Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 02, 2019 | Apr. 09, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | RICHARDSON ELECTRONICS LTD/DE | |
Entity Central Index Key | 0000355948 | |
Document Type | 10-Q | |
Trading Symbol | RELL | |
Document Period End Date | Mar. 2, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-01 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,956,852 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,096,919 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 02, 2019 | Jun. 02, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 33,869 | $ 60,465 |
Accounts receivable, less allowance of $422 and $309, respectively | 23,102 | 22,892 |
Inventories, net | 53,094 | 50,720 |
Prepaid expenses and other assets | 3,365 | 3,747 |
Investments - current | 15,500 | |
Total current assets | 128,930 | 137,824 |
Non-current assets: | ||
Property, plant and equipment, net | 19,316 | 18,232 |
Goodwill | 6,332 | 6,332 |
Intangible assets, net | 2,829 | 3,014 |
Non-current deferred income taxes | 641 | 927 |
Total non-current assets | 29,118 | 28,505 |
Total assets | 158,048 | 166,329 |
Current liabilities: | ||
Accounts payable | 14,052 | 19,603 |
Accrued liabilities | 11,292 | 10,343 |
Total current liabilities | 25,344 | 29,946 |
Non-current liabilities: | ||
Non-current deferred income tax liabilities | 281 | 281 |
Other non-current liabilities | 948 | 921 |
Total non-current liabilities | 1,229 | 1,202 |
Total liabilities | 26,573 | 31,148 |
Stockholders’ equity | ||
Additional paid-in-capital | 60,846 | 60,061 |
Retained earnings | 66,851 | 70,107 |
Accumulated other comprehensive income | 3,126 | 4,366 |
Total stockholders’ equity | 131,475 | 135,181 |
Total liabilities and stockholders’ equity | 158,048 | 166,329 |
Common Stock | ||
Stockholders’ equity | ||
Common stock, $0.05 par value; issued and outstanding 10,956 shares at March 2, 2019 and 10,806 shares at June 2, 2018 Class B common stock, convertible, $0.05 par value; issued and outstanding 2,097 shares at March 2, 2019 and 2,137 shares at June 2, 2018 | 547 | 540 |
Common Class B | ||
Stockholders’ equity | ||
Common stock, $0.05 par value; issued and outstanding 10,956 shares at March 2, 2019 and 10,806 shares at June 2, 2018 Class B common stock, convertible, $0.05 par value; issued and outstanding 2,097 shares at March 2, 2019 and 2,137 shares at June 2, 2018 | $ 105 | $ 107 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 02, 2019 | Jun. 02, 2018 |
Allowance for accounts receivable | $ 422 | $ 309 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, issued (in shares) | 0 | 0 |
Common stock in treasury (in shares) | 0 | 0 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, issued (in shares) | 10,956 | 10,806 |
Common stock, outstanding (in shares) | 10,956 | 10,806 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, issued (in shares) | 2,097 | 2,137 |
Common stock, outstanding (in shares) | 2,097 | 2,137 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Net sales | $ 39,018 | $ 41,645 | $ 124,489 | $ 117,722 |
Cost of sales | 26,719 | 27,578 | 85,266 | 78,133 |
Gross profit | 12,299 | 14,067 | 39,223 | 39,589 |
Selling, general and administrative expenses | 13,097 | 13,097 | 39,621 | 38,023 |
Loss (gain) on disposal of assets | 3 | (188) | ||
Operating (loss) income | (798) | 967 | (398) | 1,754 |
Other (income) expense: | ||||
Investment/interest income | (155) | (208) | (402) | (378) |
Foreign exchange loss | 130 | 159 | 205 | 475 |
Other, net | 1 | (4) | (14) | |
Total other (income) expense | (25) | (48) | (201) | 83 |
(Loss) income from continuing operations before income taxes | (773) | 1,015 | (197) | 1,671 |
Income tax provision | 305 | 488 | 754 | 1,084 |
(Loss) income from continuing operations | (1,078) | 527 | (951) | 587 |
Income from discontinued operations | 1,496 | |||
Net (loss) income | (1,078) | 527 | (951) | 2,083 |
Foreign currency translation gain (loss), net of tax | 541 | 1,646 | (1,240) | 3,997 |
Fair value adjustments on investments loss | (164) | (130) | ||
Comprehensive (loss) income | $ (537) | $ 2,009 | $ (2,191) | $ 5,950 |
Common Class B | ||||
Net (loss) income per Common share - Basic: | ||||
(Loss) income from continuing operations | $ (0.08) | $ 0.04 | $ (0.07) | $ 0.04 |
Income from discontinued operations | 0.11 | |||
Total net (loss) income per Common share - Basic | (0.08) | 0.04 | (0.07) | 0.15 |
Net (loss) income per Common share - Diluted: | ||||
(Loss) income from continuing operations | (0.08) | 0.04 | (0.07) | 0.04 |
Income from discontinued operations | 0.11 | |||
Total net (loss) income per Common share - Diluted | $ (0.08) | $ 0.04 | $ (0.07) | $ 0.15 |
Weighted average number of shares: | ||||
Common shares - Basic | 2,097 | 2,137 | 2,108 | 2,137 |
Common shares - Diluted | 2,097 | 2,137 | 2,108 | 2,137 |
Dividends per share | $ 0.054 | $ 0.054 | $ 0.162 | $ 0.162 |
Common Stock | ||||
Net (loss) income per Common share - Basic: | ||||
(Loss) income from continuing operations | (0.08) | 0.04 | (0.07) | 0.05 |
Income from discontinued operations | 0.12 | |||
Total net (loss) income per Common share - Basic | (0.08) | 0.04 | (0.07) | 0.17 |
Net (loss) income per Common share - Diluted: | ||||
(Loss) income from continuing operations | (0.08) | 0.04 | (0.07) | 0.05 |
Income from discontinued operations | 0.12 | |||
Total net (loss) income per Common share - Diluted | $ (0.08) | $ 0.04 | $ (0.07) | $ 0.17 |
Weighted average number of shares: | ||||
Common shares - Basic | 10,953 | 10,792 | 10,911 | 10,753 |
Common shares - Diluted | 10,953 | 10,872 | 10,911 | 10,793 |
Dividends per share | $ 0.060 | $ 0.060 | $ 0.180 | $ 0.180 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Operating activities: | ||||
Net (loss) income | $ (1,078) | $ 527 | $ (951) | $ 2,083 |
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 794 | 752 | 2,350 | 2,219 |
Inventory provisions | 203 | 183 | 568 | 470 |
Gain on sale of investments | 159 | 183 | ||
Loss (gain) on disposal of assets | (3) | 188 | ||
Share-based compensation expense | 176 | 116 | 571 | 425 |
Deferred income taxes | 113 | 124 | 268 | 186 |
Change in assets and liabilities: | ||||
Accounts receivable | (478) | (551) | (576) | (239) |
Inventories | (1,484) | (598) | (3,315) | (5,232) |
Prepaid expenses and other assets | 614 | 43 | 332 | (572) |
Accounts payable | (1,561) | 552 | (5,442) | (446) |
Accrued liabilities | 309 | 1,116 | 880 | 1,325 |
Other | (86) | (137) | 88 | (140) |
Net cash (used in) provided by operating activities | (2,478) | 1,971 | (5,227) | (292) |
Investing activities: | ||||
Capital expenditures | (974) | (1,461) | (3,166) | (4,196) |
Proceeds from sale of assets | 276 | |||
Proceeds from maturity of investments | 2,300 | 3,943 | 2,300 | 12,120 |
Purchases of investments | (12,500) | (17,800) | (3,943) | |
Proceeds from sales of available-for-sale securities | 648 | 913 | ||
Purchases of available-for-sale securities | (265) | |||
Other | (2) | (7) | ||
Net cash (used in) provided by investing activities | (11,174) | 3,128 | (18,666) | 4,898 |
Financing activities: | ||||
Proceeds from issuance of common stock | 16 | 44 | 219 | 44 |
Cash dividends paid | (771) | (763) | (2,305) | (2,284) |
Net cash used in financing activities | (755) | (719) | (2,086) | (2,240) |
Effect of exchange rate changes on cash and cash equivalents | 417 | 1,049 | (617) | 2,189 |
(Decrease) increase in cash and cash equivalents | (13,990) | 5,429 | (26,596) | 4,555 |
Cash and cash equivalents at beginning of period | 47,859 | 54,453 | 60,465 | 55,327 |
Cash and cash equivalents at end of period | $ 33,869 | $ 59,882 | $ 33,869 | $ 59,882 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statement of Stockholders' Equity - 9 months ended Mar. 02, 2019 - USD ($) shares in Thousands, $ in Thousands | Total | Common Class B | Common Stock | Par value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning Balance at Jun. 02, 2018 | $ 135,181 | $ 647 | $ 60,061 | $ 70,107 | $ 4,366 | ||
Beginning Balance (in shares) at Jun. 02, 2018 | 2,137 | 10,806 | |||||
Comprehensive (loss) income | |||||||
Net loss | (951) | (951) | |||||
Foreign currency translation | (1,240) | (1,240) | |||||
Share-based compensation: | |||||||
Restricted stock | 226 | 226 | |||||
Stock options | 345 | 345 | |||||
Restricted stock issuance | 3 | (3) | |||||
Restricted stock issuance (in shares) | 70 | ||||||
Converted Class B to common (in shares) | (40) | 40 | |||||
Options exercised | 219 | 2 | 217 | ||||
Options exercised (in shares) | 40 | ||||||
Dividends paid to: | |||||||
Common ($0.18 per share) | (1,963) | (1,963) | |||||
Class B ($0.162 per share) | (342) | (342) | |||||
Ending Balance at Mar. 02, 2019 | $ 131,475 | $ 652 | $ 60,846 | $ 66,851 | $ 3,126 | ||
Ending Balance (in shares) at Mar. 02, 2019 | 2,097 | 10,956 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statement of Stockholders' Equity (Parenthetical) | 9 Months Ended |
Mar. 02, 2019$ / shares | |
Common Class B | |
Dividends per common share | $ 0.162 |
Common Stock | |
Dividends per common share | $ 0.18 |
Description of the Company
Description of the Company | 9 Months Ended |
Mar. 02, 2019 | |
Description Of Company [Abstract] | |
Description of the Company | 1. DESCRIPTION OF THE COMPANY Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables; power conversion and RF and microwave components; high value flat panel detector solutions, replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair through its global infrastructure. Our products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as display devices in a variety of industrial, commercial, medical and communication applications. We have three operating and reportable segments, which we define as follows: Power and Microwave Technologies Group (“PMT”) combines our core engineered solutions, power grid and microwave tube business with new RF and power technologies. As a manufacturer and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment. Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, all-in-ones, specialized cabinet finishes and application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms. Healthcare manufactures, refurbishes and distributes high value replacement parts for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include Diagnostic Imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI coils, cold heads and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we believe we can help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery. We currently have operations in the following major geographic regions: North America, Asia/Pacific, Europe and Latin America. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 02, 2019 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. Our fiscal quarter ends on the Saturday nearest the end of the quarter-ending month. The third quarter of fiscal 2019 and fiscal 2018 both contained 13 weeks. The first nine months of fiscal 2019 and fiscal 2018 contained 39 and 40 weeks, respectively. In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results of interim periods have been made. All inter-company transactions and balances have been eliminated. The unaudited consolidated financial statements presented herein include the accounts of our wholly owned subsidiaries. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of our operations for the three and nine months ended March 2, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 1, 2019. The financial information contained in this report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 2, 2018, that we filed on August 2, 2018. |
Critical Accounting Policies an
Critical Accounting Policies and Estimates | 9 Months Ended |
Mar. 02, 2019 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies and Estimates | 3. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Inventories, net: Our consolidated inventories were stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $46.3 million of finished goods, $4.7 million of raw materials and $2.1 million of work-in-progress as of March 2, 2019, as compared to approximately $42.6 million of finished goods, $5.7 million of raw materials and $2.4 million of work-in-progress as of June 2, 2018. At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs. Provisions for obsolete or slow moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the exiting of certain markets and assumptions about future demand and market conditions. If future demand changes in the industry, or market conditions differ from management’s estimates, additional provisions may be necessary. Inventory reserves were approximately $4.3 million as of March 2, 2019 and $4.0 million as of June 2, 2018. Revenue Recognition: Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which amends guidance for revenue recognition. ASU 2014-09 is principles based guidance that can be applied to all contracts with customers, enhancing comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance details the steps entities should apply to achieve the core principle. In August 2015, the FASB issued an amendment to defer the effective date for all entities by one year. For public entities, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. Companies have the option of using either a full or modified retrospective approach in applying this standard. During fiscal 2016 and 2017, the FASB issued four additional updates which further clarify the guidance provided in ASU 2014-09. Effective June 3, 2018, the Company adopted the standard using the modified retrospective method to all contracts. As a result, financial information for the reporting period beginning June 3, 2018 was reported under the new standard, while comparative financial information has not been adjusted and continues to be reported in accordance with the previous standard. The adoption of this standard did not impact the timing of revenue recognition for our customer sales. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements. Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency. Goodwill and Intangible Assets: We test goodwill for impairment annually and whenever events or circumstances indicate an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision to sell or dispose of a reporting unit. During the fourth quarter of each fiscal year, our goodwill balances are reviewed for impairment using the first day of our fourth quarter as the measurement date. If after reviewing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then we test for impairment through the application of a fair value based test. We estimate the fair value of each of our reporting units based on projected future operating results, market approach and discounted cash flows. Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with our acquisitions. Income Taxes: We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards. Accrued Liabilities: Accrued liabilities consist of the following (in thousands): March 2, 2019 June 2, 2018 Compensation and payroll taxes $ 3,007 $ 3,449 Accrued severance 636 454 Professional fees 767 527 Deferred revenue 1,921 1,888 Other accrued expenses 4,961 4,025 Accrued Liabilities $ 11,292 $ 10,343 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Mar. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. REVENUE RECOGNITION Richardson has a number of defined revenue streams across our reportable segments. For each of these revenue streams, all products are typically sold directly by the Company to the end customer. Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with when the title transfers to the customer, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. G The Company also sells products that are manufactured or assembled in our manufacturing facility. These products can be either built to the customer’s prints or designs or are products that we stock in our warehouse to sell to any customer that places an order. The manufacturing business does not include a separate service bundled with the product sold or sold on top of the product. The Company recognizes services revenue when the repair, installation or training is performed. Based on our analysis of services revenue, ASU 2014-09 has an immaterial impact on the timing, amount or characterization of services revenue recognized by the Company. The services we provide are relatively short in duration, typically completed in one to two weeks, thus, at each reporting date, the amount of unbilled work performed is insignificant. The services revenue has consistently accounted for less than 5% of the Company’s total revenues and is expected to continue at that level. Contracts with customers A contract is an agreement between two or more parties that creates enforceable rights and obligations. A Contract Liabilities: Contract liabilities and revenue recognized were as follows ( in thousands ): June 2, 2018 Additions Revenue Recognized March 2, 2019 Contract liabilities (deferred revenue) $ 1,888 $ 2,580 $ (2,547 ) $ 1,921 The Company receives advances or deposits from our customers before revenue is recognized, resulting in contract liabilities. Contract liabilities are included in accrued liabilities in the consolidated balance sheets. Performance obligations and satisfaction of performance obligation in the contract Each accepted purchase order identifies a distinct good or service as the performance obligation. The goods are generally standard products we purchased from a supplier and stocked on our shelves. They can also be customized products purchased from a supplier or products that are customized or have value added to them in-house prior to shipping to the customer, but only after a purchase order is received. Determine the transaction price and variable consideration The transaction price for each product is the amount invoiced to the customer. Each product on a purchase order is a separate performance obligation with an observable standalone selling price. Recognize revenue when the entity satisfies a performance obligation W e recognize revenue when title transfers to the customer, at the shipping point for FOB shipping contracts and at the customer’s delivery location for FOB destination contracts. We believe that the transfer of title best represents when the customer obtains control of the goods. Prior to that date, we do not have right to payment, and the significant risks and rewards remain with us. The significant risks and rewards of ownership of the inventory transfer simultaneously with the transfer of title. The customer’s acceptance of the goods is based on objective measurements, not subjective. Additional considerations Sale with right of return: Our return policy is available to customers in our terms and conditions found on our website www.rell.com. The policy varies by the different businesses we engage in. The Company allows returns with prior written authorization and we allow returns within 10 days of shipment for replacement parts. The Company maintains a reserve for returns based on historical trends that covers all contracts and revenue streams The reserve is considered immaterial at each balance sheet date for further consideration. Returns for defective product are typically covered by our supplier’s warranty, thus, returns for defective product are not factored into our reserve. Warranties: All warranties are considered assurance warranties in that the goods are warranted to work as intended for the period covered. F or products the Company does not offer a warranty, these products are covered by our suppliers. We generally offer a one to three year warranty that assures that the goods will perform as intended. The length of the warranty is typical to the industry and generally follows our supplier’s warranty period. This is due to that, in most instances, the Company’s warranty is not utilized due to our supplier’s warranty still covers the necessary repairs or replacements. e also offer a thirty-day assurance warranty on parts sales that parts will work as intended. See Note 7, Warranties, for further information regarding the impact of warranties concerning ASU 2014-09. Principal versus agent considerations: Principal versus agent guidance was considered for customized products that are provided by our suppliers versus in-house. Richardson acts as the principal as we are responsible for satisfying the performance obligation. We have primary responsibility for fulfilling the contract, we have inventory risk prior to delivery to our customer, we establish prices, our consideration is not in the form of a commission and we bear the credit risk. The Company recognizes revenue in the gross amount of consideration. See Note 11, Segment Reporting, |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Mar. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. GOODWILL AND INTANGIBLE ASSETS The carrying value of goodwill was $6.3 million as of March 2, 2019 and June 2, 2018. The goodwill balance in its entirety relates to our IMES reporting unit, which is included in our Healthcare segment. Goodwill is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment, using the first day of our fourth quarter as the measurement date. We test goodwill for impairment annually and whenever events or circumstances indicate an impairment may have occurred, such as a significant adverse change in the business climate, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a decision to sell or dispose of a reporting unit. During the first nine months of fiscal 2019, no events or circumstances were identified that would indicate impairment may have occurred. Although the Company has not identified any triggering events in fiscal 2019 that would require a more frequent test for impairment, the IMES reporting unit is experiencing lower than forecasted results through the first nine months of fiscal 2019 due to slower than anticipated sales of its ALTA750 TM Although we believe our projected future operating results and cash flows and related estimates regarding fair values were based on reasonable assumptions, historically, projected operating results and cash flows have not always been achieved. Changes in any of the significant assumptions used, including if the Company does not successfully achieve its operating plan, which is largely dependent on sales from new product offerings, can materially affect the expected cash flows, and such impacts could result in a material non-cash impairment charge of goodwill and other long lived assets. Potential events or changes in circumstances that could reasonably be expected to negatively affect key assumptions are deterioration in general market conditions or the environment in which the reporting unit or entity operates, an increased competitive environment in which the reporting unit or entity operates or other relevant entity-specific events such as market acceptance of our new CT tubes and other new product offerings, approvals to sell in foreign markets and changes in management or key personnel. Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with our acquisitions. Intangible assets subject to amortization were as follows (in thousands) March 2, 2019 June 2, 2018 Gross Amounts: Trade Name $ 659 $ 659 Customer Relationships (1) 3,406 3,408 Non-compete Agreements 177 177 Technology 230 230 Total Gross Amounts $ 4,472 $ 4,474 Accumulated Amortization: Trade Name $ 657 $ 651 Customer Relationships 757 617 Non-compete Agreements 132 115 Technology 97 77 Total Accumulated Amortization $ 1,643 $ 1,460 Net Intangibles $ 2,829 $ 3,014 (1) The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands) Fiscal Year Amortization Expense Remaining 2019 $ 61 2020 257 2021 245 2022 252 2023 246 Thereafter 1,768 Total amortization expense $ 2,829 The weighted average number of years of amortization expense remaining is 14.7 years. |
Investments
Investments | 9 Months Ended |
Mar. 02, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 6. INVESTMENTS As of March 2, 2019, we had $15.5 million invested in certificate of deposits (“CDs”) which mature in less than twelve months. The fair value of these investments was equal to the face value of the CDs. As of June 2, 2018, we had no investments. |
Warranties
Warranties | 9 Months Ended |
Mar. 02, 2019 | |
Guarantees [Abstract] | |
Warranties | 7. WARRANTIES All warranties are considered assurance warranties in that the goods are warranted to work as intended for the period covered. F or products the Company does not offer a warranty, these products are covered by our suppliers. We generally offer a warranty that assures that the goods will perform as intended. We estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product sale. We record expense related to our warranty obligations as cost of sales in our consolidated statements of comprehensive (loss) income. Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated warranty obligation. With respect to new products, estimates are based generally on knowledge of the products, the extended warranty period and warranty experience. Warranty reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience and other available evidence. Warranty reserves were approximately $0.2 million as of March 2, 2019 and $0.1 million as of June 2, 2018. |
Lease Obligations, Other Commit
Lease Obligations, Other Commitments, and Contingencies | 9 Months Ended |
Mar. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Lease Obligations, Other Commitments, and Contingencies | 8. LEASE OBLIGATIONS, OTHER COMMITMENTS AND CONTINGENCIES We lease certain warehouse and office facilities and office equipment under non-cancelable operating leases. Rent expense was $1.3 million during the first nine months of fiscal 2019 and $1.3 million during the first nine months of fiscal 2018. Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years are as follows (in thousands) Fiscal Year Payments Remaining 2019 $ 377 2020 1,208 2021 857 2022 164 2023 34 Thereafter 90 In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases. ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new standard is effective for the Company on June 2, 2019, with early adoption permitted. We expect to adopt the new standard on its effective date. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. We are in the process of evaluating the impact that the new standard will have on the consolidated financial statements. We expect that this standard will have a material effect on our financial statements. While we continue to assess all of the effects of adoption, we are unable to quantify the impact at this time. We currently believe the most significant effects relate to the recognition of new ROU assets and lease liabilities on our balance sheet for our operating leases and providing significant new disclosures about our leasing activities. We do not expect a significant change in our leasing activities between now and adoption. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES We recorded an income tax provision of $0.8 million and $1.1 million for the first nine months of fiscal 2019 and the first nine months of fiscal 2018, respectively. The effective income tax rate during the first nine months of fiscal 2019 was a tax provision of (383.3)%, as compared to a tax provision of 65.0% during the first nine months of fiscal 2018. The difference in rate during the first nine months of fiscal 2019, as compared to the first nine months of fiscal 2018, reflects the change in overall loss realized through the third quarter in each respective period, On December 22, 2017, the U.S. government enacted new tax legislation, Tax Cuts and Jobs Act (the “Act”). The primary provision of the Act that impacted the Company in fiscal 2019 was a reduction to the U.S. corporate income tax rate from 35% to 21%. The tax impact recorded for the Act for fiscal 2018 was finalized in the third quarter of fiscal 2019 upon the completion of the federal tax return. The Company completed an assessment of earnings that will be repatriated based on reinvestment needs of non-U.S. operations and earnings available for repatriation. The withholding tax that will be incurred from the repatriation of these earnings was included in fiscal 2018 income tax expense. The Company analyzed the provisions of the Act addressing the net deferred tax asset remeasurement and its calculations, the deemed earnings repatriation, including the determination of undistributed non-U.S. earnings, and finalized the calculations based on the most recent legislative actions and regulatory interpretations of the Act. The Company is subject to additional requirements of the Act beginning in fiscal 2019. Those provisions include a tax on global intangible low-taxed income (“GILTI”), a tax determined by base erosion and anti-avoidance tax (“BEAT”) related to certain payments between a U.S. corporation and foreign related entities, a limitation of certain executive compensation and a deduction for foreign derived intangible income. The Company has not recorded any tax liability/(benefit) for these provisions during the first nine months of fiscal 2019 due to tax attributes or credits anticipated to offset these liabilities. The Company has determined its accounting policy to treat the taxes due on GILTI as a period cost. The Company does not anticipate being subject to BEAT provision due to the revenue thresholds. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 that allows for a measurement period up to one year after the enactment date of the Act to complete the accounting requirements. The Company completed the adjustments related to the Act in the third quarter of fiscal 2019 within the allowed period. In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2008 are closed for examination under the statute of limitation for U.S. federal, U.S. state and local or non-U.S. tax jurisdictions. We are currently under examination in Thailand (fiscal 2008 through 2011). Our primary foreign tax jurisdictions are Germany and the Netherlands. We have tax years open in Germany beginning in fiscal 2015 and the Netherlands beginning in fiscal 2012. We have historically determined that certain undistributed earnings of our foreign subsidiaries, to the extent of cash available, will be repatriated to the U.S. Due to the deemed repatriation tax, the untaxed outside basis difference for which the historic balance has primarily related to has been reduced. Accordingly, we have provided a deferred tax liability totaling $0.3 million as of March 2, 2019. As of March 2, 2019, our worldwide liability for uncertain tax positions related to continuing operations was $0.1 million, excluding interest and penalties, as compared to $0.1 million liabilities for uncertain tax positions as of June 2, 2018. There was no change in recorded uncertain tax positions during the first nine months of fiscal year 2019. We record penalties and interest related to uncertain tax positions in the income tax expense line item within the consolidated statements of comprehensive (loss) income. The valuation allowance against the net deferred tax assets that will more likely than not be realized was $9.1 million as of June 2, 2018. The valuation allowance against the net deferred tax assets was $10.8 million as of March 2, 2019 as $1.7 million of additional domestic federal and state net deferred tax assets were generated during the first three quarters of fiscal year 2019 from losses in the U.S. jurisdiction. A full valuation allowance on the U.S. and state deferred tax assets will be maintained until sufficient positive evidence related to sources of future taxable income exists to support a reversal of the valuation allowance. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. |
Calculation of Earnings Per Sha
Calculation of Earnings Per Share | 9 Months Ended |
Mar. 02, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | 10. CALCULATION OF EARNINGS PER SHARE We have authorized 17,000,000 shares of common stock, and 3,000,000 shares of Class B common stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends. In accordance with ASC 260-10, Earnings Per Share The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive (loss) income were based on the following amounts ( in thousands, except per share amounts Three Months Ended March 2, 2019 March 3, 2018 Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: Net (loss) income $ (1,078 ) $ (1,078 ) $ 527 $ 527 Less dividends: Common stock 657 657 648 648 Class B common stock 114 114 115 115 Undistributed losses $ (1,849 ) $ (1,849 ) $ (236 ) $ (236 ) Common stock undistributed losses $ (1,577 ) $ (1,577 ) $ (200 ) $ (200 ) Class B common stock undistributed losses (272 ) (272 ) (36 ) (36 ) Total undistributed losses $ (1,849 ) $ (1,849 ) $ (236 ) $ (236 ) Denominator for Basic and Diluted EPS: Common stock weighted average shares 10,953 10,953 10,792 10,792 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,097 2,097 2,137 2,137 Effect of dilutive securities Dilutive stock options — 80 Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 13,050 13,009 Net (loss) income per share: Common stock $ (0.08 ) $ (0.08 ) $ 0.04 $ 0.04 Class B common stock $ (0.08 ) $ (0.08 ) $ 0.04 $ 0.04 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal 2019 were 1,084. Nine Months Ended March 2, 2019 March 3, 2018 Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: (Loss) income from continuing operations $ (951 ) $ (951 ) $ 587 $ 587 Less dividends: Common stock 1,963 1,963 1,938 1,938 Class B common stock 342 342 346 346 Undistributed losses $ (3,256 ) $ (3,256 ) $ (1,697 ) $ (1,697 ) Common stock undistributed losses $ (2,774 ) $ (2,774 ) $ (1,440 ) $ (1,440 ) Class B common stock undistributed losses (482 ) (482 ) (257 ) (257 ) Total undistributed losses $ (3,256 ) $ (3,256 ) $ (1,697 ) $ (1,697 ) Income from discontinued operations $ — $ — $ 1,496 $ 1,496 Less dividends: Common stock — — 1,938 1,938 Class B common stock — — 346 346 Undistributed losses $ — $ — $ (788 ) $ (788 ) Common stock undistributed losses $ — $ — $ (668 ) $ (668 ) Class B common stock undistributed losses — — (120 ) (120 ) Total undistributed losses $ — $ — $ (788 ) $ (788 ) Net (loss) income $ (951 ) $ (951 ) $ 2,083 $ 2,083 Less dividends: Common stock 1,963 1,963 1,938 1,938 Class B common stock 342 342 346 346 Undistributed losses $ (3,256 ) $ (3,256 ) $ (201 ) $ (201 ) Common stock undistributed losses $ (2,774 ) $ (2,774 ) $ (171 ) $ (171 ) Class B common stock undistributed losses (482 ) (482 ) (30 ) (30 ) Total undistributed losses $ (3,256 ) $ (3,256 ) $ (201 ) $ (201 ) Denominator for basic and diluted EPS: Common stock weighted average shares 10,911 10,911 10,753 10,753 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,108 2,108 2,137 2,137 Effect of dilutive securities Dilutive stock options — 40 Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 13,019 12,930 (Loss) income from continuing operations per share: Common stock $ (0.07 ) $ (0.07 ) $ 0.05 $ 0.05 Class B common stock $ (0.07 ) $ (0.07 ) $ 0.04 $ 0.04 Income from discontinued operations per share: Common stock $ — $ — $ 0.12 $ 0.12 Class B common stock $ — $ — $ 0.11 $ 0.11 Net (loss) income per share: Common stock $ (0.07 ) $ (0.07 ) $ 0.17 $ 0.17 Class B common stock $ (0.07 ) $ (0.07 ) $ 0.15 $ 0.15 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of fiscal 2019 were 918. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Mar. 02, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. SEGMENT REPORTING In accordance with ASC 280-10, Segment Reporting, we have identified three operating and reportable segments as follows: Power and Microwave Technologies Group (“PMT”) combines our core engineered solutions, power grid and microwave tube business with new RF and power technologies. As a manufacturer and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment. Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, all-in-ones, specialized cabinet finishes and application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms. Healthcare manufactures, refurbishes and distributes high value replacement parts for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include Diagnostic Imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI coils, cold heads and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we believe we can help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery. The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment. Operating results by segment are summarized in the following table ( in thousands Three Months Ended Nine Months Ended March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 PMT Net Sales $ 29,725 $ 31,869 $ 96,822 $ 91,056 Gross Profit 9,406 10,656 30,520 30,492 Canvys Net Sales $ 6,954 $ 7,585 $ 20,625 $ 20,057 Gross Profit 2,281 2,571 6,726 6,245 Healthcare Net Sales $ 2,339 $ 2,191 $ 7,042 $ 6,609 Gross Profit 612 840 1,977 2,852 Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other. Net sales and gross profit by geographic region are summarized in the following table ( in thousands Three Months Ended Nine Months Ended March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Net Sales North America $ 14,665 $ 18,748 $ 48,513 $ 49,657 Asia/Pacific 8,007 6,635 26,069 21,102 Europe 13,612 14,197 41,761 40,312 Latin America 2,702 2,086 8,075 6,646 Other (1) 32 (21 ) 71 5 Total $ 39,018 $ 41,645 $ 124,489 $ 117,722 Gross Profit North America $ 5,577 $ 6,955 $ 18,682 $ 18,747 Asia/Pacific 2,482 2,331 8,188 7,256 Europe 4,403 4,904 13,141 13,493 Latin America 990 820 3,011 2,638 Other (1) (1,153 ) (943 ) (3,799 ) (2,545 ) Total $ 12,299 $ 14,067 $ 39,223 $ 39,589 (1) Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses. We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. |
Litigation
Litigation | 9 Months Ended |
Mar. 02, 2019 | |
Litigation [Abstract] | |
Litigation | 12. LITIGATION On October 15, 2018, Varex Imaging Corporation (“Varex”) filed its original Complaint (Case No. 1:18-cv-06911) against Richardson Electronics Ltd. (“Richardson”) in the Northern District of Illinois, which was subsequently amended on November 27, 2018. Varex alleged counts of infringement of U.S. Patent Nos. 6,456,692 and 6,519,317. Subsequently, on October 24, 2018, Varex filed a motion for preliminary injunction to stop the sale of Richardson’s ALTA750 TM |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions. As of March 2, 2019, we held investments that were required to be measured at fair value on a recurring basis. Our investments consisted of CDs where face value was equal to fair value. Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of March 2, 2019 were as follows ( in thousands Level 1 CDs 15,500 |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Mar. 02, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 14. RELATED PARTY TRANSACTION On June 15, 2015, the Company entered into a lease agreement for the IMES facility with LDL, LLC. The Executive Vice President of IMES, Lee A. McIntyre III (former owner of IMES), has an ownership interest in LDL, LLC. The lease agreement provides for monthly payments over five years with total future minimum lease payments of $0.2 million. Rental expense related to this lease amounted to $0.1 million for the nine months ended March 2, 2019 and $0.1 million for the nine months ended March 3, 2018. The Company shall be entitled to extend the term of the lease for a period of an additional five years by notifying the landlord in writing of its intention to do so within nine months of the expiration of the initial term. |
Critical Accounting Policies _2
Critical Accounting Policies and Estimates (Policies) | 9 Months Ended |
Mar. 02, 2019 | |
Accounting Policies [Abstract] | |
Inventories, Net | Inventories, net: Our consolidated inventories were stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $46.3 million of finished goods, $4.7 million of raw materials and $2.1 million of work-in-progress as of March 2, 2019, as compared to approximately $42.6 million of finished goods, $5.7 million of raw materials and $2.4 million of work-in-progress as of June 2, 2018. At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs. Provisions for obsolete or slow moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the exiting of certain markets and assumptions about future demand and market conditions. If future demand changes in the industry, or market conditions differ from management’s estimates, additional provisions may be necessary. Inventory reserves were approximately $4.3 million as of March 2, 2019 and $4.0 million as of June 2, 2018. |
Revenue Recognition | Revenue Recognition: Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’ applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under no obligation to compensate us for designing the products we sell. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which amends guidance for revenue recognition. ASU 2014-09 is principles based guidance that can be applied to all contracts with customers, enhancing comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance details the steps entities should apply to achieve the core principle. In August 2015, the FASB issued an amendment to defer the effective date for all entities by one year. For public entities, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. Companies have the option of using either a full or modified retrospective approach in applying this standard. During fiscal 2016 and 2017, the FASB issued four additional updates which further clarify the guidance provided in ASU 2014-09. Effective June 3, 2018, the Company adopted the standard using the modified retrospective method to all contracts. As a result, financial information for the reporting period beginning June 3, 2018 was reported under the new standard, while comparative financial information has not been adjusted and continues to be reported in accordance with the previous standard. The adoption of this standard did not impact the timing of revenue recognition for our customer sales. The adoption did not result in the recognition of a cumulative adjustment to beginning retained earnings, nor did it have a material impact on the consolidated financial statements. For the Company, the most significant impact of the new standard is the addition of required disclosures within the notes to the financial statements. |
Loss Contingencies | Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: We test goodwill for impairment annually and whenever events or circumstances indicate an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision to sell or dispose of a reporting unit. During the fourth quarter of each fiscal year, our goodwill balances are reviewed for impairment using the first day of our fourth quarter as the measurement date. If after reviewing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then we test for impairment through the application of a fair value based test. We estimate the fair value of each of our reporting units based on projected future operating results, market approach and discounted cash flows. Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. Our intangible assets represent the fair value for trade name, customer relationships, non-compete agreements and technology acquired in connection with our acquisitions. |
Income Taxes | Income Taxes: We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards. |
Accrued Liabilities | Accrued Liabilities: Accrued liabilities consist of the following (in thousands): March 2, 2019 June 2, 2018 Compensation and payroll taxes $ 3,007 $ 3,449 Accrued severance 636 454 Professional fees 767 527 Deferred revenue 1,921 1,888 Other accrued expenses 4,961 4,025 Accrued Liabilities $ 11,292 $ 10,343 |
Lease Obligations, Other Commitments and Contingencies | In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases. ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. |
Critical Accounting Policies _3
Critical Accounting Policies and Estimates (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): March 2, 2019 June 2, 2018 Compensation and payroll taxes $ 3,007 $ 3,449 Accrued severance 636 454 Professional fees 767 527 Deferred revenue 1,921 1,888 Other accrued expenses 4,961 4,025 Accrued Liabilities $ 11,292 $ 10,343 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Liabilities and Revenue Recognized | Contract Liabilities: Contract liabilities and revenue recognized were as follows ( in thousands ): June 2, 2018 Additions Revenue Recognized March 2, 2019 Contract liabilities (deferred revenue) $ 1,888 $ 2,580 $ (2,547 ) $ 1,921 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Intangible assets subject to amortization were as follows (in thousands) March 2, 2019 June 2, 2018 Gross Amounts: Trade Name $ 659 $ 659 Customer Relationships (1) 3,406 3,408 Non-compete Agreements 177 177 Technology 230 230 Total Gross Amounts $ 4,472 $ 4,474 Accumulated Amortization: Trade Name $ 657 $ 651 Customer Relationships 757 617 Non-compete Agreements 132 115 Technology 97 77 Total Accumulated Amortization $ 1,643 $ 1,460 Net Intangibles $ 2,829 $ 3,014 (1) |
Schedule of the Amortization Expense for the Next Five Years | The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands) Fiscal Year Amortization Expense Remaining 2019 $ 61 2020 257 2021 245 2022 252 2023 246 Thereafter 1,768 Total amortization expense $ 2,829 |
Lease Obligations, Other Comm_2
Lease Obligations, Other Commitments, and Contingencies (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Lease Commitments for Minimum Rentals, Including Common Area Maintenance Charges and Property Taxes | Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years are as follows (in thousands) Fiscal Year Payments Remaining 2019 $ 377 2020 1,208 2021 857 2022 164 2023 34 Thereafter 90 |
Calculation of Earnings Per S_2
Calculation of Earnings Per Share (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive (loss) income were based on the following amounts ( in thousands, except per share amounts Three Months Ended March 2, 2019 March 3, 2018 Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: Net (loss) income $ (1,078 ) $ (1,078 ) $ 527 $ 527 Less dividends: Common stock 657 657 648 648 Class B common stock 114 114 115 115 Undistributed losses $ (1,849 ) $ (1,849 ) $ (236 ) $ (236 ) Common stock undistributed losses $ (1,577 ) $ (1,577 ) $ (200 ) $ (200 ) Class B common stock undistributed losses (272 ) (272 ) (36 ) (36 ) Total undistributed losses $ (1,849 ) $ (1,849 ) $ (236 ) $ (236 ) Denominator for Basic and Diluted EPS: Common stock weighted average shares 10,953 10,953 10,792 10,792 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,097 2,097 2,137 2,137 Effect of dilutive securities Dilutive stock options — 80 Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 13,050 13,009 Net (loss) income per share: Common stock $ (0.08 ) $ (0.08 ) $ 0.04 $ 0.04 Class B common stock $ (0.08 ) $ (0.08 ) $ 0.04 $ 0.04 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal 2019 were 1,084. Nine Months Ended March 2, 2019 March 3, 2018 Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: (Loss) income from continuing operations $ (951 ) $ (951 ) $ 587 $ 587 Less dividends: Common stock 1,963 1,963 1,938 1,938 Class B common stock 342 342 346 346 Undistributed losses $ (3,256 ) $ (3,256 ) $ (1,697 ) $ (1,697 ) Common stock undistributed losses $ (2,774 ) $ (2,774 ) $ (1,440 ) $ (1,440 ) Class B common stock undistributed losses (482 ) (482 ) (257 ) (257 ) Total undistributed losses $ (3,256 ) $ (3,256 ) $ (1,697 ) $ (1,697 ) Income from discontinued operations $ — $ — $ 1,496 $ 1,496 Less dividends: Common stock — — 1,938 1,938 Class B common stock — — 346 346 Undistributed losses $ — $ — $ (788 ) $ (788 ) Common stock undistributed losses $ — $ — $ (668 ) $ (668 ) Class B common stock undistributed losses — — (120 ) (120 ) Total undistributed losses $ — $ — $ (788 ) $ (788 ) Net (loss) income $ (951 ) $ (951 ) $ 2,083 $ 2,083 Less dividends: Common stock 1,963 1,963 1,938 1,938 Class B common stock 342 342 346 346 Undistributed losses $ (3,256 ) $ (3,256 ) $ (201 ) $ (201 ) Common stock undistributed losses $ (2,774 ) $ (2,774 ) $ (171 ) $ (171 ) Class B common stock undistributed losses (482 ) (482 ) (30 ) (30 ) Total undistributed losses $ (3,256 ) $ (3,256 ) $ (201 ) $ (201 ) Denominator for basic and diluted EPS: Common stock weighted average shares 10,911 10,911 10,753 10,753 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,108 2,108 2,137 2,137 Effect of dilutive securities Dilutive stock options — 40 Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 13,019 12,930 (Loss) income from continuing operations per share: Common stock $ (0.07 ) $ (0.07 ) $ 0.05 $ 0.05 Class B common stock $ (0.07 ) $ (0.07 ) $ 0.04 $ 0.04 Income from discontinued operations per share: Common stock $ — $ — $ 0.12 $ 0.12 Class B common stock $ — $ — $ 0.11 $ 0.11 Net (loss) income per share: Common stock $ (0.07 ) $ (0.07 ) $ 0.17 $ 0.17 Class B common stock $ (0.07 ) $ (0.07 ) $ 0.15 $ 0.15 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of fiscal 2019 were 918. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | Operating results by segment are summarized in the following table ( in thousands Three Months Ended Nine Months Ended March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 PMT Net Sales $ 29,725 $ 31,869 $ 96,822 $ 91,056 Gross Profit 9,406 10,656 30,520 30,492 Canvys Net Sales $ 6,954 $ 7,585 $ 20,625 $ 20,057 Gross Profit 2,281 2,571 6,726 6,245 Healthcare Net Sales $ 2,339 $ 2,191 $ 7,042 $ 6,609 Gross Profit 612 840 1,977 2,852 |
Schedule of Net Sales and Gross Profit by Geographic Region | Net sales and gross profit by geographic region are summarized in the following table ( in thousands Three Months Ended Nine Months Ended March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Net Sales North America $ 14,665 $ 18,748 $ 48,513 $ 49,657 Asia/Pacific 8,007 6,635 26,069 21,102 Europe 13,612 14,197 41,761 40,312 Latin America 2,702 2,086 8,075 6,646 Other (1) 32 (21 ) 71 5 Total $ 39,018 $ 41,645 $ 124,489 $ 117,722 Gross Profit North America $ 5,577 $ 6,955 $ 18,682 $ 18,747 Asia/Pacific 2,482 2,331 8,188 7,256 Europe 4,403 4,904 13,141 13,493 Latin America 990 820 3,011 2,638 Other (1) (1,153 ) (943 ) (3,799 ) (2,545 ) Total $ 12,299 $ 14,067 $ 39,223 $ 39,589 (1) Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Investments Measured at Fair Value on a Recurring Basis | Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of March 2, 2019 were as follows ( in thousands Level 1 CDs 15,500 |
Description of the Company - Ad
Description of the Company - Additional Information (Details) | 9 Months Ended |
Mar. 02, 2019Segment | |
Description Of Company Details Narrative [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Critical Accounting Policies _4
Critical Accounting Policies and Estimates - Additional Information (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Accounting Policies [Abstract] | ||
Finished goods | $ 46.3 | $ 42.6 |
Raw material | 4.7 | 5.7 |
Work in progress | 2.1 | 2.4 |
Inventory valuation reserves | $ 4.3 | $ 4 |
Critical Accounting Policies _5
Critical Accounting Policies and Estimates - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 02, 2019 | Jun. 02, 2018 |
Accrued Liabilities: | ||
Compensation and payroll taxes | $ 3,007 | $ 3,449 |
Accrued severance | 636 | 454 |
Professional fees | 767 | 527 |
Deferred revenue | 1,921 | 1,888 |
Other accrued expenses | 4,961 | 4,025 |
Accrued Liabilities | $ 11,292 | $ 10,343 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 9 Months Ended |
Mar. 02, 2019 | |
Revenue Recognition [Line Items] | |
Assurance product warranty period on parts | 30 days |
Maximum | |
Revenue Recognition [Line Items] | |
Services revenue recognized as percentage of aggregate revenue | 5.00% |
Extended product warranty period | 3 years |
Minimum | |
Revenue Recognition [Line Items] | |
Extended product warranty period | 1 year |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Liabilities and Revenue Recognized (Details) $ in Thousands | 9 Months Ended |
Mar. 02, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract Liabilities (Deferred Revenue), Beginning Balance | $ 1,888 |
Contract Liabilities (Deferred Revenue), Additions | 2,580 |
Contract Liabilities (Deferred Revenue), Revenue Recognized | (2,547) |
Contract Liabilities (Deferred Revenue), Ending Balance | $ 1,921 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 02, 2019 | Jun. 02, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 6,332 | $ 6,332 |
Weighted average number of years of amortization expense | 14 years 8 months 12 days |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Mar. 02, 2019 | Jun. 02, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | $ 4,472 | $ 4,474 | |
Finite Lived Intangible Assets Accumulated Amortization | 1,643 | 1,460 | |
Intangibles, net | 2,829 | 3,014 | |
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 659 | 659 | |
Finite Lived Intangible Assets Accumulated Amortization | 657 | 651 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | [1] | 3,406 | 3,408 |
Finite Lived Intangible Assets Accumulated Amortization | 757 | 617 | |
Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 177 | 177 | |
Finite Lived Intangible Assets Accumulated Amortization | 132 | 115 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets Gross | 230 | 230 | |
Finite Lived Intangible Assets Accumulated Amortization | $ 97 | $ 77 | |
[1] | Change from prior periods reflect impact of foreign currency translation. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of the Amortization Expense for the Next Five Years (Details) $ in Thousands | Mar. 02, 2019USD ($) |
Fiscal Year | |
Remaining 2019 | $ 61 |
2020 | 257 |
2021 | 245 |
2022 | 252 |
2023 | 246 |
Thereafter | 1,768 |
Total amortization expense | $ 2,829 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | Mar. 02, 2019 | Jun. 02, 2018 |
Investment [Line Items] | ||
Investments | $ 0 | |
Certificate of Deposits | ||
Investment [Line Items] | ||
Investment, less than twelve months | $ 15,500,000 |
Warranties - Additional Informa
Warranties - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 02, 2019 | Jun. 02, 2018 | |
Product Warranty Liability [Line Items] | ||
Warranty reserves | $ 0.2 | $ 0.1 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Warranty term | 1 year | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Warranty term | 3 years |
Lease Obligations, Other Comm_3
Lease Obligations, Other Commitments, and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 02, 2019 | Mar. 03, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Rent expense under operating leases | $ 1.3 | $ 1.3 |
Lease Obligations, Other Comm_4
Lease Obligations, Other Commitments, and Contingencies - Schedule of Future Lease Commitments for Minimum Rentals, Including Common Area Maintenance Charges and Property Taxes (Details) $ in Thousands | Mar. 02, 2019USD ($) |
Fiscal Year | |
Remaining 2019 | $ 377 |
2020 | 1,208 |
2021 | 857 |
2022 | 164 |
2023 | 34 |
Thereafter | $ 90 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | Jun. 02, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 305 | $ 488 | $ 754 | $ 1,084 | |
Effective income tax rate | (383.30%) | 65.00% | |||
U.S. statutory tax rate | 21.00% | 35.00% | |||
Deferred tax liability, undistributed foreign earnings | 300 | $ 300 | $ 300 | ||
Liability for uncertain tax positions related to continuing operations, excluding interest and penalties | 100 | 100 | |||
Liability for uncertain tax provisions | 0 | 0 | 100 | ||
Deferred tax valuation allowance | 10,800 | 10,800 | $ 9,100 | ||
Additional deferred tax assets State and Local | $ 1,700 | $ 1,700 |
Calculation of Earnings Per S_3
Calculation of Earnings Per Share - Additional Information (Details) | 3 Months Ended | 9 Months Ended |
Mar. 02, 2019shares | Mar. 02, 2019Numbershares | |
Schedule Of Earning Per Share [Line Items] | ||
Limit of cash dividends Class B common stock (percent) | 90.00% | |
Common stock options anti-dilutive | 1,084,000 | |
Common Stock | ||
Schedule Of Earning Per Share [Line Items] | ||
Common stock shares, authorized | 17,000,000 | 17,000,000 |
Common Class B | ||
Schedule Of Earning Per Share [Line Items] | ||
Common stock shares, authorized | 3,000,000 | 3,000,000 |
Number of votes per share | Number | 10 |
Calculation of Earnings Per S_4
Calculation of Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net (loss) income | $ (1,078) | $ 527 | $ (951) | $ 2,083 |
(Loss) income from continuing operations | (1,078) | 527 | (951) | 587 |
Undistributed losses - continuing operations, Basic | (1,849) | (236) | (3,256) | (1,697) |
Undistributed losses - continuing operations, Diluted | (1,849) | (236) | (3,256) | (1,697) |
Income from discontinued operations | 1,496 | |||
Undistributed earnings (losses) - discontinued operations, Basic | (788) | |||
Net (loss) income | (1,078) | 527 | (951) | 2,083 |
Undistributed losses - continuing operations, Basic | (3,256) | (201) | ||
Undistributed earnings (losses) - discontinued operations, Diluted | (788) | |||
Undistributed losses - continuing operations, Diluted | (3,256) | (201) | ||
Basic | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net (loss) income | (1,078) | 527 | (951) | 2,083 |
(Loss) income from continuing operations | (951) | 587 | ||
Income from discontinued operations | 1,496 | |||
Net (loss) income | (1,078) | 527 | (951) | 2,083 |
Diluted | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net (loss) income | (1,078) | 527 | (951) | 2,083 |
(Loss) income from continuing operations | (951) | 587 | ||
Income from discontinued operations | 1,496 | |||
Net (loss) income | $ (1,078) | $ 527 | $ (951) | $ 2,083 |
Denominator for basic and diluted Earnings Per Share: | ||||
Effect of dilutive securities dilutive stock options | 80 | 40 | ||
Weighted Average Number of Shares Outstanding, Diluted | 13,050 | 13,009 | 13,019 | 12,930 |
Common Class B | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Undistributed losses - continuing operations, Basic | $ (272) | $ (36) | $ (482) | $ (257) |
Undistributed losses - continuing operations, Diluted | $ (272) | $ (36) | (482) | (257) |
Undistributed earnings (losses) - discontinued operations, Basic | (120) | |||
Undistributed losses - continuing operations, Basic | (482) | (30) | ||
Undistributed earnings (losses) - discontinued operations, Diluted | (120) | |||
Undistributed losses - continuing operations, Diluted | $ (482) | $ (30) | ||
Denominator for basic and diluted Earnings Per Share: | ||||
Weighted Average Number of Shares Outstanding, Basic | 2,097 | 2,137 | 2,108 | 2,137 |
Weighted Average Number of Shares Outstanding, Diluted | 2,097 | 2,137 | 2,108 | 2,137 |
Net (loss) income per share: | ||||
Earnings Per Share, Basic | $ (0.08) | $ 0.04 | $ (0.07) | $ 0.15 |
Earnings Per Share, Diluted | (0.08) | 0.04 | (0.07) | 0.15 |
(Loss) income from continuing operations per share: | ||||
(Loss) income from continuing operations, Basic | (0.08) | 0.04 | (0.07) | 0.04 |
(Loss) income from continuing operations, Diluted | $ (0.08) | $ 0.04 | $ (0.07) | 0.04 |
Income from discontinued operations per share: | ||||
Income (loss) from discontinuing operations, Basic | 0.11 | |||
Income from discontinued operations, Diluted | $ 0.11 | |||
Common Class B | Basic | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | $ 342 | $ 346 | ||
Common Class B | Basic | Continuing Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | $ 114 | $ 115 | 342 | 346 |
Common Class B | Basic | Discontinued Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | 346 | |||
Common Class B | Diluted | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | 342 | 346 | ||
Common Class B | Diluted | Continuing Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | 114 | 115 | 342 | 346 |
Common Class B | Diluted | Discontinued Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | 346 | |||
Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Undistributed losses - continuing operations, Basic | (1,577) | (200) | (2,774) | (1,440) |
Undistributed losses - continuing operations, Diluted | $ (1,577) | $ (200) | (2,774) | (1,440) |
Undistributed earnings (losses) - discontinued operations, Basic | (668) | |||
Undistributed losses - continuing operations, Basic | (2,774) | (171) | ||
Undistributed earnings (losses) - discontinued operations, Diluted | (668) | |||
Undistributed losses - continuing operations, Diluted | $ (2,774) | $ (171) | ||
Denominator for basic and diluted Earnings Per Share: | ||||
Weighted Average Number of Shares Outstanding, Basic | 10,953 | 10,792 | 10,911 | 10,753 |
Weighted Average Number of Shares Outstanding, Diluted | 10,953 | 10,792 | 10,911 | 10,753 |
Net (loss) income per share: | ||||
Earnings Per Share, Basic | $ (0.08) | $ 0.04 | $ (0.07) | $ 0.17 |
Earnings Per Share, Diluted | (0.08) | 0.04 | (0.07) | 0.17 |
(Loss) income from continuing operations per share: | ||||
(Loss) income from continuing operations, Basic | (0.08) | 0.04 | (0.07) | 0.05 |
(Loss) income from continuing operations, Diluted | $ (0.08) | $ 0.04 | $ (0.07) | 0.05 |
Income from discontinued operations per share: | ||||
Income (loss) from discontinuing operations, Basic | 0.12 | |||
Income from discontinued operations, Diluted | $ 0.12 | |||
Common Stock | Basic | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | $ 1,963 | $ 1,938 | ||
Common Stock | Basic | Continuing Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | $ 657 | $ 648 | 1,963 | 1,938 |
Common Stock | Basic | Discontinued Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | 1,938 | |||
Common Stock | Diluted | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | 1,963 | 1,938 | ||
Common Stock | Diluted | Continuing Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | $ 657 | $ 648 | $ 1,963 | 1,938 |
Common Stock | Diluted | Discontinued Operations | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Less dividends | $ 1,938 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 39,018 | $ 41,645 | $ 124,489 | $ 117,722 |
Gross Profit | 12,299 | 14,067 | 39,223 | 39,589 |
PMT | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 29,725 | 31,869 | 96,822 | 91,056 |
Gross Profit | 9,406 | 10,656 | 30,520 | 30,492 |
Canvys | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 6,954 | 7,585 | 20,625 | 20,057 |
Gross Profit | 2,281 | 2,571 | 6,726 | 6,245 |
Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,339 | 2,191 | 7,042 | 6,609 |
Gross Profit | $ 612 | $ 840 | $ 1,977 | $ 2,852 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Net Sales and Gross Profit by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 39,018 | $ 41,645 | $ 124,489 | $ 117,722 | |
Gross Profit | 12,299 | 14,067 | 39,223 | 39,589 | |
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 14,665 | 18,748 | 48,513 | 49,657 | |
Gross Profit | 5,577 | 6,955 | 18,682 | 18,747 | |
Asia/Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 8,007 | 6,635 | 26,069 | 21,102 | |
Gross Profit | 2,482 | 2,331 | 8,188 | 7,256 | |
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 13,612 | 14,197 | 41,761 | 40,312 | |
Gross Profit | 4,403 | 4,904 | 13,141 | 13,493 | |
Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 2,702 | 2,086 | 8,075 | 6,646 | |
Gross Profit | 990 | 820 | 3,011 | 2,638 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 32 | (21) | 71 | 5 |
Gross Profit | [1] | $ (1,153) | $ (943) | $ (3,799) | $ (2,545) |
[1] | Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Investments Measured at Fair Value on a Recurring Basis (Details) $ in Thousands | Mar. 02, 2019USD ($) |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
CDs | $ 15,500 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 02, 2019 | Mar. 03, 2018 | |
Rental expense | $ 1.3 | $ 1.3 |
Lessor - LDL, LLC | Lee A. McIntyre III | ||
Total future minimum lease payments | $ 0.2 | |
Lease term | 5 years | |
Renewal term | 5 years | |
Rental expense | $ 0.1 | $ 0.1 |