Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 01, 2016 | Feb. 02, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | AVIAT NETWORKS, INC. | |
Entity Central Index Key | 1,377,789 | |
Current Fiscal Year End Date | --07-01 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jan. 1, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 63,016,873 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Revenues: | ||||
Revenue from product sales | $ 44.7 | $ 56.4 | $ 98.4 | $ 112.3 |
Revenue from services | 25.7 | 34.5 | 51.6 | 61 |
Total revenues | 70.4 | 90.9 | 150 | 173.3 |
Cost of revenues: | ||||
Cost of product sales | 33.3 | 41.5 | 70.5 | 82.9 |
Cost of services | 20.7 | 25.4 | 42.1 | 44.4 |
Total cost of revenues | 54 | 66.9 | 112.6 | 127.3 |
Gross margin | 16.4 | 24 | 37.4 | 46 |
Operating expenses: | ||||
Research and development expenses | 5.2 | 6.4 | 10.7 | 13 |
Selling and administrative expenses | 16.2 | 21.2 | 33.3 | 40.4 |
Amortization of identifiable intangible assets | 0 | 0.1 | 0 | 0.2 |
Restructuring charges | 0 | 0 | 0 | 1.5 |
Total operating expenses | 21.4 | 27.7 | 44 | 55.1 |
Operating loss | (5) | (3.7) | (6.6) | (9.1) |
Interest income | 0.1 | 0.1 | 0.2 | 0.2 |
Interest expense | (0.1) | (0.2) | (0.1) | (0.3) |
Loss from continuing operations before income taxes | (5) | (3.8) | (6.5) | (9.2) |
Provision for income taxes | 0.5 | 0.6 | 0.5 | 0.9 |
Loss from continuing operations | (5.5) | (4.4) | (7) | (10.1) |
Income (loss) from discontinued operations, net of tax | 0 | (0.1) | 0.3 | 0.1 |
Net loss | (5.5) | (4.5) | (6.7) | (10) |
Less: Net income attributable to noncontrolling interests, net of tax | 0.2 | 0 | 0.2 | 0 |
Net loss attributable to Aviat Networks | (5.7) | (4.5) | (6.9) | (10) |
Amount attributable to Aviat Networks: | ||||
Loss from continuing operations, net of tax | (5.7) | (4.4) | (7.2) | (10.1) |
Income (loss) from discontinued operations, net of tax | $ 0 | $ (0.1) | $ 0.3 | $ 0.1 |
Loss per share attributable to Aviat Networks’ common stockholders, basic and diluted: | ||||
Continuing operations (usd per share) | $ (0.09) | $ (0.07) | $ (0.12) | $ (0.16) |
Discontinued operations (usd per share) | 0 | 0 | 0 | 0 |
Net loss (usd per share) | $ (0.09) | $ (0.07) | $ (0.11) | $ (0.16) |
Weighted average shares outstanding, basic and diluted (share) | 62.8 | 62.1 | 62.6 | 62.1 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5.5) | $ (4.5) | $ (6.7) | $ (10) |
Other comprehensive loss: | ||||
Change in unrealized gain on cash flow hedges | 0 | 0.1 | 0 | 0.2 |
Net change in unrealized gain on hedging activities | 0 | 0.1 | 0 | 0.2 |
Net change in cumulative translation adjustment | (0.3) | (2) | (1.1) | (3.3) |
Other comprehensive loss | (0.3) | (1.9) | (1.1) | (3.1) |
Comprehensive loss | (5.8) | (6.4) | (7.8) | (13.1) |
Comprehensive income attributable to noncontrolling interests, net of tax | 0.2 | 0 | 0.2 | 0 |
Comprehensive loss attributable to Aviat Networks | $ (6) | $ (6.4) | $ (8) | $ (13.1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jan. 01, 2016 | Jul. 03, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 39.5 | $ 34.7 |
Accounts receivable, net | 76.4 | 83.5 |
Unbilled costs | 13.2 | 17.3 |
Inventories | 32.6 | 32.9 |
Customer service inventories | 4.2 | 6.2 |
Deferred income taxes | 1.4 | 1.5 |
Other current assets | 12.1 | 15 |
Total current assets | 179.4 | 191.1 |
Property, plant and equipment, net | 21.2 | 24.3 |
Deferred income taxes | 7.2 | 7.6 |
Other assets | 1.5 | 1.7 |
TOTAL ASSETS | 209.3 | 224.7 |
Current Liabilities: | ||
Short-term debt | 9 | 9 |
Accounts payable | 40.4 | 46.6 |
Accrued compensation and benefits | 6.9 | 7.5 |
Other accrued expenses | 18 | 19.7 |
Advance payments and unearned income | 36.3 | 35.8 |
Deferred income taxes | 0.2 | 0.2 |
Restructuring liabilities | 2.5 | 3.9 |
Total current liabilities | 113.3 | 122.7 |
Unearned income | 10.9 | 9.8 |
Other long-term liabilities | 2 | 2.2 |
Reserve for uncertain tax positions | 1.4 | 1.4 |
Deferred income taxes | 4.7 | 4.7 |
Total liabilities | $ 132.3 | $ 140.8 |
Commitments and contingencies (Note 11) | ||
Aviat Networks stockholders’ equity: | ||
Preferred stock | $ 0 | $ 0 |
Common stock | 0.6 | 0.6 |
Additional paid-in-capital | 810.1 | 809.2 |
Accumulated deficit | (724.4) | (717.5) |
Accumulated other comprehensive loss | (9.6) | (8.5) |
Total Aviat Networks stockholders’ equity | 76.7 | 83.8 |
Noncontrolling interests | 0.3 | 0.1 |
Total equity | 77 | 83.9 |
TOTAL LIABILITIES AND EQUITY | $ 209.3 | $ 224.7 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 01, 2016 | Dec. 26, 2014 | |
Operating Activities | ||
Net loss | $ (6.7) | $ (10) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Amortization of identifiable intangible assets | 0 | 0.2 |
Depreciation and amortization of property, plant and equipment | 3.4 | 3.5 |
Provision for receivables | 0.2 | 0.4 |
Share-based compensation | 0.9 | 1 |
Deferred income tax benefit (expense) | 0.5 | (0.1) |
Charges for inventory and customer service inventory write-downs | 2.6 | 2.8 |
Gain on disposition of WiMAX business | 0 | (0.1) |
Loss on disposition of property, plant and equipment, net | 0.2 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivables | 6.4 | (5.7) |
Unbilled costs | 4 | (2.6) |
Inventories | (3.1) | (0.5) |
Customer service inventories | 1.3 | 1.6 |
Accounts payable | (6) | 0.6 |
Accrued expenses | (0.5) | 4.6 |
Advance payments and unearned income | 2.8 | (1.7) |
Income taxes payable or receivable | (0.7) | (0.5) |
Other assets and liabilities | 1.1 | (2.6) |
Net cash provided by (used in) operating activities | 6.4 | (9.1) |
Investing Activities | ||
Payments for acquisition of property, plant and equipment | (0.8) | (2.4) |
Net cash used in investing activities | (0.8) | (2.4) |
Financing Activities | ||
Proceeds from borrowings | 18 | 18 |
Repayments of borrowings | (18) | (15) |
Payments on capital lease obligations | 0 | (0.1) |
Net cash provided by financing activities | 0 | 2.9 |
Effect of exchange rate changes on cash and cash equivalents | (0.8) | (1.5) |
Net Increase (Decrease) in Cash and Cash Equivalents | 4.8 | (10.1) |
Cash and Cash Equivalents, Beginning of Period | 34.7 | 48.8 |
Cash and Cash Equivalents, End of Period | $ 39.5 | $ 38.7 |
The Company and Basis of Presen
The Company and Basis of Presentation | 6 Months Ended |
Jan. 01, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation The Company Aviat Networks, Inc. (the “Company,” “we,” “us,” and “our”) designs, manufactures and sells a range of wireless networking solutions and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast system operators across the globe. Our products include broadband wireless access base stations and customer premises equipment for fixed and mobile, point-to-point digital microwave radio systems for access, backhaul, trunking and license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by us in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of our management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the quarter ended January 1, 2016 (the “ second quarter and first two quarters of fiscal 2016 ”) are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 3, 2015 . The condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. Significant intercompany transactions and accounts have been eliminated. We operate on a 52 -week or 53 -week year ending on the Friday nearest June 30. The first two quarters of fiscal 2016 and fiscal 2015 included 13 weeks in each quarter. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for doubtful accounts, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, restructuring obligations, product warranty obligations, share-based awards, contingencies and useful lives of property, plant and equipment. Reclassification During the first quarter of fiscal 2016, we recorded a $1.2 million reclassification to increase long term unearned income and decrease current advance payments and unearned income as of July 3, 2015. This reclassification had no impact on our total assets, total liabilities, results of operations or cash flows and has been included in the previously reported amounts in the table below. During the second quarter of fiscal 2016, we recorded a $4.7 million reclassification to decrease both accounts receivable and current unearned income in our consolidated balance sheet as of July 3, 2015. This reclassification had no impact on our results of operations. In our consolidated statements of cash flow, the reclassification increased changes in accounts receivables and decreased changes in advance payments and unearned income by $4.7 million ; however, the net cash used in operating activities was not impacted by this reclassification. This reclassification was immaterial to the previously issued financial statements; therefore, we revised our consolidated balance sheet for comparative purpose. The following table summarizes the effect of this reclassification on the previously filed consolidated balance sheet as of July 3, 2015: Previously Reported Reclassification Adjustment Revised (In millions) As of July 3, 2015: Accounts receivables, net $ 88.2 $ (4.7 ) $ 83.5 Total current assets $ 195.8 $ (4.7 ) $ 191.1 Total assets $ 229.4 $ (4.7 ) $ 224.7 Advance payments and unearned income $ 40.5 $ (4.7 ) $ 35.8 Total current liabilities $ 127.4 $ (4.7 ) $ 122.7 Total liabilities $ 145.5 $ (4.7 ) $ 140.8 Summary of Significant Accounting Policies There have been no material changes in our significant accounting policies as of and for the first two quarters of fiscal 2016 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 3, 2015 . Recently Issued Accounting Standards In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. This ASU is effective for fiscal years beginning after December 15, 2017. We are currently evaluating the impact this guidance will have on our consolidated financial statements and it will become effective for us at the beginning of our first quarter of fiscal 2019. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes , which amends the existing guidance on income taxes to require the classification of all deferred tax assets and liabilities as non-current on the balance sheet. The amendments are effective for financial statements issued for the annual periods beginning after December 15, 2016 and interim periods within those annual periods, and may be applied either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11 (Subtopic 330), Simplifying the Measurement of Inventory , which provides guidance to companies who account for inventory using either the first-in, first-out (“FIFO”) or average cost methods. The guidance states that companies should measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs , which provides guidance on the balance sheet presentation for debt issuance costs and debt discounts and debt premiums. To simplify the presentation of debt issuance costs, the standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. In August 2014, FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern , which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU is based on the principle that revenue is recognized to depict the transfer of 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. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of this ASU from December 15, 2016 to December 15, 2017, with early adoption permitted before annual periods beginning after December 15, 2016. Accordingly, the new standard is effective for us beginning in our fiscal year 2019. The principles may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the transition methods and the effect that this ASU will have on our consolidated financial statements and related disclosures. |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 6 Months Ended |
Jan. 01, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share of Common Stock | Net Loss Per Share of Common Stock We compute net loss per share attributable to our common stockholders using the two-class method. Basic net loss per share is computed using the weighted average number of common shares and participating securities outstanding during the period. Our unvested restricted shares contain rights to receive non-forfeitable dividends and therefore are considered to be participating securities and would be included in the calculations of net income per basic and diluted common share. However, we incurred a net loss in all periods presented. Undistributed losses are not allocated to unvested restricted shares due to the fact that the unvested restricted shares are not contractually obligated to share the losses of the company. As we incurred a net loss for all periods presented, the effect of outstanding stock options, restricted stocks and units and performance shares and units were anti-dilutive and therefore were excluded from the diluted net loss per share calculations. The following table summarizes the potential shares of common stock that were excluded from the diluted net loss per share calculations: January 1, December 26, (In millions) Stock options 6.9 7.0 Restricted stocks and units and performance shares and units 3.9 0.2 Total potential shares of common stock excluded 10.8 7.2 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jan. 01, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts Receivable, net Our net accounts receivable as of January 1, 2016 and July 3, 2015 was as follows : January 1, July 3, (In millions) Accounts receivable $ 82.9 $ 90.2 Less allowances for collection losses (6.5 ) (6.7 ) $ 76.4 $ 83.5 We regularly require letters of credit from some customers and, from time to time, we discount these letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Under these arrangements, collection risk is fully transferred to the financial institutions. We record the financing charges on discounting these letters of credit as interest expense. Total customer letters of credit discounted and related interest expense were as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions) Customer letters of credit being discounted $ 15.8 $ 7.8 $ 18.5 $ 7.8 Interest expense $ 0.1 $ 0.1 $ 0.1 $ 0.1 Inventories Our inventories as of January 1, 2016 and July 3, 2015 were as follows : January 1, July 3, (In millions) Finished products $ 21.5 $ 21.1 Work in process 3.3 3.8 Raw materials and supplies 7.8 8.0 $ 32.6 $ 32.9 Deferred cost of revenue included within finished goods $ 3.0 $ 2.2 Consigned inventories included within raw materials $ 7.3 $ 6.8 We recorded charges to adjust our inventory and customer service inventory to the lower of cost or market. These charges were primarily due to excess and obsolete inventory resulting from product transitioning and discontinuance. During the first two quarters of fiscal 2016 and 2015 , such charges incurred were classified in cost of product sales as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions, except percentages) Excess and obsolete inventory charges $ 1.0 $ 0.9 $ 1.9 $ 1.9 Customer service inventory write-downs 0.4 0.3 0.7 0.9 $ 1.4 $ 1.2 $ 2.6 $ 2.8 As % of revenue 2.0 % 1.3 % 1.7 % 1.6 % Property, Plant and Equipment, net Our property, plant and equipment, net as of January 1, 2016 and July 3, 2015 were as follows: January 1, July 3, (In millions) Land $ 0.7 $ 0.7 Buildings and leasehold improvements 9.7 9.7 Software 13.6 13.6 Machinery and equipment 45.3 45.2 69.3 69.2 Less accumulated depreciation and amortization (48.1 ) (44.9 ) $ 21.2 $ 24.3 Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions) Depreciation and amortization $ 1.7 $ 1.9 $ 3.4 $ 3.5 Accrued Warranties We accrue for the estimated cost to repair or replace products under warranty at the time of sale. Changes in our warranty liability, which is included as a component of other accrued expenses in the condensed consolidated balance sheets, during the first two quarters of fiscal 2016 and 2015 were as follows: Two Quarters Ended January 1, December 26, (In millions) Balance as of the beginning of the fiscal year $ 4.2 $ 3.8 Warranty provision recorded during the period 2.4 2.6 Consumption during the period (1.8 ) (2.7 ) Balance as of the end of the period $ 4.8 $ 3.7 |
Fair Value Measurements Of Asse
Fair Value Measurements Of Assets And Liabilities | 6 Months Ended |
Jan. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Of Assets And Liabilities | Fair Value Measurements of Assets and Liabilities We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants as of the measurement date. We maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value and establish a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2 — Observable market-based inputs or observable inputs that are corroborated by market data; and • Level 3 — Unobservable inputs reflecting our own assumptions. The carrying amounts, estimated fair values and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of January 1, 2016 and July 3, 2015 were as follows: January 1, 2016 July 3, 2015 Valuation Inputs Cost Fair Value Cost Fair Value (In millions) Assets: Cash equivalents: Money market funds $ 14.0 $ 14.0 $ 12.5 $ 12.5 Level 1 Bank certificates of deposit $ 0.3 $ 0.3 $ 0.6 $ 0.6 Level 2 We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items include shares in money market funds purchased from two major financial institutions. As of January 1, 2016 and July 3, 2015 , these money market shares were valued at $ 1.00 net asset value per share by these financial institutions. We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. The assets and liabilities related to our foreign currency forward contracts were not material as of January 1, 2016 and July 3, 2015 . The changes in fair value related to our foreign currency forward contracts were recorded in cost of revenues on our statements of operations. As of January 1, 2016 and July 3, 2015 , we did not have any assets or liabilities that were valued using Level 3 inputs. Our policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the first two quarters of fiscal 2016 and 2015 , we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value. |
Credit Facility And Debt
Credit Facility And Debt | 6 Months Ended |
Jan. 01, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility And Debt | Credit Facility and Debt On March 28, 2014, we entered into a Second Amended and Restated Loan Agreement with Silicon Valley Bank, which has been subsequently amended (the “SVB Credit Facility”). The SVB Credit Facility expires on September 26, 2016 and has a maximum borrowing capacity of $40.0 million , with a $30 million sublimit that can be borrowed by our Singapore subsidiary. Borrowings that may be advanced under the SVB Credit Facility at the lesser of $40.0 million or a borrowing base equal to a specified percentage of the value of eligible accounts receivable and U.S. unbilled accounts of the Company, subject to certain reserves and eligibility criteria. Our outstanding debt under the SVB Credit Facility was $9.0 million as of January 1, 2016 . The SVB Credit Facility carries an interest rate computed at the daily prime rate as published in the Wall Street Journal plus a spread of 0.50% to 1.50% , with such spread determined based on our adjusted quick ratio. During the first two quarters of fiscal year 2016, the weighted average interest rate on our outstanding loan was 3.86% . As of January 1, 2016, available credit under the SVB Credit Facility was $11.3 million reflecting the calculated borrowing base of $27.4 million less existing borrowings of $9.0 million and outstanding letters of credit of $7.1 million . The borrowing base was computed at 65% of eligible accounts receivable and 50% of eligible unbilled accounts receivable as of January 1, 2016. The SVB Credit Facility contains quarterly financial covenants including minimum adjusted quick ratio and minimum profitability (EBITDA) requirements. In the event our adjusted quick ratio falls below a certain level, cash received in our accounts with SVB may be directly applied to reduce outstanding obligations under the SVB Credit Facility. The SVB Credit Facility also imposes certain restrictions on our ability to dispose of assets, permit a change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments, make certain restricted payments and enter into transactions with affiliates under certain circumstances. Certain of our assets, including accounts receivable, inventory, and equipment, are pledged as collateral for the SVB Credit Facility. Upon an event of default, outstanding obligations would be immediately due and payable. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default at a per annum rate of interest equal to 2% above the applicable interest rate. As of January 1, 2016 , we were in compliance with the quarterly financial covenants contained in the SVB Credit Facility. In addition, we have an uncommitted short-term line of credit of $0.4 million from a bank in New Zealand to support the operations of our subsidiary located there. This line of credit provides for $0.3 million in short-term advances at various interest rates, all of which was available as of January 1, 2016 . The line of credit also provides for the issuance of standby letters of credit and company credit cards, of which $0.1 million was outstanding as of January 1, 2016 . This facility may be terminated upon notice, is reviewed annually for renewal or modification, and is supported by a corporate guarantee. |
Restructuring Activities
Restructuring Activities | 6 Months Ended |
Jan. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities Fiscal 2015-2016 Plan During the third quarter of fiscal 2015, with the intent to bring our operational cost structure in line with the changing dynamics of the microwave radio and telecommunications markets, we initiated a restructuring plan (the “Fiscal 2015-2016 Plan”) to lower fixed overhead costs and operating expenses and to preserve cash flow. Activities under the Fiscal 2015-2016 Plan primarily include reductions in force across the Company, but primarily in operations outside the United States. The following table summarizes our costs incurred during the second quarter and first two quarters of fiscal 2016 , estimated additional costs to be incurred and estimated total costs expected to be incurred as of January 1, 2016 under the Fiscal 2015-2016 Plan: Costs Incurred Costs Incurred During the Two Quarters Ended Cumulative Estimated Additional Costs to be Incurred Total Restructuring Costs Expected to be Incurred January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 (In millions) Severance and benefits $ — $ — $ 0.1 $ — $ 2.9 $ 1.3 $ 4.2 Facilities and other — — (0.1 ) — 0.5 0.3 0.8 Total for Fiscal 2015-2016 Plan $ — $ — $ — $ — $ 3.4 $ 1.6 $ 5.0 During the first two quarters of fiscal 2016 , we recorded $0.1 million in severance and related benefits costs and a $0.1 million adjustment to the accrual on Slovenia government fund repayment related to workforce reduction. We intend to substantially complete the remaining restructuring activities under the Fiscal 2015-2016 Plan by the end of fiscal 2016. Fiscal 2014-2015 Plan During the third quarter of fiscal 2014, in line with the decrease in revenue that we experienced and our reduced forecast for the immediate future, we initiated a restructuring plan (the “Fiscal 2014-2015 Plan”) to reduce our operating costs, primarily in North America, Europe and Asia. Activities under the Fiscal 2014-2015 Plan primarily include reductions in force and additional facility downsizing of our Santa Clara, California headquarters. The following table summarizes our costs incurred during the second quarter and first two quarters of fiscal 2016 and 2015 , estimated additional costs to be incurred and estimated total costs expected to be incurred as of January 1, 2016 under the Fiscal 2014-2015 Plan: Costs Incurred Costs Incurred During Cumulative Estimated Additional Costs to be Incurred Total Restructuring Costs Expected to be Incurred January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 (In millions) Severance and benefits $ — $ (0.2 ) $ — $ 0.1 $ 5.4 $ — $ 5.4 Facilities and other — 0.1 — 1.4 1.8 0.3 2.1 Total for Fiscal 2014-2015 Plan $ — $ (0.1 ) $ — $ 1.5 $ 7.2 $ 0.3 $ 7.5 We have substantially completed the restructuring activities under the Fiscal 2014-2015 Plan as of the end of fiscal 2015. The remaining additional costs to be incurred under the Fiscal 2014-2015 Plan primarily included our facility costs related to the cease-to-use space at our Santa Clara, California headquarters through the remaining lease term. Fiscal 2013-2014 Plan During the fourth quarter of fiscal 2013, we initiated a restructuring plan (the “Fiscal 2013-2014 Plan”) that was intended to reduce our operating expenses primarily in North America, Europe and Asia. Activities under the Fiscal 2013-2014 Plan included reductions in force and facility downsizing of our Santa Clara, California headquarters and certain international field offices. The following table summarizes our costs incurred during the second quarter and first two quarters of fiscal 2016 and 2015 , estimated additional costs to be incurred and estimated total costs expected to be incurred as of January 1, 2016 under the Fiscal 2013-2014 Plan: Costs Incurred Costs Incurred During Cumulative Estimated Additional Costs to be Incurred Total Restructuring Costs Expected to be Incurred January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 (In millions) Severance and benefits $ — $ — $ — $ (0.1 ) $ 2.8 $ — $ 2.8 Facilities and other — 0.1 — 0.1 4.4 0.6 5.0 Total for Fiscal 2013-2014 Plan $ — $ 0.1 $ — $ — $ 7.2 $ 0.6 $ 7.8 We have substantially completed the restructuring activities under the Fiscal 2013-2014 Plan as of fiscal 2014. The remaining additional costs to be incurred under the Fiscal 2013-2014 Plan primarily included our facility charges related to the cease-to-use space at our Santa Clara, California headquarters through the remaining lease term. Restructuring Liabilities Our restructuring liabilities consisted primarily of accrued severance and benefits relating to one-time and ongoing benefit arrangements, as well as facility exit cost reserves primarily related to our office leases in California. The fair value of the liabilities related to operating lease terminations was determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates included anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. To the extent there are material differences between these estimates or assumptions and actual results, our restructuring liabilities and restructuring charges would be significantly affected. The information in the following table summarizes the changes in our restructuring liabilities during the first two quarters of fiscal 2016 : Severance and Benefits Facilities and Other Total (In millions) Restructuring liabilities as of July 3, 2015 $ 0.8 $ 3.7 $ 4.5 Provision and adjustments related to Fiscal 2015-2016 Plan 0.1 (0.1 ) — Cash payments (0.7 ) (0.8 ) (1.5 ) Restructuring liabilities as of January 1, 2016 $ 0.2 $ 2.8 $ 3.0 Current portion of restructuring liabilities $ 2.5 Long-term portion of restructuring liabilities included in other long-term liabilities $ 0.5 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jan. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 2007 Stock Equity Plan and Activities We have one stock incentive plan for our employees and nonemployee directors, the 2007 Stock Equity Plan, as amended and restated effective November 13, 2015 (the “2007 Stock Plan”). As of January 1, 2016 , we have various incentive programs under the 2007 Stock Plan, including annual and long-term incentive programs (“AIP” or “LTIP”) and a global equity program (“GEP”). The Company is authorized to issue up to 26.9 million shares of common stock under the 2007 Stock Plan. During the first two quarters of fiscal 2016 , we awarded 1,831,158 performance stock units and 1,681,335 restricted stock units associated with our fiscal 2016 LTIP under the 2007 Stock Plan. For the market-based performance stock units, the performance criteria are based on multiple target closing prices of the Company’s common stock for the fiscal years ending 2016, 2017 and 2018. Once the shares are earned for fiscal years ending 2016 and 2017, they will be vested on the last day of fiscal 2018. For the shares earned for the fiscal year ending 2018, they will be vested on the date that the Compensation Committee certifies achievement of the performance metrics. Vesting of these shares is dependent on continuous employment with us through the date the performance metric is achieved. During the first two quarters of fiscal 2016 , we cancelled 803,210 performance stock units due to the performance criteria not being achieved. We also cancelled 44,307 performance stock units, 79,284 share of restricted stock unit, and options to purchase 312,256 shares of our common stock due to employee terminations. We issue new shares of our common stock to our employees upon the exercise of stock options, vesting of restricted stock awards and units or vesting of performance share awards and units. All awards that are cancelled prior to vesting or expire unexercised are returned to the approved pool of reserved shares under the 2007 Stock Plan and made available for future grants. Shares of our common stock remaining available for future issuance under the 2007 Stock Plan totaled 8,133,305 as of January 1, 2016 . Share-Based Compensation Total compensation expense for share-based awards included in our condensed consolidated statements of operations for the second quarter and first two quarters of fiscal 2016 and 2015 was as follows: Quarter Ended Two Quarters Ended (In millions) January 1, December 26, January 1, December 26, By Expense Category: Cost of revenues $ — $ — $ 0.1 $ 0.1 Research and development 0.1 — 0.1 — Selling and administrative 0.3 0.4 0.7 0.9 Total share-based compensation expense $ 0.4 $ 0.4 $ 0.9 $ 1.0 By Types of Award: Options $ 0.2 $ 0.3 $ 0.5 $ 0.8 Restricted and performance stock awards and units 0.2 0.1 0.4 0.2 Total share-based compensation expense $ 0.4 $ 0.4 $ 0.9 $ 1.0 As of January 1, 2016 , there was $3.2 million of total unrecognized compensation expense related to unvested share-based awards granted under our 2007 Stock Plan. This expense is expected to be recognized over a weighted average period of 2.46 years. The fair value of each option grant under our 2007 Stock Plan was estimated using the Black-Scholes option pricing model on the date of grant. A summary of the significant weighted average assumptions we used in the Black-Scholes valuation model is as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, Expected dividends N/A N/A N/A — % Expected volatility N/A N/A N/A 53.3 % Risk-free interest rate N/A N/A N/A 1.35 % Expected term (years) N/A N/A N/A 3.81 Weighted average grant date fair value per share granted N/A N/A N/A $0.51 The fair value of each performance stock unit with market condition was estimated using a Monte-Carlo simulation model. A summary of the significant weighted average assumptions we used in the Monte Carlo simulation model is as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, Expected dividends — % N/A — % N/A Expected volatility 52.43 % N/A 52.43 % N/A Risk-free interest rate 1.21 % N/A 1.21 % N/A Weighted average grant date fair value per share granted 0.21 N/A 0.21 N/A The fair value of the performance stock units with market condition criteria is expensed over the derived service period for each separate vesting tranche. If the derived service period is rendered, the total fair value of the award at the date of the grant is recognized as compensation expense even if the market condition is not achieved. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jan. 01, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information We operate in one reportable business segment: the design, manufacturing and sale of a range of wireless networking products, solutions and services. We conduct business globally and our sales and support activities are managed on a geographic basis. Our Chief Executive Officer is our Chief Operating Decision Maker (the “CODM”). We report revenue by region and country based on the location where our customers accept delivery of our products and services. Revenue by region for the second quarter and first two quarters of fiscal 2016 and 2015 were as follows: Quarter Ended Two Quarters Ended (In millions) January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 North America $ 31.9 $ 44.2 $ 67.1 $ 82.8 Africa and Middle East 23.7 21.6 51.0 46.2 Europe and Russia 5.6 11.7 12.1 19.9 Latin America and Asia Pacific 9.2 13.4 19.8 24.4 Total Revenue $ 70.4 $ 90.9 $ 150.0 $ 173.3 Mobile Telephone Networks Group (MTN Group), Motorola Solutions, Inc. (Motorola) and Bharti Airtel (Airtel) accounted for more than 10% of our accounts receivable as of January 1, 2016 . MTN Group also accounted for more than 10% of our accounts receivable as of July 3, 2015 . During the second quarter of fiscal 2016, MTN Group and Motorola both accounted for more than 10% of our total revenue. During the second quarter of fiscal 2015 and first two quarters of fiscal 2016 and 2015, MTN Group accounted for more than 10% of our total revenue. We have entered into separate and distinct contracts with MTN Group, Motorola and Airtel, as well as separate arrangements with their various subsidiaries. The loss of all business from MTN Group, Motorola, or any other significant customers could adversely affect our results of operations, cash flows and financial position. |
Divestiture
Divestiture | 6 Months Ended |
Jan. 01, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestiture We sold our WiMAX business on September 2, 2011. In the third quarter of fiscal 2011, we began accounting for the WiMAX business as a discontinued operation and, therefore, the operating results of our WiMAX business were included in discontinued operations in our condensed consolidated financial statements for all periods presented. The income recognized in the first two quarters of fiscal 2016 was primarily due to recovery of certain WiMAX customer receivables that were previously written down. Summary results of operations for the WiMAX business were as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, 2016 December 26, 2014 (In millions) Revenues $ — $ — $ — $ — Income from operations related to WiMAX — (0.1 ) 0.4 — Gain on disposal — — — 0.1 Income taxes — — (0.1 ) — Income from discontinued operations $ — $ (0.1 ) $ 0.3 $ 0.1 |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate varies from the U.S. federal statutory rate of 35% due to results of foreign operations that are subject to income taxes at different statutory rates and certain jurisdictions where we cannot recognize tax benefits on current losses. During interim periods, we accrue tax expenses for foreign jurisdictions that are anticipated to be profitable for fiscal 2016. The determination of our provision for the first two quarters of fiscal 2016 and 2015 was based on our estimated annual effective tax rate adjusted for losses in certain jurisdictions for which no tax benefit can be recognized. The tax expense for the first two quarters of fiscal 2016 was primarily attributable to tax expense related to profitable foreign subsidiaries. We have a number of years with open tax audits which vary from jurisdiction to jurisdiction. Our major tax jurisdictions include the U.S., Singapore and Nigeria. The earliest years that are open and subject to potential audits for these jurisdictions are as follows: U.S. — 2003; Singapore — 2006; and Nigeria — 2011. We account for interest and penalties related to unrecognized tax benefits as part of our provision for federal, foreign and state income taxes. Such interest expense we accrued for was not material for the second quarter and first two quarters of fiscal 2016 and fiscal 2015. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments We lease office and manufacturing facilities under non-cancelable operating leases expiring at various dates through April 2020. We lease approximately 129,000 square feet of office space in Santa Clara, California as our corporate headquarters. Beginning in the first quarter of fiscal 2015, approximately three-fourths of our Santa Clara headquarters building was vacated and made available for sublease. As of January 1, 2016 , future minimum lease payments for our headquarters totaled $11.5 million . As of January 1, 2016 , our future minimum lease payments under all non-cancelable operating leases with an initial lease term in excess of one year were as follows: Fiscal Years Ending in June Amounts (In millions) 2016 (two quarters remaining) $ 2.8 2017 4.0 2018 3.2 2019 3.2 2020 2.6 Thereafter 0.4 Total $ 16.2 These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent concessions, leasehold improvement incentives or unusual provisions or conditions. Rental expense for operating leases, including rentals on a month-to-month basis, was as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions) Rent expense $ 1.2 $ 1.6 $ 2.6 $ 3.4 Purchase Orders and Other Commitments From time to time in the normal course of business we may enter into purchasing agreements with our suppliers that require us to accept delivery of, and remit full payment for, finished products that we have ordered, finished products that we requested be held as safety stock, and work in process started on our behalf, in the event we cancel or terminate the purchasing agreement. Because these agreements do not specify fixed or minimum quantities, do not specify minimum or variable price provisions, and do not specify the approximate timing of the transaction, and we have no present intention to cancel or terminate any of these agreements, we currently do not believe that we have any future liability under these agreements. As of January 1, 2016 , we had outstanding purchase obligations with our suppliers or contract manufacturers of $27.0 million . In addition, we had contractual obligations of approximately $0.7 million associated with a major service agreement as of January 1, 2016 . Financial Guarantees and Commercial Commitments Guarantees issued by banks, insurance companies or other financial institutions are contingent commitments issued to guarantee our performance under borrowing arrangements, such as bank overdraft facilities, tax and customs obligations and similar transactions or to ensure our performance under customer or vendor contracts. The terms of the guarantees are generally equal to the remaining term of the related debt or other obligations and are generally limited to two years or less. As of January 1, 2016 , we had no guarantees applicable to our debt arrangements. We have entered into commercial commitments in the normal course of business including surety bonds, standby letters of credit agreements and other arrangements with financial institutions primarily relating to the guarantee of future performance on certain contracts to provide products and services to customers. As of January 1, 2016 , we had commercial commitments of $19.9 million outstanding that were not recorded in our condensed consolidated balance sheets. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid on the performance guarantees. Indemnifications Under the terms of substantially all of our license agreements, we have agreed to defend and pay any final judgment against our customers arising from claims against such customers that our software products infringe the intellectual property rights of a third party. As of January 1, 2016 , we have not received any notice that any customer is subject to an infringement claim arising from the use of our software products; we have not received any request to defend any customers from infringement claims arising from the use of our software products; and we have not paid any final judgment on behalf of any customer related to an infringement claim arising from the use of our software products. Because the outcome of infringement disputes is related to the specific facts of each case, and given the lack of previous or current indemnification claims, we cannot estimate the maximum amount of potential future payments, if any, related to our indemnification provisions. As of January 1, 2016 , we had not recorded any liabilities related to these indemnifications. Legal Proceedings From time to time, we may be involved in various legal claims and litigation that arise in the normal course of our operations. We are aggressively defending all current litigation matters. Although there can be no assurances and the outcome of these matters is not determinable, we currently believe that none of these claims or proceedings are likely to have a material adverse effect on our financial position. There are many uncertainties associated with any litigations and these matters or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. As a result, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any. We record accruals for our outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. We have not recorded any accrual for loss contingencies associated with any such legal claims or litigation discussed above. Contingent Liabilities We record a loss contingency as a charge to operations when (i) it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements; and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both those conditions if there is a reasonable possibility that a loss may have been incurred. Gain contingencies are not recorded until realized. We expense all legal costs incurred to resolve regulatory, legal and tax matters as incurred. Periodically, we review the status of each significant matter to assess the potential financial exposure. If a potential loss is considered probable and the amount can be reasonably estimated, we reflect the estimated loss in our results of operations. Significant judgment is required to determine the probability that a liability has been incurred or an asset impaired and whether such loss is reasonably estimable. Further, estimates of this nature are highly subjective, and the final outcome of these matters could vary significantly from the amounts that have been included in our consolidated financial statements. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise estimates accordingly. Such revisions in the estimates of the potential liabilities could have a material impact on our results of operations and financial position. |
The Company and Basis of Pres17
The Company and Basis of Presentation (Policies) | 6 Months Ended |
Jan. 01, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by us in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements. In the opinion of our management, such interim financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows for such periods. The results for the quarter ended January 1, 2016 (the “ second quarter and first two quarters of fiscal 2016 ”) are not necessarily indicative of the results that may be expected for the full fiscal year or future operating periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 3, 2015 . The condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. Significant intercompany transactions and accounts have been eliminated. We operate on a 52 -week or 53 -week year ending on the Friday nearest June 30. The first two quarters of fiscal 2016 and fiscal 2015 included 13 weeks in each quarter. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for doubtful accounts, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, restructuring obligations, product warranty obligations, share-based awards, contingencies and useful lives of property, plant and equipment. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. This ASU is effective for fiscal years beginning after December 15, 2017. We are currently evaluating the impact this guidance will have on our consolidated financial statements and it will become effective for us at the beginning of our first quarter of fiscal 2019. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes , which amends the existing guidance on income taxes to require the classification of all deferred tax assets and liabilities as non-current on the balance sheet. The amendments are effective for financial statements issued for the annual periods beginning after December 15, 2016 and interim periods within those annual periods, and may be applied either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11 (Subtopic 330), Simplifying the Measurement of Inventory , which provides guidance to companies who account for inventory using either the first-in, first-out (“FIFO”) or average cost methods. The guidance states that companies should measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs , which provides guidance on the balance sheet presentation for debt issuance costs and debt discounts and debt premiums. To simplify the presentation of debt issuance costs, the standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. In August 2014, FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern , which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU is based on the principle that revenue is recognized to depict the transfer of 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. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of this ASU from December 15, 2016 to December 15, 2017, with early adoption permitted before annual periods beginning after December 15, 2016. Accordingly, the new standard is effective for us beginning in our fiscal year 2019. The principles may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the transition methods and the effect that this ASU will have on our consolidated financial statements and related disclosures. |
The Company and Basis of Pres18
The Company and Basis of Presentation (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prior Period Adjustments | The following table summarizes the effect of this reclassification on the previously filed consolidated balance sheet as of July 3, 2015: Previously Reported Reclassification Adjustment Revised (In millions) As of July 3, 2015: Accounts receivables, net $ 88.2 $ (4.7 ) $ 83.5 Total current assets $ 195.8 $ (4.7 ) $ 191.1 Total assets $ 229.4 $ (4.7 ) $ 224.7 Advance payments and unearned income $ 40.5 $ (4.7 ) $ 35.8 Total current liabilities $ 127.4 $ (4.7 ) $ 122.7 Total liabilities $ 145.5 $ (4.7 ) $ 140.8 |
Net Loss Per Share of Common 19
Net Loss Per Share of Common Stock (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the potential shares of common stock that were excluded from the diluted net loss per share calculations: January 1, December 26, (In millions) Stock options 6.9 7.0 Restricted stocks and units and performance shares and units 3.9 0.2 Total potential shares of common stock excluded 10.8 7.2 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable | Our net accounts receivable as of January 1, 2016 and July 3, 2015 was as follows : January 1, July 3, (In millions) Accounts receivable $ 82.9 $ 90.2 Less allowances for collection losses (6.5 ) (6.7 ) $ 76.4 $ 83.5 |
Customer Letters of Credits Being Discounted and Related Interest Expense | Total customer letters of credit discounted and related interest expense were as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions) Customer letters of credit being discounted $ 15.8 $ 7.8 $ 18.5 $ 7.8 Interest expense $ 0.1 $ 0.1 $ 0.1 $ 0.1 |
Schedule of Inventory | Our inventories as of January 1, 2016 and July 3, 2015 were as follows : January 1, July 3, (In millions) Finished products $ 21.5 $ 21.1 Work in process 3.3 3.8 Raw materials and supplies 7.8 8.0 $ 32.6 $ 32.9 Deferred cost of revenue included within finished goods $ 3.0 $ 2.2 Consigned inventories included within raw materials $ 7.3 $ 6.8 |
Schedule of Adjustments to Inventory | During the first two quarters of fiscal 2016 and 2015 , such charges incurred were classified in cost of product sales as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions, except percentages) Excess and obsolete inventory charges $ 1.0 $ 0.9 $ 1.9 $ 1.9 Customer service inventory write-downs 0.4 0.3 0.7 0.9 $ 1.4 $ 1.2 $ 2.6 $ 2.8 As % of revenue 2.0 % 1.3 % 1.7 % 1.6 % |
Property, Plant and Equipment | Our property, plant and equipment, net as of January 1, 2016 and July 3, 2015 were as follows: January 1, July 3, (In millions) Land $ 0.7 $ 0.7 Buildings and leasehold improvements 9.7 9.7 Software 13.6 13.6 Machinery and equipment 45.3 45.2 69.3 69.2 Less accumulated depreciation and amortization (48.1 ) (44.9 ) $ 21.2 $ 24.3 Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions) Depreciation and amortization $ 1.7 $ 1.9 $ 3.4 $ 3.5 |
Changes in Warranty Liability | Changes in our warranty liability, which is included as a component of other accrued expenses in the condensed consolidated balance sheets, during the first two quarters of fiscal 2016 and 2015 were as follows: Two Quarters Ended January 1, December 26, (In millions) Balance as of the beginning of the fiscal year $ 4.2 $ 3.8 Warranty provision recorded during the period 2.4 2.6 Consumption during the period (1.8 ) (2.7 ) Balance as of the end of the period $ 4.8 $ 3.7 |
Fair Value Measurements Of As21
Fair Value Measurements Of Assets And Liabilities (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts, estimated fair values and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of January 1, 2016 and July 3, 2015 were as follows: January 1, 2016 July 3, 2015 Valuation Inputs Cost Fair Value Cost Fair Value (In millions) Assets: Cash equivalents: Money market funds $ 14.0 $ 14.0 $ 12.5 $ 12.5 Level 1 Bank certificates of deposit $ 0.3 $ 0.3 $ 0.6 $ 0.6 Level 2 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes our costs incurred during the second quarter and first two quarters of fiscal 2016 and 2015 , estimated additional costs to be incurred and estimated total costs expected to be incurred as of January 1, 2016 under the Fiscal 2013-2014 Plan: Costs Incurred Costs Incurred During Cumulative Estimated Additional Costs to be Incurred Total Restructuring Costs Expected to be Incurred January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 (In millions) Severance and benefits $ — $ — $ — $ (0.1 ) $ 2.8 $ — $ 2.8 Facilities and other — 0.1 — 0.1 4.4 0.6 5.0 Total for Fiscal 2013-2014 Plan $ — $ 0.1 $ — $ — $ 7.2 $ 0.6 $ 7.8 The following table summarizes our costs incurred during the second quarter and first two quarters of fiscal 2016 , estimated additional costs to be incurred and estimated total costs expected to be incurred as of January 1, 2016 under the Fiscal 2015-2016 Plan: Costs Incurred Costs Incurred During the Two Quarters Ended Cumulative Estimated Additional Costs to be Incurred Total Restructuring Costs Expected to be Incurred January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 (In millions) Severance and benefits $ — $ — $ 0.1 $ — $ 2.9 $ 1.3 $ 4.2 Facilities and other — — (0.1 ) — 0.5 0.3 0.8 Total for Fiscal 2015-2016 Plan $ — $ — $ — $ — $ 3.4 $ 1.6 $ 5.0 The following table summarizes our costs incurred during the second quarter and first two quarters of fiscal 2016 and 2015 , estimated additional costs to be incurred and estimated total costs expected to be incurred as of January 1, 2016 under the Fiscal 2014-2015 Plan: Costs Incurred Costs Incurred During Cumulative Estimated Additional Costs to be Incurred Total Restructuring Costs Expected to be Incurred January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 (In millions) Severance and benefits $ — $ (0.2 ) $ — $ 0.1 $ 5.4 $ — $ 5.4 Facilities and other — 0.1 — 1.4 1.8 0.3 2.1 Total for Fiscal 2014-2015 Plan $ — $ (0.1 ) $ — $ 1.5 $ 7.2 $ 0.3 $ 7.5 |
Schedule of Restructuring Reserve by Type of Cost | The information in the following table summarizes the changes in our restructuring liabilities during the first two quarters of fiscal 2016 : Severance and Benefits Facilities and Other Total (In millions) Restructuring liabilities as of July 3, 2015 $ 0.8 $ 3.7 $ 4.5 Provision and adjustments related to Fiscal 2015-2016 Plan 0.1 (0.1 ) — Cash payments (0.7 ) (0.8 ) (1.5 ) Restructuring liabilities as of January 1, 2016 $ 0.2 $ 2.8 $ 3.0 Current portion of restructuring liabilities $ 2.5 Long-term portion of restructuring liabilities included in other long-term liabilities $ 0.5 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Expense for Share-based Compensation Awards | Total compensation expense for share-based awards included in our condensed consolidated statements of operations for the second quarter and first two quarters of fiscal 2016 and 2015 was as follows: Quarter Ended Two Quarters Ended (In millions) January 1, December 26, January 1, December 26, By Expense Category: Cost of revenues $ — $ — $ 0.1 $ 0.1 Research and development 0.1 — 0.1 — Selling and administrative 0.3 0.4 0.7 0.9 Total share-based compensation expense $ 0.4 $ 0.4 $ 0.9 $ 1.0 By Types of Award: Options $ 0.2 $ 0.3 $ 0.5 $ 0.8 Restricted and performance stock awards and units 0.2 0.1 0.4 0.2 Total share-based compensation expense $ 0.4 $ 0.4 $ 0.9 $ 1.0 |
Schedule of Stock Options Valuation Assumptions | A summary of the significant weighted average assumptions we used in the Black-Scholes valuation model is as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, Expected dividends N/A N/A N/A — % Expected volatility N/A N/A N/A 53.3 % Risk-free interest rate N/A N/A N/A 1.35 % Expected term (years) N/A N/A N/A 3.81 Weighted average grant date fair value per share granted N/A N/A N/A $0.51 |
Schedule of Market Condition Awards Valuation Assumptions | A summary of the significant weighted average assumptions we used in the Monte Carlo simulation model is as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, Expected dividends — % N/A — % N/A Expected volatility 52.43 % N/A 52.43 % N/A Risk-free interest rate 1.21 % N/A 1.21 % N/A Weighted average grant date fair value per share granted 0.21 N/A 0.21 N/A |
Segment and Geographic Inform24
Segment and Geographic Information (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Revenue by region for the second quarter and first two quarters of fiscal 2016 and 2015 were as follows: Quarter Ended Two Quarters Ended (In millions) January 1, 2016 December 26, 2014 January 1, 2016 December 26, 2014 North America $ 31.9 $ 44.2 $ 67.1 $ 82.8 Africa and Middle East 23.7 21.6 51.0 46.2 Europe and Russia 5.6 11.7 12.1 19.9 Latin America and Asia Pacific 9.2 13.4 19.8 24.4 Total Revenue $ 70.4 $ 90.9 $ 150.0 $ 173.3 |
Divestiture (Tables)
Divestiture (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Results of Operations for the WiMax Business | Summary results of operations for the WiMAX business were as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, 2016 December 26, 2014 (In millions) Revenues $ — $ — $ — $ — Income from operations related to WiMAX — (0.1 ) 0.4 — Gain on disposal — — — 0.1 Income taxes — — (0.1 ) — Income from discontinued operations $ — $ (0.1 ) $ 0.3 $ 0.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jan. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of January 1, 2016 , our future minimum lease payments under all non-cancelable operating leases with an initial lease term in excess of one year were as follows: Fiscal Years Ending in June Amounts (In millions) 2016 (two quarters remaining) $ 2.8 2017 4.0 2018 3.2 2019 3.2 2020 2.6 Thereafter 0.4 Total $ 16.2 |
Schedule of Rent Expense | Rental expense for operating leases, including rentals on a month-to-month basis, was as follows: Quarter Ended Two Quarters Ended January 1, December 26, January 1, December 26, (In millions) Rent expense $ 1.2 $ 1.6 $ 2.6 $ 3.4 |
The Company and Basis of Pres27
The Company and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jan. 01, 2016 | Oct. 02, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | Jul. 03, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Accounts receivable, net | $ 76.4 | $ 76.4 | $ 83.5 | ||||
Total current assets | 179.4 | 179.4 | 191.1 | ||||
Total assets | 209.3 | 209.3 | 224.7 | ||||
Advance payments and unearned income | 36.3 | 36.3 | 35.8 | ||||
Unearned income | 10.9 | 10.9 | 9.8 | ||||
Total current liabilities | 113.3 | 113.3 | 122.7 | ||||
Total liabilities | $ 132.3 | 132.3 | 140.8 | ||||
Operating Activities | |||||||
Accounts receivables | 6.4 | $ (5.7) | |||||
Advance payments and unearned income | $ 2.8 | $ (1.7) | |||||
Fiscal period duration | 91 days | 91 days | 91 days | 91 days | |||
Reclassification in Q1 Fiscal 2016 | Reclassification Adjustment | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Advance payments and unearned income | (1.2) | ||||||
Unearned income | 1.2 | ||||||
Reclassification in Q2 Fiscal 2016 | Previously Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Accounts receivable, net | 88.2 | ||||||
Total current assets | 195.8 | ||||||
Total assets | 229.4 | ||||||
Advance payments and unearned income | 40.5 | ||||||
Total current liabilities | 127.4 | ||||||
Total liabilities | 145.5 | ||||||
Reclassification in Q2 Fiscal 2016 | Reclassification Adjustment | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Accounts receivable, net | (4.7) | ||||||
Total current assets | (4.7) | ||||||
Total assets | (4.7) | ||||||
Advance payments and unearned income | (4.7) | ||||||
Total current liabilities | (4.7) | ||||||
Total liabilities | (4.7) | ||||||
Operating Activities | |||||||
Accounts receivables | 4.7 | ||||||
Advance payments and unearned income | $ (4.7) |
Net Loss Per Share of Common 28
Net Loss Per Share of Common Stock (Details) - shares shares in Millions | 6 Months Ended | |
Jan. 01, 2016 | Dec. 26, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential shares of common stock excluded | 10.8 | 7.2 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential shares of common stock excluded | 6.9 | 7 |
Restricted stocks and units and performance shares and units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potential shares of common stock excluded | 3.9 | 0.2 |
Balance Sheet Components (Recei
Balance Sheet Components (Receivables) (Details) - USD ($) $ in Millions | Jan. 01, 2016 | Jul. 03, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 82.9 | $ 90.2 |
Less allowances for collection losses | (6.5) | (6.7) |
Accounts receivable, net | $ 76.4 | $ 83.5 |
Balance Sheet Components (Custo
Balance Sheet Components (Customer Letters of Credit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Customer letters of credit being discounted | $ 15.8 | $ 7.8 | $ 18.5 | $ 7.8 |
Interest expense | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Millions | Jan. 01, 2016 | Jul. 03, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished products | $ 21.5 | $ 21.1 |
Work in process | 3.3 | 3.8 |
Raw materials and supplies | 7.8 | 8 |
Inventories | 32.6 | 32.9 |
Deferred cost of revenue included within finished goods | 3 | 2.2 |
Consigned inventories included within raw materials | $ 7.3 | $ 6.8 |
Balance Sheet Components (Inv32
Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Excess and obsolete inventory charges | $ 1 | $ 0.9 | $ 1.9 | $ 1.9 |
Customer service inventory write-down | 0.4 | 0.3 | 0.7 | 0.9 |
Charges for inventory and customer service inventory write-downs | $ 1.4 | $ 1.2 | $ 2.6 | $ 2.8 |
As % of revenue | 2.00% | 1.30% | 1.70% | 1.60% |
Balance Sheet Components (Prope
Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Jan. 01, 2016 | Jul. 03, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 69.3 | $ 69.2 |
Less accumulated depreciation and amortization | (48.1) | (44.9) |
Property, plant and equipment, net | 21.2 | 24.3 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 0.7 | 0.7 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9.7 | 9.7 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13.6 | 13.6 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 45.3 | $ 45.2 |
Balance Sheet Components (Pro34
Balance Sheet Components (Property, Plant and Equipment Depreciation and Amortization) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization | $ 1.7 | $ 1.9 | $ 3.4 | $ 3.5 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 01, 2016 | Dec. 26, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance as of the beginning of the fiscal year | $ 4.2 | $ 3.8 |
Warranty provision recorded during the period | 2.4 | 2.6 |
Consumption during the period | (1.8) | (2.7) |
Balance as of the end of the period | $ 4.8 | $ 3.7 |
Fair Value Measurements Of As36
Fair Value Measurements Of Assets And Liabilities (Details) $ / shares in Units, $ in Millions | Jan. 01, 2016USD ($)institution$ / shares | Jul. 03, 2015USD ($)$ / shares |
Level 1 | Money market funds | ||
Cash equivalents: | ||
Number of financial institutions | institution | 2 | |
Money market, net asset value (usd per share) | $ / shares | $ 1 | $ 1 |
Recurring | Level 1 | Cost | Money market funds | ||
Cash equivalents: | ||
Cash equivalents | $ 14 | $ 12.5 |
Recurring | Level 1 | Fair Value | Money market funds | ||
Cash equivalents: | ||
Cash equivalents | 14 | 12.5 |
Recurring | Level 2 | Cost | Bank certificates of deposit | ||
Cash equivalents: | ||
Cash equivalents | 0.3 | 0.6 |
Recurring | Level 2 | Fair Value | Bank certificates of deposit | ||
Cash equivalents: | ||
Cash equivalents | $ 0.3 | $ 0.6 |
Credit Facility And Debt (Detai
Credit Facility And Debt (Details) - USD ($) | 6 Months Ended | |
Jan. 01, 2016 | Jul. 03, 2015 | |
Line of Credit Facility [Line Items] | ||
Outstanding borrowing | $ 9,000,000 | $ 9,000,000 |
Silicon Valley Bank | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | 40,000,000 | |
Outstanding borrowing | 9,000,000 | |
Available credit under credit facility | 11,300,000 | |
Line of Credit Facility, Current Borrowing Capacity | $ 27,400,000 | |
Line of Credit Facility, Borrowing Capacity, Description | 65% of eligible accounts receivable and 50% of eligible unbilled accounts receivable | |
Weight average interest rate | 3.86% | |
Additional spread on applicable rate in event of default | 2.00% | |
Silicon Valley Bank | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, description of variable rate basis | prime rate | |
Silicon Valley Bank | Prime Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Silicon Valley Bank | Prime Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Letter of Credit | Silicon Valley Bank | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 7,100,000 | |
Singapore Line of Credit | Silicon Valley Bank | ||
Line of Credit Facility [Line Items] | ||
Credit facility sublimit available for Singapore | 30,000,000 | |
New Zealand | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | 400,000 | |
New Zealand | Short-term Advances | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | 300,000 | |
Available credit under credit facility | 300,000 | |
New Zealand | Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 100,000 |
Restructuring Activities (Costs
Restructuring Activities (Costs Incurred) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | $ 0 | $ 0 | $ 0 | $ 1.5 |
Severance and benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0.1 | |||
Facilities and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | (0.1) | |||
Fiscal 2015-2016 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | 0 | 0 | 0 |
Cumulative Costs Incurred Through January 1, 2016 | 3.4 | 3.4 | ||
Estimated Additional Costs to be Incurred | 1.6 | 1.6 | ||
Total Restructuring Costs Expected to be Incurred | 5 | 5 | ||
Fiscal 2015-2016 Plan | Severance and benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | 0.1 | ||
Cumulative Costs Incurred Through January 1, 2016 | 2.9 | 2.9 | ||
Estimated Additional Costs to be Incurred | 1.3 | 1.3 | ||
Total Restructuring Costs Expected to be Incurred | 4.2 | 4.2 | ||
Fiscal 2015-2016 Plan | Facilities and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | (0.1) | ||
Cumulative Costs Incurred Through January 1, 2016 | 0.5 | 0.5 | ||
Estimated Additional Costs to be Incurred | 0.3 | 0.3 | ||
Total Restructuring Costs Expected to be Incurred | 0.8 | 0.8 | ||
Fiscal 2015-2016 Plan | Government Fund Penalty | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0.1 | |||
Fiscal 2014-2015 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | (0.1) | 0 | 1.5 |
Cumulative Costs Incurred Through January 1, 2016 | 7.2 | 7.2 | ||
Estimated Additional Costs to be Incurred | 0.3 | 0.3 | ||
Total Restructuring Costs Expected to be Incurred | 7.5 | 7.5 | ||
Fiscal 2014-2015 Plan | Severance and benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | (0.2) | 0 | 0.1 |
Cumulative Costs Incurred Through January 1, 2016 | 5.4 | 5.4 | ||
Estimated Additional Costs to be Incurred | 0 | 0 | ||
Total Restructuring Costs Expected to be Incurred | 5.4 | 5.4 | ||
Fiscal 2014-2015 Plan | Facilities and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | 0.1 | 0 | 1.4 |
Cumulative Costs Incurred Through January 1, 2016 | 1.8 | 1.8 | ||
Estimated Additional Costs to be Incurred | 0.3 | 0.3 | ||
Total Restructuring Costs Expected to be Incurred | 2.1 | 2.1 | ||
Fiscal 2013-2014 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | 0.1 | 0 | 0 |
Cumulative Costs Incurred Through January 1, 2016 | 7.2 | 7.2 | ||
Estimated Additional Costs to be Incurred | 0.6 | 0.6 | ||
Total Restructuring Costs Expected to be Incurred | 7.8 | 7.8 | ||
Fiscal 2013-2014 Plan | Severance and benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | 0 | 0 | (0.1) |
Cumulative Costs Incurred Through January 1, 2016 | 2.8 | 2.8 | ||
Estimated Additional Costs to be Incurred | 0 | 0 | ||
Total Restructuring Costs Expected to be Incurred | 2.8 | 2.8 | ||
Fiscal 2013-2014 Plan | Facilities and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs Incurred | 0 | $ 0.1 | 0 | $ 0.1 |
Cumulative Costs Incurred Through January 1, 2016 | 4.4 | 4.4 | ||
Estimated Additional Costs to be Incurred | 0.6 | 0.6 | ||
Total Restructuring Costs Expected to be Incurred | $ 5 | $ 5 |
Restructuring Activities (Restr
Restructuring Activities (Restructuring Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | Jul. 03, 2015 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring liabilities as of July 3, 2015 | $ 4.5 | ||||
Provision and adjustments related to Fiscal 2015-2016 Plan | $ 0 | $ 0 | 0 | $ 1.5 | |
Cash payments | (1.5) | ||||
Restructuring liabilities as of January 1, 2016 | 3 | 3 | |||
Current portion of restructuring liabilities | 2.5 | 2.5 | $ 3.9 | ||
Long-term portion of restructuring liabilities included in other long-term liabilities | 0.5 | 0.5 | |||
Severance and Benefits | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring liabilities as of July 3, 2015 | 0.8 | ||||
Provision and adjustments related to Fiscal 2015-2016 Plan | 0.1 | ||||
Cash payments | (0.7) | ||||
Restructuring liabilities as of January 1, 2016 | 0.2 | 0.2 | |||
Facilities and Other | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring liabilities as of July 3, 2015 | 3.7 | ||||
Provision and adjustments related to Fiscal 2015-2016 Plan | (0.1) | ||||
Cash payments | (0.8) | ||||
Restructuring liabilities as of January 1, 2016 | $ 2.8 | $ 2.8 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ in Millions | 6 Months Ended | |
Jan. 01, 2016USD ($)StockIncentivePlanshares | Nov. 30, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options canceled | 312,256 | |
2007 Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock incentive plans | StockIncentivePlan | 1 | |
Number of shares authorized | 26,900,000 | |
Number of shares available for grant | 8,133,305 | |
Nonvested awards, unrecognized compensation expense | $ | $ 3.2 | |
Nonvested awards, expense expected to be recognized, weighted average period | 2 years 5 months 15 days | |
2007 Stock Plan | Restricted and performance stock awards and units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 1,681,335 | |
Awards canceled | 79,284 | |
2007 Stock Plan | Performance unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 1,831,158 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeiture Due To Performance Criteria Not Met, Forfeited in Period | 803,210 | |
Awards canceled | 44,307 |
Stockholders' Equity (Stock Bas
Stockholders' Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0.4 | $ 0.4 | $ 0.9 | $ 1 |
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 0.2 | 0.3 | 0.5 | 0.8 |
Restricted and performance stock awards and units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 0.2 | 0.1 | 0.4 | 0.2 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 0 | 0 | 0.1 | 0.1 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 0.1 | 0 | 0.1 | 0 |
Selling and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0.3 | $ 0.4 | $ 0.7 | $ 0.9 |
Stockholders' Equity (Weighted
Stockholders' Equity (Weighted Average Assumptions) (Details) - 2007 Stock Plan - $ / shares | 3 Months Ended | 6 Months Ended | |
Jan. 01, 2016 | Jan. 01, 2016 | Dec. 26, 2014 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 0.00% | 0.00% | |
Expected volatility | 52.43% | 53.30% | |
Risk-free interest rate | 1.21% | 1.35% | |
Expected term (years) | 3 years 9 months 22 days | ||
Weighted average grant date fair value per share granted | $ 0.21 | $ 0.51 | |
Performance unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 0.00% | ||
Expected volatility | 52.43% | ||
Risk-free interest rate | 1.21% | ||
Weighted average grant date fair value per share granted | $ 0.21 |
Segment and Geographic Inform43
Segment and Geographic Information (Schedule of Revenues by Geographic Region) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016USD ($) | Dec. 26, 2014USD ($) | Jan. 01, 2016USD ($)segments | Dec. 26, 2014USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of reportable segments | segments | 1 | |||
Revenue | $ 70.4 | $ 90.9 | $ 150 | $ 173.3 |
North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 31.9 | 44.2 | 67.1 | 82.8 |
Africa and Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 23.7 | 21.6 | 51 | 46.2 |
Europe and Russia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 5.6 | 11.7 | 12.1 | 19.9 |
Latin America and Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 9.2 | $ 13.4 | $ 19.8 | $ 24.4 |
Divestiture (Details)
Divestiture (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Income from discontinued operations | $ 0 | $ (0.1) | $ 0.3 | $ 0.1 |
WiMAX | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Income from operations related to WiMAX | 0 | (0.1) | 0.4 | 0 |
Gain on disposal | 0 | 0 | 0 | 0.1 |
Income taxes | 0 | 0 | (0.1) | 0 |
Income from discontinued operations | $ 0 | $ (0.1) | $ 0.3 | $ 0.1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 6 Months Ended |
Jan. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Statutory U.S. federal tax rate | 35.00% |
Commitments and Contingencies46
Commitments and Contingencies (Narrative) (Details) ft² in Thousands, $ in Millions | 6 Months Ended |
Jan. 01, 2016USD ($)ft² | |
Property Subject to or Available for Operating Lease [Line Items] | |
Future minimum commitments | $ 16.2 |
Purchase obligations with suppliers outstanding | 27 |
Other commitment | 0.7 |
Commercial commitments, outstanding | $ 19.9 |
Corporate Headquarters | |
Property Subject to or Available for Operating Lease [Line Items] | |
Office Space (in sq ft) | ft² | 129 |
Future minimum commitments | $ 11.5 |
Maximum | |
Property Subject to or Available for Operating Lease [Line Items] | |
Guarantee term | 2 years |
Commitments and Contingencies47
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Millions | Jan. 01, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2016 (two quarters remaining) | $ 2.8 |
2,017 | 4 |
2,018 | 3.2 |
2,019 | 3.2 |
2,020 | 2.6 |
Thereafter | 0.4 |
Total | $ 16.2 |
Commitments and Contingencies48
Commitments and Contingencies (Rental Expense for Operating Leases) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 01, 2016 | Dec. 26, 2014 | Jan. 01, 2016 | Dec. 26, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 1.2 | $ 1.6 | $ 2.6 | $ 3.4 |