
Restricted stock activity, number of shares:
Total unrecognized compensation cost related to non-vested awards, equity instruments other than options | $			$ 1,700
Equity instruments other than options, vested and expected to vest, weighted average remaining contractual term			1 year 10 months 12 days
Cost of revenue
Share-based compensation:
Share-based compensation | $			$ 525	$ 466
Research and development
Share-based compensation:
Share-based compensation | $			706	559
Sales and marketing
Share-based compensation:
Share-based compensation | $			518	801
General and administrative
Share-based compensation:
Share-based compensation | $			$ 2,158	$ 1,673

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - Common stock - USD ($) shares in Thousands	27 Months Ended
	Mar. 27, 2015	Sep. 25, 2015	Nov. 30, 2013	Jan. 31, 2013
Stock repurchase program:
Authorized amount of stock repurchase program			$ 30,000,000	$ 15,000,000
Change in treasury stock:
Repuchase of Treasury Stock, Number of Shares	1,566
Repurchase of Treasury Stock, Amount	$ 18,000,000
Remaining authorized amount of stock repurchase program		$ 12,000,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Numerator:
Net loss	$ (11,572)	$ (10,333)
Denominator:
Weighted-average common shares - basic (in shares)	35,174	34,420
Basic net (loss) income per share (in dollars per share)	$ (0.33)	$ (0.30)
Options, RSUs, and ESPP	4,487	4,013

Retirement Benefit Plan (Detail

Retirement Benefit Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Net periodic benefit cost
Service cost	$ 78	$ 89
Interest expense	72	110
Expected return on plan assets	(35)	(36)
Amortization of actuarial losses	2	69
Net periodic benefit cost	$ 117	$ 232

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Income Tax Disclosure [Abstract]
Income tax provision	$ 249	$ 324
Unrecognized tax benefits	5,800
Unrecognized tax benefits that would impact effective tax rate	1,500
Interest and penalties from unrecognized tax benefits	$ 6,600

Segment Information - Segment

Segment Information - Segment and Geographic Information (Details) $ in Thousands	3 Months Ended
	Sep. 25, 2015USD ($)segment	Sep. 26, 2014USD ($)
Segment information:
Number of reportable segments | segment	2
Total net revenue	$ 126,307	$ 111,701
Total operating income from reportable segments	(9,191)	(10,110)
Reconciliation of Segment Results to Total Company Results
Total operating income from reportable segments	(9,191)	(10,110)
Unallocated operating expenses	37,655	42,482
Restructuring and severance	0	116
Amortization and impairment of intangibles	100	200
Share-based compensation	3,907	3,499
Loss from operations, as reported	(9,191)	(10,110)
Product
Segment information:
Total net revenue	94,090	75,002
Total operating income from reportable segments	141	391
Reconciliation of Segment Results to Total Company Results
Total operating income from reportable segments	141	391
Loss from operations, as reported	141	391
Service
Segment information:
Total net revenue	32,217	36,699
Total operating income from reportable segments	12,930	14,698
Reconciliation of Segment Results to Total Company Results
Total operating income from reportable segments	12,930	14,698
Loss from operations, as reported	12,930	14,698
Reportable segments
Segment information:
Total operating income from reportable segments	13,071	15,089
Reconciliation of Segment Results to Total Company Results
Total operating income from reportable segments	13,071	15,089
Unallocated operating expenses	16,036	19,843
Restructuring and severance	944	1,092
Amortization and impairment of intangibles	92	215
Share-based compensation	3,907	3,499
Other	1,283	550
Total all other corporate charges	22,262	25,199
Loss from operations, as reported	13,071	15,089
Sales Revenue, Segment [Member]
Segment information:
Total net revenue	126,307	111,701
Sales Revenue, Segment [Member] | JAPAN | Geographic Concentration Risk [Member]
Segment information:
Concentration Risk, International Sales to Single Foreign Countries Amount, Geographic Area	$ 16,400	$ 20,100
Reconciliation of Segment Results to Total Company Results
Concentration Risk, Percentage	13.00%	18.00%
US Treasury and Government [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member]
Reconciliation of Segment Results to Total Company Results
Concentration Risk, Percentage	30.00%	21.00%

Segment Information - Concentr

Segment Information - Concentration Risk (Details) $ in Thousands	Sep. 25, 2015customer	Jun. 27, 2014customer	Sep. 25, 2015USD ($)	Sep. 26, 2014USD ($)
Concentration risk:
Total revenue			$ 126,307	$ 111,701
Product revenue | Customer concentration risk | Customer 1
Concentration risk:
Concentration risk percentage			10.00%
Product revenue | Customer concentration risk | U.S. Government
Concentration risk:
Concentration risk percentage			30.00%	21.00%
Accounts receivable | Customer concentration risk
Concentration risk:
Concentration risk percentage	17.00%
Number of customers meeting concentration risk benchmark | customer	1	4
Accounts receivable | Customer concentration risk | Customer 1
Concentration risk:
Concentration risk percentage		56.00%
Revenue
Concentration risk:
Total revenue			$ 126,307	$ 111,701
Americas | Revenue | Geographic concentration risk
Concentration risk:
Concentration risk percentage			63.70%	60.50%
Total revenue			$ 80,459	$ 67,670
EMEA | Revenue | Geographic concentration risk
Concentration risk:
Concentration risk percentage			20.20%	15.80%
Total revenue			$ 25,543	$ 17,613
Asia Pacific, including Japan | Revenue | Geographic concentration risk
Concentration risk:
Concentration risk percentage			16.10%	23.70%
Total revenue			$ 20,305	$ 26,418
Japan | Revenue | Geographic concentration risk
Concentration risk:
Concentration risk percentage			13.00%	18.00%
International sales to single foreign countries			$ 16,400	$ 20,100

Financial Guarantees (Details)

Financial Guarantees (Details) - Financial guarantee - Restricted cash and cash equivalents $ in Millions	Sep. 25, 2015USD ($)
Financial guarantees:
Maximum potential obligation	$ 4.5
Assets held as collateral	$ 4.3

Commitments and Contingencies73

Commitments and Contingencies (Details) - Line of credit - Letter of credit - Senior secured credit facility - USD ($)	Sep. 25, 2015	Dec. 05, 2011
Credit facility:
Maximum borrowing capacity		$ 10,000,000
Amount outstanding	$ 2,000,000