Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
May 28, 2022 | Jul. 25, 2022 | Nov. 27, 2021 | |
Document Information [Line Items] | |||
Entity Registrant Name | RICHARDSON ELECTRONICS, LTD. | ||
Entity Central Index Key | 0000355948 | ||
Document Type | 10-K | ||
Trading Symbol | RELL | ||
Document Period End Date | May 28, 2022 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --05-28 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 122.2 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity File Number | 0-12906 | ||
Entity Tax Identification Number | 36-2096643 | ||
Entity Address, Address Line One | 40W267 Keslinger Road | ||
Entity Address, Address Line Two | P.O. Box 393 | ||
Entity Address, City or Town | LaFox | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60147-0393 | ||
City Area Code | 630 | ||
Local Phone Number | 208-2200 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common stock, $0.05 Par Value | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Firm ID | 243 | ||
Auditor Name | BDO USA, LLP | ||
Auditor Location | Chicago, IL, USA | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the Annual Meeting of Stockholders scheduled to be held October 4, 2022, which will be filed pursuant to Regulation 14A, are incorporated by reference in Part III of this report. Except as specifically incorporated herein by reference, the abovementioned Proxy Statement is not deemed filed as part of this report. | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,697,419 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,053,263 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 28, 2022 | May 29, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 35,495,000 | $ 43,316,000 |
Accounts receivable, less allowance of $186 and $202, respectively | 29,878,000 | 25,096,000 |
Inventories, net | 80,390,000 | 63,508,000 |
Prepaid expenses and other assets | 2,448,000 | 2,385,000 |
Investments - current | 5,000,000 | 0 |
Total current assets | 153,211,000 | 134,305,000 |
Non-current assets: | ||
Property, plant and equipment, net | 16,961,000 | 17,067,000 |
Intangible assets, net | 2,010,000 | 2,270,000 |
Lease ROU asset | 3,239,000 | 2,570,000 |
Non-current deferred income taxes | 4,398,000 | 541,000 |
Total non-current assets | 26,608,000 | 22,448,000 |
Total assets | 179,819,000 | 156,753,000 |
Current liabilities: | ||
Accounts payable | 23,987,000 | 16,979,000 |
Accrued liabilities | 16,110,000 | 14,182,000 |
Lease liability current | 1,109,000 | 1,066,000 |
Total current liabilities | 41,206,000 | 32,227,000 |
Non-current liabilities: | ||
Non-current deferred income tax liabilities | 85,000 | 242,000 |
Lease liability non-current | 1,915,000 | 1,358,000 |
Other non-current liabilities | 766,000 | 1,366,000 |
Total non-current liabilities | 2,766,000 | 2,966,000 |
Total liabilities | 43,972,000 | 35,193,000 |
Stockholders’ Equity | ||
Preferred stock, $1.00 par value, no shares issued | ||
Additional paid-in-capital | 66,331,000 | 62,707,000 |
Retained earnings | 68,031,000 | 53,297,000 |
Accumulated other comprehensive income | 800,000 | 4,893,000 |
Total stockholders' equity | 135,847,000 | 121,560,000 |
Total liabilities and stockholders’ equity | 179,819,000 | 156,753,000 |
Common Stock | ||
Stockholders’ Equity | ||
Common stock, $0.05 par value; issued and outstanding 11,649 shares at May 28, 2022 and 11,160 shares at May 29, 2021 | 582,000 | 558,000 |
Common Class B | ||
Stockholders’ Equity | ||
Common stock, $0.05 par value; issued and outstanding 11,649 shares at May 28, 2022 and 11,160 shares at May 29, 2021 | $ 103,000 | $ 105,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | May 28, 2022 | May 29, 2021 |
Allowance for accounts receivable | $ 186 | $ 202 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, issued (in shares) | 0 | 0 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, issued (in shares) | 11,649 | 11,160 |
Common stock, outstanding (in shares) | 11,649 | 11,160 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, issued (in shares) | 2,053 | 2,097 |
Common stock, outstanding (in shares) | 2,053 | 2,097 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Net sales | $ 224,620 | $ 176,937 | $ 155,898 |
Cost of sales | 152,920 | 118,112 | 106,225 |
Gross profit | 71,700 | 58,825 | 49,673 |
Selling, general and administrative expenses | 55,723 | 55,925 | 51,327 |
Loss on disposal of assets | 20 | 13 | 3 |
Operating income (loss) | 15,957 | 2,887 | (1,657) |
Other expense (income): | |||
Investment/interest income | (80) | (76) | (377) |
Foreign exchange loss (gain) | 273 | 759 | (15) |
Other, net | 5 | (104) | (51) |
Total other expense (income) | 198 | 579 | (443) |
Income (loss) before income taxes | 15,759 | 2,308 | (1,214) |
Income tax (benefit) provision | (2,168) | 653 | 624 |
Net income (loss) | 17,927 | 1,655 | (1,838) |
Foreign currency translation (loss) gain, net of tax | (4,093) | 3,403 | (900) |
Comprehensive income (loss) | $ 13,834 | $ 5,058 | $ (2,738) |
Weighted average number of shares: | |||
Common shares - Diluted | 11,825 | 11,164 | 11,026 |
Common Stock | |||
Net income (loss) per share: | |||
Common shares - Basic | $ 1.35 | $ 0.13 | $ (0.14) |
Common shares - Diluted | $ 1.31 | $ 0.13 | $ (0.14) |
Weighted average number of shares: | |||
Common shares - Basic | 11,395 | 11,105 | 11,026 |
Common shares - Diluted | 11,825 | 11,164 | 11,026 |
Dividends per share: | |||
Dividends per share | $ 0.24 | $ 0.24 | $ 0.24 |
Common Class B | |||
Net income (loss) per share: | |||
Common shares - Basic | 1.21 | 0.11 | (0.13) |
Common shares - Diluted | $ 1.18 | $ 0.11 | $ (0.13) |
Weighted average number of shares: | |||
Common shares - Basic | 2,080 | 2,097 | 2,097 |
Common shares - Diluted | 2,080 | 2,097 | 2,097 |
Dividends per share: | |||
Dividends per share | $ 0.22 | $ 0.22 | $ 0.22 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Operating activities: | |||
Net income (loss) | $ 17,927 | $ 1,655 | $ (1,838) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 3,423 | 3,424 | 3,386 |
Inventory provisions | 462 | 1,041 | 1,013 |
Loss on disposal of assets | 20 | 13 | 3 |
Share-based compensation expense | 654 | 675 | 683 |
Deferred income taxes | (4,042) | (1) | (7) |
Change in assets and liabilities: | |||
Accounts receivable | (6,183) | (4,198) | 3,895 |
Inventories | (20,571) | (4,861) | (5,452) |
Prepaid expenses and other assets | (228) | 103 | 620 |
Accounts payable | 7,671 | (565) | 631 |
Accrued liabilities | 2,420 | 3,572 | (889) |
Other | 358 | (26) | (122) |
Net cash provided by operating activities | 1,911 | 832 | 1,923 |
Investing activities: | |||
Capital expenditures | (3,120) | (2,632) | (1,776) |
Proceeds from maturity of investments | 25,000 | 21,000 | |
Purchases of investments | (5,000) | (9,000) | (29,000) |
Net cash (used in) provided by investing activities | (8,120) | 13,368 | (9,776) |
Financing activities: | |||
Payment of financing lease principal | (151) | (181) | (166) |
Proceeds from issuance of common stock | 2,992 | 289 | 59 |
Cash dividends paid on Common and Class B Common shares | (3,193) | (3,122) | (3,101) |
Net cash used in financing activities | (352) | (3,014) | (3,208) |
Effect of exchange rate changes on cash and cash equivalents | (1,260) | 1,595 | (423) |
(Decrease) increase in cash and cash equivalents | (7,821) | 12,781 | (11,484) |
Cash and cash equivalents at beginning of period | 43,316 | 30,535 | 42,019 |
Cash and cash equivalents at end of period | 35,495 | 43,316 | 30,535 |
Cash paid during the fiscal year for: | |||
Income taxes | $ 1,484 | $ 106 | $ 1,018 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common | Common Class B | Common Stock | Common Stock Common | Common Stock Common Class B | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning Balance at Jun. 01, 2019 | $ 123,757 | $ 652 | $ 61,012 | $ 59,703 | $ 2,390 | ||||
Beginning Balance (in shares) at Jun. 01, 2019 | 10,957,000 | 2,097,000 | |||||||
Comprehensive (loss) income | |||||||||
Net (loss) income | (1,838) | (1,838) | |||||||
Foreign currency translation | (900) | (900) | |||||||
Share-based compensation: | |||||||||
Restricted stock | 455 | 455 | |||||||
Stock options | 228 | 228 | |||||||
Options exercised | 59 | 1 | 58 | ||||||
Options exercised (in shares) | 10,000 | ||||||||
Restricted stock issuance | 4 | (4) | |||||||
Restricted stock issuance (in shares) | 71,000 | ||||||||
Dividends paid to: | |||||||||
Common ($0.24 per share) | (2,648) | (2,648) | |||||||
Class B ($0.22 per share) | (453) | (453) | |||||||
Ending Balance at May. 30, 2020 | 118,660 | 657 | 61,749 | 54,764 | 1,490 | ||||
Ending Balance (in shares) at May. 30, 2020 | 11,038,000 | 2,097,000 | |||||||
Comprehensive (loss) income | |||||||||
Net (loss) income | 1,655 | 1,655 | |||||||
Foreign currency translation | 3,403 | 3,403 | |||||||
Share-based compensation: | |||||||||
Restricted stock | 483 | 483 | |||||||
Stock options | 192 | 192 | |||||||
Options exercised | 289 | 2 | 287 | ||||||
Options exercised (in shares) | 49,000 | ||||||||
Restricted stock issuance | 4 | (4) | |||||||
Restricted stock issuance (in shares) | 73,000 | ||||||||
Dividends paid to: | |||||||||
Common ($0.24 per share) | (2,669) | (2,669) | |||||||
Class B ($0.22 per share) | (453) | (453) | |||||||
Ending Balance at May. 29, 2021 | 121,560 | 663 | 62,707 | 53,297 | 4,893 | ||||
Ending Balance (in shares) at May. 29, 2021 | 11,160,000 | 2,097,000 | 11,160,000 | 2,097,000 | |||||
Comprehensive (loss) income | |||||||||
Net (loss) income | 17,927 | 17,927 | |||||||
Foreign currency translation | (4,093) | (4,093) | |||||||
Share-based compensation: | |||||||||
Restricted stock | 444 | 444 | |||||||
Stock options | 210 | 210 | |||||||
Options exercised | $ 2,992 | 18 | 2,974 | ||||||
Options exercised (in shares) | 373,489 | 373,000 | |||||||
Restricted stock issuance | 4 | (4) | |||||||
Restricted stock issuance (in shares) | 72,000 | ||||||||
Class B converted to common | 44,000 | (44,000) | |||||||
Dividends paid to: | |||||||||
Common ($0.24 per share) | $ (2,745) | (2,745) | |||||||
Class B ($0.22 per share) | (448) | (448) | |||||||
Ending Balance at May. 28, 2022 | $ 135,847 | $ 685 | $ 66,331 | $ 68,031 | $ 800 | ||||
Ending Balance (in shares) at May. 28, 2022 | 11,649,000 | 2,053,000 | 11,649,000 | 2,053,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - Common Stock - $ / shares | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Common | |||
Dividends per common share | $ 0.24 | $ 0.24 | $ 0.24 |
Common Class B | |||
Dividends per common share | $ 0.22 | $ 0.22 | $ 0.22 |
Description of the Company
Description of the Company | 12 Months Ended |
May 28, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of the Company | 1. DESCRIPTION OF THE COMPANY Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world. All our partners manufacture to our strict specifications and per our supplier code of conduct. 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. Starting with our first quarter earnings release in October for fiscal 2023, we will introduce our new Green Energy Solutions (“GES”) segment. This segment is carved out of our existing PMT segment as we continue to focus on power management applications that support the green energy market globally. Accordingly, in the first quarter of fiscal 2023, we will begin reporting on four segments. The three operating and reportable segments for fiscal 2022, fiscal 2021 and fiscal 2020 are defined as follows: Power and Microwave Technologies (“PMT”) combines our core engineered solutions capabilities, power grid and microwave tube business with new disruptive RF, Wireless and Power technologies. As a designer, manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. 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 5G, 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-One computers, 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, repairs, refurbishes and distributes high value replacement parts and equipment 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; pre-owned CT systems; 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 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. Customer Concentration: No one customer represented more than 10 percent of our total accounts receivable balance as of May 28, 2022 or May 29, 2021. No one customer accounted for more than 10 percent of the Company’s consolidated net sales in fiscal 2022, fiscal 2021 or fiscal 2020. Supplier Concentration: One of our suppliers represented 11 percent of our total cost of sales in fiscal 2022, 15 percent in fiscal 2021 and 16 percent in fiscal 2020. The amount owed to this supplier was approximately $1.4 million as of May 28, 2022 and $2.1 million as of May 29, 2021. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
May 28, 2022 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP for all fiscal years presented. The consolidated financial statements include our wholly owned subsidiaries. All intercompany transactions and account balances have been eliminated in consolidation. Our fiscal year 2022 began on May 30, 2021 and ended on May 28, 2022, our fiscal year 2021 began on May 31, 2020 and ended on May 29, 2021 and our fiscal year 2020 began on June 2, 2019 and ended on May 30, 2020. Unless otherwise noted, all references to a particular year in this document shall mean our fiscal year. |
Significant Accounting Policies
Significant Accounting Policies and Disclosures | 12 Months Ended |
May 28, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Disclosures | 3. SIGNIFICANT ACCOUNTING POLICIES AND DISCLOSURES Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management continuously evaluates its critical accounting policies and estimates, including the allowance for doubtful accounts, revenue recognition, inventory obsolescence, intangible assets, loss contingencies and income taxes. Management bases the estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances, however, actual results could differ from those estimates. Fair Values of Financial Instruments: The fair values of financial instruments are determined based on quoted market prices and market interest rates as of the end of the reporting period. Our financial instruments include investments, accounts receivable, accounts payable and accrued liabilities. The fair values of these financial instruments approximate carrying values at May 28, 2022 and May 29, 2021. Cash and Cash Equivalents: We consider short-term, highly liquid investments that are readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and that have a maturity of three months or less, when purchased, to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents approximate the fair market value of these assets. Allowance for Doubtful Accounts: Our allowance for doubtful accounts includes estimated losses that result from uncollectible receivables. The estimates are influenced by the following: continuing credit evaluation of customers’ financial conditions; aging of receivables, individually and in the aggregate; a large number of customers which are widely dispersed across geographic areas; and collectability and delinquency history by geographic area. Significant changes in one or more of these considerations may require adjustments affecting net income and net carrying value of accounts receivable. The allowance for doubtful accounts was approximately $0.2 million as of May 28, 2022 and $0.2 million as of May 29, 2021. 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. Revenue Recognition: Our customers are generally not resellers, but rather businesses that incorporate our products into their processes from which they generate an economic benefit. The goods are also distinct in that each item sold to the customer is clearly identified on both the purchase order and resulting invoice. Each product we sell benefits the customer independently of the other products. Each item on each purchase order from the customer can be used by the customer unrelated to any other products we provide to the customer. The Company’s revenue includes the following streams: • Distribution • Manufacturing/assembly • Services revenue Distribution typically includes products purchased from our suppliers, stocked in our warehouses and then sold to our customers. The distribution business does not include a separate service bundled with the product sold or sold on top of the product. Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring 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 enerally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks. Manufacturing/assembly typically includes the products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/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 in addition to the product. Our contracts for customized products generally include termination provisions if a customer cancels its order. However, we recognize revenue at a point in time because the termination provisions normally do not require, upon cancelation, the customer to pay fees that are commensurate with the work performed. Each purchase order explicitly states the goods or service that we promise to transfer to the customer. The promises to the customer are limited only to those goods or service. The performance obligation is our promise to deliver both goods that were produced by the Company and resale of goods that we purchase from our suppliers. Our shipping and handling activities for destination shipments are performed prior to the customer obtaining control. As such, they are not a separate promised service. The Company elects to account for shipping and handling as activities to fulfill the promise to transfer the goods. The goods we provide to our customers are distinct in that our customers benefit from the goods we sell them through use in their own processes. Repair, installation or training activities generate services revenue. The services we provide are relatively short in duration and typically completed in one or two weeks. Therefore, at each reporting date, the amount of unbilled work 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. We record discounts taken based on historical experience. The policy varies by business unit. The Company allows returns with prior written authorization. . The Company maintains a reserve for returns based on historical trends that covers all contracts and revenue streams using the expected value method because we have a large number of contracts with similar characteristics, which is considered variable consideration. The reserve for returns creates a refund liability on our balance sheet as a contra Trade Accounts Receivable as well as an asset in inventory. We value the inventory at cost due to there being minimal or no costs to the Company as we generally require the customer to pay freight and we typically do not have costs associated with activities such as relabeling or repackaging. The reserve is considered immaterial at each balance sheet date. Returns for defective product are typically covered by our suppliers’ warranty, thus, returns for defective product are not factored into our reserve. Principal versus agent guidance was considered for customized products that are provided by our suppliers versus manufactured by the Company. The Company 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. Contracts with customers A revenue contract exists once a customer purchase order is received, reviewed and accepted. 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. Prior to accepting a customer purchase order, we review the credit worthiness of the customer. Purchase orders are deemed to meet the collectability criterion once the customer’s credit is approved. Contract Liabilities: Contract liabilities and revenue recognized were as follows ( in thousands ): May 29, 2021 Additions Revenue Recognized May 28, 2022 Contract liabilities (deferred revenue) $ 3,313 $ 6,917 $ (5,264 ) $ 4,966 See Note 9, Segment and Geographic Information, Foreign Currency Translation: The functional currency is the local currency at all foreign locations, with the exception of Hong Kong, where the functional currency is the U.S. dollar. Balance sheet items for our foreign entities, included in our consolidated balance sheets, are translated into U.S. dollars at end-of-period spot rates. Gains and losses resulting from translation of foreign subsidiary financial statements are credited or charged directly to accumulated other comprehensive income, a component of stockholders’ equity. Revenues and expenses are translated at the current rate on the date of the transaction. Gains and losses resulting from foreign currency transactions are included in income. Foreign exchange (gain) loss reflected in our consolidated statements of comprehensive income (loss) were $0.3 million loss during fiscal 2022, a $0.8 million loss during fiscal 2021 and a small gain during fiscal 2020. Shipping and Handling Fees and Costs: Shipping and handling costs billed to customers are reported as revenue and the related costs are reported as a component of cost of sales. Inventories, net: Our consolidated inventories are stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $66.6 million of finished goods, $8.0 million of raw materials and $5.8 million of work-in-progress as of May 28, 2022 as compared to approximately $57.0 million of finished goods, $3.9 million of raw materials and $2.6 million of work-in-progress as of May 29, 2021. The inventory reserve as of May 28, 2022 was $6.1 million compared to $5.9 million as of May 29, 2021. 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. We recorded provisions to our inventory reserves of $0.5 million, $1.0 million and $1.0 million during fiscal 2022, fiscal 2021 and fiscal 2020, respectively, which were included in cost of sales. The provisions were primarily for obsolete and slow-moving parts. The parts were written down to estimated realizable value. 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. Investments: As of May 28, 2022, we had $5.0 million invested in a Certificate of Deposit (CD), which will mature in less than twelve months. As of May 29, 2021, we had no investments, as we liquidated our investments in the fourth quarter of fiscal 2021. Intangible Assets: Intangible assets are initially recorded at their fair market values determined by 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 the acquisitions. Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of accumulated depreciation. Improvements and replacements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. Provisions for depreciation are computed using the straight-line method over the estimated useful life of the asset. Depreciation expense was approximately $3.2 million, $3.2 million and $3.1 million during fiscal 2022, fiscal 2021 and fiscal 2020, respectively. Property, plant and equipment consist of the following ( in thousands May 28, 2022 May 29, 2021 Land and improvements $ 1,385 $ 1,385 Buildings and improvements 23,002 22,837 Computer, communications equipment and software 11,186 11,029 Machinery and other equipment 16,215 14,930 Construction in progress 1,991 1,429 53,779 51,610 Accumulated depreciation (36,818 ) (34,543 ) Property, plant, and equipment, net $ 16,961 $ 17,067 Construction in progress at May 28, 2022 includes $1.0 million for manufacturing facilities, $0.5 million for Healthcare initiatives and $0.3 million for IT systems. All projects are expected to be completed before the end of fiscal 2023. Supplemental disclosure information of the estimated useful life of the assets: Land improvements 10 years Buildings and improvements 10 - 30 years Computer, communications equipment and software 3 - 10 years Machinery and other equipment 3 - 20 years We review property and equipment, definite-lived intangible assets and other long-lived assets for impairment whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If adverse events do occur, our impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of our assets and liabilities. This analysis requires management judgment with respect to changes in technology, the continued success of product lines and future volume, revenue and expense growth rates. We conduct annual reviews for idle and underutilized equipment and review business plans for possible impairment. Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset or asset group. When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value. Additionally, we also evaluate the remaining useful life of each reporting period to determine whether events and circumstances warrant a revision to the remaining period of depreciation or amortization. If the estimate of a long-lived asset’s remaining useful life is changed, the remaining carrying amount of the asset is amortized prospectively over that revised remaining useful life. Accrued Liabilities: Accrued liabilities consist of the following ( in thousands ): May 28, 2022 May 29, 2021 Compensation and payroll taxes $ 5,519 $ 4,945 Accrued severance 678 685 Professional fees 470 533 Deferred revenue 4,966 3,313 Other accrued expenses 4,477 4,706 Accrued Liabilities $ 16,110 $ 14,182 Warranties: We offer warranties for the limited number of specific products we manufacture. 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 income (loss). 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 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. Changes in the warranty reserve during fiscal 2022 and fiscal 2021 were as follows ( in thousands Warranty Reserve Balance at May 30, 2020 $ 466 Accruals for products sold 121 Utilization (39 ) Balance at May 29, 2021 $ 548 Accruals for products sold 160 Utilization (32 ) Balance at May 28, 2022 $ 676 Other Non-Current Liabilities: Other non-current liabilities of $0.8 million at May 28, 2022 and $1.4 million at May 29, 2021, primarily represent employee-benefits obligations in various non-US locations. Share-Based Compensation: We measure and recognize share-based compensation cost at fair value for all share-based payments, including stock options and restricted stock awards. We estimate fair value using the Black-Scholes option-pricing model, which requires assumptions such as expected volatility, risk-free interest rate, expected life and dividends. Compensation cost is recognized using a graded vesting schedule over the applicable vesting period. Share-based compensation expense totaled approximately $0.7 million during fiscal 2022, $0.7 million during fiscal 2021 and $0.7 million during fiscal 2020. Stock options granted generally vest over a period of five years and have contractual terms to exercise of 10 years. A summary of stock option activity is as follows ( in thousands, except option prices and years): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options Outstanding at June 1, 2019 1,364 $ 9.08 Granted 187 5.61 Exercised (10 ) 5.67 Cancelled (114 ) 6.87 Options Outstanding at May 30, 2020 1,427 $ 8.83 Granted 188 4.26 Exercised (49 ) 5.93 Forfeited (7 ) 5.96 Cancelled (104 ) 12.53 Options Outstanding at May 29, 2021 1,455 $ 8.08 Granted 185 7.66 Exercised (373 ) 8.01 Forfeited (35 ) 6.51 Cancelled (84 ) 11.65 Options Outstanding at May 28, 2022 1,148 $ 7.82 5.7 $ 7,082 Options Vested at May 28, 2022 676 $ 8.73 4.1 $ 3,551 (1) Includes only those options that were in-the-money as of May 28, 2022. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. There were 373,489 stock options exercised during fiscal 2022, with cash received of $3.0 million. The total intrinsic value of options exercised was $1.9 million during fiscal 2022, $0.1 million for fiscal 2021 and less than $0.1 million for fiscal 2020. The weighted average fair value of stock option grants was $1.50 during fiscal 2022, $0.49 during fiscal 2021 and $0.81 during fiscal 2020. As of May 28, 2022, total unrecognized compensation costs related to unvested stock options and restricted stock awards was approximately $0.9 million, which is expected to be recognized over the remaining weighted average period of approximately two to four years. The total grant date fair value of stock options vested during fiscal 2022 was $0.2 million. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Expected volatility 29.00 % 27.72 % 24.48 % Risk-free interest rate 0.97 % 0.45 % 1.91 % Expected lives (years) 6.50 6.50 6.50 Annual cash dividend $ 0.24 $ 0.24 $ 0.24 The expected volatility assumptions are based on historical experience commensurate with the expected term. The risk-free interest rate is based on the yield of a treasury note with a remaining term equal to the expected life of the stock option. The expected stock option life assumption is based on the Securities and Exchange Commission’s (“SEC”) guidance in Staff Accounting Bulletin (“SAB”) No. 107 (“SAB No. 107”). For stock options granted during fiscal 2022, fiscal 2021 and fiscal 2020, we believe that our historical stock option experience does not provide a reasonable basis upon which to estimate expected term. The following table summarizes information about stock options outstanding at May 28, 2022 ( in thousands, except option prices and years Outstanding Vested Exercise Price Range Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value $4.26 to $6.47 389 $ 5.11 7.2 $ 3,455 152 $ 5.38 6.6 $ 1,310 $6.90 to $10.01 573 8.44 6.2 3,178 338 8.68 4.8 1,792 $11.14 to $13.76 186 11.57 0.9 449 186 11.57 0.9 449 Total 1,148 $ 7.82 5.7 $ 7,082 676 $ 8.73 4.1 $ 3,551 As of May 28, 2022 a summary of restricted stock award transactions was as follows ( in thousands Unvested Restricted Shares Unvested at May 30, 2020 142 Granted 73 Vested (71 ) Unvested at May 29, 2021 144 Granted 72 Vested (71 ) Unvested at May 28, 2022 145 Compensation effects arising from issuing stock awards have been charged against income and recorded as additional paid-in-capital in the consolidated statements of stockholders’ equity during fiscal 2022, fiscal 2021 and fiscal 2020. The Employees’ Amended and Restated 2011 Long-Term Incentive Compensation Plan (the “Plan”) authorizes the issuance of up to 3,500,000 shares as incentive stock options, non-qualified stock options or stock awards. Under this plan, 1,302,000 shares are reserved for future issuance. The Plan authorizes the granting of stock options at the fair market value at the date of grant. Generally, these options become exercisable over five years and expire up to 10 years from the date of grant. Restricted stock awards vest on the anniversary of the grant date in three equal installments. 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. Our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends. The earnings per share (“EPS”) presented in our consolidated statements of comprehensive income (loss) are based on the following ( in thousands, except per share amounts For the Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Basic Diluted Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: Net income (loss) $ 17,927 $ 17,927 $ 1,655 $ 1,655 $ (1,838 ) $ (1,838 ) Less dividends: Common stock 2,745 2,745 2,669 2,669 2,648 2,648 Class B common stock 448 448 453 453 453 453 Undistributed earnings (loss) $ 14,734 $ 14,734 $ (1,467 ) $ (1,467 ) $ (4,939 ) $ (4,939 ) Common stock undistributed earnings (loss) $ 12,655 $ 12,720 $ (1,254 ) $ (1,255 ) $ (4,217 ) $ (4,217 ) Class B common stock undistributed earnings (loss) 2,079 2,014 (213 ) (212 ) (722 ) (722 ) Total undistributed earnings (loss) $ 14,734 $ 14,734 $ (1,467 ) $ (1,467 ) $ (4,939 ) $ (4,939 ) Denominator for Basic and Diluted EPS: Common stock weighted average shares 11,395 11,395 11,105 11,105 11,026 11,026 Effect of dilutive securities Dilutive stock options 430 59 — Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 11,825 11,164 11,026 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,080 2,080 2,097 2,097 2,097 2,097 Net income (loss) per share: Common stock $ 1.35 $ 1.31 $ 0.13 $ 0.13 $ (0.14 ) $ (0.14 ) Class B common stock $ 1.21 $ 1.18 $ 0.11 $ 0.11 $ (0.13 ) $ (0.13 ) Note : There were no New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 (as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and 2020-02) introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. The new standard is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
May 28, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 4 . RELATED PARTY TRANSACTION On June 15, 2015, the Company entered into a lease agreement for the IMES facility with LDL, LLC. That lease agreement was extended for five years in fiscal 2021. 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 six months of the expiration of the term. The Executive Vice President of IMES, Lee A. McIntyre III (former owner of IMES), has an ownership interest in LDL, LLC. Mr. McIntyre will be departing from the Company in fiscal year 2023, effective as of September 24, 2022. The lease agreement provides for monthly payments over five years with total future minimum lease payments of $0.5 million. Rental expense related to this lease amounted to $0.2 million for the fiscal year ended May 28, 2022 and $0.1 million for fiscal years ended May 29, 2021 and May 30, 2020. |
Intangible Assets
Intangible Assets | 12 Months Ended |
May 28, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 5 . INTANGIBLE ASSETS Intangible assets are initially recorded at their fair market values determined by 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 and are tested for impairment when events or changes in circumstances occur that indicate possible impairment. No impairment was recognized in fiscal 2022, fiscal 2021 or fiscal 2020. 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) May 28, 2022 May 29, 2021 Gross Amounts: Trade Name $ 659 $ 659 Customer Relationships (1) 3,393 3,426 Non-compete Agreements 177 177 Technology 230 230 Total Gross Amounts $ 4,459 $ 4,492 Accumulated Amortization: Trade Name $ 659 $ 659 Customer Relationships 1,453 1,249 Non-compete Agreements 177 177 Technology 160 137 Total Accumulated Amortization $ 2,449 $ 2,222 Net Intangible Assets $ 2,010 $ 2,270 (1) Change from prior periods reflect impact of foreign currency translation. Companies must perform the annual test for impairment for indefinite life intangible assets, for which the Company has none, as well as test definite life assets for impairment in the event of a “trigger event” such as adverse changes in the business climate or market which might negatively impact the value of a reporting unit. We determined that the intangible assets were not impaired as of May 28, 2022 on the basis that no adverse events or changes in circumstances were identified that could indicate that the carrying amounts of such assets may not be recoverable. 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 2023 $ 245 2024 232 2025 219 2026 185 2027 173 Thereafter 956 Total amortization expense $ 2,010 The amortization expense associated with the intangible assets totaled approximately $0.2 million during fiscal 2022, fiscal 2021 and fiscal 2020. |
Lease Obligations and Other Com
Lease Obligations and Other Commitments | 12 Months Ended |
May 28, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Lease Obligations and Other Commitments | 6 . LEASE OBLIGATIONS AND OTHER COMMITMENTS The Company leases real and personal property in the normal course of business under various operating and financing leases. The Company uses operating leases for facility space and automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company. Financing leases are used for computer servers. Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company determines it is reasonably certain of renewal. The gross amounts of assets and liabilities related to both operating and financing leases at May 28, 2022 and May 29, 2021 were as follows (in thousands) : Lease Type May 28, 2022 May 29, 2021 Operating lease ROU asset $ 3,024 $ 2,262 Financing lease ROU asset 215 308 Total Lease ROU asset $ 3,239 $ 2,570 Operating lease liability current $ 1,109 $ 918 Financing lease liability current — 148 Total lease liability current $ 1,109 $ 1,066 Operating lease liability non-current $ 1,915 $ 1,358 Financing lease liability non-current — — Total lease liability non-current $ 1,915 $ 1,358 The components of lease costs for fiscal 2022 and fiscal 2021 were as follows (in thousands) : Lease Type Classification Fiscal Year Ended May 28, 2022 Fiscal Year Ended May 29, 2021 Consolidated operating lease expense Operating expenses $ 1,781 $ 1,939 Consolidated financing lease amortization Operating expenses 92 92 Consolidated financing lease interest Interest expense 3 11 Consolidated financing lease expense 95 103 Net lease cost $ 1,876 $ 2,042 Rent expense for fiscal 2022, fiscal 2021 and fiscal 2020 was $1.6 million, $1.7 million, and $1.8 million, respectively. 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 Operating Leases 2023 $ 1,244 2024 872 2025 610 2026 388 2027 75 Thereafter 17 Total lease payments 3,206 Less imputed interest 182 Net minimum lease payments $ 3,024 The weighted average remaining lease terms and interest rates of leases held by the Company as of May 28, 2022 were as follows: Lease Type Weighted Average Remaining Lease Term in Years Weighted Average Interest Rate Operating leases 3.2 4.4% The cash outflows of the leasing activity of the Company as lessee for fiscal 2022 and fiscal 2021 were as follows (in thousands) : Fiscal Year Ended Cash Flow Source Classification May 28, 2022 May 29, 2021 Operating cash flows from operating leases Operating activities $ 747 $ 831 Operating cash flows from financing leases Operating activities 148 170 Finance cash flows from financing leases Financing activities 151 181 |
Income Taxes
Income Taxes | 12 Months Ended |
May 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7 . INCOME TAXES Income (loss) before income taxes included the following components ( in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 United States $ 12,299 $ 1,077 $ (3,716 ) Foreign 3,460 1,231 2,502 Income (loss) before income taxes $ 15,759 $ 2,308 $ (1,214 ) The provision for income taxes for fiscal 2022, fiscal 2021 and fiscal 2020 consisted of the following ( in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Current: Federal $ (4,213 ) $ 108 $ — State 950 — — Foreign 1,038 665 616 Total current (2,225 ) 773 616 Deferred: Federal — — (88 ) Foreign 57 (120 ) 96 Total deferred 57 (120 ) 8 Income tax (benefit) provision $ (2,168 ) $ 653 $ 624 The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for fiscal 2022, fiscal 2021 and fiscal 2020 and the reported income tax provision for fiscal 2022, fiscal 2021 and fiscal 2020, are summarized as follows: Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: State income taxes, net of federal tax benefit 5.5 21.6 6.6 Foreign taxes at other rates 4.5 10.5 (15.3 ) Permanent tax differences (2.0 ) 18.3 (41.1 ) Change in valuation allowance for deferred tax assets (43.1 ) (49.7 ) (29.8 ) Return to provision adjustments 0.2 2.2 1.4 Other 0.2 4.4 5.8 Effective tax rate (13.7 )% 28.3 % (51.4 )% Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our deferred tax assets and liabilities reflect operations as of May 28, 2022 and May 29, 2021. Significant components were as follows ( in thousands ): Fiscal Year Ended May 28, 2022 May 29, 2021 Deferred tax assets: NOL carryforwards - foreign and domestic $ 2,796 $ 7,362 Inventory valuations 1,571 1,501 Goodwill 1,182 1,286 Foreign tax credits 1,782 1,782 Severance reserve 183 185 Foreign capital loss 1,224 1,261 Other 1,480 1,469 Subtotal 10,218 14,846 Valuation allowance - foreign and domestic (3,474 ) (12,225 ) Net deferred tax assets after valuation allowance 6,744 2,621 Deferred tax liabilities: Accelerated depreciation (2,406 ) (2,279 ) Tax on undistributed earnings (24 ) (24 ) Other (1 ) 18 Subtotal (2,431 ) (2,285 ) Net deferred tax assets $ 4,313 $ 336 Supplemental disclosure of net deferred tax assets, excluding valuation allowance: Domestic $ 6,017 $ 10,653 Foreign 1,770 1,913 Total $ 7,787 $ 12,566 On December 22, 2017, the U.S. government enacted new tax legislation, Tax Cuts and Jobs Act (the “Act”). The Company was subject to requirements of the Act beginning in fiscal 2019. Provisions include an income inclusion for 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 determined its accounting policy to treat the taxes due on GILTI as a period cost. The Company is not subject to the BEAT provision due to the revenue thresholds. As of May 28, 2022, we have utilized all net deferred tax assets related to federal net operating loss (“NOL”) carryforwards, compared to $3.0 million as of May 29, 2021. Net deferred tax assets related to domestic state NOL carryforwards at May 28, 2022 amounted to approximately $2.4 million, compared to $3.9 million at May 29, 2021. Net deferred tax assets related to foreign NOL carryforwards as of May 28, 2022 totaled approximately $0.4 million with various or indefinite expiration dates. The amount of net deferred tax assets related to foreign NOL carryforwards was $0.4 million as of May 29, 2021. We also had a domestic net deferred tax asset of $1.8 million of foreign tax credit carryforwards as of both May 28, 2022 and May 29, 2021. We have historically determined that undistributed earnings of our foreign subsidiaries, to the extent of cash available, will be repatriated to the U.S. The deferred tax liability on the outside basis difference is now primarily withholding tax on future dividend distributions. The deferred tax liability related to undistributed earnings of our foreign subsidiaries was less than $0.1 million in both fiscal 2022 and fiscal 2021. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to support a more likely than not assertion that its deferred tax assets will be realized. A significant component of objective evidence evaluated was the cumulative income or loss incurred in each jurisdiction over the three-year period ended May 28, 2022. We considered other positive evidence in determining the need for a valuation allowance in the U.S. including the subpart F and GILTI inclusions of our foreign earnings, the changes in our business performance in recent years, and the utilization of federal NOLs. The weight of this positive evidence is sufficient to outweigh other negative evidence in evaluating our need for a valuation allowance in the U.S. federal jurisdiction. As a result of the positive evidence outweighing the negative evidence for the year ended May 28, 2022, we have released the full valuation allowance on the U.S. federal and state deferred tax items. In addition, we partially released the valuation allowance on the state NOL deferred tax item, based on the amount of the NOLs that management believes it is more likely than not to realize. We have maintained a full valuation allowance against the foreign tax credit deferred tax asset based on negative evidence relating to the Company’s ability to utilize the foreign tax credit carryforward in the future. As of May 28, 2022, a valuation allowance of $3.5 million was recorded, representing the portion of the deferred tax asset that management does not believe is more likely than not to be realized. The valuation allowance as of May 29, 2021 was $12.2 million. The remaining valuation allowance relates to foreign tax credits ($1.8 million), state NOLs ($0.2 million) and deferred tax assets in foreign jurisdictions where historical taxable losses have been incurred ($1.5 million). 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 Income taxes paid, including foreign estimated tax payments, were $1.5 million, $0.1 million and $1.0 million, during fiscal 2022, fiscal 2021 and fiscal 2020, respectively. In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2016 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 Germany for fiscal 2015 through fiscal 2018. This audit is expected to be closed in the first quarter of fiscal 2023. Our primary foreign tax jurisdictions are Germany and the Netherlands. We have tax years open in Germany beginning in fiscal 2019 and the Netherlands beginning in fiscal 2018. The uncertain tax positions as of both May 28, 2022 and May 29, 2021 were $0.1 million. We record penalties and interest related to uncertain tax positions in the income tax expense line item within the Consolidated Statements of Comprehensive Income (Loss). Accrued interest and penalties were included within the related tax liability line in the Consolidated Balance Sheets. We have not recorded a liability for interest and penalties as of May 28, 2022 or May 29, 2021. The following table summarizes the activity related to the unrecognized tax benefits (in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 Unrecognized tax benefits, beginning of period $ 142 $ 129 Currency translation adjustment (17 ) 13 Unrecognized tax benefits, end of period $ 125 $ 142 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
May 28, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Employee Benefit Plans | 8. EMPLOYEE BENEFIT PLANS The employee profit sharing plan is a defined contribution profit sharing plan. The profit sharing plan has a 401(k) provision whereby we match 50% of employee contributions up to 6.0% of pay. Previously, the Company matched contributions up to 4.0% of pay for fiscal 2021 and fiscal 2020. Charges to expense for matching contributions to this plan were $0.8 million, $0.6 million and $0.5 million, during fiscal 2022, fiscal 2021 and fiscal 2020, respectively. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
May 28, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 9. SEGMENT AND GEOGRAPHIC INFORMATION We have three operating and reportable segments. Starting with our first quarter earnings release in October for fiscal 2023, we will introduce our new Green Energy Solutions (“GES”) segment. This segment is carved out of our existing PMT segment as we continue to focus on power management applications that support the green energy market globally. Accordingly, in the first quarter of fiscal 2023, we will begin reporting on four segments. The reportable segments for fiscal 2022, fiscal 2021 and fiscal 2020 were: PMT, Canvys and Healthcare. Power and Microwave Technologies (“PMT”) combines our core engineered solutions capabilities, power grid and microwave tube business with new disruptive RF, Wireless and Power technologies. As a designer, manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. 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 5G, 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-One computers, 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, repairs, refurbishes and distributes high value replacement parts and equipment 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; pre-owned CT systems; 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 while lowering the cost of healthcare delivery. The CEO, who is the chief operating decision maker, 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 Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 PMT Net Sales $ 178,056 $ 137,280 $ 118,480 Gross Profit 58,041 45,951 38,288 Canvys Net Sales $ 35,187 $ 29,319 $ 28,926 Gross Profit 11,252 10,274 9,313 Healthcare Net Sales $ 11,377 $ 10,338 $ 8,492 Gross Profit 2,407 2,600 2,072 A reconciliation of assets to the relevant consolidated amount is as follows ( in thousands May 28, 2022 May 29, 2021 Segment assets $ 120,696 $ 100,638 Cash and cash equivalents 35,495 43,316 Investments - current 5,000 — Other current assets (1) 2,686 1,918 Net property, plant and equipment 9,435 9,300 Operating lease ROU asset 1,894 732 Financing lease ROU asset 215 308 Other assets - non-current deferred income taxes 4,398 541 Total assets $ 179,819 $ 156,753 (1) Other current assets include miscellaneous receivables and prepaid expenses. Assets are not disclosed by reportable segment as the Company does not track assets by reportable segment and certain assets are not specific to any reportable segment. Capital expenditures for our Healthcare segment during fiscal 2022 and fiscal 2021 were approximately $1.0 million and $1.7 million, respectively. In addition, we also had capital expenditures during fiscal 2022 and fiscal 2021 related to the Company’s ERP system as well as facilities that were not specific to any particular reportable segment. 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 Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Net Sales North America $ 98,527 $ 73,625 $ 65,259 Asia/Pacific 49,235 40,839 32,979 Europe 64,435 52,549 49,394 Latin America 12,439 9,651 8,308 Other (1) (16 ) 273 (42 ) Total $ 224,620 $ 176,937 $ 155,898 Gross Profit North America $ 36,548 $ 28,639 $ 24,494 Asia/Pacific 15,728 13,520 10,629 Europe 19,215 16,958 15,483 Latin America 4,340 3,405 2,804 Other (1) (4,131 ) (3,697 ) (3,737 ) Total $ 71,700 $ 58,825 $ 49,673 (1) Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add other unallocated expenses . During fiscal 2022, fiscal 2021 and fiscal 2020, no one customer accounted for more than 10 percent of the Company’s consolidated net sales. 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. Net assets by geographic region are summarized in the following table ( in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 Net Assets North America $ 90,979 $ 77,698 Asia/Pacific 11,514 10,547 Europe 30,873 31,289 Latin America 2,481 2,026 Total $ 135,847 $ 121,560 The Company had long-lived assets of $19.0 million as of May 28, 2022 and $19.3 million as of May 29, 2021. The long-lived assets, which include our fixed assets and intangibles, were primarily in the US. There were approximately $0.4 million of long-lived assets that belong to our foreign affiliates as of May 28, 2022 and $0.4 million as of May 29, 2021. The Company had depreciation and amortization expense of $3.4 million, $3.4 million and $3.4 million for fiscal 2022, fiscal 2021 and fiscal 2020, respectively. The depreciation and amortization, which includes our fixed assets and intangibles, were primarily in the US. Depreciation and amortization expense that belongs to our foreign affiliates was approximately $0.1 million for fiscal 2022, $0.3 million for fiscal 2021 and $0.3 million for fiscal 2020, respectively. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
May 28, 2022 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | 1 0 . RISKS AND UNCERTAINTIES Legal Settlement – Fiscal 2021 On April 2, 2021, as part of a settlement where the Company did not admit liability, Richardson agreed to pay Varex Imaging Corporation (“Varex”) $1.6 million to settle alleged counts of patent infringement and claims of trade secret misappropriation. This settlement was recorded in selling, general and administrative expenses within the Consolidated Statements of Comprehensive Income for the third quarter of fiscal 2021. COVID-19 Update The impact of the COVID-19 pandemic and its effects continue to evolve. As such, the full magnitude that the pandemic, and the steps taken to prevent, mitigate and/or respond to its spread, will have on the Company’s financial condition, liquidity and future results of operations is uncertain. The extent of the impact of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the duration and spread of the pandemic, the extent, speed and effectiveness of continued worldwide containment efforts, and other actions taken by governments, businesses and individuals in response to abatement and resurgence of the disease. Our ability to meet customer demands for products may be impaired or, similarly, our customers may experience adverse business consequences due to the continued impact of COVID-19 and its effects. Reduced demand for products or impaired ability to meet customer demand (including disruptions at our transportation service providers or vendors) could have a material adverse effect on our business, operations and financial performance. There were sales declines during fiscal year 2021, the majority of which were related to the COVID-19 global pandemic. While the Company did not experience sales declines during fiscal year 2022 as a result of the pandemic, the impacts from the pandemic negatively impacted our gross margins as a percentage of net sales in our Canvys and Healthcare segments. As a result of COVID-19 and its effects, we experienced some COVID-19 related component delays impacting new product development schedules. The global markets have generally suffered, and are continuing to suffer, from material disruptions in the supply chain. Management continues to monitor the global situation on its financial condition, liquidity, operations, suppliers, industry and workforce. Given the ever-evolving nature of the pandemic and the continued global responses to the ongoing impact of the pandemic as well the cycle of recurrences and the after-effects, the Company is not presently able to fully estimate the effects of COVID-19 on its results of operations, financial condition or liquidity going forward. Company Response to CARES Act On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security (“CARES”) Act to provide certain relief as a result of the COVID-19 outbreak. The CARES Act included provisions relating to refundable payroll tax credits, deferral of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, increased limitations on qualified charitable contributions and technical corrections to tax depreciation methods for qualified, improvement property. As of May 28, 2022, the Company deferred $0.4 million of employer-side social security tax payments, which will be made by December 31, 2022. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
May 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 1 1. FAIR VALUE MEASUREMENTS Investments measured at fair value as of May 28, 2022 and May 29, 2021 were as follows ( in thousands Level 1 Level 2 Level 3 May 28, 2022 CDs $ 5,000 $ — $ — Total $ 5,000 $ — $ — May 29, 2021 CDs $ — $ — $ — Total $ — $ — $ — |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
May 28, 2022 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 1 2. VALUATION AND QUALIFYING ACCOUNTS The following table presents the valuation and qualifying account activity for fiscal years ended May 28, 2022, May 29, 2021 and May 30, 2020, ( in thousands Description Balance at beginning of period Charged to expense Deductions Balance at end of period Year ended May 28, 2022 Allowance for doubtful accounts $ 202 $ 103 (1) $ (119 ) (2) $ 186 Inventory provisions 5,866 462 (3) (268 ) (4) 6,060 Year ended May 29, 2021 Allowance for doubtful accounts $ 334 $ 149 (1) $ (281 ) (2) $ 202 Inventory provisions 5,393 1,041 (3) (568 ) (4) 5,866 Year ended May 30, 2020 Allowance for doubtful accounts $ 339 $ 349 (1) $ (354 ) (2) $ 334 Inventory provisions 4,568 1,013 (3) (188 ) (4) 5,393 Notes: (1) Charges to bad debt expense. (2 ) Uncollectible amounts written off, net of recoveries and foreign currency translation. (3) Charges to cost of sales. Included in fiscal 2022 were inventory write-downs of $0.4 million for PMT (4 ) Inventory disposed or sold, net of foreign currency translation. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
May 28, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 1 3 . SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) ( in thousands, except per share amounts ): Description First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2022 Net sales $ 53,704 $ 53,979 $ 55,308 $ 61,629 Gross profit 16,297 17,657 17,569 20,177 Net income 2,635 4,122 2,887 8,283 Net income per share: Common stock - basic $ 0.20 $ 0.31 $ 0.22 $ 0.62 Class B common stock - basic 0.18 0.28 0.19 0.55 Common stock - diluted 0.20 0.30 0.21 0.59 Class B common stock - diluted 0.18 0.27 0.19 0.54 Fiscal 2021 Net sales $ 38,812 $ 42,418 $ 45,235 $ 50,472 Gross profit 12,359 14,343 15,766 16,357 Net (loss) income (1,147 ) 689 228 1,885 Net (loss) income per share: Common stock - basic $ (0.09 ) $ 0.05 $ 0.02 $ 0.14 Class B common stock - basic (0.08 ) 0.05 0.02 0.13 Common stock - diluted (0.09 ) 0.05 0.02 0.14 Class B common stock - diluted (0.08 ) 0.05 0.02 0.13 |
Significant Accounting Polici_2
Significant Accounting Policies and Disclosures (Policies) | 12 Months Ended |
May 28, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management continuously evaluates its critical accounting policies and estimates, including the allowance for doubtful accounts, revenue recognition, inventory obsolescence, intangible assets, loss contingencies and income taxes. Management bases the estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances, however, actual results could differ from those estimates. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments: The fair values of financial instruments are determined based on quoted market prices and market interest rates as of the end of the reporting period. Our financial instruments include investments, accounts receivable, accounts payable and accrued liabilities. The fair values of these financial instruments approximate carrying values at May 28, 2022 and May 29, 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents: We consider short-term, highly liquid investments that are readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and that have a maturity of three months or less, when purchased, to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents approximate the fair market value of these assets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: Our allowance for doubtful accounts includes estimated losses that result from uncollectible receivables. The estimates are influenced by the following: continuing credit evaluation of customers’ financial conditions; aging of receivables, individually and in the aggregate; a large number of customers which are widely dispersed across geographic areas; and collectability and delinquency history by geographic area. Significant changes in one or more of these considerations may require adjustments affecting net income and net carrying value of accounts receivable. The allowance for doubtful accounts was approximately $0.2 million as of May 28, 2022 and $0.2 million as of May 29, 2021. |
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. |
Revenue Recognition | Revenue Recognition: Our customers are generally not resellers, but rather businesses that incorporate our products into their processes from which they generate an economic benefit. The goods are also distinct in that each item sold to the customer is clearly identified on both the purchase order and resulting invoice. Each product we sell benefits the customer independently of the other products. Each item on each purchase order from the customer can be used by the customer unrelated to any other products we provide to the customer. The Company’s revenue includes the following streams: • Distribution • Manufacturing/assembly • Services revenue Distribution typically includes products purchased from our suppliers, stocked in our warehouses and then sold to our customers. The distribution business does not include a separate service bundled with the product sold or sold on top of the product. Revenue is recognized when control of the promised goods is transferred to our customers, which is simultaneous with the title transferring 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 enerally, our contracts require our customers to pay for goods after we deliver products to them. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America subject to customary credit checks. Manufacturing/assembly typically includes the products that are manufactured or assembled in our manufacturing facility. These products can either be built to the customer’s prints/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 in addition to the product. Our contracts for customized products generally include termination provisions if a customer cancels its order. However, we recognize revenue at a point in time because the termination provisions normally do not require, upon cancelation, the customer to pay fees that are commensurate with the work performed. Each purchase order explicitly states the goods or service that we promise to transfer to the customer. The promises to the customer are limited only to those goods or service. The performance obligation is our promise to deliver both goods that were produced by the Company and resale of goods that we purchase from our suppliers. Our shipping and handling activities for destination shipments are performed prior to the customer obtaining control. As such, they are not a separate promised service. The Company elects to account for shipping and handling as activities to fulfill the promise to transfer the goods. The goods we provide to our customers are distinct in that our customers benefit from the goods we sell them through use in their own processes. Repair, installation or training activities generate services revenue. The services we provide are relatively short in duration and typically completed in one or two weeks. Therefore, at each reporting date, the amount of unbilled work 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. We record discounts taken based on historical experience. The policy varies by business unit. The Company allows returns with prior written authorization. . The Company maintains a reserve for returns based on historical trends that covers all contracts and revenue streams using the expected value method because we have a large number of contracts with similar characteristics, which is considered variable consideration. The reserve for returns creates a refund liability on our balance sheet as a contra Trade Accounts Receivable as well as an asset in inventory. We value the inventory at cost due to there being minimal or no costs to the Company as we generally require the customer to pay freight and we typically do not have costs associated with activities such as relabeling or repackaging. The reserve is considered immaterial at each balance sheet date. Returns for defective product are typically covered by our suppliers’ warranty, thus, returns for defective product are not factored into our reserve. Principal versus agent guidance was considered for customized products that are provided by our suppliers versus manufactured by the Company. The Company 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. Contracts with customers A revenue contract exists once a customer purchase order is received, reviewed and accepted. 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. Prior to accepting a customer purchase order, we review the credit worthiness of the customer. Purchase orders are deemed to meet the collectability criterion once the customer’s credit is approved. Contract Liabilities: Contract liabilities and revenue recognized were as follows ( in thousands ): May 29, 2021 Additions Revenue Recognized May 28, 2022 Contract liabilities (deferred revenue) $ 3,313 $ 6,917 $ (5,264 ) $ 4,966 See Note 9, Segment and Geographic Information, |
Foreign Currency Translation | Foreign Currency Translation: The functional currency is the local currency at all foreign locations, with the exception of Hong Kong, where the functional currency is the U.S. dollar. Balance sheet items for our foreign entities, included in our consolidated balance sheets, are translated into U.S. dollars at end-of-period spot rates. Gains and losses resulting from translation of foreign subsidiary financial statements are credited or charged directly to accumulated other comprehensive income, a component of stockholders’ equity. Revenues and expenses are translated at the current rate on the date of the transaction. Gains and losses resulting from foreign currency transactions are included in income. Foreign exchange (gain) loss reflected in our consolidated statements of comprehensive income (loss) were $0.3 million loss during fiscal 2022, a $0.8 million loss during fiscal 2021 and a small gain during fiscal 2020. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs: Shipping and handling costs billed to customers are reported as revenue and the related costs are reported as a component of cost of sales. |
Inventories, net | Inventories, net: Our consolidated inventories are stated at the lower of cost and net realizable value, generally using a weighted-average cost method. Our net inventories include approximately $66.6 million of finished goods, $8.0 million of raw materials and $5.8 million of work-in-progress as of May 28, 2022 as compared to approximately $57.0 million of finished goods, $3.9 million of raw materials and $2.6 million of work-in-progress as of May 29, 2021. The inventory reserve as of May 28, 2022 was $6.1 million compared to $5.9 million as of May 29, 2021. 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. We recorded provisions to our inventory reserves of $0.5 million, $1.0 million and $1.0 million during fiscal 2022, fiscal 2021 and fiscal 2020, respectively, which were included in cost of sales. The provisions were primarily for obsolete and slow-moving parts. The parts were written down to estimated realizable value. |
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. |
Investments | Investments: As of May 28, 2022, we had $5.0 million invested in a Certificate of Deposit (CD), which will mature in less than twelve months. As of May 29, 2021, we had no investments, as we liquidated our investments in the fourth quarter of fiscal 2021. |
Intangible Assets | Intangible Assets: Intangible assets are initially recorded at their fair market values determined by 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 the acquisitions. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of accumulated depreciation. Improvements and replacements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. Provisions for depreciation are computed using the straight-line method over the estimated useful life of the asset. Depreciation expense was approximately $3.2 million, $3.2 million and $3.1 million during fiscal 2022, fiscal 2021 and fiscal 2020, respectively. Property, plant and equipment consist of the following ( in thousands May 28, 2022 May 29, 2021 Land and improvements $ 1,385 $ 1,385 Buildings and improvements 23,002 22,837 Computer, communications equipment and software 11,186 11,029 Machinery and other equipment 16,215 14,930 Construction in progress 1,991 1,429 53,779 51,610 Accumulated depreciation (36,818 ) (34,543 ) Property, plant, and equipment, net $ 16,961 $ 17,067 Construction in progress at May 28, 2022 includes $1.0 million for manufacturing facilities, $0.5 million for Healthcare initiatives and $0.3 million for IT systems. All projects are expected to be completed before the end of fiscal 2023. Supplemental disclosure information of the estimated useful life of the assets: Land improvements 10 years Buildings and improvements 10 - 30 years Computer, communications equipment and software 3 - 10 years Machinery and other equipment 3 - 20 years We review property and equipment, definite-lived intangible assets and other long-lived assets for impairment whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If adverse events do occur, our impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of our assets and liabilities. This analysis requires management judgment with respect to changes in technology, the continued success of product lines and future volume, revenue and expense growth rates. We conduct annual reviews for idle and underutilized equipment and review business plans for possible impairment. Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset or asset group. When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value. Additionally, we also evaluate the remaining useful life of each reporting period to determine whether events and circumstances warrant a revision to the remaining period of depreciation or amortization. If the estimate of a long-lived asset’s remaining useful life is changed, the remaining carrying amount of the asset is amortized prospectively over that revised remaining useful life. |
Accrued Liabilities | Accrued Liabilities: Accrued liabilities consist of the following ( in thousands ): May 28, 2022 May 29, 2021 Compensation and payroll taxes $ 5,519 $ 4,945 Accrued severance 678 685 Professional fees 470 533 Deferred revenue 4,966 3,313 Other accrued expenses 4,477 4,706 Accrued Liabilities $ 16,110 $ 14,182 |
Warranties | Warranties: We offer warranties for the limited number of specific products we manufacture. 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 income (loss). 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 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. Changes in the warranty reserve during fiscal 2022 and fiscal 2021 were as follows ( in thousands Warranty Reserve Balance at May 30, 2020 $ 466 Accruals for products sold 121 Utilization (39 ) Balance at May 29, 2021 $ 548 Accruals for products sold 160 Utilization (32 ) Balance at May 28, 2022 $ 676 |
Other Non-Current Liabilities | Other Non-Current Liabilities: Other non-current liabilities of $0.8 million at May 28, 2022 and $1.4 million at May 29, 2021, primarily represent employee-benefits obligations in various non-US locations. |
Share-Based Compensation | Share-Based Compensation: We measure and recognize share-based compensation cost at fair value for all share-based payments, including stock options and restricted stock awards. We estimate fair value using the Black-Scholes option-pricing model, which requires assumptions such as expected volatility, risk-free interest rate, expected life and dividends. Compensation cost is recognized using a graded vesting schedule over the applicable vesting period. Share-based compensation expense totaled approximately $0.7 million during fiscal 2022, $0.7 million during fiscal 2021 and $0.7 million during fiscal 2020. Stock options granted generally vest over a period of five years and have contractual terms to exercise of 10 years. A summary of stock option activity is as follows ( in thousands, except option prices and years): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options Outstanding at June 1, 2019 1,364 $ 9.08 Granted 187 5.61 Exercised (10 ) 5.67 Cancelled (114 ) 6.87 Options Outstanding at May 30, 2020 1,427 $ 8.83 Granted 188 4.26 Exercised (49 ) 5.93 Forfeited (7 ) 5.96 Cancelled (104 ) 12.53 Options Outstanding at May 29, 2021 1,455 $ 8.08 Granted 185 7.66 Exercised (373 ) 8.01 Forfeited (35 ) 6.51 Cancelled (84 ) 11.65 Options Outstanding at May 28, 2022 1,148 $ 7.82 5.7 $ 7,082 Options Vested at May 28, 2022 676 $ 8.73 4.1 $ 3,551 (1) Includes only those options that were in-the-money as of May 28, 2022. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. There were 373,489 stock options exercised during fiscal 2022, with cash received of $3.0 million. The total intrinsic value of options exercised was $1.9 million during fiscal 2022, $0.1 million for fiscal 2021 and less than $0.1 million for fiscal 2020. The weighted average fair value of stock option grants was $1.50 during fiscal 2022, $0.49 during fiscal 2021 and $0.81 during fiscal 2020. As of May 28, 2022, total unrecognized compensation costs related to unvested stock options and restricted stock awards was approximately $0.9 million, which is expected to be recognized over the remaining weighted average period of approximately two to four years. The total grant date fair value of stock options vested during fiscal 2022 was $0.2 million. The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Expected volatility 29.00 % 27.72 % 24.48 % Risk-free interest rate 0.97 % 0.45 % 1.91 % Expected lives (years) 6.50 6.50 6.50 Annual cash dividend $ 0.24 $ 0.24 $ 0.24 The expected volatility assumptions are based on historical experience commensurate with the expected term. The risk-free interest rate is based on the yield of a treasury note with a remaining term equal to the expected life of the stock option. The expected stock option life assumption is based on the Securities and Exchange Commission’s (“SEC”) guidance in Staff Accounting Bulletin (“SAB”) No. 107 (“SAB No. 107”). For stock options granted during fiscal 2022, fiscal 2021 and fiscal 2020, we believe that our historical stock option experience does not provide a reasonable basis upon which to estimate expected term. The following table summarizes information about stock options outstanding at May 28, 2022 ( in thousands, except option prices and years Outstanding Vested Exercise Price Range Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value $4.26 to $6.47 389 $ 5.11 7.2 $ 3,455 152 $ 5.38 6.6 $ 1,310 $6.90 to $10.01 573 8.44 6.2 3,178 338 8.68 4.8 1,792 $11.14 to $13.76 186 11.57 0.9 449 186 11.57 0.9 449 Total 1,148 $ 7.82 5.7 $ 7,082 676 $ 8.73 4.1 $ 3,551 As of May 28, 2022 a summary of restricted stock award transactions was as follows ( in thousands Unvested Restricted Shares Unvested at May 30, 2020 142 Granted 73 Vested (71 ) Unvested at May 29, 2021 144 Granted 72 Vested (71 ) Unvested at May 28, 2022 145 Compensation effects arising from issuing stock awards have been charged against income and recorded as additional paid-in-capital in the consolidated statements of stockholders’ equity during fiscal 2022, fiscal 2021 and fiscal 2020. The Employees’ Amended and Restated 2011 Long-Term Incentive Compensation Plan (the “Plan”) authorizes the issuance of up to 3,500,000 shares as incentive stock options, non-qualified stock options or stock awards. Under this plan, 1,302,000 shares are reserved for future issuance. The Plan authorizes the granting of stock options at the fair market value at the date of grant. Generally, these options become exercisable over five years and expire up to 10 years from the date of grant. Restricted stock awards vest on the anniversary of the grant date in three equal installments. |
Earnings per Share | 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. Our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends. The earnings per share (“EPS”) presented in our consolidated statements of comprehensive income (loss) are based on the following ( in thousands, except per share amounts For the Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Basic Diluted Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: Net income (loss) $ 17,927 $ 17,927 $ 1,655 $ 1,655 $ (1,838 ) $ (1,838 ) Less dividends: Common stock 2,745 2,745 2,669 2,669 2,648 2,648 Class B common stock 448 448 453 453 453 453 Undistributed earnings (loss) $ 14,734 $ 14,734 $ (1,467 ) $ (1,467 ) $ (4,939 ) $ (4,939 ) Common stock undistributed earnings (loss) $ 12,655 $ 12,720 $ (1,254 ) $ (1,255 ) $ (4,217 ) $ (4,217 ) Class B common stock undistributed earnings (loss) 2,079 2,014 (213 ) (212 ) (722 ) (722 ) Total undistributed earnings (loss) $ 14,734 $ 14,734 $ (1,467 ) $ (1,467 ) $ (4,939 ) $ (4,939 ) Denominator for Basic and Diluted EPS: Common stock weighted average shares 11,395 11,395 11,105 11,105 11,026 11,026 Effect of dilutive securities Dilutive stock options 430 59 — Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 11,825 11,164 11,026 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,080 2,080 2,097 2,097 2,097 2,097 Net income (loss) per share: Common stock $ 1.35 $ 1.31 $ 0.13 $ 0.13 $ (0.14 ) $ (0.14 ) Class B common stock $ 1.21 $ 1.18 $ 0.11 $ 0.11 $ (0.13 ) $ (0.13 ) Note : There were no |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 (as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and 2020-02) introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. The new standard is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. |
Significant Accounting Polici_3
Significant Accounting Policies and Disclosures (Tables) | 12 Months Ended |
May 28, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Contract Liabilities and Revenue Recognized | Contract Liabilities: Contract liabilities and revenue recognized were as follows ( in thousands ): May 29, 2021 Additions Revenue Recognized May 28, 2022 Contract liabilities (deferred revenue) $ 3,313 $ 6,917 $ (5,264 ) $ 4,966 |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following ( in thousands May 28, 2022 May 29, 2021 Land and improvements $ 1,385 $ 1,385 Buildings and improvements 23,002 22,837 Computer, communications equipment and software 11,186 11,029 Machinery and other equipment 16,215 14,930 Construction in progress 1,991 1,429 53,779 51,610 Accumulated depreciation (36,818 ) (34,543 ) Property, plant, and equipment, net $ 16,961 $ 17,067 |
Schedule of Property Plant and Equipment Estimated Useful Lives | Supplemental disclosure information of the estimated useful life of the assets: Land improvements 10 years Buildings and improvements 10 - 30 years Computer, communications equipment and software 3 - 10 years Machinery and other equipment 3 - 20 years |
Schedule of Accrued Liabilities | Accrued Liabilities: Accrued liabilities consist of the following ( in thousands ): May 28, 2022 May 29, 2021 Compensation and payroll taxes $ 5,519 $ 4,945 Accrued severance 678 685 Professional fees 470 533 Deferred revenue 4,966 3,313 Other accrued expenses 4,477 4,706 Accrued Liabilities $ 16,110 $ 14,182 |
Schedule of Warranty Reserve | Changes in the warranty reserve during fiscal 2022 and fiscal 2021 were as follows ( in thousands Warranty Reserve Balance at May 30, 2020 $ 466 Accruals for products sold 121 Utilization (39 ) Balance at May 29, 2021 $ 548 Accruals for products sold 160 Utilization (32 ) Balance at May 28, 2022 $ 676 |
Schedule of Share-Based Compensation, Stock Options, Activity | A summary of stock option activity is as follows ( in thousands, except option prices and years): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options Outstanding at June 1, 2019 1,364 $ 9.08 Granted 187 5.61 Exercised (10 ) 5.67 Cancelled (114 ) 6.87 Options Outstanding at May 30, 2020 1,427 $ 8.83 Granted 188 4.26 Exercised (49 ) 5.93 Forfeited (7 ) 5.96 Cancelled (104 ) 12.53 Options Outstanding at May 29, 2021 1,455 $ 8.08 Granted 185 7.66 Exercised (373 ) 8.01 Forfeited (35 ) 6.51 Cancelled (84 ) 11.65 Options Outstanding at May 28, 2022 1,148 $ 7.82 5.7 $ 7,082 Options Vested at May 28, 2022 676 $ 8.73 4.1 $ 3,551 (1) Includes only those options that were in-the-money as of May 28, 2022. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Expected volatility 29.00 % 27.72 % 24.48 % Risk-free interest rate 0.97 % 0.45 % 1.91 % Expected lives (years) 6.50 6.50 6.50 Annual cash dividend $ 0.24 $ 0.24 $ 0.24 |
Schedule of Share-Based Compensation, Shares Outstanding Under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding at May 28, 2022 ( in thousands, except option prices and years Outstanding Vested Exercise Price Range Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value Shares Weighted Average Exercise Price Weighted Average Life Aggregate Intrinsic Value $4.26 to $6.47 389 $ 5.11 7.2 $ 3,455 152 $ 5.38 6.6 $ 1,310 $6.90 to $10.01 573 8.44 6.2 3,178 338 8.68 4.8 1,792 $11.14 to $13.76 186 11.57 0.9 449 186 11.57 0.9 449 Total 1,148 $ 7.82 5.7 $ 7,082 676 $ 8.73 4.1 $ 3,551 |
Schedule of Restricted Stock Award Transactions | As of May 28, 2022 a summary of restricted stock award transactions was as follows ( in thousands Unvested Restricted Shares Unvested at May 30, 2020 142 Granted 73 Vested (71 ) Unvested at May 29, 2021 144 Granted 72 Vested (71 ) Unvested at May 28, 2022 145 |
Schedule of Earnings Per Share, Basic and Diluted | The earnings per share (“EPS”) presented in our consolidated statements of comprehensive income (loss) are based on the following ( in thousands, except per share amounts For the Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Basic Diluted Basic Diluted Basic Diluted Numerator for Basic and Diluted EPS: Net income (loss) $ 17,927 $ 17,927 $ 1,655 $ 1,655 $ (1,838 ) $ (1,838 ) Less dividends: Common stock 2,745 2,745 2,669 2,669 2,648 2,648 Class B common stock 448 448 453 453 453 453 Undistributed earnings (loss) $ 14,734 $ 14,734 $ (1,467 ) $ (1,467 ) $ (4,939 ) $ (4,939 ) Common stock undistributed earnings (loss) $ 12,655 $ 12,720 $ (1,254 ) $ (1,255 ) $ (4,217 ) $ (4,217 ) Class B common stock undistributed earnings (loss) 2,079 2,014 (213 ) (212 ) (722 ) (722 ) Total undistributed earnings (loss) $ 14,734 $ 14,734 $ (1,467 ) $ (1,467 ) $ (4,939 ) $ (4,939 ) Denominator for Basic and Diluted EPS: Common stock weighted average shares 11,395 11,395 11,105 11,105 11,026 11,026 Effect of dilutive securities Dilutive stock options 430 59 — Denominator for diluted EPS adjusted for weighted average shares and assumed conversions 11,825 11,164 11,026 Class B common stock weighted average shares, and shares under if-converted method for diluted EPS 2,080 2,080 2,097 2,097 2,097 2,097 Net income (loss) per share: Common stock $ 1.35 $ 1.31 $ 0.13 $ 0.13 $ (0.14 ) $ (0.14 ) Class B common stock $ 1.21 $ 1.18 $ 0.11 $ 0.11 $ (0.13 ) $ (0.13 ) Note : There were no |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
May 28, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Intangible assets subject to amortization were as follows (in thousands) May 28, 2022 May 29, 2021 Gross Amounts: Trade Name $ 659 $ 659 Customer Relationships (1) 3,393 3,426 Non-compete Agreements 177 177 Technology 230 230 Total Gross Amounts $ 4,459 $ 4,492 Accumulated Amortization: Trade Name $ 659 $ 659 Customer Relationships 1,453 1,249 Non-compete Agreements 177 177 Technology 160 137 Total Accumulated Amortization $ 2,449 $ 2,222 Net Intangible Assets $ 2,010 $ 2,270 (1) Change from prior periods reflect impact of foreign currency translation. |
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 2023 $ 245 2024 232 2025 219 2026 185 2027 173 Thereafter 956 Total amortization expense $ 2,010 |
Lease Obligations and Other C_2
Lease Obligations and Other Commitments (Tables) | 12 Months Ended |
May 28, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Gross Amount Assets and Liabilities Related to Operating and Financing Leases | The gross amounts of assets and liabilities related to both operating and financing leases at May 28, 2022 and May 29, 2021 were as follows (in thousands) : Lease Type May 28, 2022 May 29, 2021 Operating lease ROU asset $ 3,024 $ 2,262 Financing lease ROU asset 215 308 Total Lease ROU asset $ 3,239 $ 2,570 Operating lease liability current $ 1,109 $ 918 Financing lease liability current — 148 Total lease liability current $ 1,109 $ 1,066 Operating lease liability non-current $ 1,915 $ 1,358 Financing lease liability non-current — — Total lease liability non-current $ 1,915 $ 1,358 |
Components of Lease Costs | The components of lease costs for fiscal 2022 and fiscal 2021 were as follows (in thousands) : Lease Type Classification Fiscal Year Ended May 28, 2022 Fiscal Year Ended May 29, 2021 Consolidated operating lease expense Operating expenses $ 1,781 $ 1,939 Consolidated financing lease amortization Operating expenses 92 92 Consolidated financing lease interest Interest expense 3 11 Consolidated financing lease expense 95 103 Net lease cost $ 1,876 $ 2,042 |
Schedule of Future Minimum Lease Payments under Operating and Financing Leases | 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 Operating Leases 2023 $ 1,244 2024 872 2025 610 2026 388 2027 75 Thereafter 17 Total lease payments 3,206 Less imputed interest 182 Net minimum lease payments $ 3,024 |
Schedule of Weighted Average Remaining Lease Terms and Interest Rates of Leases | The weighted average remaining lease terms and interest rates of leases held by the Company as of May 28, 2022 were as follows: Lease Type Weighted Average Remaining Lease Term in Years Weighted Average Interest Rate Operating leases 3.2 4.4% |
Schedule of Cash Outflows of Leasing Activity | The cash outflows of the leasing activity of the Company as lessee for fiscal 2022 and fiscal 2021 were as follows (in thousands) : Fiscal Year Ended Cash Flow Source Classification May 28, 2022 May 29, 2021 Operating cash flows from operating leases Operating activities $ 747 $ 831 Operating cash flows from financing leases Operating activities 148 170 Finance cash flows from financing leases Financing activities 151 181 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Tax, Domestic and Foreign | Income (loss) before income taxes included the following components ( in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 United States $ 12,299 $ 1,077 $ (3,716 ) Foreign 3,460 1,231 2,502 Income (loss) before income taxes $ 15,759 $ 2,308 $ (1,214 ) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes for fiscal 2022, fiscal 2021 and fiscal 2020 consisted of the following ( in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Current: Federal $ (4,213 ) $ 108 $ — State 950 — — Foreign 1,038 665 616 Total current (2,225 ) 773 616 Deferred: Federal — — (88 ) Foreign 57 (120 ) 96 Total deferred 57 (120 ) 8 Income tax (benefit) provision $ (2,168 ) $ 653 $ 624 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for fiscal 2022, fiscal 2021 and fiscal 2020 and the reported income tax provision for fiscal 2022, fiscal 2021 and fiscal 2020, are summarized as follows: Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: State income taxes, net of federal tax benefit 5.5 21.6 6.6 Foreign taxes at other rates 4.5 10.5 (15.3 ) Permanent tax differences (2.0 ) 18.3 (41.1 ) Change in valuation allowance for deferred tax assets (43.1 ) (49.7 ) (29.8 ) Return to provision adjustments 0.2 2.2 1.4 Other 0.2 4.4 5.8 Effective tax rate (13.7 )% 28.3 % (51.4 )% |
Schedule of Deferred Tax Assets and Liabilities | Fiscal Year Ended May 28, 2022 May 29, 2021 Deferred tax assets: NOL carryforwards - foreign and domestic $ 2,796 $ 7,362 Inventory valuations 1,571 1,501 Goodwill 1,182 1,286 Foreign tax credits 1,782 1,782 Severance reserve 183 185 Foreign capital loss 1,224 1,261 Other 1,480 1,469 Subtotal 10,218 14,846 Valuation allowance - foreign and domestic (3,474 ) (12,225 ) Net deferred tax assets after valuation allowance 6,744 2,621 Deferred tax liabilities: Accelerated depreciation (2,406 ) (2,279 ) Tax on undistributed earnings (24 ) (24 ) Other (1 ) 18 Subtotal (2,431 ) (2,285 ) Net deferred tax assets $ 4,313 $ 336 Supplemental disclosure of net deferred tax assets, excluding valuation allowance: Domestic $ 6,017 $ 10,653 Foreign 1,770 1,913 Total $ 7,787 $ 12,566 On December 22, 2017, the U.S. government enacted new tax legislation, Tax Cuts and Jobs Act (the “Act”). The Company was subject to requirements of the Act beginning in fiscal 2019. Provisions include an income inclusion for 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 determined its accounting policy to treat the taxes due on GILTI as a period cost. The Company is not subject to the BEAT provision due to the revenue thresholds. |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits (in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 Unrecognized tax benefits, beginning of period $ 142 $ 129 Currency translation adjustment (17 ) 13 Unrecognized tax benefits, end of period $ 125 $ 142 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
May 28, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | Operating results by segment are summarized in the following table ( in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 PMT Net Sales $ 178,056 $ 137,280 $ 118,480 Gross Profit 58,041 45,951 38,288 Canvys Net Sales $ 35,187 $ 29,319 $ 28,926 Gross Profit 11,252 10,274 9,313 Healthcare Net Sales $ 11,377 $ 10,338 $ 8,492 Gross Profit 2,407 2,600 2,072 |
Schedule of Reconciliation of Assets from Segment to Consolidated | A reconciliation of assets to the relevant consolidated amount is as follows ( in thousands May 28, 2022 May 29, 2021 Segment assets $ 120,696 $ 100,638 Cash and cash equivalents 35,495 43,316 Investments - current 5,000 — Other current assets (1) 2,686 1,918 Net property, plant and equipment 9,435 9,300 Operating lease ROU asset 1,894 732 Financing lease ROU asset 215 308 Other assets - non-current deferred income taxes 4,398 541 Total assets $ 179,819 $ 156,753 (1) Other current assets include miscellaneous receivables and prepaid expenses. |
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 Fiscal Year Ended May 28, 2022 May 29, 2021 May 30, 2020 Net Sales North America $ 98,527 $ 73,625 $ 65,259 Asia/Pacific 49,235 40,839 32,979 Europe 64,435 52,549 49,394 Latin America 12,439 9,651 8,308 Other (1) (16 ) 273 (42 ) Total $ 224,620 $ 176,937 $ 155,898 Gross Profit North America $ 36,548 $ 28,639 $ 24,494 Asia/Pacific 15,728 13,520 10,629 Europe 19,215 16,958 15,483 Latin America 4,340 3,405 2,804 Other (1) (4,131 ) (3,697 ) (3,737 ) Total $ 71,700 $ 58,825 $ 49,673 (1) Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add other unallocated expenses . |
Schedule of Net Assets by Geographic Region | Net assets by geographic region are summarized in the following table ( in thousands Fiscal Year Ended May 28, 2022 May 29, 2021 Net Assets North America $ 90,979 $ 77,698 Asia/Pacific 11,514 10,547 Europe 30,873 31,289 Latin America 2,481 2,026 Total $ 135,847 $ 121,560 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Investments Measured at Fair Value | Investments measured at fair value as of May 28, 2022 and May 29, 2021 were as follows ( in thousands Level 1 Level 2 Level 3 May 28, 2022 CDs $ 5,000 $ — $ — Total $ 5,000 $ — $ — May 29, 2021 CDs $ — $ — $ — Total $ — $ — $ — |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
May 28, 2022 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | The following table presents the valuation and qualifying account activity for fiscal years ended May 28, 2022, May 29, 2021 and May 30, 2020, ( in thousands Description Balance at beginning of period Charged to expense Deductions Balance at end of period Year ended May 28, 2022 Allowance for doubtful accounts $ 202 $ 103 (1) $ (119 ) (2) $ 186 Inventory provisions 5,866 462 (3) (268 ) (4) 6,060 Year ended May 29, 2021 Allowance for doubtful accounts $ 334 $ 149 (1) $ (281 ) (2) $ 202 Inventory provisions 5,393 1,041 (3) (568 ) (4) 5,866 Year ended May 30, 2020 Allowance for doubtful accounts $ 339 $ 349 (1) $ (354 ) (2) $ 334 Inventory provisions 4,568 1,013 (3) (188 ) (4) 5,393 Notes: (1) Charges to bad debt expense. (2 ) Uncollectible amounts written off, net of recoveries and foreign currency translation. (3) Charges to cost of sales. Included in fiscal 2022 were inventory write-downs of $0.4 million for PMT (4 ) Inventory disposed or sold, net of foreign currency translation. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
May 28, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Description First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2022 Net sales $ 53,704 $ 53,979 $ 55,308 $ 61,629 Gross profit 16,297 17,657 17,569 20,177 Net income 2,635 4,122 2,887 8,283 Net income per share: Common stock - basic $ 0.20 $ 0.31 $ 0.22 $ 0.62 Class B common stock - basic 0.18 0.28 0.19 0.55 Common stock - diluted 0.20 0.30 0.21 0.59 Class B common stock - diluted 0.18 0.27 0.19 0.54 Fiscal 2021 Net sales $ 38,812 $ 42,418 $ 45,235 $ 50,472 Gross profit 12,359 14,343 15,766 16,357 Net (loss) income (1,147 ) 689 228 1,885 Net (loss) income per share: Common stock - basic $ (0.09 ) $ 0.05 $ 0.02 $ 0.14 Class B common stock - basic (0.08 ) 0.05 0.02 0.13 Common stock - diluted (0.09 ) 0.05 0.02 0.14 Class B common stock - diluted (0.08 ) 0.05 0.02 0.13 |
Description of the Company - Ad
Description of the Company - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
May 28, 2022 USD ($) Segment | May 29, 2021 USD ($) | May 30, 2020 | |
Concentration Risk [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Number of reportable segments | Segment | 3 | ||
Supplier concentration accounts payable | $ | $ 23,987 | $ 16,979 | |
Product Concentration | Minimum | Sales | |||
Concentration Risk [Line Items] | |||
Percentage of products manufactured | 60% | ||
Customer Concentration | Maximum | Sales | |||
Concentration Risk [Line Items] | |||
Percentage of products manufactured | 10% | 10% | 10% |
Customer Concentration | Maximum | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Percentage of products manufactured | 10% | 10% | |
Supplier Concentration | |||
Concentration Risk [Line Items] | |||
Supplier concentration accounts payable | $ | $ 1,400 | $ 2,100 | |
Supplier Concentration | Cost of Sales | Customer | |||
Concentration Risk [Line Items] | |||
Percentage of products manufactured | 11% | 15% | 16% |
Significant Accounting Polici_4
Significant Accounting Policies and Disclosures - Additional Information (Details) | 12 Months Ended | ||
May 28, 2022 USD ($) Number $ / shares shares | May 29, 2021 USD ($) $ / shares shares | May 30, 2020 USD ($) $ / shares shares | |
Allowance for doubtful accounts | $ 186,000 | $ 202,000 | |
Foreign exchange (gain) loss | 273,000 | 759,000 | $ (15,000) |
Finished goods | 66,600,000 | 57,000,000 | |
Raw material | 8,000,000 | 3,900,000 | |
Work in progress | 5,800,000 | 2,600,000 | |
Inventory valuation reserves | 6,100,000 | 5,900,000 | |
Inventory provisions | 462,000 | 1,041,000 | 1,013,000 |
Investments - current | 5,000,000 | 0 | |
Depreciation | 3,200,000 | 3,200,000 | 3,100,000 |
Construction in progress | 1,991,000 | 1,429,000 | |
Other non-current liabilities | 766,000 | 1,366,000 | |
Share-based compensation expense | $ 654,000 | 675,000 | $ 683,000 |
Stock option vesting period | 5 years | ||
Option terms to exercise | 10 years | ||
Exercised | shares | 373,489 | ||
Proceeds from share exercised | $ 3,000,000 | ||
Intrinsic value | $ 1,900,000 | $ 100,000 | |
Weighted average fair value of stock option grants | $ / shares | $ 1.50 | $ 0.49 | $ 0.81 |
Total unrecognized compensation costs | $ 900,000 | ||
Total grant date fair value stock options vested | $ 200,000 | ||
Limit of cash dividends Class B common stock (percent) | 90% | ||
Common stock options anti-dilutive | shares | 0 | 0 | 1,120,000 |
Common Stock | |||
Common stock shares, authorized | shares | 17,000,000 | ||
Common Class B | |||
Common stock shares, authorized | shares | 3,000,000 | ||
Number of votes per share | Number | 10 | ||
Employees' 2011 Long-Term Incentive Compensation Plan | |||
Number of shares authorized | shares | 3,500,000 | ||
Number of shares for future issuance | shares | 1,302,000 | ||
Option exercisable period | 5 years | ||
Manufacturing Facilities | |||
Construction in progress | $ 1,000,000 | ||
Healthcare | |||
Construction in progress | 500,000 | ||
IT systems | |||
Construction in progress | $ 300,000 | ||
Maximum | |||
Services revenue recognized as percentage of aggregate revenue | 5% | ||
Intrinsic value | $ 100,000 | ||
Period of recognition | 4 years | ||
Maximum | Employees' 2011 Long-Term Incentive Compensation Plan | |||
Option terms to exercise | 10 years | ||
Minimum | |||
Period of recognition | 2 years |
Significant Accounting Polici_5
Significant Accounting Policies and Disclosures - Schedule of Contract Liabilities and Revenue Recognized (Details) $ in Thousands | 12 Months Ended |
May 28, 2022 USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract Liabilities (Deferred Revenue), Beginning Balance | $ 3,313 |
Contract Liabilities (Deferred Revenue), Additions | 6,917 |
Contract Liabilities (Deferred Revenue), Revenue Recognized | (5,264) |
Contract Liabilities (Deferred Revenue), Ending Balance | $ 4,966 |
Significant Accounting Polici_6
Significant Accounting Policies and Disclosures - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | May 28, 2022 | May 29, 2021 |
Accounting Policies [Abstract] | ||
Land and improvements | $ 1,385 | $ 1,385 |
Buildings and improvements | 23,002 | 22,837 |
Computer, communications equipment and software | 11,186 | 11,029 |
Machinery and other equipment | 16,215 | 14,930 |
Construction in progress | 1,991 | 1,429 |
Property, plant and equipment, gross | 53,779 | 51,610 |
Accumulated depreciation | (36,818) | (34,543) |
Property, plant, and equipment, net | $ 16,961 | $ 17,067 |
Significant Accounting Polici_7
Significant Accounting Policies and Disclosures - Schedule of Property Plant and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
May 28, 2022 | |
Land Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 10 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 30 years |
Computer, Communications Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 3 years |
Computer, Communications Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 10 years |
Machinery and Other Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 3 years |
Machinery and Other Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of the assets | 20 years |
Significant Accounting Polici_8
Significant Accounting Policies and Disclosures - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | May 28, 2022 | May 29, 2021 |
Accrued Liabilities: | ||
Compensation and payroll taxes | $ 5,519 | $ 4,945 |
Accrued severance | 678 | 685 |
Professional fees | 470 | 533 |
Deferred revenue | 4,966 | 3,313 |
Other accrued expenses | 4,477 | 4,706 |
Accrued Liabilities | $ 16,110 | $ 14,182 |
Significant Accounting Polici_9
Significant Accounting Policies and Disclosures - Schedule of Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 28, 2022 | May 29, 2021 | |
Accounting Policies [Abstract] | ||
Warranty reserve, beginning | $ 548 | $ 466 |
Accruals for products sold | 160 | 121 |
Utilization | (32) | (39) |
Warranty reserve, ending | $ 676 | $ 548 |
Significant Accounting Polic_10
Significant Accounting Policies and Disclosures - Schedule of Share-Based Compensation, Stock Options, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||||
Exercised | (373,489) | |||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||||
Options outstanding at beginning | 1,455,000 | 1,427,000 | 1,364,000 | |
Granted | 185,000 | 188,000 | 187,000 | |
Exercised | (373,000) | (49,000) | (10,000) | |
Cancelled | (84,000) | (104,000) | (114,000) | |
Options outstanding at ending | 1,148,000 | 1,455,000 | 1,427,000 | |
Forfeited | (35,000) | (7,000) | ||
Options vested at ending | 676,000 | |||
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options Outstanding at beginning | $ 8.08 | $ 8.83 | $ 9.08 | |
Granted | 7.66 | 4.26 | 5.61 | |
Exercised | 8.01 | 5.93 | 5.67 | |
Cancelled | 11.65 | 12.53 | 6.87 | |
Options outstanding at ending | 7.82 | 8.08 | $ 8.83 | |
Forfeited | 6.51 | $ 5.96 | ||
Options vested at ending | $ 8.73 | |||
Options, Weighted Average Remaining Contractual Term [Roll Forward] | ||||
Options outstanding at ending | 5 years 8 months 12 days | |||
Options vested | 4 years 1 month 6 days | |||
Options, Aggregate Intrinsic Value [Roll Forward] | ||||
Options outstanding at ending | [1] | $ 7,082 | ||
Options vested at ending | [1] | $ 3,551 | ||
[1] Includes only those options that were in-the-money as of May 28, 2022. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. |
Significant Accounting Polic_11
Significant Accounting Policies and Disclosures - Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Accounting Policies [Abstract] | |||
Expected volatility | 29% | 27.72% | 24.48% |
Risk-free interest rate | 0.97% | 0.45% | 1.91% |
Expected lives (years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Annual cash dividend | $ 0.24 | $ 0.24 | $ 0.24 |
Significant Accounting Polic_12
Significant Accounting Policies and Disclosures - Schedule of Share-Based Compensation, Shares Outstanding Under Stock Option Plans, by Exercise Price Range (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun. 01, 2019 | ||
Stock Options | |||||
Options, Outstanding, Number | 1,148 | 1,455 | 1,427 | 1,364 | |
Options, Outstanding, Weighted Average Exercise Price | $ 7.82 | $ 8.08 | $ 8.83 | $ 9.08 | |
Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 8 months 12 days | ||||
Options, Outstanding, Intrinsic Value | [1] | $ 7,082 | |||
Options, Vested, Number of Shares | 676 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 8.73 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 1 month 6 days | ||||
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | [1] | $ 3,551 | |||
$4.26 to $6.47 | |||||
Options, Outstanding, Number | 389 | ||||
Options, Outstanding, Weighted Average Exercise Price | $ 5.11 | ||||
Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 2 months 12 days | ||||
Options, Outstanding, Intrinsic Value | $ 3,455 | ||||
Options, Vested, Number of Shares | 152 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 5.38 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 6 years 7 months 6 days | ||||
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1,310 | ||||
$6.90 to $10.01 | |||||
Options, Outstanding, Number | 573 | ||||
Options, Outstanding, Weighted Average Exercise Price | $ 8.44 | ||||
Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 2 months 12 days | ||||
Options, Outstanding, Intrinsic Value | $ 3,178 | ||||
Options, Vested, Number of Shares | 338 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 8.68 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 9 months 18 days | ||||
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1,792 | ||||
$11.14 to $13.76 | |||||
Options, Outstanding, Number | 186 | ||||
Options, Outstanding, Weighted Average Exercise Price | $ 11.57 | ||||
Options, Outstanding, Weighted Average Remaining Contractual Term | 10 months 24 days | ||||
Options, Outstanding, Intrinsic Value | $ 449 | ||||
Options, Vested, Number of Shares | 186 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 11.57 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 10 months 24 days | ||||
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 449 | ||||
[1] Includes only those options that were in-the-money as of May 28, 2022. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures. |
Significant Accounting Polic_13
Significant Accounting Policies and Disclosures - Schedule of Restricted Stock Award Transactions (Details) - shares shares in Thousands | 12 Months Ended | |
May 28, 2022 | May 29, 2021 | |
Accounting Policies [Abstract] | ||
Unvested Restricted Shares, Beginning balance | 144 | 142 |
Granted | 72 | 73 |
Vested | (71) | (71) |
Unvested Restricted Shares, Ending balance | 145 | 144 |
Significant Accounting Polic_14
Significant Accounting Policies and Disclosures - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 28, 2022 | Feb. 26, 2022 | Nov. 27, 2021 | Aug. 28, 2021 | May 29, 2021 | Feb. 27, 2021 | Nov. 28, 2020 | Aug. 29, 2020 | May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Net income (loss) | $ 8,283 | $ 2,887 | $ 4,122 | $ 2,635 | $ 1,885 | $ 228 | $ 689 | $ (1,147) | $ 17,927 | $ 1,655 | $ (1,838) |
Undistributed earnings (loss) | 14,734 | (1,467) | (4,939) | ||||||||
Undistributed earnings (loss) | $ 14,734 | $ (1,467) | $ (4,939) | ||||||||
Denominator for basic and diluted Earnings Per Share: | |||||||||||
Effect of dilutive securities dilutive stock options | 430 | 59 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted | 11,825 | 11,164 | 11,026 | ||||||||
Basic | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Net income (loss) | $ 17,927 | $ 1,655 | $ (1,838) | ||||||||
Diluted | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Net income (loss) | 17,927 | 1,655 | (1,838) | ||||||||
Common Stock | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Undistributed earnings (loss) | 12,655 | (1,254) | (4,217) | ||||||||
Undistributed earnings (loss) | $ 12,720 | $ (1,255) | $ (4,217) | ||||||||
Denominator for basic and diluted Earnings Per Share: | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 11,395 | 11,105 | 11,026 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 11,825 | 11,164 | 11,026 | ||||||||
Net income (loss) per share: | |||||||||||
Earnings Per Share, Basic | $ 0.62 | $ 0.22 | $ 0.31 | $ 0.20 | $ 0.14 | $ 0.02 | $ 0.05 | $ (0.09) | $ 1.35 | $ 0.13 | $ (0.14) |
Net income (loss) per share: | |||||||||||
Earnings Per Share, Diluted | 0.59 | 0.21 | 0.30 | 0.20 | 0.14 | 0.02 | 0.05 | (0.09) | $ 1.31 | $ 0.13 | $ (0.14) |
Common Stock | Basic | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Less dividends | $ 2,745 | $ 2,669 | $ 2,648 | ||||||||
Common Stock | Diluted | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Less dividends | 2,745 | 2,669 | 2,648 | ||||||||
Common Class B | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Undistributed earnings (loss) | 2,079 | (213) | (722) | ||||||||
Undistributed earnings (loss) | $ 2,014 | $ (212) | $ (722) | ||||||||
Denominator for basic and diluted Earnings Per Share: | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 2,080 | 2,097 | 2,097 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 2,080 | 2,097 | 2,097 | ||||||||
Net income (loss) per share: | |||||||||||
Earnings Per Share, Basic | 0.55 | 0.19 | 0.28 | 0.18 | 0.13 | 0.02 | 0.05 | (0.08) | $ 1.21 | $ 0.11 | $ (0.13) |
Net income (loss) per share: | |||||||||||
Earnings Per Share, Diluted | $ 0.54 | $ 0.19 | $ 0.27 | $ 0.18 | $ 0.13 | $ 0.02 | $ 0.05 | $ (0.08) | $ 1.18 | $ 0.11 | $ (0.13) |
Common Class B | Basic | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Less dividends | $ 448 | $ 453 | $ 453 | ||||||||
Common Class B | Diluted | |||||||||||
Numerator for Basic and Diluted Earnings Per Share: | |||||||||||
Less dividends | $ 448 | $ 453 | $ 453 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Related Party Transaction [Line Items] | |||
Total future minimum lease payments | $ 3,206 | ||
Rental expense | 747 | $ 831 | |
Lessor - LDL, LLC | Lee A. McIntyre III | |||
Related Party Transaction [Line Items] | |||
Total future minimum lease payments | $ 500 | ||
Lease term | 5 years | ||
Renewal term | 5 years | ||
Executive vice president departing year | 2023 | ||
Executive vice president departing effective date | Sep. 24, 2022 | ||
Extended term | 5 years | ||
Rental expense | $ 200 | $ 100 | $ 100 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
Amortization expense | $ 200,000 | $ 200,000 | $ 200,000 |
Weighted average number of years of amortization expense | 11 years 7 months 6 days |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | May 28, 2022 | May 29, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | $ 4,459 | $ 4,492 | |
Total Accumulated Amortization | 2,449 | 2,222 | |
Net Intangible Assets | 2,010 | 2,270 | |
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | 659 | 659 | |
Total Accumulated Amortization | 659 | 659 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | [1] | 3,393 | 3,426 |
Total Accumulated Amortization | 1,453 | 1,249 | |
Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | 177 | 177 | |
Total Accumulated Amortization | 177 | 177 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Gross Amounts | 230 | 230 | |
Total Accumulated Amortization | $ 160 | $ 137 | |
[1] (1) Change from prior periods reflect impact of foreign currency translation. |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of the Amortization Expense for the Next Five Years (Details) - USD ($) $ in Thousands | May 28, 2022 | May 29, 2021 |
Fiscal Year | ||
2023 | $ 245 | |
2024 | 232 | |
2025 | 219 | |
2026 | 185 | |
2027 | 173 | |
Thereafter | 956 | |
Net Intangible Assets | $ 2,010 | $ 2,270 |
Lease Obligations and Other C_3
Lease Obligations and Other Commitments - Schedule of Gross Amount Assets and Liabilities Related to Operating and Financing Leases (Details) - USD ($) $ in Thousands | May 28, 2022 | May 29, 2021 |
Lease Type | ||
Operating lease ROU asset | $ 3,024 | $ 2,262 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Assets Noncurrent | Assets Noncurrent |
Financing lease ROU asset | $ 215 | $ 308 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Assets Noncurrent | Assets Noncurrent |
Total Lease ROU asset | $ 3,239 | $ 2,570 |
Operating lease liability current | $ 1,109 | $ 918 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities Current | Liabilities Current |
Financing lease liability current | $ 148 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities Current | Liabilities Current |
Total lease liability current | $ 1,109 | $ 1,066 |
Operating lease liability non-current | $ 1,915 | $ 1,358 |
Operating Lease Liability Noncurrent Statement Of Financial Position [Extensible List] | Liabilities Noncurrent | Liabilities Noncurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent |
Total lease liability non-current | $ 1,915 | $ 1,358 |
Lease Obligations and Other C_4
Lease Obligations and Other Commitments - Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 28, 2022 | May 29, 2021 | |
Lease Type | ||
Consolidated operating lease expense | $ 1,781 | $ 1,939 |
Consolidated financing lease amortization | 92 | 92 |
Consolidated financing lease interest | 3 | 11 |
Consolidated financing lease expense | 95 | 103 |
Net lease cost | $ 1,876 | $ 2,042 |
Lease Obligations and Other C_5
Lease Obligations and Other Commitments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 1.6 | $ 1.7 | $ 1.8 |
Lease Obligations and Other C_6
Lease Obligations and Other Commitments - Schedule of Future Minimum Lease Payments Under Operating and Financing Leases (Details) $ in Thousands | May 28, 2022 USD ($) |
Operating Leases | |
2023 | $ 1,244 |
2024 | 872 |
2025 | 610 |
2026 | 388 |
2027 | 75 |
Thereafter | 17 |
Total lease payments | 3,206 |
Less imputed interest | 182 |
Net minimum lease payments | $ 3,024 |
Lease Obligations and Other C_7
Lease Obligations and Other Commitments - Schedule of Weighted Average Lease Terms and Interest Rates of Leases (Details) | May 28, 2022 |
Commitments And Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term in years, operating leases | 3 years 2 months 12 days |
Weighted average interest rate, operating leases | 4.40% |
Lease Obligations and Other C_8
Lease Obligations and Other Commitments - Schedule of Cash Outflows of Leasing Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating cash flows from operating leases | $ 747 | $ 831 | |
Operating cash flows from financing leases | 148 | 170 | |
Finance cash flows from financing leases | $ 151 | $ 181 | $ 166 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Components Of Income Loss Before Income Taxes [Abstract] | |||
Income (loss) before income taxes, United States | $ 12,299 | $ 1,077 | $ (3,716) |
Income (loss) before income taxes, Foreign | 3,460 | 1,231 | 2,502 |
Income (loss) before income taxes | $ 15,759 | $ 2,308 | $ (1,214) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Current: | |||
Federal | $ (4,213) | $ 108 | |
State | 950 | ||
Foreign | 1,038 | 665 | $ 616 |
Total current | (2,225) | 773 | 616 |
Deferred: | |||
Federal | (88) | ||
Foreign | 57 | (120) | 96 |
Total deferred | 57 | (120) | 8 |
Income tax (benefit) provision | $ (2,168) | $ 653 | $ 624 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
Federal net operating loss | $ 3,000,000 | ||
Foreign tax credits | $ 1,800,000 | 1,800,000 | |
Deferred tax liability, undistributed earnings of foreign subsidiaries | 24,000 | 24,000 | |
Deferred tax valuation allowance | 3,474,000 | 12,225,000 | |
Foreign tax credits | 1,782,000 | 1,782,000 | |
Income taxes paid, net | 1,500,000 | 100,000 | $ 1,000,000 |
Liability for uncertain tax positions related to continuing operations, excluding interest and penalties | 100,000 | 100,000 | |
Liability for interest and penalties | 0 | 0 | |
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax liability, undistributed earnings of foreign subsidiaries | 100,000 | 100,000 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 2,400,000 | 3,900,000 | |
Valuation allowance pertaining to deferred tax assets | 200,000 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 400,000 | $ 400,000 | |
Valuation allowance pertaining to deferred tax assets | $ 1,500,000 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
Effect of: | |||
State income taxes, net of federal tax benefit | 5.50% | 21.60% | 6.60% |
Foreign taxes at other rates | 4.50% | 10.50% | (15.30%) |
Permanent tax differences | (2.00%) | 18.30% | (41.10%) |
Change in valuation allowance for deferred tax assets | (43.10%) | (49.70%) | (29.80%) |
Return to provision adjustments | 0.20% | 2.20% | 1.40% |
Other | 0.20% | 4.40% | 5.80% |
Effective tax rate | (13.70%) | 28.30% | (51.40%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | May 28, 2022 | May 29, 2021 |
Deferred tax assets: | ||
NOL carryforwards - foreign and domestic | $ 2,796 | $ 7,362 |
Inventory valuations | 1,571 | 1,501 |
Goodwill | 1,182 | 1,286 |
Foreign tax credits | 1,782 | 1,782 |
Severance reserve | 183 | 185 |
Foreign capital loss | 1,224 | 1,261 |
Other | 1,480 | 1,469 |
Subtotal | 10,218 | 14,846 |
Valuation allowance - foreign and domestic | (3,474) | (12,225) |
Net deferred tax assets after valuation allowance | 6,744 | 2,621 |
Deferred tax liabilities: | ||
Accelerated depreciation | (2,406) | (2,279) |
Tax on undistributed earnings | (24) | (24) |
Other | (1) | 18 |
Subtotal | (2,431) | (2,285) |
Net deferred tax assets | 4,313 | 336 |
Supplemental disclosure of net deferred tax assets, excluding valuation allowance: | ||
Deferred tax assets - domestic | 6,017 | 10,653 |
Deferred tax assets - Foreign | 1,770 | 1,913 |
Total | $ 7,787 | $ 12,566 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 28, 2022 | May 29, 2021 | |
Disclosure Income Taxes Schedule Of Unrecognized Tax Benefits Details [Abstract] | ||
Unrecognized tax benefits, beginning of period | $ 142 | $ 129 |
Currency translation adjustment | (17) | 13 |
Unrecognized tax benefits, end of period | $ 125 | $ 142 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - Employee Profit Sharing Plan - USD ($) $ in Millions | 12 Months Ended | ||
May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of employees matched | 50% | ||
Percent of pay matched | 6% | 4% | 4% |
Matching contributions expense | $ 0.8 | $ 0.6 | $ 0.5 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
May 28, 2022 USD ($) Segment | May 29, 2021 USD ($) | May 30, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Number of reportable segments | Segment | 3 | ||
Capital expenditures | $ 3,120 | $ 2,632 | $ 1,776 |
Long-lived assets | 19,000 | 19,300 | |
Depreciation and amortization | 3,423 | 3,424 | 3,386 |
Foreign | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 400 | 400 | |
Depreciation and amortization | 100 | 300 | $ 300 |
Healthcare | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 1,000 | $ 1,700 |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 28, 2022 | Feb. 26, 2022 | Nov. 27, 2021 | Aug. 28, 2021 | May 29, 2021 | Feb. 27, 2021 | Nov. 28, 2020 | Aug. 29, 2020 | May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 61,629 | $ 55,308 | $ 53,979 | $ 53,704 | $ 50,472 | $ 45,235 | $ 42,418 | $ 38,812 | $ 224,620 | $ 176,937 | $ 155,898 |
Gross Profit | $ 20,177 | $ 17,569 | $ 17,657 | $ 16,297 | $ 16,357 | $ 15,766 | $ 14,343 | $ 12,359 | 71,700 | 58,825 | 49,673 |
PMT | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 178,056 | 137,280 | 118,480 | ||||||||
Gross Profit | 58,041 | 45,951 | 38,288 | ||||||||
Canvys | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 35,187 | 29,319 | 28,926 | ||||||||
Gross Profit | 11,252 | 10,274 | 9,313 | ||||||||
Healthcare | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 11,377 | 10,338 | 8,492 | ||||||||
Gross Profit | $ 2,407 | $ 2,600 | $ 2,072 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) | May 28, 2022 | May 29, 2021 | |
Segment Reporting [Abstract] | |||
Segment assets | $ 120,696,000 | $ 100,638,000 | |
Cash and cash equivalents | 35,495,000 | 43,316,000 | |
Investments - current | 5,000,000 | 0 | |
Other current assets | [1] | 2,686,000 | 1,918,000 |
Net property, plant and equipment | 9,435,000 | 9,300,000 | |
Operating lease ROU asset | 1,894,000 | 732,000 | |
Financing lease ROU asset | 215,000 | 308,000 | |
Other assets - non-current deferred income taxes | 4,398,000 | 541,000 | |
Total assets | $ 179,819,000 | $ 156,753,000 | |
[1]Other current assets include miscellaneous receivables and prepaid expenses. |
Segment and Geographic Inform_6
Segment and Geographic Information - Schedule of Net Sales and Gross Profit by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
May 28, 2022 | Feb. 26, 2022 | Nov. 27, 2021 | Aug. 28, 2021 | May 29, 2021 | Feb. 27, 2021 | Nov. 28, 2020 | Aug. 29, 2020 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | $ 61,629 | $ 55,308 | $ 53,979 | $ 53,704 | $ 50,472 | $ 45,235 | $ 42,418 | $ 38,812 | $ 224,620 | $ 176,937 | $ 155,898 | |
Gross Profit | $ 20,177 | $ 17,569 | $ 17,657 | $ 16,297 | $ 16,357 | $ 15,766 | $ 14,343 | $ 12,359 | 71,700 | 58,825 | 49,673 | |
North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 98,527 | 73,625 | 65,259 | |||||||||
Gross Profit | 36,548 | 28,639 | 24,494 | |||||||||
Asia/Pacific | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 49,235 | 40,839 | 32,979 | |||||||||
Gross Profit | 15,728 | 13,520 | 10,629 | |||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 64,435 | 52,549 | 49,394 | |||||||||
Gross Profit | 19,215 | 16,958 | 15,483 | |||||||||
Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 12,439 | 9,651 | 8,308 | |||||||||
Gross Profit | 4,340 | 3,405 | 2,804 | |||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | [1] | (16) | 273 | (42) | ||||||||
Gross Profit | [1] | $ (4,131) | $ (3,697) | $ (3,737) | ||||||||
[1]Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add |
Segment and Geographic Inform_7
Segment and Geographic Information - Schedule of Net Assets by Geographic Region (Details) - USD ($) $ in Thousands | May 28, 2022 | May 29, 2021 |
Segment Reporting Information [Line Items] | ||
Net Assets | $ 135,847 | $ 121,560 |
North America | ||
Segment Reporting Information [Line Items] | ||
Net Assets | 90,979 | 77,698 |
Asia/Pacific | ||
Segment Reporting Information [Line Items] | ||
Net Assets | 11,514 | 10,547 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net Assets | 30,873 | 31,289 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Net Assets | $ 2,481 | $ 2,026 |
Risks and Uncertainties - Addit
Risks and Uncertainties - Additional Information (Details) $ in Millions | 12 Months Ended |
May 28, 2022 USD ($) | |
Risks And Uncertainties [Abstract] | |
Payment for litigation settlement | $ 1.6 |
Deferred employer social security tax payments | $ 0.4 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Investments Measured at Fair Value (Details) - Fair Value, Inputs, Level 1 $ in Thousands | May 28, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments measured at fair value | $ 5,000 |
Certificate of Deposits | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments measured at fair value | $ 5,000 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 202 | $ 334 | $ 339 | |
Charged to expense | [1] | 103 | 149 | 349 |
Deductions | [2] | (119) | (281) | (354) |
Balance at end of period | 186 | 202 | 334 | |
Inventory Provisions | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 5,866 | 5,393 | 4,568 | |
Charged to expense | [3] | 462 | 1,041 | 1,013 |
Deductions | [4] | (268) | (568) | (188) |
Balance at end of period | $ 6,060 | $ 5,866 | $ 5,393 | |
[1]Charges to bad debt expense.[2]Uncollectible amounts written off, net of recoveries and foreign currency translation.[3]Charges to cost of sales. Included in fiscal 2022 were inventory write-downs of $0.4 million for PMT |
Valuation and Qualifying Acco_4
Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts Disclosure (Parenthetical) (Details) $ in Millions | 12 Months Ended |
May 28, 2022 USD ($) | |
PMT | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Inventory write-down | $ 0.4 |
Healthcare | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Inventory write-down | $ 0.1 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 28, 2022 | Feb. 26, 2022 | Nov. 27, 2021 | Aug. 28, 2021 | May 29, 2021 | Feb. 27, 2021 | Nov. 28, 2020 | Aug. 29, 2020 | May 28, 2022 | May 29, 2021 | May 30, 2020 | |
Net sales | $ 61,629 | $ 55,308 | $ 53,979 | $ 53,704 | $ 50,472 | $ 45,235 | $ 42,418 | $ 38,812 | $ 224,620 | $ 176,937 | $ 155,898 |
Gross profit | 20,177 | 17,569 | 17,657 | 16,297 | 16,357 | 15,766 | 14,343 | 12,359 | 71,700 | 58,825 | 49,673 |
Net (loss) income | $ 8,283 | $ 2,887 | $ 4,122 | $ 2,635 | $ 1,885 | $ 228 | $ 689 | $ (1,147) | $ 17,927 | $ 1,655 | $ (1,838) |
Common Stock | |||||||||||
Net (loss) income per share: | |||||||||||
Earnings Per Share, Basic | $ 0.62 | $ 0.22 | $ 0.31 | $ 0.20 | $ 0.14 | $ 0.02 | $ 0.05 | $ (0.09) | $ 1.35 | $ 0.13 | $ (0.14) |
Earnings Per Share, Diluted | 0.59 | 0.21 | 0.30 | 0.20 | 0.14 | 0.02 | 0.05 | (0.09) | 1.31 | 0.13 | (0.14) |
Common Class B | |||||||||||
Net (loss) income per share: | |||||||||||
Earnings Per Share, Basic | 0.55 | 0.19 | 0.28 | 0.18 | 0.13 | 0.02 | 0.05 | (0.08) | 1.21 | 0.11 | (0.13) |
Earnings Per Share, Diluted | $ 0.54 | $ 0.19 | $ 0.27 | $ 0.18 | $ 0.13 | $ 0.02 | $ 0.05 | $ (0.08) | $ 1.18 | $ 0.11 | $ (0.13) |