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 1, July 2, Cash and cash equivalents $ 31,296 $ 47,942 Restricted cash included in other assets 177 256 Total cash, cash equivalents, and restricted cash in the Statement of Cash Flows $ 31,473 $ 48,198 Accounts Receivable, net Our net accounts receivable are summarized below: (In thousands) April 1, July 2, Accounts receivable $ 77,484 $ 50,276 Less: Allowances for collection losses (1,334) (2,141) Total accounts receivable, net $ 76,150 $ 48,135 Inventories Our inventories are summarized below (In thousands) April 1, July 2, Finished products $ 16,994 $ 15,409 Raw materials and supplies 11,675 8,027 Total inventories $ 28,669 $ 23,436 Consigned inventories included within raw materials and supplies $ 11,098 $ 6,570 We increased certain levels of inventory during the three and nine months ended April 1, 2022 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 ended April 1, 2022 and April 2, 2021 were classified in cost of product sales as follows: Three Months Ended Nine Months Ended (In thousands) April 1, April 2, April 1, April 2, Excess and obsolete inventory $ 196 $ 270 $ 436 $ 467 Customer service inventory write-downs 286 293 704 681 Total inventory charges $ 482 $ 563 $ 1,140 $ 1,148 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 completed the sale during the third quarter of fiscal 2022 with proceeds of $2.3 million, reflecting a gain of $0.1 million. We have no additional assets held for sale. Property, Plant and Equipment, net Our property, plant and equipment, net are summarized below: (In thousands) April 1, July 2, Land $ 210 $ 210 Buildings and leasehold improvements 5,910 6,914 Software 21,375 21,370 Machinery and equipment 52,065 51,244 Total property, plant and equipment, gross 79,560 79,738 Less: Accumulated depreciation and amortization (70,038) (68,037) Total property, plant and equipment, net $ 9,522 $ 11,701 Included in the total plant, property and equipment above there were no assets in progress which have not been placed in service as of April 1, 2022 and $0.3 million as of July 2, 2021. 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 1, April 2, April 1, April 2, Depreciation and amortization $ 1,051 $ 1,355 $ 3,444 $ 4,016 Accrued Expenses Our accrued expenses are summarized below: (In thousands) April 1, July 2, Accrued compensation and benefits $ 8,885 $ 13,455 Accrued agent commissions 2,079 2,348 Accrued warranties 3,223 3,228 Other 11,205 9,123 Total accrued expenses $ 25,392 $ 28,154 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 1, April 2, April 1, April 2, Balance as of the beginning of the period $ 3,198 $ 3,315 $ 3,228 $ 3,196 Warranty provision recorded during the period 402 469 1,242 1,242 Consumption during the period (377) (491) (1,247) (1,145) Balance as of the end of the period $ 3,223 $ 3,293 $ 3,223 $ 3,293 Advance Payments and Unearned Revenue Our advance payments and unearned revenue are summarized below: (In thousands) April 1, July 2, Advance payments $ 2,906 $ 2,445 Unearned revenue 35,160 29,859 Total advance payments and unearned revenue $ 38,066 $ 32,304 Excluded from the balances above are $7.6 million and $8.6 million in long-term unearned revenue as of April 1, 2022 and July 2, 2021, respectively. |