ARC Group Worldwide (ARCW) 10-Q 10 Nov 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 02, 2016	Nov. 07, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ARC Group Worldwide, Inc.
Entity Central Index Key	826,326
Document Type	10-Q
Document Period End Date	Oct. 2, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		18,795,509
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Unaudited Condensed Consolidated Statements of Operations
Sales	$ 26,826	$ 23,631
Cost of sales	21,825	19,528
Gross profit	5,001	4,103
Selling, general and administrative	5,049	4,006
(Loss) income from operations	(48)	97
Other (expense) income, net	(33)	3
Interest expense, net	(1,107)	(1,140)
Loss on extinguishment of debt	(723)
Loss before income taxes	(1,911)	(1,040)
Income tax benefit	1,331	426
Net loss from continuing operations	(580)	(614)
Gain on sale of subsidiary and net income from discontinued operations, net of tax	4,187	173
Net income (loss)	3,607	(441)
Net income attributable to non-controlling interests:
Continuing operations	(22)	(22)
Discontinued operations	(4)	(7)
Net income attributable to non-controlling interests	(26)	(29)
Net income (loss) attributable to ARC Group Worldwide, Inc.	$ 3,581	$ (470)
Net (loss) income per common share, basic and diluted:
Continuing operations (in dollars per share)	$ (0.03)	$ (0.04)
Discontinued operations (in dollars per share)	0.23	0.01
Attributable to ARC Group Worldwide, Inc. (in dollars per share)	$ 0.20	$ (0.03)
Weighted average common shares outstanding:
Basic and diluted (in shares)	18,123,883	18,123,883

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 02, 2016	Jun. 30, 2016
Current assets:
Cash	$ 3,861	$ 3,620
Accounts receivable, net	15,304	14,186
Inventories, net	18,761	16,585
Deferred income tax assets		478
Prepaid expenses and other current assets	3,117	3,886
Current assets of discontinued operations		1,818
Total current assets	41,043	40,573
Property and equipment, net	41,561	41,828
Goodwill	11,427	11,427
Intangible assets, net	22,222	23,066
Other	23	28
Long-term assets of discontinued operations		3,527
Total assets	116,276	120,449
Current liabilities:
Accounts payable	10,351	8,602
Accrued expenses and other current liabilities	4,562	2,591
Deferred revenue	1,420	1,457
Bank borrowings, current portion of long-term debt, net of unamortized deferred financing costs	1,693	15,648
Capital lease obligations, current portion	841	837
Accrued escrow obligations, current portion	3,083	2,842
Current liabilities of discontinued operations		723
Total current liabilities	21,950	32,700
Long-term debt, net of current portion and unamortized deferred financing costs	41,682	36,769
Deferred income tax liabilities	40	1,407
Capital lease obligations, net of current portion	1,715	1,930
Accrued escrow obligations, net of current portion	725	966
Other long-term liabilities	2,114	2,115
Long-term liabilities of discontinued operations		19
Total liabilities	68,226	75,906
Commitments and contingencies (Note 12)
Equity:
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0005 par value, 250,000,000 shares authorized; 18,803,910 shares issued and 18,795,509 shares issued and outstanding at October 2, 2016 and June 30, 2016	10	10
Treasury stock, at cost; 8,401 shares at October 2, 2016 and June 30, 2016	(94)	(94)
Additional paid-in capital	30,013	29,702
Retained earnings	17,352	13,771
Accumulated other comprehensive loss	(24)	(6)
Total ARC Group Worldwide, Inc. stockholders' equity	47,257	43,383
Non-controlling interests	793	1,160
Total equity	48,050	44,543
Total liabilities and equity	$ 116,276	$ 120,449

Unaudited Consolidated Balance4

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 02, 2016	Jun. 30, 2016
Unaudited Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	18,803,910	18,803,910
Common stock, shares outstanding	18,795,509	18,795,509
Treasury stock, at cost, shares	8,401	8,401

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Cash flows from operating activities:
Net income (loss)	$ 3,607	$ (441)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,374	2,362
Share-based compensation expense	312
Gain on sale of discontinued operations	(5,722)
Bad debt expense and other	13	5
Deferred income taxes	(888)	150
Changes in working capital:
Accounts receivable	(1,379)	974
Inventory	(2,414)	(596)
Prepaid expenses and other assets	870	(815)
Accounts payable	1,990	962
Accrued expenses	1,701	(950)
Deferred revenue	(37)	(145)
Net cash provided by operating activities	427	1,506
Cash flows from investing activities:
Purchases of property and equipment	(1,329)	(629)
Proceeds from sale of subsidiary	10,500
Net cash provided by (used in) investing activities	9,171	(629)
Cash flows from financing activities:
Proceeds from debt issuance	32,112
Repayments of long-term debt and capital lease obligations	(41,487)	(1,589)
Net cash provided by financing activities	(9,375)	(1,589)
Effect of exchange rates on cash	18	37
Net increase (decrease) in cash	241	(675)
Cash, beginning of period	3,620	4,821
Cash, end of period	3,861	4,146
Supplemental disclosures of cash flow information:
Cash paid for interest	1,007	1,050
Cash paid for income taxes, net of refunds	$ (927)	$ 123

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	3 Months Ended
	Oct. 02, 2016
Nature of Operations and Basis of Presentation
Nature of Operations and Basis of Presentation	NOTE 1 – Nature of Operations and Basis of Presentation Nature of Operations ARC Group Worldwide, Inc. (the “Company” or “ARC”) is a leading, global advanced manufacturer offering a full suite of products and services to its customers, including: (i) metal injection molding (“MIM”); (ii) 3D metal and plastic printing (also referred to as “Additive Manufacturing”); (iii) precision metal stamping; (iv) traditional and clean room plastic injection molding; and (v) advanced rapid and conformal tooling. Through the Company’s diverse product offering, ARC provides its customers with a holistic prototyping and full-run production solution for both precision metal and plastic fabrication. The Company further differentiates itself from its competitors by providing innovative, custom capabilities, which improve high-precision manufacturing efficiency and speed-to-market for its customers. ARC’s mission is to accelerate the adoption of key technologies, such as automation, robotics, production software, and 3D printing, in traditional manufacturing, thereby benefiting from the elimination of inefficiencies currently present in the global supply chain. Further, ARC seeks to create innovative ways to streamline and improve the overall manufacturing process, including offering instant online quoting, in-house rapid and advanced conformal tooling, and a full suite of prototype-to-production capabilities. Basis of Presentation The Company’s fiscal year begins July 1 and ends June 30, and the quarters for interim reporting consist of thirteen weeks; therefore, the quarter end will not always coincide with the date of the calendar month-end. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The consolidated balance sheet as of June 30, 2016, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. The Company follows the same accounting policies for preparing quarterly and annual reports. Principles of Consolidation The Consolidated Financial Statements include the amounts of ARC and its controlled subsidiaries. All material intercompany transactions have been eliminated in consolidation.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Oct. 02, 2016
Significant Accounting Policies
Significant Accounting Policies	NOTE 2 – Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Due to the inherent uncertainties in making estimates, actual results could differ from those estimates and such differences may be material to the consolidated financial statements. Non-Controlling Interests In connection with the acquisitions of FloMet LLC and Tekna Seal LLC, the Company obtained a majority interest in the subsidiaries and control of the subsidiaries' boards of directors. During the first quarter of fiscal 2016, the Company purchased approximately 1.9% of the outstanding non-controlling membership interests of Tekna Seal LLC. On September 30, 2016, the Company sold Tekna Seal LLC, which included 95.7% owned by the Company and 4.3% held by minority stakeholders (see Note 3, Discontinued Operations, for more information). On October 2, 2016 and September 27, 2015, third party investors owned approximately 3.8% of the outstanding membership interests of FloMet LLC. The Company has recognized the carrying value of the non-controlling interests as a component of stockholders’ equity for the applicable periods presented. Comprehensive Income For each of the quarters ended October 2, 2016 and September 27, 2015, there were no material differences between net income (loss) and comprehensive income (loss). Accounting Pronouncements Adopted in the Current Period In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes. This update requires an entity to classify deferred tax assets and liabilities as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016, but early adoption is permitted. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted the provisions of ASU 2015-17 on a prospective basis as of July 1, 2016; therefore, the prior period was not retrospectively adjusted. The adoption of ASU 2015-17 did not have an impact on our consolidated results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest - Imputation of Interest (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The Company adopted the provisions of ASU 2015-03 on July 1, 2016, which required retroactive application and represented a change in accounting principle. The deferred financing costs of approximately $1.3 million associated with a portion of our outstanding debt, which were previously included in prepaid expenses and other current assets and other assets on the consolidated balance sheet as of June 30, 2016, are reflected as a reduction to the carrying liability of the Company’s outstanding debt. As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ $ $ Other assets $ $ $ Total assets $ $ $ Liabilities: Bank borrowings, current portion of long-term debt $ $ $ Long-term debt, net of current portion $ $ $ Total liabilities $ $ $ Recent Accounting Pronouncements In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies and provides specific guidance on eight cash flow classification issues that are not currently addressed by GAAP and thereby reduce the diversity in practice. ASU 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. This guidance is applicable to the Company's fiscal year beginning July 1, 2018. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases: Topic 842 (“ASU 2016-02”), to supersede nearly all existing lease guidance under GAAP. ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases. ASU 2016-02 also requires qualitative disclosures along with specific quantitative disclosures and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the requirements of this guidance and has not yet determined the impact of the adoption on its consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which defers the effective date for one year beyond the originally specified effective date. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and may transition to the standard using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Oct. 02, 2016
Discontinued Operations
Discontinued Operations	NOTE 3 – Discontinued Operations On September 30, 2016, the Company sold its non-core subsidiary, Tekna Seal LLC (“Tekna Seal”), to Winchester Electronics Corporation (“Winchester”) pursuant to a Membership Interests Purchase Agreement for $10.5 million in cash. The sale to Winchester covered all of the membership interests of Tekna Seal, including 95.7% owned by the Company and 4.3% held by the Tekna Seal minority stakeholders. The proceeds of the sale, after giving effect to any working capital adjustments, will be allocated among the Company and the minority sellers proportionate to their respective ownership of pre-closing membership interests. The Company used the net cash proceeds of the sale to repay principal outstanding under the Company’s revolving loan. Below is a summary of the gain on sale of discontinued operations (in thousands): Gross proceeds $ Less: Property and equipment, net Accounts receivable Inventory Other current assets Accounts payable and accrued expenses Total net assets disposed Goodwill Transaction costs Minority interests Gain on sale of discontinued operations, before income taxes $ In connection with the sale, the Company recorded a pre-tax gain of approximately $5.6 million, which includes a non-cash charge of $3.4 million related to goodwill associated with Tekna Seal, and transaction costs of approximately $0.4 million. The income from operations of Tekna Seal attributable to the Company was approximately $0.1 million and $0.2 million for the three months ended October 2, 2016 and September 27, 2015, respectively. The condensed consolidated statements of operations for the three months ended October 2, 2016 include the results of operations of Tekna Seal through the sale date of September 30, 2016 and the gain on the sale of Tekna Seal. Financial information for discontinued operations for the three months ended October 2, 2016 and September 27, 2015 is as follows (in thousands): For the three months ended October 2, 2016 September 27, 2015 Sales $ $ Cost of sales Gross profit Selling, general and administrative Income from discontinued operations, before income taxes Gain on sale of discontinued operations — Total income from discontinued operations, before income taxes Income tax expense on discontinued operations — Income from discontinued operations, net of tax $ $ The following table presents the carrying amount as of June 30, 2016, of the major classes of assets and liabilities held for sale in the condensed consolidated balance sheet (in thousands): June 30, 2016 Current assets: Accounts receivable $ Inventory Other assets Total current assets Property and equipment, net Goodwill Total assets of discontinued operations $ Current liabilities: Accounts payable and accrued expenses $ Capital lease obligations Total current liabilities Capital lease obligations Total liabilities of discontinued operations $ Cash flows from Tekna Seal for the three months ended October 2, 2016 and September 27, 2015 are combined with the cash flows from operations within each of the categories presented on the condensed consolidated statements of cash flows. There were no significant operating or investing activities from discontinued operations during the three months ended October 2, 2016 and September 27, 2015.

Inventory

Inventory	3 Months Ended
	Oct. 02, 2016
Inventory
Inventory	NOTE 4– Inventory Inventories consisted of the following (in thousands): October 2, June 30, 2016 2016 Raw materials and supplies $ $ Work-in-process Finished goods Reserve for obsolescence Inventory of discontinued operations — $ $

Property and Equipment

Property and Equipment	3 Months Ended
	Oct. 02, 2016
Property and Equipment
Property and Equipment	NOTE 5 – Property and Equipment Property and equipment consisted of the following (in thousands): Depreciable Life October 2, June 30, (in years) 2016 2016 Land — $ $ Building and improvements 7 - 40 Machinery and equipment 3 - 12 Office furniture and equipment 3 - 10 Construction-in-process — Assets acquired under capital lease Accumulated depreciation Accumulated amortization on capital leases Property and equipment of discontinued operations — $ $ Depreciation expense totaled $1.5 million for the three months ended October 2, 2016 and September 27, 2015.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Oct. 02, 2016
Goodwill and Intangible Assets
Goodwill and Intangible Assets	NOTE 6 – Goodwill and Intangible Assets Goodwill The following table summarizes the activity in the Company's goodwill account by segment during the three months ended October 2, 2016 (in thousands): Precision Components Group 3DMT Group Flanges and Fittings Group Consolidated Balance, June 30, 2016 $ $ $ $ Sale of subsidiary (1) — — Balance, October 2, 2016 $ $ $ $ (1) During the three months ended October 2, 2016, the Company sold its majority interest in Tekna Seal LLC and recorded a reduction of goodwill of $3.4 million, which is included in income from discontinued operations, net of tax on the condensed consolidated statement of operations (see Note 3, Discontinued Operations, for more information). Intangible Assets The following table summarizes the Company's intangible assets (in thousands): October 2, 2016 June 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ $ $ $ $ $ Customer relationships Non-compete agreements Total $ $ $ $ $ $ Intangible assets are being amortized using the straight-line method over estimated useful lives ranging from five to fifteen years. Amortization expense totaled $0.8 million for identifiable intangible assets for the three months ended October 2, 2016 and September 27, 2015. Estimated future amortization expense for the next five years as of October 2, 2016, is as follows (in thousands): Fiscal Years Amount Remainder of 2017 $ 2018 2019 2020 2021 Thereafter Total $ There were no impairments of long-lived assets during the three months ended October 2, 2016 and September 27, 2015.

Accrued Escrow Obligations

Accrued Escrow Obligations	3 Months Ended
	Oct. 02, 2016
Accrued Escrow Obligations.
Accrued Escrow Obligations	NOTE 7 – Accrued Escrow Obligations On April 7, 2014, the Company acquired the membership interests of Advance Tooling Concepts, LLC (“ATC”) for approximately $24.3 million, of which: (i) $21.9 million was paid in cash and (ii) $2.4 million, consisting of 233,788 newly issued shares of common stock of the Company, was to be held in escrow for a period of 12 months (“ATC Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations. In July 2014, the ATC Escrow was reduced by $0.7 million following the completion of a working capital adjustment. In October 2015, the Company entered into an agreement to settle and terminate the ATC Escrow in cash. The cash settlement has been accrued in current and long-term liabilities. The ATC Escrow shares were returned to the Company and retired in February 2016. On June 25, 2014, the Company acquired substantially all of the assets of Kecy Corporation and 411 Munson Holding, LLC for approximately $26.8 million, of which: (i) $24.2 million was paid in cash; and (ii) $2.6 million, consisting of 172,450 newly issued shares of common stock of the Company, was to be held in escrow for a period of 18 months (“Kecy Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations. The Company has determined the common stock issued is mandatorily redeemable and has therefore recorded $2.6 million as a current liability in the accompanying balance sheets. In August 2015, and in connection with the decline in the Company’s stock price since the date of acquisition, the Company issued 499,176 additional shares for security of the escrow. The Company is in the process of finalizing the settlement of the Kecy Escrow.

Debt

Debt	3 Months Ended
	Oct. 02, 2016
Debt
Debt	NOTE 8 – Debt Long-term debt payable consists of the following (in thousands): Balance as of October 2, 2016 June 30, 2016 Senior secured revolving loan $ $ Senior secured mortgage-based term loans Senior secured term loan — Senior secured delayed draw term loan — Subordinated term loan Total debt Unamortized deferred financing costs Total debt, net Current portion of long-term debt, net of unamortized deferred financing costs Long-term debt, net of current portion and unamortized deferred financing costs $ $ New Senior Credit Agreement On September 29, 2016, the Company and certain of its subsidiaries, entered into a new senior asset-based lending credit agreement with Citizens Bank, N.A. (the “Senior ABL Credit Facility”). The Senior ABL Credit Facility provides the Company with the following extensions of credit and loans: (1) a Revolving Commitment in the principal amount of $25.0 million (the “Revolving Loan”) and (2) a mortgage-based Term Loan Commitment in the principal amount of $17.5 million (the “Term Loan”). The loans under the Senior ABL Credit Facility are secured by liens on substantially all domestic assets of the Company and guaranteed by the Company’s domestic subsidiaries who are not borrowers under the Senior ABL Credit Facility. The aggregate amount of revolving loans permitted under the Senior ABL Credit Facility may not exceed a borrowing base consisting of: (i) the sum of 85% of certain eligible accounts receivable, plus (ii) the lesser of 65% of the value of certain eligible inventory and 85% of the net orderly liquidation value of certain eligible inventory, plus (iii) an amount not to exceed $4.2 million, which amount will be adjusted based on the face amount of certain letters of credit issued to Citizens Bank, N.A. in connection with certain operating leases and capitalized leases, minus (iv) reserves for any amounts which the lender deems necessary or appropriate. Borrowings under the Senior ABL Credit Facility may be made as Base Rate Loans or Eurodollar Rate Loans. The Base Rate loans will bear interest at the fluctuating rate per annum equal to (i) the highest of (a) the Federal Funds Rate plus 1/2 of 1.00%, (b) Citizens own prime rate; and (c) the adjusted Eurodollar rate on such day for an interest period of one (1) month plus 1.00%; and (ii) plus the Applicable Rate, as described below. Eurodollar Rate Loans will bear interest at the rate per annum equal to (i) the ICE Benchmark Administration LIBOR Rate; plus (ii) the Applicable Rate. The “Applicable Rate” will be (a) 2.50% with respect to Base Rate Loans that are Term Loans and 3.50% with respect to Eurodollar Rate Loans that are Term Loans, and (b) 2.50% with respect to Base Rate Loans that are Revolving Loans and 3.50% with respect to Eurodollar Rate Loans that are Revolving Loans, in each case until December 31, 2016, and thereafter the Applicable Rate will be adjusted quarterly, responsive to the Company’s Quarterly Average Availability Percentage, ranging from 1.25% to 1.75% with respect to Base Rate Loans that are Revolving Loans and from 2.25% to 2.75% with respect to Eurodollar Rate Loans that are Revolving Loans. In addition to interest payments on the Senior ABL Credit Facility loans, the Company will pay commitment fees to the lender of 0.375% per quarter on undrawn Revolving Loans. The Company will also pay other customary fees and reimbursements of costs and disbursements to the lender. The Maturity Date with respect to the Revolving Loan and the Term Loan is August 11, 2019, provided, however, upon repayment of Company subordinated indebtedness the maturity date will automatically extend to five years after the Closing Date for Revolving Loans and Revolving Commitments, and with respect to the Term Loans, the earlier of the date that is (i) ten years after the Closing Date and (ii) the maturity date of the Revolving Loans. The Senior ABL Credit Facility contains certain mandatory prepayment provisions, including mandatory prepayments due in respect of sales of assets, sales of equity securities, events of default and other customary events, with exceptions for non-core business dispositions. The Senior ABL Credit Facility contains customary covenants and negative covenants regarding operation of the Company’s business, including maintenance of certain financial ratios, as well as restrictions on dispositions of Company assets. In connection with the Senior ABL Credit Facility, the Company and the Borrowers together with certain subsidiaries (collectively, the “Guarantors”), have entered into an Amended and Restated Guarantee and Collateral Agreement with Citizens Bank, N.A. dated as of September 29, 2016, which secures all of the loans and credits drawn from the Senior ABL Credit Facility by the Borrowers. The security interests established under the Amended and Restated Guarantee and Collateral Agreement include senior secured liens on substantially all of the assets of the Guarantors. The Guarantors have agreed to guarantee the unconditional payment and performance to the lender of all obligations of the Borrowers under the Senior ABL Credit Facility. As of October 2, 2016, the Company was in compliance with its debt covenants under the Senior ABL Credit Facility. Prior Amended & Restated Credit Agreement On September 29, 2016, the Company refinanced all of the existing long-term debt obligations with Citizens Bank, N.A. into the Senior ABL Credit Facility described above. The Company accounted for the refinancing as an extinguishment of debt and wrote off $0.7 million of previously deferred financing fees. Subordinated Term Loan Credit Agreement On November 10, 2014, the Company and certain of its subsidiaries entered into a $20.0 million, five-year Subordinated Term Loan Credit Agreement (“Subordinated Loan Agreement”) with McLarty Capital Partners SBIC, L.P. (“McLarty”), which bears interest at 11% annually . Upon an event of default under the Subordinated Loan Agreement, the interest rate increases automatically by 2.00% annually. The proceeds were used to repay certain outstanding loans under the Company’s previous credit facility. McLarty is indirectly a related party to one of the officers and directors of the Company; therefore, the Board of Directors appointed a special committee consisting solely of independent directors to assure that the Subordinated Loan Agreement is fair and reasonable to the Company and its shareholders. On April 20, 2016, the Company entered into a second amendment to the Subordinated Loan Agreement (“McLarty Second Amendment”), as previously amended on December 29, 2014, to modi fy certain terms including: (1) Allows for the exclusion from the fixed charge coverage ratio $1.3 million of certain federal and state taxes paid related to prior years, effective March 27, 2016; (2) Modifies the minimum fixed charge coverage ratio and maximum total leverage ratio in line with the Company’s current financial expectations, effective March 27, 2016; and (3) Establishes mandatory prepayments that will be required upon the completion of asset sales or sale-leaseback transactions, with the amount of the prepayments to be determined based upon achievement of certain leverage ratios. The Subordinated Loan Agreement has been subordinated to the Senior ABL Credit Facility pursuant to a First Lien Subordination Agreement. The Subordinated Loan Agreement contains customary representations and warranties, events of default, affirmative covenants, negative covenants, and prepayment terms that are similar to those contained in the Senior ABL Credit Facility described above. As of October 2, 2016, the Company was in compliance with its debt covenants under the Subordinated Credit Facility. Loan Contract On March 23, 2016, AFT-Hungary Kft. (“AFT Hungary”), a wholly owned subsidiary of the Company, entered into a Loan Contract with Erste Bank Hungary Zrt. in an amount equal to €4.0 million (“Loan Contract”). The initial funding of €4.0 million drawn on the Loan Contract occurred on March 31, 2016. Approximately $3.0 million of the net proceeds from the Loan Contract were used to partially repay obligations outstanding under the Amended & Restated Credit Agreement, with the remaining net proceeds to be used for capital expenditures and other investments to facilitate the export of goods and services provided by AFT Hungary. The loan matures on March 7, 2021, and bears interest at a fixed rate of 0.98% per annum. The Company is required to make semi-annual principal payments in an amount equal to approximately €400,000 along with monthly interest payments. The Loan Contract is secured by certain of AFT Hungary’s assets, including the real estate and selected machinery and equipment located in Retsag, Hungary. Future Debt Payments The following schedule represents the Company’s future debt payments as of October 2, 2016 (in thousands): 2017 (1) $ 2018 2019 2020 2021 Total $ (1) Represents long-term debt principal payments for the nine month period ending June 30, 2017.

Income Taxes

Income Taxes	3 Months Ended
	Oct. 02, 2016
Income Taxes
Income Taxes	NOTE 9 – Income Taxes The balance of income taxes receivable was $0 and $1.6 million at October 2, 2016 and June 30, 2016, respectively. The decrease in the income taxes receivable during the three months ended October 2, 2016, was primarily associated with the receipt of a federal income tax refund of approximately $0.9 million related to the carryback of the Company’s 2015 net operating loss. The remaining income taxes receivable has been netted to reflect a current period taxes payable of $0.5 million due primarily to the gain on the sale of Tekna Seal. The Company had unrecognized tax benefits for uncertain tax positions of $1.1 million and $1.0 million on October 2, 2016 and June 30, 2016, respectively, which are included in other long-term liabilities.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Oct. 02, 2016
Earnings Per Share
Earnings Per Share	NOTE 10 – Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income available to common stockholders by the diluted weighted-average shares of common stock outstanding during each period. In connection with the acquisitions of ATC and Kecy, the Company issued a total of 905,414 shares of common stock, which were placed in escrow to satisfy certain working capital adjustments and/or indemnification obligations. As these escrow shares are expected to be returned to the Company, the escrow shares have been excluded from the basic and diluted earnings per share computations. In February 2016, the 233,788 shares of common stock previously issued for the ATC acquisition were returned to the Company and retired. As a result of the Company’s net loss from continuing operations for the three months ended October 2, 2016, potentially dilutive stock options of approximately 134,927 were considered anti-dilutive and were excluded from the computation of diluted earnings per share. For the three months ended September 27, 2015, the Company had no outstanding equity awards or other potentially dilutive securities; therefore, there was no computation of dilutive securities.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Oct. 02, 2016
Share-Based Compensation.
Share-Based Compensation	NOTE 11 – Share-Based Compensation In November 2015, the Company’s stockholders approved the ARC Group Worldwide, Inc. 2015 Equity Incentive Plan (“2015 Plan”), which is administered by the Compensation Committee (“Committee”) of the Board of Directors. The 2015 Plan reserves for issuance a total of 950,000 shares of common stock, which may be in the form of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, or other types of awards as authorized under the plan. As of October 2, 2016, there were 7,125 shares of common stock available to be granted under the 2015 Plan. In the case of stock options, the exercise price of the stock options granted may not be less than the fair market value of a share of common stock at the date of grant. The Committee determines the vesting conditions of awards; however, the performance period for an award subject to the satisfaction of performance measures may not exceed five years. The 2015 Plan will terminate ten years after its adoption, unless terminated earlier by the Company’s Board of Directors. A summary of stock option activity under the 2015 Plan as of October 2, 2016 is as follows: Weighted Weighted Average Average Exercise Remaining Contractual Shares Price Term (in years) Outstanding as of June 30, 2016 $ Granted $ Forfeited $ Outstanding as of October 2, 2016 $ Vested and exercisable as of October 2, 2016 $ Vested and expected to vest as of October 2, 2016 $ Stock options granted during the three month period ending October 2, 2016 have contractual lives of seven years. The weighted-average grant date fair value of stock options granted during the three months ended October 2, 2016 was $1.46 per share. The total fair value of shares vested during the three months ended October 2, 2016 was $0.5 million. Determining Fair Value The Company estimates the fair value of stock options granted using the Black-Scholes method. The assumptions used to determine the value of the Company’s stock options granted to employees during the three month period ended October 2, 2016 were as follows: Expected term - years Expected volatility % - % Expected dividend yield - % Risk-free interest rate % - % Expected Term – The expected term represents the period of time the options are expected to be outstanding. The Company uses the simplified method, as permitted by the SEC, to calculate the expected term, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected life in years. The simplified method is calculated as the average of the time-to-vesting and the contractual life of the options. Expected Volatility – Expected volatility is based on the historical volatility of the Company’s common stock, which we believe will be indicative of future experience. Expected Dividends – The Company has never paid dividends on its common stock and currently does not intend to do so in the near term, and accordingly, the dividend yield percentage is zero. Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant with a term equal to the expected term of the stock option granted. Share-Based Compensation Expense Compensation expense recognized during the three month period ended October 2, 2016 was $0.3 million, and is included in selling, general and administrative expense. As of October 2, 2016, there was $0.4 million of total unrecognized compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 3.3 years. The Company estimated expected forfeitures and is recognizing compensation expense only for those option grants expected to vest. The Company’s estimate of forfeitures may be adjusted throughout the requisite service period based on the extent to which actual forfeitures differ, or are likely to differ, from the Company’s previous estimates. At the end of the service period compensation cost will have been recognized only for those awards for which the employee has provided the requisite service. Employee Stock Purchase Plan Under the terms of the Company’s employee stock purchase plan ("ESPP"), eligible employees may authorize payroll deductions up to 5% of their base pay to purchase shares of the Company’s common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each six-month purchase period. A total of 750,000 shares were authorized under the ESPP. The purchase period began on August 1, 2016; therefore, no shares have been purchased under the Company’s ESPP as of October 2, 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 02, 2016
Commitments and Contingencies
Commitments and Contingencies	NOTE 12 – Commitments and Contingencies The Company leases land, facilities, and equipment under various non-cancellable operating lease agreements expiring through August 31, 2024, which contain various renewal options. The Company also leases equipment under non-cancellable capital lease agreements expiring through June 30, 2024. The capital leases have interest rates ranging from 3.0% to 5.8%. From time to time, the Company is a party to various litigation matters incidental to the conduct of its business. As of October 2, 2016, the Company is not presently a party to any legal proceedings, the resolution of which, management believes, would have a material adverse effect on its business, operating results, financial condition, or cash flows.

Segment Information

Segment Information	3 Months Ended
	Oct. 02, 2016
Segment Information
Segment Information	NOTE 13 – Segment Information The Company’s operations are classified into four reportable business segments: Precision Components Group, 3DMT Group, Flanges and Fittings Group, and Wireless Group. · The Precision Components Group companies provide highly engineered fabricated metal components using processes consisting of metal injection molding and precision metal stamping. Industries served include aerospace, automotive, consumer durables, electronic devices, firearms and defense, and medical and dental devices. · The 3DMT Group consists of our tooling product line, 3DMT (our 3D printing and additive manufacturing operations), and ATC. · The Flanges and Fittings Group consists of General Flange & Forge LLC (“GF&F”). GF&F provides custom machining solutions and special flange facings. · The Wireless Group focuses on wireless broadband technology related to propagation and optimization. It designs and develops hardware, including antennas, radios, and related accessories, used in broadband, industrial, and other wireless networks. Products are sold to public and private carriers, wireless infrastructure providers, wireless equipment distributors, value added resellers, and other original equipment manufacturers. The historical results of Tekna Seal, which were included in the Precision Components Group segment, have been reflected as discontinued operations; therefore, historical segment information has been restated. Summarized segment information for the three month periods ended October 2, 2016 and September 27, 2015 is as follows (in thousands): Three months ended October 2, September 27, 2016 2015 Sales: Precision Components Group $ $ 3DMT Group Flanges and Fittings Group Wireless Group Consolidated sales $ $ Operating costs: Precision Components Group $ $ 3DMT Group Flanges and Fittings Group Wireless Group Consolidated operating costs $ $ Segment operating income (loss): Precision Components Group $ $ 3DMT Group Flanges and Fittings Group Wireless Group Corporate (1) Total segment operating (loss) income $ $ Interest expense, net Loss on extinguishment of debt — Other (expense) income, net Non-operating expense Consolidated loss before income taxes and non-controlling interest $ $ (1)

Significant Customers

Significant Customers	3 Months Ended
	Oct. 02, 2016
Significant Customers
Significant Customers	NOTE 14 – Significant Customers The concentration of the Company’s business with a relatively small number of customers may expose it to a material adverse effect if one or more of these large customers were to experience financial difficulty or were to cease being a customer for non-financial related issues. The Company’s revenue concentrations of 5% or greater are as follows: October 2, September 27, Customer 2016 2015 1 (b) % % 2 (a) % % 3 (a) % % 4 (a) % % Total % % (a) Revenue from this customer is generated through our Precision Components Group segment. (b) Revenue from this customer is generated through our 3DMT Group segment. The Company’s accounts receivable concentrations of 5% or greater for the above-listed customers are as follows: Percentage of Receivables October 2, June 30, Customer 2016 2016 1 % % 2 % % 3 % % 4 % % Total % %

Significant Accounting Polici20

Significant Accounting Policies (Policies)	3 Months Ended
	Oct. 02, 2016
Significant Accounting Policies
Basis of Presentation	Basis of Presentation The Company’s fiscal year begins July 1 and ends June 30, and the quarters for interim reporting consist of thirteen weeks; therefore, the quarter end will not always coincide with the date of the calendar month-end. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The consolidated balance sheet as of June 30, 2016, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. The Company follows the same accounting policies for preparing quarterly and annual reports.
Principles of Consolidation	Principles of Consolidation The Consolidated Financial Statements include the amounts of ARC and its controlled subsidiaries. All material intercompany transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Due to the inherent uncertainties in making estimates, actual results could differ from those estimates and such differences may be material to the consolidated financial statements.
Non-Controlling Interest	Non-Controlling Interests In connection with the acquisitions of FloMet LLC and Tekna Seal LLC, the Company obtained a majority interest in the subsidiaries and control of the subsidiaries' boards of directors. During the first quarter of fiscal 2016, the Company purchased approximately 1.9% of the outstanding non-controlling membership interests of Tekna Seal LLC. On September 30, 2016, the Company sold Tekna Seal LLC, which included 95.7% owned by the Company and 4.3% held by minority stakeholders (see Note 3, Discontinued Operations, for more information). On October 2, 2016 and September 27, 2015, third party investors owned approximately 3.8% of the outstanding membership interests of FloMet LLC. The Company has recognized the carrying value of the non-controlling interests as a component of stockholders’ equity for the applicable periods presented.
Comprehensive Income	Comprehensive Income For each of the quarters ended October 2, 2016 and September 27, 2015, there were no material differences between net income (loss) and comprehensive income (loss).
Accounting Pronouncements Adopted in the Current Period and Recent Accounting Pronouncements	Accounting Pronouncements Adopted in the Current Period In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes. This update requires an entity to classify deferred tax assets and liabilities as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016, but early adoption is permitted. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted the provisions of ASU 2015-17 on a prospective basis as of July 1, 2016; therefore, the prior period was not retrospectively adjusted. The adoption of ASU 2015-17 did not have an impact on our consolidated results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest - Imputation of Interest (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The Company adopted the provisions of ASU 2015-03 on July 1, 2016, which required retroactive application and represented a change in accounting principle. The deferred financing costs of approximately $1.3 million associated with a portion of our outstanding debt, which were previously included in prepaid expenses and other current assets and other assets on the consolidated balance sheet as of June 30, 2016, are reflected as a reduction to the carrying liability of the Company’s outstanding debt. As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ $ $ Other assets $ $ $ Total assets $ $ $ Liabilities: Bank borrowings, current portion of long-term debt $ $ $ Long-term debt, net of current portion $ $ $ Total liabilities $ $ $ Recent Accounting Pronouncements In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies and provides specific guidance on eight cash flow classification issues that are not currently addressed by GAAP and thereby reduce the diversity in practice. ASU 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. This guidance is applicable to the Company's fiscal year beginning July 1, 2018. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases: Topic 842 (“ASU 2016-02”), to supersede nearly all existing lease guidance under GAAP. ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases. ASU 2016-02 also requires qualitative disclosures along with specific quantitative disclosures and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the requirements of this guidance and has not yet determined the impact of the adoption on its consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which defers the effective date for one year beyond the originally specified effective date. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and may transition to the standard using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements.

Significant Accounting Polici21

Significant Accounting Policies (Tables)	3 Months Ended
	Oct. 02, 2016
Significant Accounting Policies
Schedule of the effect of the early adoption of ASU 2015-03	As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ $ $ Other assets $ $ $ Total assets $ $ $ Liabilities: Bank borrowings, current portion of long-term debt $ $ $ Long-term debt, net of current portion $ $ $ Total liabilities $ $ $

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Oct. 02, 2016
Schedule of discontinued operations results	Financial information for discontinued operations for the three months ended October 2, 2016 and September 27, 2015 is as follows (in thousands): For the three months ended October 2, 2016 September 27, 2015 Sales $ $ Cost of sales Gross profit Selling, general and administrative Income from discontinued operations, before income taxes Gain on sale of discontinued operations — Total income from discontinued operations, before income taxes Income tax expense on discontinued operations — Income from discontinued operations, net of tax $ $
Discontinued Operations, Disposed of by Sale
Schedule of assets and liabilities classified and disposed	Below is a summary of the gain on sale of discontinued operations (in thousands): Gross proceeds $ Less: Property and equipment, net Accounts receivable Inventory Other current assets Accounts payable and accrued expenses Total net assets disposed Goodwill Transaction costs Minority interests Gain on sale of discontinued operations, before income taxes $
Discontinued Operations, Held-for-sale
Schedule of assets and liabilities classified and disposed	The following table presents the carrying amount as of June 30, 2016, of the major classes of assets and liabilities held for sale in the condensed consolidated balance sheet (in thousands): June 30, 2016 Current assets: Accounts receivable $ Inventory Other assets Total current assets Property and equipment, net Goodwill Total assets of discontinued operations $ Current liabilities: Accounts payable and accrued expenses $ Capital lease obligations Total current liabilities Capital lease obligations Total liabilities of discontinued operations $

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Oct. 02, 2016
Inventory
Schedule of inventories	Inventories consisted of the following (in thousands): October 2, June 30, 2016 2016 Raw materials and supplies $ $ Work-in-process Finished goods Reserve for obsolescence Inventory of discontinued operations — $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Oct. 02, 2016
Property and Equipment
Schedule of property and equipment	Property and equipment consisted of the following (in thousands): Depreciable Life October 2, June 30, (in years) 2016 2016 Land — $ $ Building and improvements 7 - 40 Machinery and equipment 3 - 12 Office furniture and equipment 3 - 10 Construction-in-process — Assets acquired under capital lease Accumulated depreciation Accumulated amortization on capital leases Property and equipment of discontinued operations — $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Oct. 02, 2016
Goodwill and Intangible Assets
Summary of goodwill activity	The following table summarizes the activity in the Company's goodwill account by segment during the three months ended October 2, 2016 (in thousands): Precision Components Group 3DMT Group Flanges and Fittings Group Consolidated Balance, June 30, 2016 $ $ $ $ Sale of subsidiary (1) — — Balance, October 2, 2016 $ $ $ $ (1) During the three months ended October 2, 2016, the Company sold its majority interest in Tekna Seal LLC and recorded a reduction of goodwill of $3.4 million, which is included in income from discontinued operations, net of tax on the condensed consolidated statement of operations (see Note 3, Discontinued Operations, for more information).
Summary of intangible assets	The following table summarizes the Company's intangible assets (in thousands): October 2, 2016 June 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ $ $ $ $ $ Customer relationships Non-compete agreements Total $ $ $ $ $ $
Schedule of estimated future amortization expense of intangible assets	Estimated future amortization expense for the next five years as of October 2, 2016, is as follows (in thousands): Fiscal Years Amount Remainder of 2017 $ 2018 2019 2020 2021 Thereafter Total $

Debt (Tables)

Debt (Tables)	3 Months Ended
	Oct. 02, 2016
Debt
Schedule of long-term debt payable	Long-term debt payable consists of the following (in thousands): Balance as of October 2, 2016 June 30, 2016 Senior secured revolving loan $ $ Senior secured mortgage-based term loans Senior secured term loan — Senior secured delayed draw term loan — Subordinated term loan Total debt Unamortized deferred financing costs Total debt, net Current portion of long-term debt, net of unamortized deferred financing costs Long-term debt, net of current portion and unamortized deferred financing costs $ $
Schedule of future debt payments	The following schedule represents the Company’s future debt payments as of October 2, 2016 (in thousands): 2017 (1) $ 2018 2019 2020 2021 Total $ (1) Represents long-term debt principal payments for the nine month period ending June 30, 2017.

Share-Based Compensation and Em

Share-Based Compensation and Employee Benefit Plans (Tables)	3 Months Ended
	Oct. 02, 2016
Share-Based Compensation and Employee Benefit Plans
Summary of stock option activity	A summary of stock option activity under the 2015 Plan as of October 2, 2016 is as follows: Weighted Weighted Average Average Exercise Remaining Contractual Shares Price Term (in years) Outstanding as of June 30, 2016 $ Granted $ Forfeited $ Outstanding as of October 2, 2016 $ Vested and exercisable as of October 2, 2016 $ Vested and expected to vest as of October 2, 2016 $
Schedule of stock options, valuation assumptions	The assumptions used to determine the value of the Company’s stock options granted to employees during the three month period ended October 2, 2016 were as follows: Expected term - years Expected volatility % - % Expected dividend yield - % Risk-free interest rate % - %

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Oct. 02, 2016
Segment Information
Summary of segment information	The historical results of Tekna Seal, which were included in the Precision Components Group segment, have been reflected as discontinued operations; therefore, historical segment information has been restated. Summarized segment information for the three month periods ended October 2, 2016 and September 27, 2015 is as follows (in thousands): Three months ended October 2, September 27, 2016 2015 Sales: Precision Components Group $ $ 3DMT Group Flanges and Fittings Group Wireless Group Consolidated sales $ $ Operating costs: Precision Components Group $ $ 3DMT Group Flanges and Fittings Group Wireless Group Consolidated operating costs $ $ Segment operating income (loss): Precision Components Group $ $ 3DMT Group Flanges and Fittings Group Wireless Group Corporate (1) Total segment operating (loss) income $ $ Interest expense, net Loss on extinguishment of debt — Other (expense) income, net Non-operating expense Consolidated loss before income taxes and non-controlling interest $ $ (1)

Significant Customers (Tables)

Significant Customers (Tables)	3 Months Ended
	Oct. 02, 2016
Significant Customers
Schedule of sales and accounts receivable customer concentration risk	The Company’s revenue concentrations of 5% or greater are as follows: October 2, September 27, Customer 2016 2015 1 (b) % % 2 (a) % % 3 (a) % % 4 (a) % % Total % % (a) Revenue from this customer is generated through our Precision Components Group segment. (b) Revenue from this customer is generated through our 3DMT Group segment. The Company’s accounts receivable concentrations of 5% or greater for the above-listed customers are as follows: Percentage of Receivables October 2, June 30, Customer 2016 2016 1 % % 2 % % 3 % % 4 % % Total % %

Nature of Operations and Basi30

Nature of Operations and Basis of Presentation (Details)	3 Months Ended
	Oct. 02, 2016
Basis of Presentation
Length of interim quarterly reporting periods	91 days

Significant Accounting Polici31

Significant Accounting Policies - Non Controlling Interests (Details)	3 Months Ended
	Sep. 27, 2015	Oct. 02, 2016	Sep. 30, 2016
TeknaSeal
Non-Controlling Interest
Purchase of outstanding non-controlling interest (as a percent)	1.90%
Percentage ownership in subsidiary			95.70%
Third party ownership percentage			4.30%
FloMet
Non-Controlling Interest
Third party ownership percentage	3.80%	3.80%

Significant Accounting Polici32

Significant Accounting Policies - Accounting Pronouncements Adopted in the Current Period (Details) - USD ($) $ in Thousands	Oct. 02, 2016	Jun. 30, 2016
Assets
Prepaid expenses and other current assets	$ 3,117	$ 3,886
Other assets	23	28
Total assets	116,276	120,449
Liabilities
Bank borrowings, current portion of long-term debt	1,693	15,648
Long-term debt, net of current portion	41,682	36,769
Total liabilities	$ 68,226	75,906
Accounting Standards Update 2015-03
Assets
Prepaid expenses and other current assets		3,949
Other assets		28
Total assets		120,449
Liabilities
Bank borrowings, current portion of long-term debt		15,648
Long-term debt, net of current portion		36,769
Total liabilities		75,906
Accounting Standards Update 2015-03 | Previously reported
Assets
Prepaid expenses and other current assets		4,378
Other assets		948
Total assets		121,798
Liabilities
Bank borrowings, current portion of long-term debt		15,909
Long-term debt, net of current portion		37,857
Total liabilities		77,255
Accounting Standards Update 2015-03 | Effect of Adoption of Accounting Principle
Assets
Prepaid expenses and other current assets		(429)
Other assets		(920)
Total assets		(1,349)
Liabilities
Bank borrowings, current portion of long-term debt		(261)
Long-term debt, net of current portion		(1,088)
Total liabilities		$ (1,349)

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Oct. 02, 2016	Sep. 27, 2015	Jun. 30, 2016
Less:
Property and equipment				$ 153
Inventory				1,028
TeknaSeal | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Percentage ownership in subsidiary	95.70%
Third party ownership percentage	4.30%
Less:
Gain on sale of discontinued operations, before income taxes		$ 5,643
Precision Components Group
Less:
Non-cash charge for goodwill		3,374
Precision Components Group | TeknaSeal | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Gross proceeds	$ 10,500
Less:
Property and equipment	218
Accounts receivable	930
Inventory	1,265
Other current assets	51
Accounts payable and accrued expenses	(962)
Total net assets disposed	1,502
Goodwill	3,374
Transaction costs	374
Minority interests	(393)
Gain on sale of discontinued operations, before income taxes	$ 5,643
Income from operations attributable to Company		$ 100
Precision Components Group | TeknaSeal | Discontinued Operations, Held-for-sale
Less:
Property and equipment				153
Accounts receivable				727
Inventory				1,028
Other current assets				63
Accounts payable and accrued expenses				(714)
Goodwill				$ 3,374
Income from operations attributable to Company			$ 200

Discontinued Operations - Finan

Discontinued Operations - Financial Data (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Oct. 02, 2016	Sep. 27, 2015
Financial data
Income from discontinued operations, net of tax		$ 4,187	$ 173
TeknaSeal | Discontinued Operations, Disposed of by Sale
Financial data
Sales		1,277
Cost of sales		(943)
Gross profit		334
Selling, general and administrative		(242)
Income of discontinued operations, before income taxes		92
Gain on sale of discontinued operations		5,643
Total income from discontinued operations, before income taxes		5,735
Income tax expense on discontinued operations		(1,548)
Income from discontinued operations, net of tax		$ 4,187
TeknaSeal | Discontinued Operations, Held-for-sale
Financial data
Sales			858
Cost of sales			(478)
Gross profit			380
Selling, general and administrative			(207)
Income of discontinued operations, before income taxes			173
Total income from discontinued operations, before income taxes			173
Income from discontinued operations, net of tax			$ 173
Precision Components Group | TeknaSeal | Discontinued Operations, Disposed of by Sale
Financial data
Gain on sale of discontinued operations	$ 5,643

Discontinued Operations - Held

Discontinued Operations - Held for Sale (Details) $ in Thousands	Jun. 30, 2016USD ($)
Current assets:
Inventory	$ 1,028
Total current assets	1,818
Property and equipment, net	153
Current liabilities
Total current liabilities	723
Precision Components Group | TeknaSeal | Discontinued Operations, Held-for-sale
Current assets:
Accounts receivable	727
Inventory	1,028
Other assets	63
Total current assets	1,818
Property and equipment, net	153
Goodwill	3,374
Total assets of discontinued operations	5,345
Current liabilities
Accounts payable and accrued expenses	714
Capital lease obligations	9
Total current liabilities	723
Capital lease obligations	19
Total liabilities of discontinued operations	$ 742

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Oct. 02, 2016	Jun. 30, 2016
Inventory
Raw materials and supplies	$ 6,592	$ 6,299
Work-in-process	8,465	7,505
Finished goods	4,610	4,664
Inventories, gross	19,667	18,468
Reserve for obsolescence	(906)	(855)
Inventory of discontinued operations		(1,028)
Inventories, net	$ 18,761	$ 16,585

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Jun. 30, 2016
Property and equipment
Property and equipment, gross	$ 66,375		$ 66,444
Assets acquired under capital lease	5,446		5,482
Accumulated depreciation	(23,224)		(23,018)
Accumulated amortization on capital leases	(1,590)		(1,445)
Property and equipment of discontinued operations			(153)
Property and equipment, net	41,561		41,828
Depreciation expense	1,500	$ 1,500
Land
Property and equipment
Property and equipment, gross	1,264		1,264
Building and improvements
Property and equipment
Property and equipment, gross	$ 17,411		17,460
Building and improvements | Minimum
Property and equipment
Depreciable Life	7 years
Building and improvements | Maximum
Property and equipment
Depreciable Life	40 years
Machinery and equipment
Property and equipment
Property and equipment, gross	$ 39,283		39,350
Machinery and equipment | Minimum
Property and equipment
Depreciable Life	3 years
Machinery and equipment | Maximum
Property and equipment
Depreciable Life	12 years
Office furniture and equipment
Property and equipment
Property and equipment, gross	$ 1,085		1,050
Office furniture and equipment | Minimum
Property and equipment
Depreciable Life	3 years
Office furniture and equipment | Maximum
Property and equipment
Depreciable Life	10 years
Construction-in-process
Property and equipment
Property and equipment, gross	$ 1,886		$ 1,838

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Goodwill Activity (Details) $ in Thousands	3 Months Ended
	Oct. 02, 2016USD ($)
Goodwill
Balance, beginning of year	$ 14,801
Balance, end of year	11,427
TeknaSeal | Discontinued Operations, Disposed of by Sale | Income From Discontinued Operations, Net of Tax
Goodwill
Sale of subsidiary (1)	(3,374)
Precision Components Group
Goodwill
Balance, beginning of year	10,285
Sale of subsidiary (1)	(3,374)
Balance, end of year	6,911
3DMT Group
Goodwill
Balance, beginning of year	2,804
Balance, end of year	2,804
Flanges and Fittings Group
Goodwill
Balance, beginning of year	1,712
Balance, end of year	$ 1,712

Goodwill and Intangible Asset39

Goodwill and Intangible Assets - Intangible Assets Summary and Future Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Jun. 30, 2016
Intangible assets
Gross Carrying Amount	$ 31,492		$ 31,492
Accumulated Amortization	(9,270)		(8,426)
Net Carrying Amount	22,222		23,066
Amortization expense	800	$ 800
Estimated future amortization expense
Remainder of 2017	2,531
2,018	3,375
2,019	3,191
2,020	2,643
2,021	2,643
Thereafter	7,839
Net Carrying Amount	22,222		23,066
Impairment of Long-Lived Assets Held-for-use	$ 0	$ 0
Minimum
Intangible assets
Estimated useful life	5 years
Maximum
Intangible assets
Estimated useful life	15 years
Patents and tradenames
Intangible assets
Gross Carrying Amount	$ 3,773		3,773
Accumulated Amortization	(826)		(766)
Net Carrying Amount	2,947		3,007
Estimated future amortization expense
Net Carrying Amount	2,947		3,007
Customer relationships
Intangible assets
Gross Carrying Amount	24,077		24,077
Accumulated Amortization	(6,623)		(6,021)
Net Carrying Amount	17,454		18,056
Estimated future amortization expense
Net Carrying Amount	17,454		18,056
Non-compete agreements
Intangible assets
Gross Carrying Amount	3,642		3,642
Accumulated Amortization	(1,821)		(1,639)
Net Carrying Amount	1,821		2,003
Estimated future amortization expense
Net Carrying Amount	$ 1,821		$ 2,003

Accrued Escrow Obligations (Det

Accrued Escrow Obligations (Details) - USD ($) $ in Thousands	Jun. 25, 2014	Apr. 07, 2014	Aug. 31, 2015	Jul. 31, 2014	Oct. 02, 2016	Jun. 30, 2016
Purchase price for the acquisition
Accrued escrow obligations, current portion					$ 3,083	$ 2,842
Accrued escrow obligations, net of current portion					$ 725	$ 966
Advance Tooling Concepts
Purchase price for the acquisition
Aggregate purchase price		$ 24,300
Cash paid		21,900
Common stock placed in escrow, value		$ 2,400
Number of shares issued and placed into escrow		233,788
Escrow period		12 months
Reduction in escrow due to working capital adjustments				$ 700
Kecy
Purchase price for the acquisition
Aggregate purchase price	$ 26,800
Cash paid	24,200
Common stock placed in escrow, value	$ 2,600
Number of shares issued and placed into escrow	172,450		499,176
Escrow period	18 months
Accrued escrow obligations, current portion	$ 2,600

Debt - Long-term Debt Payable (

Debt - Long-term Debt Payable (Details) - USD ($) $ in Thousands	Oct. 02, 2016	Jun. 30, 2016
Debt
Total debt	$ 44,640	$ 53,766
Unamortized deferred financing costs	1,265	1,349
Total debt, net	43,375	52,417
Current portion of long-term debt, net of unamortized deferred financing costs	(1,693)	(15,648)
Long-term debt, net of current portion	41,682	36,769
Senior Secured Revolving Loan
Debt
Total debt	3,113	7,560
Senior secured mortgage-based term loans
Debt
Total debt	21,527	4,449
Senior secured term loan
Debt
Total debt		16,248
Senior secured delayed draw term loan
Debt
Total debt		5,509
Subordinated term loan
Debt
Total debt	$ 20,000	$ 20,000

Debt - New Senior Credit Agreem

Debt - New Senior Credit Agreement (Details) $ in Millions	Sep. 29, 2016USD ($)
Senior ABL Credit Facility | Federal Funds Rate
Debt
Spread on variable rate basis (as a percent)	0.50%
Senior ABL Credit Facility | Eurodollar Rate
Debt
Spread on variable rate basis (as a percent)	1.00%
Senior ABL Credit Facility | Senior Secured Revolving Loan
Debt
Percentage of eligible accounts receivable for determining borrowing base	85.00%
Percentage of eligible inventory for determining borrowing base	65.00%
Percentage of net orderly liquidation value of eligible inventory for determining borrowing base	85.00%
Maximum amount added to borrowing base formula	$ 4.2
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	2.50%
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Minimum
Debt
Spread on variable rate basis (as a percent)	1.25%
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Maximum
Debt
Spread on variable rate basis (as a percent)	1.75%
Senior ABL Credit Facility | Base Rate Loans | Senior secured term loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	2.50%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	3.50%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Minimum
Debt
Spread on variable rate basis (as a percent)	2.25%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Maximum
Debt
Spread on variable rate basis (as a percent)	2.75%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior secured term loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	3.50%
Senior Secured Revolving Loan
Debt
Maximum borrowing capacity	$ 25
Commitment fees (as a percent)	0.375%
Extension of maturity of debt if certain conditions are met	5 years
Term Loan
Debt
Loan amount	$ 17.5
Extension of maturity of debt if certain conditions are met	10 years
Amended & Restated Credit Agreement
Debt
Write-off of deferred financing fees	$ 0.7

Debt - Subordinated Term Loan (

Debt - Subordinated Term Loan (Details) - Subordinated term loan - McLarty - Lender indirectly related to an officer and director $ in Millions	Mar. 27, 2016USD ($)	Nov. 10, 2014USD ($)person
Debt
Loan amount		$ 20
Maturity term		5 years
Interest rate (as a percent)		11.00%
Interest rate increase upon an event of default (as a percent)		2.00%
Number of officers and directors of the Company to which the lender is indirectly a related party | person		1
Federal and state taxes excluded from fixed charge coverage ratio	$ 1.3

Debt - Loan Contract (Details)

Debt - Loan Contract (Details) $ in Thousands	Mar. 31, 2016EUR (€)	Mar. 31, 2016USD ($)	Mar. 23, 2016EUR (€)	Oct. 02, 2016USD ($)
Debt
Proceeds from debt issuance | $				$ 32,112
AFT Hungary | Loan Contract | Erste Bank Hungary
Debt
Loan amount			€ 4,000,000
Proceeds from debt issuance	€ 4,000,000
Interest rate (as a percent)			0.98%
Semi-annual payment of debt			€ 400,000
Frequency of payments			semi-annual
AFT Hungary | Loan Contract | Erste Bank Hungary | Amended & Restated Credit Agreement
Debt
Repayment of debt obligations | $		$ 3,000

Debt - Future Debt Payments (De

Debt - Future Debt Payments (Details) - USD ($) $ in Thousands	Oct. 02, 2016	Jun. 30, 2016
Future debt payments:
2017 (1)	$ 1,104
2,018	1,770
2,019	1,770
2,020	21,770
2,021	18,226
Total	$ 44,640	$ 53,766

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2016	Jun. 30, 2016
Income tax receivable
Income tax receivable	$ 0	$ 1.6
Income tax payable	0.5
Other Long-term Liabilities
Income tax receivable
Uncertain tax positions	1.1	$ 1
Federal
Income tax receivable
Income tax refund	$ 0.9

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	1 Months Ended	3 Months Ended
	Feb. 29, 2016	Oct. 02, 2016
Earnings per share
Potentially dilutive stock options		134,927
ATC and Kecy
Earnings per share
Number of shares issued in acquisitions, held in escrow and excluded from earnings per share calculations		905,414
Advance Tooling Concepts
Earnings per share
Number of shares returned and retired	233,788

Share-Based Compensation and 48

Share-Based Compensation and Employee Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2015	Oct. 02, 2016
Fair Value
Expected volatility - minimum		78.80%
Expected volatility - maximum		85.00%
Expected dividend yield		0.00%
Risk-free interest rate - minimum		1.02%
Risk-free interest rate - maximum		1.19%
Share-Based Compensation Expense
Compensation expense		$ 312
Unrecognized compensation cost		$ 400
Weighted-average period that cost is expected to be recognized		3 years 3 months 18 days
Selling, general and administrative costs
Share-Based Compensation Expense
Compensation expense		$ 300
Minimum
Fair Value
Expected term		3 years 6 months
Maximum
Fair Value
Expected term		4 years 9 months
Employee Stock Purchase Plan
Stock-based compensation
Maximum percentage of base compensation contributed to ESPP for stock purchase		5.00%
Purchase price as percentage of fair market value of common stock on the last business day of the six-month purchase period		85.00%
Purchase period		6 months
Shares reserved for issuance under equity incentive plan		750,000
Equity Incentive Plan
Stock-based compensation
Shares reserved for issuance under equity incentive plan	950,000
Shares available for future grants		7,125
Performance period for an award subject to performance measures	5 years
Years after adoption when plan will terminate	10 years
Stock option activity rollforward
Outstanding as of June 30, 2016		759,050
Granted		190,950
Forfeited		(7,125)
Outstanding as of October 2, 2016		942,875
Vested and exercisable as of October 2, 2016		292,513
Vested and expected to vest as of October 2, 2016		840,437
Weighted average exercise price rollforward
Outstanding as of June 30, 2016		$ 1.51
Granted		2.50
Forfeited		1.51
Outstanding as of October 2, 2016		1.71
Vested and exercisable as of October 2, 2016		2.11
Vested and expected to vest as of October 2, 2016		$ 1.73
Weighted Average Remaining Contractual Term (in years)
Outstanding		6 years 4 months 28 days
Vested and exercisable as of October 2, 2016		6 years 7 months 28 days
Vested and expected to vest as of October 2, 2016		6 years 5 months 1 day
Term		7 years
Weighted average grant date fair value (in USD per share)		$ 1.46
Total fair value of shares vested		$ 500

Commitments and Contingencies -

Commitments and Contingencies - Interest Rates (Details) - Capital lease agreements	Oct. 02, 2016
Minimum
Commitments and contingencies
Interest rate (as a percent)	3.00%
Maximum
Commitments and contingencies
Interest rate (as a percent)	5.80%

Segment Information - Summarize

Segment Information - Summarized (Details) $ in Thousands	3 Months Ended
	Oct. 02, 2016USD ($)segment	Sep. 27, 2015USD ($)
Segment information
Reportable business segments | segment	4
Sales	$ 26,826	$ 23,631
Operating costs	25,486	22,726
Segment operating (loss) income	(48)	97
Interest expense, net	(1,107)	(1,140)
Loss on extinguishment of debt	(723)
Other (expense) income, net	(33)	3
Non-operating expense	(1,863)	(1,137)
Loss before income taxes	(1,911)	(1,040)
Corporate
Segment information
Segment operating (loss) income	(1,388)	(808)
Precision Components Group | Total segments
Segment information
Sales	19,332	17,069
Operating costs	17,435	16,261
Segment operating (loss) income	1,897	808
3DMT Group | Total segments
Segment information
Sales	6,141	5,056
Operating costs	6,823	5,209
Segment operating (loss) income	(682)	(153)
Flanges and Fittings Group | Total segments
Segment information
Sales	1,113	1,172
Operating costs	983	968
Segment operating (loss) income	130	204
Wireless Group | Total segments
Segment information
Sales	240	334
Operating costs	245	288
Segment operating (loss) income	$ (5)	$ 46

Significant Customers (Details)

Significant Customers (Details) - Customers	3 Months Ended		12 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Jun. 30, 2016
Sales
Significant customers
Concentration percentage	39.40%	34.10%
Receivables
Significant customers
Concentration percentage	35.60%		32.30%
Receivables | Customer 1
Significant customers
Concentration percentage	12.80%		8.30%
Receivables | Customer 2
Significant customers
Concentration percentage	10.70%		10.50%
Receivables | Customer 3
Significant customers
Concentration percentage	6.90%		8.30%
Receivables | Customer 4
Significant customers
Concentration percentage	5.20%		5.20%
Precision Components Group | Sales | Customer 2
Significant customers
Concentration percentage	10.80%	9.10%
Precision Components Group | Sales | Customer 3
Significant customers
Concentration percentage	8.20%	8.00%
Precision Components Group | Sales | Customer 4
Significant customers
Concentration percentage	7.60%	9.60%
3DMT Group | Sales | Customer 1
Significant customers
Concentration percentage	12.80%	7.40%