Balance Sheet Components | Balance Sheet Components Cash, Cash Equivalents, and Restricted Cash The following table provides a summary of our cash, cash equivalents, and restricted cash reported within our unaudited condensed consolidated balance sheets that reconciles to the corresponding amount in our unaudited condensed consolidated statement of cash flows: (In thousands) April 2, July 3, Cash and cash equivalents $ 45,808 $ 41,618 Restricted cash included in other assets 256 254 Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows $ 46,064 $ 41,872 Accounts Receivable, net Our net accounts receivable are summarized below: (In thousands) April 2, July 3, Accounts receivable $ 49,365 $ 46,502 Less: Allowances for collection losses (1,801) (1,841) Total accounts receivable, net $ 47,564 $ 44,661 Inventories Our inventories are summarized below: (In thousands) April 2, July 3, Finished products $ 15,347 $ 9,055 Raw materials and supplies 6,547 4,942 Total inventories $ 21,894 $ 13,997 Consigned inventories included within raw materials and supplies $ 4,846 $ 1,324 We increased certain levels of inventory during the three and nine months ended April 2, 2021 primarily to mitigate supply chain constraints. We currently rely on a few vendors for substantially all of our inventory purchases. We record charges to adjust our inventory and customer service inventory due to excess and obsolete inventory resulting from lower sales forecasts, product transitioning, or discontinuance. The charges during the three and nine months April 2, 2021 and April 3, 2020 were classified in cost of product sales as follows: Three Months Ended Nine Months Ended (In thousands) April 2, April 3, April 2, April 3, Excess and obsolete inventory charges (recovery) $ 270 $ (13) $ 467 $ 156 Customer service inventory write-downs 293 250 681 595 Total inventory charges $ 563 $ 237 $ 1,148 $ 751 Assets Held for Sale We consider properties to be Assets held for sale when management approves and commits to a plan to dispose of a property or group of properties. The property held for sale prior to the sale date is separately presented on the balance sheet as Assets held for sale. During the second quarter of fiscal 2021 management initiated the sale of our facility located in the United Kingdom. We expect to complete the sale within twelve months. The carrying value of this asset held for sale as of April 2, 2021 of $2.2 million which represents the lower of 1) the carrying value or 2) fair value of the assets, less estimated costs to sell the assets. We performed an analysis and determined the estimated fair value of the assets, less estimated selling costs, is higher than the carrying value of the assets. As a result, no impairment charge was recorded in our statement of operations. Property, Plant and Equipment, net Our property, plant and equipment, net are summarized below: (In thousands) April 2, July 3, Land $ 210 $ 710 Buildings and leasehold improvements 6,913 11,737 Software 21,330 17,887 Machinery and equipment 50,797 52,293 Total property, plant and equipment, gross 79,250 82,627 Less: Accumulated depreciation and amortization (66,687) (65,716) Total property, plant and equipment, net $ 12,563 $ 16,911 Excluded in the total plant, property and equipment above were $0.5 million for land, $4.9 million for buildings and leasehold improvements and $3.2 million for accumulated depreciation in connection with Assets Held for Sale. Included in the total plant, property and equipment above were $0.2 million and $3.5 million of assets in progress which have not been placed in service as of April 2, 2021 and July 3, 2020, respectively. Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows: Three Months Ended Nine Months Ended (In thousands) April 2, April 3, April 2, April 3, Depreciation and amortization $ 1,355 $ 1,111 $ 4,016 $ 3,226 Accrued Expenses Our accrued expenses are summarized below: (In thousands) April 2, July 3, Accrued compensation and benefits $ 11,744 $ 11,814 Accrued agent commissions 2,533 2,356 Accrued warranties 3,293 3,196 Other 9,185 9,554 Total accrued expenses $ 26,755 $ 26,920 Accrued Warranties We accrue for the estimated cost to repair or replace products under warranty. Changes in our warranty liability, which are included as a component of accrued expenses in our unaudited condensed consolidated balance sheets were as follows: Three Months Ended Nine Months Ended (In thousands) April 2, April 3, April 2, April 3, Balance as of the beginning of the period $ 3,315 $ 3,197 $ 3,196 $ 3,323 Warranty provision recorded during the period 469 492 1,242 1,249 Consumption during the period (491) (439) (1,145) (1,322) Balance as of the end of the period $ 3,293 $ 3,250 $ 3,293 $ 3,250 Advance Payments and Unearned Revenue Our advance payments and unearned revenue are summarized below: (In thousands) April 2, July 3, Advance payments $ 3,238 $ 2,529 Unearned revenue 23,716 19,343 Total advance payments and unearned revenue $ 26,954 $ 21,872 Excluded from the balances above are $9.0 million and $8.1 million in long-term unearned revenue as of April 2, 2021 and July 3, 2020, respectively. |