Key Tronic (KTCC) 10-K 26 Sep 23 2023 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2023	Sep. 14, 2023	Dec. 31, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jul. 01, 2023
Document Transition Report	false
Entity File Number	0-11559
Entity Registrant Name	KEY TRONIC CORP
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-0849125
Entity Address, Address Line One	4424 North Sullivan Road
Entity Address, City or Town	Spokane Valley,
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	99216
City Area Code	509
Local Phone Number	928-8000
Title of 12(b) Security	Common stock, no par value
Trading Symbol	KTCC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 44.1
Entity Common Stock, Shares Outstanding		10,761,871
Documents Incorporated by Reference	Certain information is incorporated into Part III of this report by reference to the Proxy Statement for the registrant’s 2023 annual meeting of stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--07-01
Entity Central Index Key	0000719733
Document Financial Statement Error Correction [Flag]	false

Audit Information

Audit Information	12 Months Ended
	Jul. 01, 2023
Auditor Information [Abstract]
Auditor Name	Moss Adams LLP
Auditor Location	Seattle, Washington
Auditor Firm ID	659

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 01, 2023	Jul. 02, 2022
Current assets:
Cash and cash equivalents	$ 3,603	$ 1,707
Trade receivables, net of allowance for doubtful accounts of $23 and $12	150,600	135,876
Contract assets	29,925	21,974
Inventories, net	137,911	155,741
Other	27,510	24,710
Total current assets	349,549	340,008
Property, plant and equipment, net	28,870	26,012
Operating lease right-of-use assets, net	16,202	16,731
Other assets:
Deferred income tax asset	12,254	10,055
Other	11,397	14,117
Total other assets	23,651	24,172
Total assets	418,272	406,923
Current liabilities:
Accounts payable	115,899	121,393
Accrued compensation and vacation	13,351	11,836
Current portion of debt, net	7,849	7,402
Other	14,867	23,036
Total current liabilities	151,966	163,667
Long-term liabilities:
Term loans	6,726	5,716
Revolving loan	114,805	94,577
Operating lease liabilities	10,317	12,023
Deferred income tax liability	274	64
Other long-term obligations	3,567	5,998
Total long-term liabilities	135,689	118,378
Total liabilities	287,655	282,045
Commitments and contingencies (Note 9)
Shareholders’ equity:
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,762 and 10,762 shares, respectively	47,728	47,474
Retained earnings	82,986	77,829
Accumulated other comprehensive (loss) income	(97)	(425)
Total shareholders’ equity	130,617	124,878
Total liabilities and shareholders’ equity	$ 418,272	$ 406,923

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 01, 2023	Jul. 02, 2022
Statement of Financial Position [Abstract]
Trade receivables, allowance for doubtful accounts	$ 23	$ 12
Common Stock, No Par Value (in dollars per share)	$ 0	$ 0
Common Stock, Shares Authorized (in shares)	25,000,000	25,000,000
Common Stock, Shares, Issued (in shares)	10,762,000	10,762,000
Common Stock, Shares, Outstanding (in shares)	10,762,000	10,762,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Income Statement [Abstract]
Net sales	$ 588,135	$ 531,815
Cost of sales	540,663	488,601
Gross profit	47,472	43,214
Operating expenses
Research, development and engineering expenses	9,735	9,821
Selling, general and administrative expenses	25,715	24,598
Gain on insurance proceeds, net of losses	(4,301)	0
Total operating expenses	31,149	34,419
Operating income	16,323	8,795
Interest expense, net	10,023	5,104
Income before income taxes	6,300	3,691
Income tax provision	1,143	314
Net income	$ 5,157	$ 3,377
Earnings per share:
Net income per share — Basic (in dollars per share)	$ 0.48	$ 0.31
Weighted average shares outstanding — Basic (in shares)	10,762	10,762
Net income per share — Diluted (in dollars per share)	$ 0.47	$ 0.31
Weighted average shares outstanding — Diluted (in shares)	10,938	11,063

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Comprehensive income:
Net income	$ 5,157	$ 3,377
Other comprehensive income:
Unrealized gain (loss) on hedging instruments, net of tax	328	(2,497)
Comprehensive income	$ 5,485	$ 880

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on foreign exchange contracts, tax	$ 0	$ (800)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Operating activities:
Net income	$ 5,157	$ 3,377
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization	9,542	7,562
Amortization of interest rate swap	328	301
Amortization of deferred loan costs	154	143
Noncash lease expense	5,712	4,261
Inventory write-down to net realizable value	427	950
Provision for warranty	313	446
Provision for doubtful accounts	37	67
Gain on disposal of assets	(21)	(12)
Gain on insurance proceeds, net of losses	(4,301)	0
Share-based compensation expense	254	293
Deferred income taxes	(1,989)	481
Changes in operating assets and liabilities
Trade receivables	(14,760)	(25,619)
Contract assets	(7,951)	2,807
Inventories	17,403	(19,362)
Other assets	(1,684)	(5,912)
Accounts payable	(5,494)	28,569
Accrued compensation and vacation	1,515	365
Other liabilities	(15,953)	(3,624)
Cash used in operating activities	(11,311)	(4,907)
Investing activities:
Purchases of property and equipment	(9,771)	(6,813)
Proceeds from sale of fixed assets	1,925	14
Prepayments on finance lease obligations	(188)	(1,252)
Proceeds from insurance	3,500	0
Cash used in investing activities	(4,534)	(8,051)
Financing activities:
Payment of financing costs	(245)	(118)
Proceeds from issuance of long term debt	4,375	11,594
Repayments of long-term debt	(2,417)	(2,143)
Borrowings under revolving credit agreement	596,121	581,893
Repayments of revolving credit agreement	(575,802)	(577,703)
Principal payments on finance leases	(4,291)	(2,331)
Cash provided by financing activities	17,741	11,192
Net increase (decrease) in cash and cash equivalents	1,896	(1,766)
Cash and cash equivalents, beginning of period	1,707	3,473
Cash and cash equivalents, end of period	3,603	1,707
Supplemental cash flow information:
Interest payments	802	5,110
Income tax payments, net of refunds	1,414	1,315
Recognition of operating lease liabilities and right-of-use assets	5,184	5,247
Recognition of financing lease liabilities and right-of-use assets	$ 1,940	$ 13,096

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balances, beginning of period (Shares) at Jul. 03, 2021		10,762,000
Balances, beginning of period at Jul. 03, 2021	$ 123,705	$ 47,181	$ 74,452	$ 2,072
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,377		3,377
Unrealized gain (loss) on hedging instruments, net of tax	(2,497)			(2,497)
Share-based compensation	$ 293	$ 293
Balances, end of period (Shares) at Jul. 02, 2022	10,762,000	10,762,000
Balances, end of period at Jul. 02, 2022	$ 124,878	$ 47,474	77,829	(425)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,157		5,157
Unrealized gain (loss) on hedging instruments, net of tax	328			328
Share-based compensation	$ 254	$ 254
Balances, end of period (Shares) at Jul. 01, 2023	10,762,000	10,762,000
Balances, end of period at Jul. 01, 2023	$ 130,617	$ 47,728	$ 82,986	$ (97)

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jul. 01, 2023
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Business Key Tronic Corporation and subsidiaries (the Company) is engaged in contract manufacturing for original equipment manufacturers (OEMs) and also manufactures keyboards and other input devices. The Company’s headquarters are located in Spokane Valley, Washington with manufacturing operations in Oakdale, Minnesota; Fayetteville, Arkansas; Corinth, Mississippi; and foreign manufacturing operations in Juarez, Mexico; Shanghai, China; and Da Nang, Vietnam. Due to the COVID-19 pandemic, the Company has seen extreme shifts in demand from its customer base, supply chain and logistics risks. The possibility of future temporary closures, as well as adverse fluctuations in customer demand, freight and expedite costs, precautionary safety expenses and labor shortages, collectability of accounts, and future supply chain disruptions during the rapidly changing COVID-19 environment can materially impact operating results. Additionally, continued adverse macroeconomic conditions and significant currency exchange fluctuations can also materially impact operating results. Liquidity Historically, we have financed operations and met our capital expenditure requirements primarily through cash flows provided by operations and borrowings under our credit facilities. We generated operating and net income of $16.3 million and $5.2 million, respectively, during the 12-month period ended July 1, 2023 and have positive working capital of $197.6 million as of July 1, 2023. Due to the timing between the procurement of raw materials, production cycle and payment from our customers, we have relied on borrowings on our credit facilities to fund operations as the Company increased its revenues and backlog during fiscal year 2023. Based on current projections, we anticipate generating cash from operations as revenue slightly decreases in the first quarter of fiscal year 2024 and decreasing working capital requirements as existing backlog is manufactured and shipped. As of July 1, 2023, we have limited additional borrowing capacity on our credit facility. We are in discussions with multiple financial institutions to extend the borrowing capacity on our credit facility. If we are unable to meet projected operating results or extend our borrowing capacity, we may need to delay the purchase of raw materials or require our customers to fund inventory raw material costs ahead of production. Other options to increase our liquidity include factoring receivables or leveraging foreign owned assets for additional borrowing capacity. We believe that projected cash from operations, funds available under our asset-based revolving credit facility and additional financing options will be sufficient to meet our working and fixed capital requirements for at least the next 12 months. Reclassifications Certain prior period reclassifications were made to conform with the current period presentation. These reclassifications had no effect on reported income, comprehensive income, cash flows, total assets, or shareholders' equity as previously reported. Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries in the United States, Mexico, China and Vietnam. Intercompany balances and transactions have been eliminated during consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Estimates include the allowance for doubtful receivables, calculating inventory impairments related to obsolete and non-saleable inventories to value at net realizable value, deferred tax assets and liabilities, uncertain tax positions, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, and the fair value of stock appreciation rights granted under the Company’s share-based compensation plan. Due to uncertainties with respect to the assumptions and estimates, actual results could differ from those estimates. Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. The Company may have cash and cash equivalents at financial institutions that are in excess of federally insured limits from time to time. Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable and records an allowance for doubtful accounts, which reduces the receivables to an amount that management reasonably estimates will be collected. A specific allowance is recorded against receivables considered to be impaired based on the Company’s knowledge of the financial condition of the customer. In determining the amount of the allowance, the Company considers several factors including the aging of the receivables, the current business environment and historical experience. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Inventories Inventories are stated at the lower of cost or net realizable value. Inventory valuation is determined using the first-in, first-out (FIFO) method. Customer orders are based upon forecasted quantities of product manufactured for shipment over defined periods. Raw material inventories are purchased to fulfill these customer requirements. Within these arrangements, customer demands for products frequently change, sometimes creating excess and obsolete inventories. The Company regularly reviews raw material inventories by customer for both excess and obsolete quantities. Wherever possible, the Company attempts to recover its full cost of excess and obsolete inventories from customers or, in some cases, through other markets. When it is determined that the Company’s carrying cost of such excess and obsolete inventories cannot be recovered in full, a charge is taken against income for the difference between the carrying cost and the estimated realizable amount. We also reserve for inventory related to specific customers covered by lead-time assurance agreements when those customers are experiencing financial difficulties or reimbursement is not reasonably assured. Property, Plant and Equipment Property, plant and equipment are carried at cost and depreciated using straight-line methods over the expected useful lives of the assets. Repairs and maintenance costs are expensed as incurred. Leases Lease assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using the Company’s incremental borrowing rate, unless the implicit rate is readily determinable. Our incremental borrowing rate represents the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in a similar economic environment. Lease assets also include any lease prepayments. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of income. For further information, please refer to Footnote “Leases” of the “Notes to Consolidated Financial Statements.” Impairment of Long-lived Assets The Company, using its best estimates based on reasonable and supportable assumptions and projections, reviews assets for impairment whenever events or changes in circumstances have indicated that the carrying amount of its assets might not be recoverable. Impaired assets are reported at the lower of cost or fair value. Accrued Warranty An accrual is made for expected warranty costs, with the related expense recognized in cost of goods sold. Management reviews the adequacy of this accrual quarterly based on historical analyses and anticipated product returns. Self-funded Insurance The Company self-funds its domestic employee health plans. The Company contracts with a separate administrative service company to supervise and administer the programs and act as its representative. The Company reduces its risk under this self-funded platform by purchasing stop-loss insurance coverage for high dollar individual claims. In addition, if the aggregate annual claims amount to more than 125 percent of expected claims for the plan year this insurance will also pay those claims amounts exceeding that level. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data supplied by the Company’s broker to estimate its self-funded insurance liability. This liability is subject to a total limitation that varies based on employee enrollment and factors that are established at each annual contract renewal. Actual claims experience may differ from the Company’s estimates. Costs related to the administration of the plan and related claims are expensed as incurred. Revenue Recognition The first step in its process for revenue recognition is to identify the contract with a customer. A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations. A contract can be written, oral, or implied. The Company generally enters into manufacturing service agreements (“MSA”) with its customers that outlines the terms of the business relationship between the customer and the Company. This includes matters such as warranty, indemnification, transfer of title and risk of loss, liability for excess and obsolete inventory, pricing, payment terms, etc. The Company will also bid on a program-by-program basis for customers in which an executed MSA may not be in place. In these instances, as well as when we have an MSA in place, we receive customer purchase orders for specific quantities and timing of products. As a result, the Company considers its contract with a customer to be the combination of the MSA and the purchase order. The transaction price is fixed and set forth in each purchase order. In the Company's normal course of business, there are no variable pricing components, or material amounts refunded to customers in the form of refunds or rebates. The Company assesses whether control of the product or services promised under the contract is transferred to the customer at a point in time (shipment) or over time (as we manufacture the product). The Company is first required to evaluate whether its contracts meet the criteria for 'over-time' or 'point-in-time' recognition. The Company has determined that for the majority of its contracts the Company is manufacturing products for which there is no alternative use due to the unique nature of the customer-specific product, IP and other contract restrictions. The Company has an enforceable right to payment including a reasonable profit for performance completed to date with respect to these contracts. As a result, revenue is recognized under these contracts 'over-time' based on the input cost-to-cost method as it better depicts the transfer of control. This input method is based on the ratio of costs incurred to date as compared to the total estimated costs at completion of the performance obligation. For all other contracts that do not meet these criteria, such as manufacturing contracts for which the terms do not provide an enforceable right to payment for performance completed to date, the Company recognizes revenue when it has transferred control of the related manufactured products which generally occurs upon shipment to the customer. Revenue from engineering services is recognized over time as the services are performed. Shipping and Handling Fees The Company classifies costs associated with shipping and handling fees as a component of cost of goods sold. Customer billings related to shipping and handling fees are reported as revenue. Research, Development and Engineering Research, development and engineering expenses include unreimbursed contract manufacturing costs as well as design and engineering costs associated with the production of contract manufacturing programs. Research, development and engineering costs are expensed as incurred. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments based on new assessments and changes in estimates and which may not accurately forecast actual outcomes. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax provision. The tax years 2003 through the present remain open to examination by the major U.S. taxing jurisdictions to which we are subject. For further discussions, please refer to Footnote “Income Taxes” of the “Notes to Consolidated Financial Statements.” Derivative Instruments and Hedging Activities The Company has previously entered into foreign currency forward contracts and an interest rate swap which are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging . The effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (AOCI) and is reclassified into earnings in the same period in which the underlying hedged transaction affects earnings. The derivative’s effectiveness represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. As of July 1, 2023, the Company did not have any outstanding foreign currency forward contracts. Earnings Per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period using the treasury stock method. The computation assumes the proceeds from the exercise of stock options were used to repurchase common shares at the average market price during the period. The computation of diluted earnings per common share does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on earnings per share. Foreign Currency Transactions The functional currency of the Company’s subsidiaries in Mexico, China and Vietnam is the U.S. dollar. Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of goods sold. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, current liabilities, and non-current operating lease liability are reflected on the balance sheets at July 1, 2023 and July 2, 2022, reasonably approximate their fair value. The Company had an outstanding balance on the line of credit of $115.4 million as of July 1, 2023 and $95.1 million as of July 2, 2022, with a carrying value that reasonably approximates the fair value. The Company had an outstanding balance on the term loan of $3.4 million as of July 1, 2023 and $4.6 million as of July 2, 2022, with a carrying value that reasonably approximates the fair value. The equipment term loans were $6.5 million as of July 1, 2023 and $3.3 million as of July 2, 2022, with a carrying value that reasonably approximates the fair value. Share-based Compensation The Company’s incentive plan may provide for equity awards to employees in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is included in cost of goods sold, research, development and engineering, and selling, general, and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Newly Adopted and Recent Accounting Pronouncements In January 2021, FASB issued Accounting Standard Update (ASU) 2021-01, Reference Rate Reform (Topic 848) to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The Company is currently assessing the effects on its consolidated financial statements, and it intends to adopt the guidance as it becomes effective. In March of 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, which clarifies specific issues raised by stakeholders. Specifically, the ASU clarifies the following: 1) that all entities are required to provide the fair value option disclosures in ASC 825, Financial Instruments 2) clarifies that the portfolio exception in ASC 820, Fair Value Measurement, applies to nonfinancial items accounted for as derivatives under ASC 815, Derivatives and Hedging; 3) clarifies that for purposes of measuring expected credit losses on a net investment in a lease in accordance with ASC 326, Financial Instruments - Credit Losses, the lease term determined in accordance with ASC 842, Leases, should be used as the contractual term; 4) clarifies that when an entity regains control of financial assets sold, it should recognize an allowance for credit losses in accordance with ASC 326; and 5) aligns the disclosure requirements for debt securities in ASC 320, Investments - Debt Securities, with the corresponding requirements for depository and lending institutions in ASC 942, Financial Services - Depository and Lending. The amendments in the ASU have various effective dates and transition requirements which are dependent on timing of adoption of ASU 2016-13. The Company is currently assessing the effects on its consolidated financial statements, and it intends to adopt the guidance as they become effective. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04 and ASU 2019-05, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance is effective for the Company beginning in the first quarter of fiscal year 2024 with early adoption permitted. The Company is currently assessing the impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2024. Fiscal Year The Company operates on a 52/53 week fiscal year. Fiscal years end on the Saturday nearest June 30. As such, fiscal years 2023 and 2022 ended on July 1, 2023 and July 2, 2022, respectively. Fiscal years 2022 and 2023 were 52 week years.

INVENTORIES

INVENTORIES	12 Months Ended
	Jul. 01, 2023
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIESNet inventory as of July 1, 2023 is $137.9 million compared to $155.7 million as of July 2, 2022. Substantially all of the Company’s inventory balances are raw materials.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Jul. 01, 2023
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: Life July 1, 2023 July 2, 2022 (in years) (in thousands) Land — $ 4,034 $ 4,034 Buildings and improvements 3 to 30 26,459 25,841 Equipment 1 to 10 77,823 71,180 Furniture and fixtures 3 to 5 5,418 5,286 Total Property, Plant and Equipment 113,734 106,341 Accumulated depreciation (84,864) (80,329) Property, Plant and Equipment, net $ 28,870 $ 26,012 Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Depreciation expense $ 4,700 $ 4,940

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Jul. 01, 2023
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT On August 14, 2020, the Company entered into a loan agreement with Bank of America. The Loan Agreement replaces the Company’s prior amended and restated credit agreement, as amended, with Wells Fargo Bank. The Loan Agreement provides for a five-year asset-based senior secured revolving credit facility of up to $93 million, maturing on August 14, 2025. On September 3, 2021, the Company entered into an amendment to the Company's current loan agreement with Bank of America. The amendment increases the Company's current credit facility of $93 million to $120 million, subject to the Company's borrowing base, maturing on September 3, 2026. On August 26, 2022, the Company entered into a third amendment to the loan agreement with Bank of America. The amendment removed the cash flow leverage ratio covenant and increased the interest rate by 25 basis points. In the third quarter of fiscal year 2023, the Company entered into equipment financing agreements with Ameris Bank dba Balboa Capital ("Balboa Capital") totaling $4.4 million related to the Company’s existing manufacturing equipment that bears an interest rate range of 6% - 8% and matures in the third quarter of fiscal 2029. Under these agreements, equal monthly payments of $75,000 commenced in the third quarter of fiscal year 2023 and will continue through the maturity of the equipment financing facility in the third quarter of fiscal 2029. The Company had an outstanding balance $4.1 million as of July 1, 2023. As of July 1, 2023, the Company had an outstanding balance under the asset-based revolving credit facility of $115.4 million, $0.3 million in outstanding letters of credit and $4.6 million available for future borrowings. As of July 2, 2022, the Company had an outstanding balance under the asset-based revolving credit facility of $95.1 million, $0.3 million in outstanding letters of credit and $10.8 million available for future borrowings. On August 14, 2020, the Company also entered into a $5.0 million equipment financing facility with Bank of America relating to the Company’s existing U.S. manufacturing equipment that bears interest at 4.85% and matures on August 14, 2025. Under this loan agreement, equal monthly payments of approximately $94,000 commenced on September 14, 2020 and will continue through the maturity of the equipment financing facility on August 14, 2025. As of July 1, 2023, the Company had an outstanding balance of $2.3 million. As of July 2, 2022, the Company had an outstanding balance of $3.3 million. Generally, the interest rate applicable to loans under the Bank of America loan agreement will be, at the Company’s option: (i)(A) the base rate which is the highest of (a) the Prime Rate for such day, (b) the Federal Funds Rate for such day plus 0.50%, or (c) Term SOFR for a one month interest period as of such day, plus 1.00% (provided that in no event shall the base rate be less than zero), plus the applicable interest margin for base rate loans; and (B) SOFR rate for an applicable interest period, plus the applicable interest margin for SOFR rate loans. Depending on average daily excess borrowing availability over applicable periods under the Credit Facility, applicable interest margins on: (x) base rate loans will be 1.50-2.00%; and (y) SOFR rate loans will be 2.50-3.00%, resetting on a quarterly basis beginning in early 2021. If there is an event of default under the loan agreement, all loans and other obligations will bear interest at a rate of an additional 2.00% on the last change rates above otherwise applicable interest rates. In addition to interest charges, the Company is required to pay a fee of 0.25% per annum on the unused portion of the Credit Facility, monthly in arrears. On November 24, 2020, the Company entered into a $6.0 million financing facility related to the Company’s existing real estate located in Mexico that bears interest at 5.52% and matures on April 24, 2026. Under this loan agreement, equal monthly payments of $100,000 commenced on May 24, 2021 and will continue through the maturity of the financing facility on April 24, 2026. The Company had an outstanding balance of $3.4 million and $4.6 million as of July 1, 2023 and July 2, 2022, respectively. The interest rates on outstanding debt as of July 1, 2023 range from 4.85% - 8.22% compared to 4.50% - 5.52% as of July 2, 2022. Debt maturities as of July 1, 2023 for the next five years are as follows (in thousands): Fiscal Years Ending Amount 2024 $ 2,862 2025 2,959 2026 1,905 2027 116,166 2028 - Thereafter $ 1,367 Total debt $ 125,259 Unamortized debt issuance costs 591 Long-term debt, net of debt issuance costs $ 124,668 The Company must comply with certain financial covenants, including a fixed charge coverage ratio and a cash flow leverage ratio. The credit agreement requires the Company to grant certain inspection rights to Bank of America, limit or restrict the Company’s cash management; limit or restrict the ability of the Company to incur additional liens, make acquisitions or investments, incur additional indebtedness, engage in mergers, consolidations, liquidations, dissolutions, or dispositions, pay dividends or other restricted payments, prepay certain indebtedness, engage in transactions with affiliates, and use proceeds. Management believes the Company was in compliance with all financial covenants as of July 1, 2023.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jul. 01, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax benefit consists of the following: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Current income tax provision (benefit): United States $ 998 $ (2,179) Foreign 2,134 2,012 3,132 (167) Deferred income tax provision (benefit): United States (2,130) 443 Foreign 141 38 (1,989) 481 Total income tax provision $ 1,143 $ 314 The Company has gross tax credit carryforwards of approximately $9.8 million at July 1, 2023 consisting of federal research and development (R&D) tax credits. Management has reviewed all deferred tax assets for purposes of determining whether a valuation allowance may be required. A valuation allowance against deferred tax assets is required if it is more likely than not that some of the deferred tax assets will not be realized. Based upon the Company’s profitability, forecasted income, and evaluation of all other positive and negative evidence, management determined that it is more likely than not that the deferred tax assets will be realized. In the fourth quarter of fiscal year 2022, the Company, with its fiscal year 2021 federal income tax return, made automatic changes in tax accounting methods that created a fiscal year 2021 tax net operating loss. This loss was carried back to the tax years ending in 2016, 2017, and 2019, resulting in a tax benefit of $0.6 million due to the higher federal income tax rate in effect in the years ending in 2016 and 2017. On January 27, 2021, the Company received official notice from the Vietnamese tax authorities, confirming tax benefits awarded related to the Company’s principal product line in Vietnam (the “Tax Holiday”). Under the Tax Holiday, the tax rate applied to income derived from this product line will be zero percent for four years beginning with fiscal year 2021, then five percent for nine years, then ten percent for one year (as opposed to the normal twenty percent Vietnamese statutory rate). The Company evaluated tax law changes and regulatory guidance issued through the quarter. Such changes and regulations include guidance under Sec. 162(m), Sec. 245A, Sec. 951A, foreign tax credits, and rules relating to consolidated NOL carryback claims, a new book minimum tax on certain large corporations, and an excise tax on corporate stock buybacks among other provisions. The Company evaluated the ongoing impact of these law and regulatory changes, which did not have a material impact on its provision for income taxes. Subsequent to the end of the fiscal year ending June 27, 2020, the Treasury Department issued final regulations applicable to the Company’s position with respect to the U.S. taxability of foreign earnings under the global intangible low taxed income (also known as “GILTI”) regime and the deductibility of interest expense under IRC Section 163(j). These regulations did not have a material impact to the Company's income tax positions. The 2017 Tax Cuts and Jobs Act (TCJA) mandated that, for tax years after fiscal year 2022, certain costs incurred for research and development (R&D) activities would no longer be allowed for immediate deduction but would be capitalized and amortized over 5 years (for R&D activities performed domestically) or 15 years (for R&D activities performed abroad). The Company began capitalizing and amortizing such costs in fiscal year 2023, resulting in an increase to income taxes payable that was largely offset by the utilization of R&D credit carryovers. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss (NOL) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in years beginning in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company is taking advantage of this NOL carryback provision by carrying back the fiscal year 2021 NOL to the fiscal 2016 and 2017 years, as described above. In addition, the CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income. This modification did not have a material impact on the fiscal year 2020 or fiscal year 2021 provisions for income taxes. Also, under the CARES Act, AMT credits not previously refunded for the tax year beginning in 2018 are refundable in the tax year beginning in 2019 rather than in years beginning in 2019-2021, and taxpayers can elect to claim 100% of the AMT credits in the first taxable year beginning in 2018 by applying for a tentative refund claim on or before December 31, 2020. The Company has made this election by applying for a tentative refund claim. The Company took advantage of the deferred payment payroll taxes provision, resulting in decreased deductible payroll tax payments, and increased taxable income, in fiscal years 2020 and 2021. Other aspects of the CARES Act did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. In future years, repatriations of cash will generally be tax-free in the U.S. However, withholding taxes in China may still apply to any such future repatriations. Management has not changed its indefinite investment assertions regarding to the portion of accumulated earnings and profits in China that may be repatriated in the future. Accordingly, management estimates that future repatriations of cash from China may result in approximately $0.8 million of withholding tax. There would be no offsetting foreign tax credits in the U.S. and as such, this potential liability is a direct cost associated with actual repatriations. Withholding taxes will not apply to future repatriations from Mexico or Vietnam. The Company expects to repatriate a portion of its foreign earnings based on increased net sales growth driving additional capital requirements domestically, cash requirements for potential acquisitions and to implement certain tax strategies. The Company expects to repatriate approximately $7.6 million from China, in the future. All other unremitted foreign earnings are expected to remain permanently reinvested for planned fixed assets purchases and improvements in foreign locations. The Company’s effective tax rate differs from the federal tax rate as follows: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Federal income tax provision at statutory rates $ 1,322 $ 775 State income taxes, net of federal tax effect (25) 86 Foreign tax rate differences 137 336 Federal rate differences applied to net operating loss carryback — (593) Effect of income tax credits (1,020) (920) Previously unrecognized tax benefits (75) 146 Inflation adjustments 118 178 Tax penalties & interest — 179 Global Intangible Low-Taxed Income (GILTI) tax 33 59 Provision to return reconciliation 52 (91) Equity compensation shortfall 73 104 Foreign Exchange Gains/Losses Unrealized for Tax Purposes 277 23 Other 251 32 Income tax provision (benefit) $ 1,143 $ 314 Prior year presentation of certain items in the above table has been adjusted to reflect current year classification. The domestic and foreign components of income before income taxes were: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Domestic $ (1,086) $ (2,890) Foreign 7,386 6,581 Income before income taxes $ 6,300 $ 3,691 Deferred income tax assets and liabilities consist of the following at: July 1, 2023 July 2, 2022 (in thousands) Deferred tax assets: Net operating loss $ — $ 486 Tax credit carryforwards, net 6,812 7,990 Inventory 267 247 Identifiable intangibles 308 370 Accruals 2,421 2,406 PPE 1,328 1,200 ASC 606 deferred costs 4,802 4,216 Lease liabilities 3,775 3,671 Interest expense deduction carryforward 977 580 Research and development expenses 3,860 — Other 271 465 Deferred income tax assets $ 24,821 $ 21,631 Deferred tax liabilities: Accrued withholding tax - unremitted earnings (754) (754) Right-of-use assets (3,857) (3,663) Tax capital lease liabilities (2,832) (2,385) ASC 606 accelerated revenue (4,599) (3,736) Other (799) (1,102) Deferred income tax liabilities $ (12,841) $ (11,640) Net deferred income tax assets $ 11,980 $ 9,991 Balance sheet caption reported in: Long-term deferred income tax asset $ 12,254 $ 10,055 Long-term deferred income tax liability (274) (64) Net deferred income tax asset $ 11,980 $ 9,991 Uncertain Tax Positions: The Company has R&D tax credits that approximate $9.8 million that have 20-year carryforwards before expiring. The Company’s R&D tax credits expire in various fiscal years from 2032 to 2043. As of July 1, 2023, the Company had unrecognized tax benefits of $3.0 million related to its gross R&D tax credits. The unrecognized tax benefits relate to certain R&D tax credits generated from 2003 to 2023. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Beginning Balance $ 2,998 $ 4,863 Additions based on tax positions related to the current year 120 286 Adjustment to prior year tax positions & amended tax returns (15) (2,296) Lapse of statute of limitations (75) 145 Ending Balance $ 3,028 $ 2,998 The $3.0 million of unrecognized tax benefits at the end of fiscal year 2023, if recognized, would reduce the effective tax rate. Management does not anticipate any material changes to this amount during the next 12 months. The Company recognizes interest accrued related to unrecognized tax benefits and penalties in its income tax provision. The Company has not recognized any interest or penalties in the fiscal years presented in these financial statements, except for

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Jul. 01, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share (EPS) is calculated by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Diluted EPS is computed by including both the weighted-average number of shares outstanding and any dilutive common share equivalents in the denominator. The following table presents a reconciliation of the denominator and the number of antidilutive common share awards that were not included in the diluted earnings per share calculation. These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period: Fiscal Year Ended July 1, 2023 July 2, 2022 Net income $ 5,157 $ 3,377 Weighted average shares outstanding– basic 10,762 10,762 Effect of dilutive common stock awards 176 301 Weighted average shares outstanding – diluted 10,938 11,063 Net income per share – basic $ 0.48 $ 0.31 Net income per share – diluted $ 0.47 $ 0.31 Antidilutive SARs not included in diluted earnings per share 376 619

STOCK OPTION AND BENEFIT PLANS

STOCK OPTION AND BENEFIT PLANS	12 Months Ended
	Jul. 01, 2023
Share-Based Payment Arrangement [Abstract]
STOCK OPTION AND BENEFIT PLANS	STOCK OPTION AND BENEFIT PLANS The Company’s incentive plan provides for equity and liability awards to employees and non-employee directors in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold, research, development and engineering, and selling, general and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. In addition to service conditions, these SARs contain a performance condition. The additional performance condition is based upon the achievement of Return on Invested Capital (ROIC) goals relative to a peer group. All awards with performance conditions are measured over the vesting period and are charged to compensation expense over the requisite service period based on the number of shares expected to vest. The SARs cliff vest after a three-year period from date of grant and expire five years from date of grant. On July 29, 2022, the Compa ny granted 145,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $5.10 and a grant date fair value of $2.09. As of July 1, 2023, 140,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2023, were estimated using the Black Scho les option valuation method with the following weighted average assumptions as of July 29, 2022: Fiscal Year 2023 July 29, 2022 Expected dividend yield —% Risk – free interest rate 3.01% Expected volatility 48.56% Expected life 4.00 On August 9, 2021, the Compa ny granted 165,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $7.17 and a grant date fair value of $2.73. As of July 1, 2023, 140,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2022, were estimated using the Black Scho les option valuation method with the following weighted average assumptions as of August 9, 2021: Fiscal Year 2022 August 9, 2021 Expected dividend yield —% Risk – free interest rate 0.62% Expected volatility 48.58% Expected life 4.00 On July 23, 2020, the Company granted 155,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $6.94 and a grant date fair value of $2.32. As of July 1, 2023, 130,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2021, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 23, 2020: Fiscal Year 2021 July 23, 2020 Expected dividend yield —% Risk – free interest rate 0.17% Expected volatility 42.85% Expected life 4.00 Share-based compensation expense is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. This forfeiture rate will be revised, if necessary, in subsequent periods if actual forfeitures differ from the amount estimated. Share-based compensation expense for fiscal years ended July 1, 2023 and July 2, 2022 was $0.3 million and $0.3 million, respectively. The Black-Scholes option valuation model is used by the Company for estimating the fair value of SARs. Option valuation models require the input of highly subjective assumptions, particularly for the expected term and expected stock price volatility. Changes in these assumptions can materially affect the fair value estimates. There were no SARs exercised during fiscal year 2023 and fiscal year 2022. As of July 1, 2023, total unrecognized compensation expense related to nonvested share-based compensation arrangements was approximately $0.3 million. This expense is expected to be recognized over a weighted-average period of 1.90 years. The following table summarizes the Company’s Options and SARs activity for all plans from July 3, 2022 through July 1, 2023: SARs SARs Aggregate Weighted Weighted Balances, July 3, 2021 688,084 791,250 $ — $ 7.15 1.9 Shares authorized — $ — SARs granted (165,000) 165,000 $ 7.17 SARs forfeited 197,500 (197,500) $ 8.17 SARs exercised Balances, July 2, 2022 720,584 758,750 $ — $ 6.89 2.1 Shares authorized — — SARs granted (145,000) 145,000 5.10 SARs forfeited 277,500 (277,500) 7.03 SARs exercised — — — — Balances, July 1, 2023 853,084 626,250 $ — $ 6.41 2.2 Exercisable at July 1, 2023 226,250 $ — $ 6.45 0.6 Additional information regarding SARs outstanding and exercisable as of July 1, 2023, is as follows: Range of Number Outstanding Weighted Avg. Weighted Avg. Number Weighted $4.93 – $7.43 525,000 2.1 $ 6.06 120,000 $ 4.93 $7.44 – $9.44 101,250 14.6 8.17 106,250 8.17 $4.93 to $9.44 626,250 2.2 $ 6.41 226,250 $ 6.45 The Company has defined contribution plans available to U.S. employees who have attained age 21. Company contributions to the plans were approximately $1.1 million and $0.9 million during fiscal years 2023 and 2022, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jul. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation and Other Matters The Company is party to certain lawsuits or claims in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the financial position, results of operations or cash flow of the Company. Warranties The Company provides warranties on certain product sales. Allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. If actual return rates and/or repair and replacement costs differ significantly from management's estimates, adjustments to recognize additional cost of sales may be required in future periods. As of July 1, 2023 and July 2, 2022, the reserve for warranty costs was approximately $29,000 and $31,000, respectively. Leases Please refer to Footnote “Leases” of the “Notes to Consolidated Financial Statements” for information regarding lease commitments. Internal Investigation During fiscal year 2021, the Company’s Audit Committee completed an internal investigation arising from a notification from an employee regarding certain alleged accounting irregularities. In January 2021, the Company determined that improper accounting resulted in an understatement of cost of goods sold and an overstatement of inventories. Subsequent to the matter identified in January 2021, additional inventory accounting errors unrelated to the investigation were also identified by management. The investigation did not result in a restatement of our previously filed financial statements. The Company is cooperating with the Securities and Exchange Commission’s (the “SEC”) inquiries related to the internal investigation. The Company cannot currently form an estimate of any possible loss or range of loss, including any potential monetary penalties; or other remedies potentially imposed by the SEC. Indemnification Rights Under the Company’s bylaws, the Company’s directors and officers have certain rights to indemnification by the Company against certain liabilities that may arise by reason of their status or service as directors or officers. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors and officers and former directors in certain circumstances.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Jul. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS As of July 1, 2023, the Company did not have any outstanding foreign currency forward contracts. During the fiscal year ended July 2, 2022, the Company entered into $13.9 million of foreign currency forward contracts and settled $24.6 million of such contracts. On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of September 30, 2022, related to the borrowings outstanding under the term loan with Wells Fargo Bank. This interest rate swap contract was terminated on August 14, 2020 when the Company entered into a loan and security agreement with Bank of America. At date of termination this interest rate swap was in a liability position of $148,400, which will be amortized to interest expense over the original term of the swap. On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of November 1, 2023, related to the borrowings outstanding under the line of credit with Wells Fargo Bank. This interest rate swap contract was terminated on August 14, 2020 when the Company entered into a loan and security agreement with Bank of America. At date of termination this interest rate swap was in a liability position of $776,500, which will be amortized to interest expense over the original term of the swap. The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2023 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ (79) $ — $ 79 $ — Interest rate swap Interest expense (346) — 249 (97) Total $ (425) $ — $ 328 $ (97) The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2022 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ 2,721 $ 950 $ (3,750) $ (79) Interest rate swap Interest expense (649) — 303 (346) Total $ 2,072 $ 950 $ (3,447) $ (425) As of July 1, 2023, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China operations. The Company does not currently manage these risk exposures by using derivative instruments.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Jul. 01, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The Company has adopted ASC 820, Fair Value Measurements, which defines fair value, establishes a framework for assets and liabilities being measured and reported at fair value and expands disclosures about fair value measurements. There are three levels of fair value hierarchy inputs used to value assets and liabilities which include: Level 1 – inputs are quoted market prices for identical assets or liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – inputs are unobservable inputs for the asset or liability. There have been no changes in the fair value methodologies used at July 1, 2023 and July 2, 2022. The carrying values of cash and cash equivalents, accounts receivable, contract assets, and current liabilities are reflected on the balance sheets at July 1, 2023 and July 2, 2022, reasonably approximate their fair value. The Company’s long-term debt, which is measured at amortized cost, primarily consists of an asset-based revolving credit facility, lease liability, and equipment loans. These borrowings bear interest at SOFR plus 2.5% per the loan agreement. Each of these rates is a variable floating rate dependent upon current market conditions and the Company’s current credit risk as discussed in Footnote “Long-Term Debt” of the “Notes to Consolidated Financial Statements.”

ENTERPRISE-WIDE DISCLOSURES

ENTERPRISE-WIDE DISCLOSURES	12 Months Ended
	Jul. 01, 2023
Segment Reporting [Abstract]
ENTERPRISE-WIDE DISCLOSURES	ENTERPRISE-WIDE DISCLOSURES Operating segments are defined in ASC Topic 280, Segment Reporting as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. As of July 1, 2023, the Company operates and internally manages a single operating segment, Electronics Manufacturing Services as this is the only discrete financial information that is regularly reviewed by the chief operating decision maker. This segment provides integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing for our customers. Products and Services Of the revenues for the years ended July 1, 2023 and July 2, 2022, contract manufacturing sales and services were $588.1 million and $531.8 million, respectively. Geographic Areas Net sales and long-lived assets (property, plant, and equipment) by geographic area for the years ended and as of July 1, 2023 and July 2, 2022 are summarized in the following table. Net sales set forth below are based on the shipping destination. Long-lived assets information is based on the physical location of the asset and includes property, plant and equipment, net, and operating lease right-of-use assets, net. Fiscal Year Ended (in thousands) 2023 2022 Geographic net sales: Domestic (U.S.) $ 502,274 $ 438,018 Foreign $ 85,861 $ 93,797 Total $ 588,135 $ 531,815 Long-lived assets: United States $ 21,799 $ 14,440 Mexico $ 18,203 22,473 Vietnam $ 4,547 5,228 China $ 523 601 Total $ 45,072 $ 42,742 Percentage of net sales made to customers located in the following countries: Fiscal Year Ended 2023 2022 United States 85% 82% China 14 16 Other foreign countries (a) 1 2 Canada — — Total 100% 100% (a) No other individual foreign country accounted for 10% or more of the foreign sales in fiscal years 2023 or 2022. Significant Customers The percentage of net sales to and trade accounts receivables from significant customers were as follows: Percentage of Net Sales Percentage of Trade Accounts Receivable 2023 2022 2023 2022 Customer A 12% 12% 16% 13%

REVENUE

REVENUE	12 Months Ended
	Jul. 01, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue Recognition The Company specializes in services ranging from product manufacturing to engineering and tooling services. The first step in its process for revenue recognition is to identify the contract with a customer. A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations. A contract can be written, oral, or implied. The Company generally enters into manufacturing service agreements (“MSA”) with its customers that outlines the terms of the business relationship between the customer and the Company. This includes matters such as warranty, indemnification, transfer of title and risk of loss, liability for excess and obsolete inventory, pricing, payment terms, etc. The Company will also bid on a program-by-program basis for customers in which an executed MSA may not be in place. In these instances, as well as when we have an MSA in place, we receive customer purchase orders for specific quantities and timing of products. As a result, the Company considers its contract with a customer to be the combination of the MSA and the purchase order. The transaction price is fixed and set forth in each purchase order. In the Company's normal course of business, there are no variable pricing components, or material amounts refunded to customers in the form of refunds or rebates. The Company assesses whether control of the product or services promised under the contract is transferred to the customer at a point in time (shipment) or over time (as we manufacture the product). The Company is first required to evaluate whether its contracts meet the criteria for 'over-time' or 'point-in-time' recognition. The Company has determined that for the majority of its contracts the Company is manufacturing products for which there is no alternative use due to the unique nature of the customer-specific product, IP and other contract restrictions. The Company has an enforceable right to payment including a reasonable profit for performance completed to date with respect to these contracts. As a result, revenue is recognized under these contracts 'over-time' based on the input cost-to-cost method as it better depicts the transfer of control. This input method is based on the ratio of costs incurred to date as compared to the total estimated costs at completion of the performance obligation. For all other contracts that do not meet these criteria, such as manufacturing contracts for which the terms do not provide an enforceable right to payment for performance completed to date, the Company recognizes revenue when it has transferred control of the related manufactured products which generally occurs upon shipment to the customer. Revenue from engineering services is recognized over time as the services are performed. The Company’s typical payment terms are 30 to 45 days and its sales arrangements do not contain any significant financing component for its customers. The Company generally provides a warranty for workmanship on its manufacturing contracts. Although we offer warranties on our products, our warranties are considered to be assurance-type in nature and do not cover anything beyond ensuring that the product is functioning as intended. Based on the guidance in ASC 606, assurance-type warranties do not represent separate performance obligations; therefore, the primary performance obligation in the majority of our contracts is the delivery of a specific good through the purchase order submitted by our customer. The Company elected to not disclose information about remaining performance obligations as they are part of contracts that that have expected durations of one year or less. The Company has elected to expense costs to obtain contracts as incurred as these costs are immaterial to the financial statements. During fiscal 2023 and 2022, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods. Contract Balances A contract asset is recognized when the Company has recognized revenue, but has not issued an invoice for payment. Contract assets are classified separately on the condensed consolidated balance sheet and transferred to receivables when the right to payment becomes unconditional. The following table summarizes the activity in the Company’s contract assets during the twelve months ended July 1, 2023 (in thousands): Contract Assets Beginning balance, July 2, 2022 $ 21,974 Revenue recognized 573,444 Amounts collected or invoiced (565,493) Ending balance, July 1, 2023 $ 29,925 The following table summarizes the activity in the Company’s contract assets during the twelve months ended July 2, 2022 (in thousands): Contract Assets Beginning balance, July 3, 2021 24,781 Revenue recognized 515,831 Amounts collected or invoiced (518,638) Ending balance, July 2, 2022 $ 21,974 Disaggregation of Revenue The following table presents the Company’s revenue disaggregated for the twelve months ended July 1, 2023 and the twelve months ended July 2, 2022 (in thousands): Revenue Recognition July 1, 2023 July 2, 2022 Over-Time $ 573,444 $ 515,831 Point-in-Time 14,691 15,984 Total 588,135 $ 531,815 Revenues and associated costs from engineering design, development services and tooling, which are performed under contract of short term durations, are recognized over time as the services are performed. Revenue from engineering design, development services and tooling represented approximately 6.6% and 9.6% of total revenue in fiscal year 2023 and 2022, respectively.

LEASES

LEASES	12 Months Ended
	Jul. 01, 2023
Leases [Abstract]
LEASES	LEASES The Company has several commitments under operating and financing leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years. The Company has some leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability. For operating leases, management assumed a discount rate of 4%. The weighted average discount rate is disclosed in the tables below. The components of lease cost were as follows as of July 1, 2023 and July 2, 2022 (in thousands): Year Ended Year Ended Lease cost Classification July 1, 2023 July 2, 2022 Operating lease cost Cost of sales $ 4,519 $ 6,442 Operating lease cost Selling, general and administrative expenses 737 929 Financing lease cost Cost of sales $ 3,891 $ 2,054 Financing lease cost Selling, general and administrative expenses $ 161 $ 64 Total lease cost $ 9,308 $ 9,489 Fixed lease cost $ 8,171 $ 7,941 Short-term lease cost $ 1,137 $ 1,548 Total lease cost $ 9,308 $ 9,489 Amounts reported in the Consolidated Balance Sheet as of July 1, 2023 and July 2, 2022 were (in thousands, except weighted average lease term and discount rate): July 1, 2023 July 2, 2022 Operating Leases: Operating lease right of use assets $ 16,202 $ 16,731 Operating lease liabilities (1) 16,202 16,731 Weighted-average remaining lease term (in years) Operating leases 4.55 5.28 Weighted-average discount rate Operating leases 4.00 % 4.00 % Financing Leases (2) : Financing lease right of use assets $ 9,718 $ 12,464 Financing lease liabilities 8,278 11,211 Weighted-average remaining lease term (in years) Financing leases 1.89 2.56 Weighted-average discount rate Financing leases 9.96 % 8.82 % (1) For fiscal year 2023 and 2022, the current portion of the total operating lease liabilities is classified under Other Current Liabilities (2) The total finance lease right of use assets of $9.7 million is classified under Other Long-term Assets Current portion of debt, net, Other Long-term Liabilities Other information related to leases was as follows (in thousands): July 1, 2023 July 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,714 4,261 Financing cash flows used in financing leases 4,291 2,331 Future lease payments under non-cancellable leases as of July 1, 2023 are as follows (in thousands): Fiscal Years Ending Operating Leases Finance Leases 2024 $ 5,134 $ 4,711 2025 3,987 3,290 2026 3,365 670 2027 2,464 71 2028 1,551 — Thereafter 1,689 — Total undiscounted lease payments 18,190 8,742 Less: present value discount 1,988 464 Total lease liabilities $ 16,202 $ 8,278
LEASES	LEASES The Company has several commitments under operating and financing leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years. The Company has some leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability. For operating leases, management assumed a discount rate of 4%. The weighted average discount rate is disclosed in the tables below. The components of lease cost were as follows as of July 1, 2023 and July 2, 2022 (in thousands): Year Ended Year Ended Lease cost Classification July 1, 2023 July 2, 2022 Operating lease cost Cost of sales $ 4,519 $ 6,442 Operating lease cost Selling, general and administrative expenses 737 929 Financing lease cost Cost of sales $ 3,891 $ 2,054 Financing lease cost Selling, general and administrative expenses $ 161 $ 64 Total lease cost $ 9,308 $ 9,489 Fixed lease cost $ 8,171 $ 7,941 Short-term lease cost $ 1,137 $ 1,548 Total lease cost $ 9,308 $ 9,489 Amounts reported in the Consolidated Balance Sheet as of July 1, 2023 and July 2, 2022 were (in thousands, except weighted average lease term and discount rate): July 1, 2023 July 2, 2022 Operating Leases: Operating lease right of use assets $ 16,202 $ 16,731 Operating lease liabilities (1) 16,202 16,731 Weighted-average remaining lease term (in years) Operating leases 4.55 5.28 Weighted-average discount rate Operating leases 4.00 % 4.00 % Financing Leases (2) : Financing lease right of use assets $ 9,718 $ 12,464 Financing lease liabilities 8,278 11,211 Weighted-average remaining lease term (in years) Financing leases 1.89 2.56 Weighted-average discount rate Financing leases 9.96 % 8.82 % (1) For fiscal year 2023 and 2022, the current portion of the total operating lease liabilities is classified under Other Current Liabilities (2) The total finance lease right of use assets of $9.7 million is classified under Other Long-term Assets Current portion of debt, net, Other Long-term Liabilities Other information related to leases was as follows (in thousands): July 1, 2023 July 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,714 4,261 Financing cash flows used in financing leases 4,291 2,331 Future lease payments under non-cancellable leases as of July 1, 2023 are as follows (in thousands): Fiscal Years Ending Operating Leases Finance Leases 2024 $ 5,134 $ 4,711 2025 3,987 3,290 2026 3,365 670 2027 2,464 71 2028 1,551 — Thereafter 1,689 — Total undiscounted lease payments 18,190 8,742 Less: present value discount 1,988 464 Total lease liabilities $ 16,202 $ 8,278

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jul. 01, 2023
Accounting Policies [Abstract]
Reclassifications	Reclassifications Certain prior period reclassifications were made to conform with the current period presentation. These reclassifications had no effect on reported income, comprehensive income, cash flows, total assets, or shareholders' equity as previously reported.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries in the United States, Mexico, China and Vietnam. Intercompany balances and transactions have been eliminated during consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Estimates include the allowance for doubtful receivables, calculating inventory impairments related to obsolete and non-saleable inventories to value at net realizable value, deferred tax assets and liabilities, uncertain tax positions, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, and the fair value of stock appreciation rights granted under the Company’s share-based compensation plan. Due to uncertainties with respect to the assumptions and estimates, actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. The Company may have cash and cash equivalents at financial institutions that are in excess of federally insured limits from time to time.
Allowance for Doubtful Accounts	Allowance for Doubtful AccountsThe Company evaluates the collectability of accounts receivable and records an allowance for doubtful accounts, which reduces the receivables to an amount that management reasonably estimates will be collected. A specific allowance is recorded against receivables considered to be impaired based on the Company’s knowledge of the financial condition of the customer. In determining the amount of the allowance, the Company considers several factors including the aging of the receivables, the current business environment and historical experience. After all attempts to collect a receivable have failed, the receivable is written off against the allowance.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Inventory valuation is determined using the first-in, first-out (FIFO) method. Customer orders are based upon forecasted quantities of product manufactured for shipment over defined periods. Raw material inventories are purchased to fulfill these customer requirements. Within these arrangements, customer demands for products frequently change, sometimes creating excess and obsolete inventories. The Company regularly reviews raw material inventories by customer for both excess and obsolete quantities. Wherever possible, the Company attempts to recover its full cost of excess and obsolete inventories from customers or, in some cases, through other markets. When it is determined that the Company’s carrying cost of such excess and obsolete inventories cannot be recovered in full, a charge is taken against income for the difference between the carrying cost and the estimated realizable amount. We also reserve for inventory related to specific customers covered by lead-time assurance agreements when those customers are experiencing financial difficulties or reimbursement is not reasonably assured.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are carried at cost and depreciated using straight-line methods over the expected useful lives of the assets. Repairs and maintenance costs are expensed as incurred.
Leases	Leases Lease assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using the Company’s incremental borrowing rate, unless the implicit rate is readily determinable. Our incremental borrowing rate represents the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in a similar economic environment. Lease assets also include any lease prepayments. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of income. For further information, please refer to Footnote “Leases” of the “Notes to Consolidated Financial Statements.”
Impairment of Long-Lived Assets	Impairment of Long-lived Assets The Company, using its best estimates based on reasonable and supportable assumptions and projections, reviews assets for impairment whenever events or changes in circumstances have indicated that the carrying amount of its assets might not be recoverable. Impaired assets are reported at the lower of cost or fair value.
Accrued Warranty	Accrued Warranty An accrual is made for expected warranty costs, with the related expense recognized in cost of goods sold. Management reviews the adequacy of this accrual quarterly based on historical analyses and anticipated product returns.
Self-funded Insurance	Self-funded Insurance The Company self-funds its domestic employee health plans. The Company contracts with a separate administrative service company to supervise and administer the programs and act as its representative. The Company reduces its risk under this self-funded platform by purchasing stop-loss insurance coverage for high dollar individual claims. In addition, if the aggregate annual claims amount to more than 125 percent of expected claims for the plan year this insurance will also pay those claims amounts exceeding that level. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data supplied by the Company’s broker to estimate its self-funded insurance liability. This liability is subject to a total limitation that varies based on employee enrollment and factors that are established at each annual contract renewal. Actual claims experience may differ from the Company’s estimates. Costs related to the administration of the plan and related claims are expensed as incurred.
Revenue Recognition	Revenue Recognition The first step in its process for revenue recognition is to identify the contract with a customer. A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations. A contract can be written, oral, or implied. The Company generally enters into manufacturing service agreements (“MSA”) with its customers that outlines the terms of the business relationship between the customer and the Company. This includes matters such as warranty, indemnification, transfer of title and risk of loss, liability for excess and obsolete inventory, pricing, payment terms, etc. The Company will also bid on a program-by-program basis for customers in which an executed MSA may not be in place. In these instances, as well as when we have an MSA in place, we receive customer purchase orders for specific quantities and timing of products. As a result, the Company considers its contract with a customer to be the combination of the MSA and the purchase order. The transaction price is fixed and set forth in each purchase order. In the Company's normal course of business, there are no variable pricing components, or material amounts refunded to customers in the form of refunds or rebates. The Company assesses whether control of the product or services promised under the contract is transferred to the customer at a point in time (shipment) or over time (as we manufacture the product). The Company is first required to evaluate whether its contracts meet the criteria for 'over-time' or 'point-in-time' recognition. The Company has determined that for the majority of its contracts the Company is manufacturing products for which there is no alternative use due to the unique nature of the customer-specific product, IP and other contract restrictions. The Company has an enforceable right to payment including a reasonable profit for performance completed to date with respect to these contracts. As a result, revenue is recognized under these contracts 'over-time' based on the input cost-to-cost method as it better depicts the transfer of control. This input method is based on the ratio of costs incurred to date as compared to the total estimated costs at completion of the performance obligation. For all other contracts that do not meet these criteria, such as manufacturing contracts for which the terms do not provide an enforceable right to payment for performance completed to date, the Company recognizes revenue when it has transferred control of the related manufactured products which generally occurs upon shipment to the customer. Revenue from engineering services is recognized over time as the services are performed.
Shipping and Handling Fees	Shipping and Handling Fees The Company classifies costs associated with shipping and handling fees as a component of cost of goods sold. Customer billings related to shipping and handling fees are reported as revenue.
Research, Development and Engineering	Research, Development and Engineering Research, development and engineering expenses include unreimbursed contract manufacturing costs as well as design and engineering costs associated with the production of contract manufacturing programs. Research, development and engineering costs are expensed as incurred.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities The Company has previously entered into foreign currency forward contracts and an interest rate swap which are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging . The effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (AOCI) and is reclassified into earnings in the same period in which the underlying hedged transaction affects earnings. The derivative’s effectiveness represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. As of July 1, 2023, the Company did not have any outstanding foreign currency forward contracts.
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding
Foreign Currency Transactions	Foreign Currency Transactions The functional currency of the Company’s subsidiaries in Mexico, China and Vietnam is the U.S. dollar. Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of goods sold.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, current liabilities, and non-current operating lease liability are reflected on the balance sheets at July 1, 2023 and July 2, 2022, reasonably approximate their fair value. The Company had an outstanding balance on the line of credit of $115.4 million as of July 1, 2023 and $95.1 million as of July 2, 2022, with a carrying value that reasonably approximates the fair value. The Company had an outstanding balance on the term loan of $3.4 million as of July 1, 2023 and $4.6 million as of July 2, 2022, with a carrying value that reasonably approximates the fair value. The equipment term loans were $6.5 million as of July 1, 2023 and $3.3 million as of July 2, 2022, with a carrying value that reasonably approximates the fair value.
Share-based Compensation	Share-based CompensationThe Company’s incentive plan may provide for equity awards to employees in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is included in cost of goods sold, research, development and engineering, and selling, general, and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations.
Newly Adopted and Recent Accounting Pronouncements	Newly Adopted and Recent Accounting Pronouncements In January 2021, FASB issued Accounting Standard Update (ASU) 2021-01, Reference Rate Reform (Topic 848) to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The Company is currently assessing the effects on its consolidated financial statements, and it intends to adopt the guidance as it becomes effective. In March of 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, which clarifies specific issues raised by stakeholders. Specifically, the ASU clarifies the following: 1) that all entities are required to provide the fair value option disclosures in ASC 825, Financial Instruments 2) clarifies that the portfolio exception in ASC 820, Fair Value Measurement, applies to nonfinancial items accounted for as derivatives under ASC 815, Derivatives and Hedging; 3) clarifies that for purposes of measuring expected credit losses on a net investment in a lease in accordance with ASC 326, Financial Instruments - Credit Losses, the lease term determined in accordance with ASC 842, Leases, should be used as the contractual term; 4) clarifies that when an entity regains control of financial assets sold, it should recognize an allowance for credit losses in accordance with ASC 326; and 5) aligns the disclosure requirements for debt securities in ASC 320, Investments - Debt Securities, with the corresponding requirements for depository and lending institutions in ASC 942, Financial Services - Depository and Lending. The amendments in the ASU have various effective dates and transition requirements which are dependent on timing of adoption of ASU 2016-13. The Company is currently assessing the effects on its consolidated financial statements, and it intends to adopt the guidance as they become effective. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04 and ASU 2019-05, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance is effective for the Company beginning in the first quarter of fiscal year 2024 with early adoption permitted. The Company is currently assessing the impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2024.
Fiscal Year	Fiscal Year The Company operates on a 52/53 week fiscal year. Fiscal years end on the Saturday nearest June 30. As such, fiscal years 2023 and 2022 ended on July 1, 2023 and July 2, 2022, respectively. Fiscal years 2022 and 2023 were 52 week years.

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Jul. 01, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment consists of the following: Life July 1, 2023 July 2, 2022 (in years) (in thousands) Land — $ 4,034 $ 4,034 Buildings and improvements 3 to 30 26,459 25,841 Equipment 1 to 10 77,823 71,180 Furniture and fixtures 3 to 5 5,418 5,286 Total Property, Plant and Equipment 113,734 106,341 Accumulated depreciation (84,864) (80,329) Property, Plant and Equipment, net $ 28,870 $ 26,012 Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Depreciation expense $ 4,700 $ 4,940

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Jul. 01, 2023
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	Debt maturities as of July 1, 2023 for the next five years are as follows (in thousands): Fiscal Years Ending Amount 2024 $ 2,862 2025 2,959 2026 1,905 2027 116,166 2028 - Thereafter $ 1,367 Total debt $ 125,259 Unamortized debt issuance costs 591 Long-term debt, net of debt issuance costs $ 124,668

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jul. 01, 2023
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Income tax benefit consists of the following: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Current income tax provision (benefit): United States $ 998 $ (2,179) Foreign 2,134 2,012 3,132 (167) Deferred income tax provision (benefit): United States (2,130) 443 Foreign 141 38 (1,989) 481 Total income tax provision $ 1,143 $ 314
Schedule of Effective Tax Rate Reconciliation	The Company’s effective tax rate differs from the federal tax rate as follows: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Federal income tax provision at statutory rates $ 1,322 $ 775 State income taxes, net of federal tax effect (25) 86 Foreign tax rate differences 137 336 Federal rate differences applied to net operating loss carryback — (593) Effect of income tax credits (1,020) (920) Previously unrecognized tax benefits (75) 146 Inflation adjustments 118 178 Tax penalties & interest — 179 Global Intangible Low-Taxed Income (GILTI) tax 33 59 Provision to return reconciliation 52 (91) Equity compensation shortfall 73 104 Foreign Exchange Gains/Losses Unrealized for Tax Purposes 277 23 Other 251 32 Income tax provision (benefit) $ 1,143 $ 314
Schedule of Income before Income Tax, Domestic and Foreign	The domestic and foreign components of income before income taxes were: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Domestic $ (1,086) $ (2,890) Foreign 7,386 6,581 Income before income taxes $ 6,300 $ 3,691
Schedule of Deferred Tax Assets and Liabilities	Deferred income tax assets and liabilities consist of the following at: July 1, 2023 July 2, 2022 (in thousands) Deferred tax assets: Net operating loss $ — $ 486 Tax credit carryforwards, net 6,812 7,990 Inventory 267 247 Identifiable intangibles 308 370 Accruals 2,421 2,406 PPE 1,328 1,200 ASC 606 deferred costs 4,802 4,216 Lease liabilities 3,775 3,671 Interest expense deduction carryforward 977 580 Research and development expenses 3,860 — Other 271 465 Deferred income tax assets $ 24,821 $ 21,631 Deferred tax liabilities: Accrued withholding tax - unremitted earnings (754) (754) Right-of-use assets (3,857) (3,663) Tax capital lease liabilities (2,832) (2,385) ASC 606 accelerated revenue (4,599) (3,736) Other (799) (1,102) Deferred income tax liabilities $ (12,841) $ (11,640) Net deferred income tax assets $ 11,980 $ 9,991 Balance sheet caption reported in: Long-term deferred income tax asset $ 12,254 $ 10,055 Long-term deferred income tax liability (274) (64) Net deferred income tax asset $ 11,980 $ 9,991
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Year Ended July 1, 2023 July 2, 2022 (in thousands) Beginning Balance $ 2,998 $ 4,863 Additions based on tax positions related to the current year 120 286 Adjustment to prior year tax positions & amended tax returns (15) (2,296) Lapse of statute of limitations (75) 145 Ending Balance $ 3,028 $ 2,998

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Jul. 01, 2023
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities and Outstanding Equity Awards	Basic earnings per share (EPS) is calculated by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Diluted EPS is computed by including both the weighted-average number of shares outstanding and any dilutive common share equivalents in the denominator. The following table presents a reconciliation of the denominator and the number of antidilutive common share awards that were not included in the diluted earnings per share calculation. These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period: Fiscal Year Ended July 1, 2023 July 2, 2022 Net income $ 5,157 $ 3,377 Weighted average shares outstanding– basic 10,762 10,762 Effect of dilutive common stock awards 176 301 Weighted average shares outstanding – diluted 10,938 11,063 Net income per share – basic $ 0.48 $ 0.31 Net income per share – diluted $ 0.47 $ 0.31 Antidilutive SARs not included in diluted earnings per share 376 619

STOCK OPTION AND BENEFIT PLANS

STOCK OPTION AND BENEFIT PLANS (Tables)	12 Months Ended
	Jul. 01, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions	On July 29, 2022, the Compa ny granted 145,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $5.10 and a grant date fair value of $2.09. As of July 1, 2023, 140,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2023, were estimated using the Black Scho les option valuation method with the following weighted average assumptions as of July 29, 2022: Fiscal Year 2023 July 29, 2022 Expected dividend yield —% Risk – free interest rate 3.01% Expected volatility 48.56% Expected life 4.00 On August 9, 2021, the Compa ny granted 165,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $7.17 and a grant date fair value of $2.73. As of July 1, 2023, 140,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2022, were estimated using the Black Scho les option valuation method with the following weighted average assumptions as of August 9, 2021: Fiscal Year 2022 August 9, 2021 Expected dividend yield —% Risk – free interest rate 0.62% Expected volatility 48.58% Expected life 4.00 On July 23, 2020, the Company granted 155,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $6.94 and a grant date fair value of $2.32. As of July 1, 2023, 130,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2021, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 23, 2020: Fiscal Year 2021 July 23, 2020 Expected dividend yield —% Risk – free interest rate 0.17% Expected volatility 42.85% Expected life 4.00
Schedule of Option/SARs Activity of All Plans	The following table summarizes the Company’s Options and SARs activity for all plans from July 3, 2022 through July 1, 2023: SARs SARs Aggregate Weighted Weighted Balances, July 3, 2021 688,084 791,250 $ — $ 7.15 1.9 Shares authorized — $ — SARs granted (165,000) 165,000 $ 7.17 SARs forfeited 197,500 (197,500) $ 8.17 SARs exercised Balances, July 2, 2022 720,584 758,750 $ — $ 6.89 2.1 Shares authorized — — SARs granted (145,000) 145,000 5.10 SARs forfeited 277,500 (277,500) 7.03 SARs exercised — — — — Balances, July 1, 2023 853,084 626,250 $ — $ 6.41 2.2 Exercisable at July 1, 2023 226,250 $ — $ 6.45 0.6
Schedule of Additional Information Regarding Options Outstanding	Additional information regarding SARs outstanding and exercisable as of July 1, 2023, is as follows: Range of Number Outstanding Weighted Avg. Weighted Avg. Number Weighted $4.93 – $7.43 525,000 2.1 $ 6.06 120,000 $ 4.93 $7.44 – $9.44 101,250 14.6 8.17 106,250 8.17 $4.93 to $9.44 626,250 2.2 $ 6.41 226,250 $ 6.45

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Jul. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Gain (Loss) of Derivative Instruments in Statement of Operations	The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2023 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ (79) $ — $ 79 $ — Interest rate swap Interest expense (346) — 249 (97) Total $ (425) $ — $ 328 $ (97) The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2022 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ 2,721 $ 950 $ (3,750) $ (79) Interest rate swap Interest expense (649) — 303 (346) Total $ 2,072 $ 950 $ (3,447) $ (425)

ENTERPRISE-WIDE DISCLOSURES (Ta

ENTERPRISE-WIDE DISCLOSURES (Tables)	12 Months Ended
	Jul. 01, 2023
Segment Reporting [Abstract]
Schedule of Net Sales and Long-Lived Assets (Property, Plant, and Equipment) by Geographic Area	Net sales and long-lived assets (property, plant, and equipment) by geographic area for the years ended and as of July 1, 2023 and July 2, 2022 are summarized in the following table. Net sales set forth below are based on the shipping destination. Long-lived assets information is based on the physical location of the asset and includes property, plant and equipment, net, and operating lease right-of-use assets, net. Fiscal Year Ended (in thousands) 2023 2022 Geographic net sales: Domestic (U.S.) $ 502,274 $ 438,018 Foreign $ 85,861 $ 93,797 Total $ 588,135 $ 531,815 Long-lived assets: United States $ 21,799 $ 14,440 Mexico $ 18,203 22,473 Vietnam $ 4,547 5,228 China $ 523 601 Total $ 45,072 $ 42,742
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area	Percentage of net sales made to customers located in the following countries: Fiscal Year Ended 2023 2022 United States 85% 82% China 14 16 Other foreign countries (a) 1 2 Canada — — Total 100% 100% (a) No other individual foreign country accounted for 10% or more of the foreign sales in fiscal years 2023 or 2022.
Schedule of Percentage of Net Sales to and Trade Accounts Receivables from Significant Customers	The percentage of net sales to and trade accounts receivables from significant customers were as follows: Percentage of Net Sales Percentage of Trade Accounts Receivable 2023 2022 2023 2022 Customer A 12% 12% 16% 13%

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Jul. 01, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Contract Assets	Contract Balances A contract asset is recognized when the Company has recognized revenue, but has not issued an invoice for payment. Contract assets are classified separately on the condensed consolidated balance sheet and transferred to receivables when the right to payment becomes unconditional. The following table summarizes the activity in the Company’s contract assets during the twelve months ended July 1, 2023 (in thousands): Contract Assets Beginning balance, July 2, 2022 $ 21,974 Revenue recognized 573,444 Amounts collected or invoiced (565,493) Ending balance, July 1, 2023 $ 29,925 The following table summarizes the activity in the Company’s contract assets during the twelve months ended July 2, 2022 (in thousands): Contract Assets Beginning balance, July 3, 2021 24,781 Revenue recognized 515,831 Amounts collected or invoiced (518,638) Ending balance, July 2, 2022 $ 21,974
Schedule of Disaggregation of Revenue	The following table presents the Company’s revenue disaggregated for the twelve months ended July 1, 2023 and the twelve months ended July 2, 2022 (in thousands): Revenue Recognition July 1, 2023 July 2, 2022 Over-Time $ 573,444 $ 515,831 Point-in-Time 14,691 15,984 Total 588,135 $ 531,815

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Jul. 01, 2023
Leases [Abstract]
Schedule of Lease, Cost	The components of lease cost were as follows as of July 1, 2023 and July 2, 2022 (in thousands): Year Ended Year Ended Lease cost Classification July 1, 2023 July 2, 2022 Operating lease cost Cost of sales $ 4,519 $ 6,442 Operating lease cost Selling, general and administrative expenses 737 929 Financing lease cost Cost of sales $ 3,891 $ 2,054 Financing lease cost Selling, general and administrative expenses $ 161 $ 64 Total lease cost $ 9,308 $ 9,489 Fixed lease cost $ 8,171 $ 7,941 Short-term lease cost $ 1,137 $ 1,548 Total lease cost $ 9,308 $ 9,489
Schedule of Lease Assets and Liabilities	Amounts reported in the Consolidated Balance Sheet as of July 1, 2023 and July 2, 2022 were (in thousands, except weighted average lease term and discount rate): July 1, 2023 July 2, 2022 Operating Leases: Operating lease right of use assets $ 16,202 $ 16,731 Operating lease liabilities (1) 16,202 16,731 Weighted-average remaining lease term (in years) Operating leases 4.55 5.28 Weighted-average discount rate Operating leases 4.00 % 4.00 % Financing Leases (2) : Financing lease right of use assets $ 9,718 $ 12,464 Financing lease liabilities 8,278 11,211 Weighted-average remaining lease term (in years) Financing leases 1.89 2.56 Weighted-average discount rate Financing leases 9.96 % 8.82 % (1) For fiscal year 2023 and 2022, the current portion of the total operating lease liabilities is classified under Other Current Liabilities (2) The total finance lease right of use assets of $9.7 million is classified under Other Long-term Assets Current portion of debt, net, Other Long-term Liabilities Other information related to leases was as follows (in thousands): July 1, 2023 July 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,714 4,261 Financing cash flows used in financing leases 4,291 2,331
Schedule of Maturities of Operating Leases Liability	Future lease payments under non-cancellable leases as of July 1, 2023 are as follows (in thousands): Fiscal Years Ending Operating Leases Finance Leases 2024 $ 5,134 $ 4,711 2025 3,987 3,290 2026 3,365 670 2027 2,464 71 2028 1,551 — Thereafter 1,689 — Total undiscounted lease payments 18,190 8,742 Less: present value discount 1,988 464 Total lease liabilities $ 16,202 $ 8,278
Schedule of Maturities of Finance Leases Liability	Future lease payments under non-cancellable leases as of July 1, 2023 are as follows (in thousands): Fiscal Years Ending Operating Leases Finance Leases 2024 $ 5,134 $ 4,711 2025 3,987 3,290 2026 3,365 670 2027 2,464 71 2028 1,551 — Thereafter 1,689 — Total undiscounted lease payments 18,190 8,742 Less: present value discount 1,988 464 Total lease liabilities $ 16,202 $ 8,278

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Debt Disclosure [Line Items]
Operating and net income	$ 16,323	$ 8,795
Net income	5,157	3,377
Working capital	$ 197,600
Percentage of expected over aggregate annual insurance claims	125%
Revolving loan	$ 115,400	95,100
Long-term debt, net of debt issuance costs	124,668
Long-term Debt
Debt Disclosure [Line Items]
Long-term debt, net of debt issuance costs	3,400	4,600
Equipment Term Loan Juarez
Debt Disclosure [Line Items]
Long-term debt, net of debt issuance costs	$ 6,500	$ 3,300

INVENTORIES - Narrative (Detail

INVENTORIES - Narrative (Detail) - USD ($) $ in Thousands	Jul. 01, 2023	Jul. 02, 2022
Inventory Disclosure [Abstract]
Inventories, net	$ 137,911	$ 155,741

PROPERTY, PLANT AND EQUIPMENT -

PROPERTY, PLANT AND EQUIPMENT - Schedule Of Property Plant And Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Property, Plant and Equipment [Line Items]
Total Property, Plant and Equipment	$ 113,734	$ 106,341
Accumulated depreciation	(84,864)	(80,329)
Property, Plant and Equipment, net	28,870	26,012
Depreciation expense	4,700	4,940
Land
Property, Plant and Equipment [Line Items]
Total Property, Plant and Equipment	4,034	4,034
Buildings and improvements
Property, Plant and Equipment [Line Items]
Total Property, Plant and Equipment	$ 26,459	25,841
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Life	3 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Life	30 years
Equipment
Property, Plant and Equipment [Line Items]
Total Property, Plant and Equipment	$ 77,823	71,180
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Life	1 year
Equipment | Maximum
Property, Plant and Equipment [Line Items]
Life	10 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total Property, Plant and Equipment	$ 5,418	$ 5,286
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Life	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Life	5 years

LONG-TERM DEBT- Narrative (Deta

LONG-TERM DEBT- Narrative (Detail) - USD ($) $ in Thousands		12 Months Ended
	Aug. 26, 2022	Jul. 01, 2023	Apr. 01, 2023	Jul. 02, 2022	Sep. 03, 2021	Sep. 02, 2021	Nov. 24, 2020	Aug. 14, 2020
Debt Disclosure [Line Items]
Revolving loan		$ 115,400		$ 95,100
Long-term debt, net of debt issuance costs		124,668
Letters of credit outstanding, amount		300		300
Additional availability of line of credit		4,600		10,800
Interest rate on outstanding debt							5.52%	4.85%
Americ Bank Equipment Financing Arrangement
Debt Disclosure [Line Items]
Debt instrument, face amount			$ 4,400
Long term debt, monthly payment amounts			75
Long-term debt, net of debt issuance costs			$ 4,100
Equipment Term Loan
Debt Disclosure [Line Items]
Long-term debt, net of debt issuance costs		2,300		3,300				$ 5,000
Periodic payment of principal amount		94
Long-term Debt
Debt Disclosure [Line Items]
Long-term debt, net of debt issuance costs		$ 3,400		4,600
Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Disclosure [Line Items]
Debt instrument, basis spread on variable rate		1%
Equipment Term Loan Relating to Existing Equipment
Debt Disclosure [Line Items]
Long-term debt, net of debt issuance costs		$ 3,400		$ 4,600			$ 6,000
Periodic payment of principal amount		$ 100
Wells Fargo Bank
Debt Disclosure [Line Items]
Long-term debt, term		5 years
Revolving loan								$ 93,000
Increase in revolving line of credit					$ 120,000	$ 93,000
Bank Of America
Debt Disclosure [Line Items]
Increase in interest rate	0.25%
Bank Of America | Line of Credit
Debt Disclosure [Line Items]
Percentage of additional interest rate on default		2%
Percentage of unused portion of credit		0.25%
Revolving Credit Facility | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate
Debt Disclosure [Line Items]
Debt instrument, basis spread on variable rate		0.50%
Minimum
Debt Disclosure [Line Items]
Interest rate on outstanding debt		4.85%		4.50%
Minimum | Americ Bank Equipment Financing Arrangement
Debt Disclosure [Line Items]
LIBOR rate (as percent)			6%
Minimum | Bank Of America | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Disclosure [Line Items]
LIBOR rate (as percent)		2.50%
Minimum | Bank Of America | Line of Credit | Base Rate
Debt Disclosure [Line Items]
Debt instrument, basis spread on variable rate		1.50%
Maximum
Debt Disclosure [Line Items]
Interest rate on outstanding debt		8.22%		5.52%
Maximum | Americ Bank Equipment Financing Arrangement
Debt Disclosure [Line Items]
LIBOR rate (as percent)			8%
Maximum | Bank Of America | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Disclosure [Line Items]
LIBOR rate (as percent)		3%
Maximum | Bank Of America | Line of Credit | Base Rate
Debt Disclosure [Line Items]
Debt instrument, basis spread on variable rate		2%

LONG-TERM DEBT - Schedule of Ma

LONG-TERM DEBT - Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Jul. 01, 2023 USD ($)
Debt Disclosure [Abstract]
2024	$ 2,862
2025	2,959
2026	1,905
2027	116,166
2028 - Thereafter	1,367
Total debt	125,259
Unamortized debt issuance costs	591
Long-term debt, net of debt issuance costs	$ 124,668

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expense (Benefit)) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Current income tax provision (benefit):
United States	$ 998	$ (2,179)
Foreign	2,134	2,012
Current Income Tax Expense (Benefit)	3,132	(167)
Deferred income tax provision (benefit):
United States	(2,130)	443
Foreign	141	38
Deferred Income Tax Expense (Benefit)	(1,989)	481
Total income tax provision	$ 1,143	$ 314

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 03, 2021
Income Tax Contingency [Line Items]
Tax credit carryforwards	$ 9,800
Previously unrecognized tax benefits		$ 600
Withholding taxes	800
Effect of repatriation of foreign earnings, net	$ 7,600
Remaining contractual term of tax credit expiration date	20 years
Unrecognized tax benefits, period increase (decrease)	$ 3,000
Unrecognized tax benefits	$ 3,028	2,998	$ 4,863
Unrecognized tax benefits, income tax penalties and interest expense		$ 200
Domestic (U.S.)
Income Tax Contingency [Line Items]
Capitalized and amortized	5 years
Foreign
Income Tax Contingency [Line Items]
Capitalized and amortized	15 years

INCOME TAXES - Effective Tax Ra

INCOME TAXES - Effective Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Income Tax Disclosure [Abstract]
Federal income tax provision at statutory rates	$ 1,322	$ 775
State income taxes, net of federal tax effect	(25)	86
Foreign tax rate differences	137	336
Federal rate differences applied to net operating loss carryback	0	(593)
Effect of income tax credits	(1,020)	(920)
Previously unrecognized tax benefits	(75)	146
Inflation adjustments	118	178
Tax penalties & interest	0	179
Global Intangible Low-Taxed Income (GILTI) tax	33	59
Provision to return reconciliation	52	(91)
Equity compensation shortfall	73	104
Foreign Exchange Gains/Losses Unrealized for Tax Purposes	277	23
Other	251	32
Total income tax provision	$ 1,143	$ 314

INCOME TAXES - Components Of In

INCOME TAXES - Components Of Income before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Income Tax Disclosure [Abstract]
Domestic	$ (1,086)	$ (2,890)
Foreign	7,386	6,581
Income before income taxes	$ 6,300	$ 3,691

INCOME TAXES - Deferred Income

INCOME TAXES - Deferred Income Tax Assets And Liabilities (Detail) - USD ($) $ in Thousands	Jul. 01, 2023	Jul. 02, 2022
Deferred tax assets:
Net operating loss	$ 0	$ 486
Tax credit carryforwards, net	6,812	7,990
Inventory	267	247
Identifiable intangibles	308	370
Accruals	2,421	2,406
PPE	1,328	1,200
ASC 606 deferred costs	4,802	4,216
Lease liabilities	3,775	3,671
Interest expense deduction carryforward	977	580
Research and development expenses	3,860	0
Other	271	465
Deferred income tax assets	24,821	21,631
Deferred tax liabilities:
Accrued withholding tax - unremitted earnings	(754)	(754)
Right-of-use assets	(3,857)	(3,663)
Tax capital lease liabilities	(2,832)	(2,385)
ASC 606 accelerated revenue	(4,599)	(3,736)
Other	(799)	(1,102)
Deferred income tax liabilities	(12,841)	(11,640)
Net deferred income tax assets	11,980	9,991
Long-term deferred income tax asset	12,254	10,055
Long-term deferred income tax liability	$ (274)	$ (64)

INCOME TAXES - Schedule Of Unre

INCOME TAXES - Schedule Of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balances, beginning of period	$ 2,998	$ 4,863
Additions based on tax positions related to the current year	120	286
Adjustment to prior year tax positions & amended tax returns	(15)	(2,296)
Lapse of statute of limitations	(75)	145
Balances, end of period	$ 3,028	$ 2,998

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Antidilutive Securities and Outstanding Equity Awards (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Earnings Per Share [Abstract]
Net income	$ 5,157	$ 3,377
Weighted average shares outstanding — basic (in shares)	10,762	10,762
Effect of dilutive common stock awards	176	301
Weighted average shares outstanding — diluted (in shares)	10,938	11,063
Net income per share — basic (in dollars per share)	$ 0.48	$ 0.31
Net income per share — diluted (in dollars per share)	$ 0.47	$ 0.31
Antidilutive SARs not included in diluted earnings per share	376	619

STOCK OPTION AND BENEFIT PLAN_2

STOCK OPTION AND BENEFIT PLANS - Narrative (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions				12 Months Ended
	Jul. 29, 2022	Aug. 09, 2021	Jul. 23, 2020	Jul. 01, 2023	Jul. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Expiration period				5 years
Granted (in shares)	145	165	155
Strike price (in dollars per share)	$ 5.10	$ 7.17	$ 6.94
Grant date fair value (in dollars per share)	$ 2.09	$ 2.73	$ 2.32
Stock-based compensation expense				$ 0.3	$ 0.3
Unrecognized share based compensation expense				$ 0.3
Share based expense recognition - weighted-average period				1 year 10 months 24 days
Company contributions to 401K				$ 1.1	$ 0.9
August 9, 2021 SAR Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding SARs (in shares)				140
July 23, 2020 SAR Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding SARs (in shares)				130

STOCK OPTION AND BENEFIT PLAN_3

STOCK OPTION AND BENEFIT PLANS - Grant Date Fair Value For Awards Estimated Using Option Valuation Method With Weighted Average Assumptions (Detail) - Number of Options/SARs Outstanding	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 03, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0%	0%	0%
Risk – free interest rate	3.01%	0.62%	0.17%
Expected volatility	48.56%	48.58%	42.85%
Expected life	4 years	4 years	4 years

STOCK OPTION AND BENEFIT PLAN_4

STOCK OPTION AND BENEFIT PLANS - Summarizes Option/SARs Activity Of All Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 03, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Balance at Beginning (in shares)	720,584	688,084
Shares authorized (in shares)	0	0
SARs granted (in shares)	(145,000)	(165,000)
SARs forfeited (in shares)	(277,500)	(197,500)
Exercise of stock appreciation rights (in shares)	0
Balance at End (in shares)	853,084	720,584	688,084
Aggregate Intrinsic Value, Beginning balance	$ 0	$ 0
Intrinsic value for options exercised	0
Aggregate Intrinsic Value, Ending balance	0	$ 0	$ 0
Aggregate Intrinsic Value, Exercisable	$ 0
Outstanding Weighted Average Exercise Price, Beginning balance (in dollars per share)	$ 6.89	$ 7.15
SARs granted, Weighted Average Exercise Price (in dollars per share)	5.10	7.17
SARs forfeited, Weighted Average Exercise Price (in dollars per share)	7.03	8.17
SARs exercised, Weighted Average Exercise Price (in dollars per share)	0
Outstanding Weighted Average Exercise Price, Ending balance (in dollars per share)	6.41	$ 6.89	$ 7.15
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 6.45
Weighted Average Remaining Contractual Life (in years), Outstanding	2 years 2 months 12 days	2 years 1 month 6 days	1 year 10 months 24 days
Weighted Average Remaining Contractual Life (in years), Exercisable	7 months 6 days
Number of Options/SARs Outstanding
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (in shares)	758,750	791,250
Shares authorized (in shares)
SARs granted (in shares)	(145,000)	(165,000)
SARs forfeited (in shares)	(277,500)	(197,500)
Exercise of stock appreciation rights (in shares)	0
Ending balance (in shares)	626,250	758,750	791,250
Exercisable at July 1, 2023 (in shares)	226,250

STOCK OPTION AND BENEFIT PLAN_5

STOCK OPTION AND BENEFIT PLANS - Additional Information Regarding Options Outstanding (Detail)	12 Months Ended
	Jul. 01, 2023 $ / shares shares
$4.93 – $7.43
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, Upper (in dollars per share)	$ 4.93
Range of Exercise Prices, Lower (in dollars per share)	$ 7.43
Number Outstanding (in shares) | shares	525,000
Weighted Avg. Remaining Contractual Life (in years)	2 years 1 month 6 days
Weighted Avg. Exercise Price (in dollars per share)	$ 6.06
Number Exercisable (in shares) | shares	120,000
Weighted Avg. Exercise Price (in dollars per share)	$ 4.93
$7.44 – $9.44
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, Upper (in dollars per share)	7.44
Range of Exercise Prices, Lower (in dollars per share)	$ 9.44
Number Outstanding (in shares) | shares	101,250
Weighted Avg. Remaining Contractual Life (in years)	14 years 7 months 6 days
Weighted Avg. Exercise Price (in dollars per share)	$ 8.17
Number Exercisable (in shares) | shares	106,250
Weighted Avg. Exercise Price (in dollars per share)	$ 8.17
$4.93 to $9.44
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, Upper (in dollars per share)	4.93
Range of Exercise Prices, Lower (in dollars per share)	$ 9.44
Number Outstanding (in shares) | shares	626,250
Weighted Avg. Remaining Contractual Life (in years)	2 years 2 months 12 days
Weighted Avg. Exercise Price (in dollars per share)	$ 6.41
Number Exercisable (in shares) | shares	226,250
Weighted Avg. Exercise Price (in dollars per share)	$ 6.45

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Narrative) (Detail) - USD ($) $ in Thousands	Jul. 01, 2023	Jul. 02, 2022
Commitments and Contingencies Disclosure [Abstract]
Warranty cost	$ 29	$ 31

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)	12 Months Ended
	Jul. 02, 2022	Aug. 14, 2020
Derivative [Line Items]
Foreign currency forward contracts entered	$ 13,900,000
Foreign currency forward contracts settled	$ 24,600,000
Notional amount		$ 776,500
Equipment Term Loan
Derivative [Line Items]
Notional amount		$ 148,400

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS - (Gain (Loss) Of Derivative Instruments In Statement Of Operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI beginning balance	$ (425)
AOCI ending balance	(97)	$ (425)
Derivatives Designated as Hedging Instruments
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI beginning balance	(425)	2,072
Effective Portion Recorded In AOCI	0	950
Effective Portion Reclassified From AOCI Into Income	328	(3,447)
AOCI ending balance	(97)	(425)
Forward contracts | Derivatives Designated as Hedging Instruments
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI beginning balance	(79)	2,721
Effective Portion Recorded In AOCI	0	950
Effective Portion Reclassified From AOCI Into Income	79	(3,750)
AOCI ending balance	0	(79)
Interest rate swap | Derivatives Designated as Hedging Instruments
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI beginning balance	(346)	(649)
Effective Portion Recorded In AOCI	0	0
Effective Portion Reclassified From AOCI Into Income	249	303
AOCI ending balance	$ (97)	$ (346)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Detail) - Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate - Line of Credit	12 Months Ended
	Jul. 01, 2023
Fair Value Disclosures [Line Items]
Debt instrument, basis spread on variable rate	1%
Line of Credit
Fair Value Disclosures [Line Items]
Debt instrument, basis spread on variable rate	2.50%

ENTERPRISE-WIDE DISCLOSURES (Na

ENTERPRISE-WIDE DISCLOSURES (Narrative) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Segment Reporting Information [Line Items]
Net sales	$ 588,135	$ 531,815
Key Tronic E M S
Segment Reporting Information [Line Items]
Net sales	$ 588,100	$ 531,800

ENTERPRISE-WIDE DISCLOSURES - (

ENTERPRISE-WIDE DISCLOSURES - (Net Sales And Long-Lived Assets (Property, Plant, And Equipment) By Geographic Area) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 588,135	$ 531,815
Long-lived assets:	28,870	26,012
Total	45,072	42,742
Domestic (U.S.)
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	502,274	438,018
Long-lived assets:	21,799	14,440
Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	85,861	93,797
Mexico
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets:	18,203	22,473
Vietnam
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets:	4,547	5,228
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets:	$ 523	$ 601

ENTERPRISE-WIDE DISCLOSURES - S

ENTERPRISE-WIDE DISCLOSURES - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail)	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Segment Reporting Information [Line Items]
Percentage Of Net Sales	100%	100%
Domestic (U.S.)
Segment Reporting Information [Line Items]
Percentage Of Net Sales	85%	82%
China
Segment Reporting Information [Line Items]
Percentage Of Net Sales	14%	16%
Foreign
Segment Reporting Information [Line Items]
Percentage Of Net Sales	1%	2%
Canada
Segment Reporting Information [Line Items]
Percentage Of Net Sales	0%	0%

ENTERPRISE-WIDE DISCLOSURES -_2

ENTERPRISE-WIDE DISCLOSURES - (Percentage Of Net Sales To And Trade Accounts Receivables From Significant Customers) (Detail) - Customer A	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Segment Reporting Information [Line Items]
Percentage of Trade Accounts Receivable	16%	13%
Customer Concentration Risk | Revenue Benchmark
Segment Reporting Information [Line Items]
Percent of Net Sales	12%	12%

REVENUE (Narrative) (Details)

REVENUE (Narrative) (Details)	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Disaggregation of Revenue [Line Items]
Percentage Of revenues	6.60%	9.60%
Minimum
Disaggregation of Revenue [Line Items]
Typical payment terms	30 days
Maximum
Disaggregation of Revenue [Line Items]
Typical payment terms	45 days

REVENUE (Contract Assets) (Deta

REVENUE (Contract Assets) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 21,974	$ 24,781
Revenue recognized	573,444	515,831
Amounts collected or invoiced	(565,493)	(518,638)
Ending balance	$ 29,925	$ 21,974

REVENUE (Disaggregation of Reve

REVENUE (Disaggregation of Revenue) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 588,135	$ 531,815
Over-Time
Disaggregation of Revenue [Line Items]
Net sales	573,444	515,831
Point-in-Time
Disaggregation of Revenue [Line Items]
Net sales	$ 14,691	$ 15,984

LEASES - Narrative (Details)

LEASES - Narrative (Details)	Jul. 01, 2023
Lessee, Lease, Description [Line Items]
Operating lease, discount rate (as percent)	4%
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term (in years)	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term (in years)	10 years

LEASES - Schedule of Lease Cost

LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Lessee, Lease, Description [Line Items]
Total lease cost	$ 9,308	$ 9,489
Fixed lease cost	8,171	7,941
Short-term lease cost	1,137	1,548
Cost of sales
Lessee, Lease, Description [Line Items]
Operating lease cost	4,519	6,442
Financing lease cost	3,891	2,054
Selling, general and administrative expenses
Lessee, Lease, Description [Line Items]
Operating lease cost	737	929
Financing lease cost	$ 161	$ 64

LEASES - Schedule of Lease Asse

LEASES - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Operating Leases:
Operating lease right of use assets	$ 16,202	$ 16,731
Total lease liabilities	$ 16,202	$ 16,731
Weighted-average remaining lease term (in years)
Operating leases	4 years 6 months 18 days	5 years 3 months 10 days
Weighted-average discount rate
Operating leases	4%	4%
Financing Leases:
Financing lease right of use assets	$ 9,718	$ 12,464
Financing lease liabilities	$ 8,278	$ 11,211
Weighted-average remaining lease term (in years)
Financing leases	1 year 10 months 20 days	2 years 6 months 21 days
Weighted-average discount rate
Financing leases	9.96%	8.82%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,714	$ 4,261
Financing cash flows used in financing leases	$ 4,291	$ 2,331
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other	Other
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of debt, net	Current portion of debt, net
Finance lease, liability, noncurrent	$ 3,600
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term obligations
Debt
Cash paid for amounts included in the measurement of lease liabilities:
Finance lease, liability, current	$ 4,700

LEASES - Operating Lease, Liabi

LEASES - Operating Lease, Liability, Maturity (Detail) - USD ($) $ in Thousands	Jul. 01, 2023	Jul. 02, 2022
Operating Leases
2024	$ 5,134
2025	3,987
2026	3,365
2027	2,464
2028	1,551
Thereafter	1,689
Total undiscounted lease payments	18,190
Less: present value discount	1,988
Total lease liabilities	16,202	$ 16,731
Finance Leases
2024	4,711
2025	3,290
2026	670
2027	71
2028	0
Thereafter	0
Total undiscounted lease payments	8,742
Less: present value discount	464
Financing lease liabilities	$ 8,278	$ 11,211