Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Available-for-sale Securities

Summary of Available-for-Sale Securities (in thousands)

	June 30, 2012		July 3, 2011
Cash	$	18,455	$	19,567
Cash equivalents	$	36,141	$	30,405
Short-term investments	23,358		41,357
Marketable securities	75,561		55,648
Total available-for-sale	$	135,060	$	127,410
Total cash and available for sale securities	$	153,515	$	146,977

Available-for-Sale Securities

The following is a summary of available-for-sale securities (in thousands): 

	Amortized Cost		Fair Value		Unrealized Holding Gains		Unrealized Holding Losses
June 30, 2012
Money market funds	$	36,141	$	36,141	$	—	$	—
U.S. corporate debt securities	84,882		84,949		148		(81		)
U.S. government agency securities	11,241		11,234		3		(10		)
U.S. municipal bonds	2,738		2,736		—		(2		)
	$	135,002	$	135,060	$	151	$	(93	)
Classified as:
Cash equivalents	$	36,141	$	36,141	$	—	$	—
Short-term investments	23,311		23,358		48		(1		)
Marketable securities	75,550		75,561		103		(92		)
	$	135,002	$	135,060	$	151	$	(93	)
July 3, 2011
Money market funds	$	30,405	$	30,405	$	—	$	—
U.S. corporate debt securities	89,004		89,249		287		(43		)
U.S. government agency securities	7,746		7,756		13		(3		)
	$	127,155	$	127,410	$	300	$	(46	)
Classified as:
Cash equivalents	$	30,405	$	30,405	$	—	$	—
Short-term investments	41,245		41,357		114		(1		)
Marketable securities	55,505		55,648		186		(45		)
	$	127,155	$	127,410	$	300	$	(46	)

The amortized cost and estimated fair value of available-for-sale investments in debt securities at June 30, 2012, by contractual maturity, were as follows (in thousands):

	Amortized Cost		Fair Value
Due in 1 year or less	$	23,311	$	23,357
Due in 1-2 years	52,965		52,994
Due in 2-5 years	22,585		22,568
Due in more than 5 years	—		—
Total investments in available for sale debt securities	$	98,861	$	98,919

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

The following table presents the Company’s investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2012
U.S. corporate debt securities	$	26,728	$	(81	)	$	1,014	$	—	$	27,742	$	(81	)
U.S. government agency securities	$	5,498	$	(10	)	$	—	$	—	$	5,498	$	(10	)
U.S. municipal bonds	$	2,736	$	(2	)	$	—	$	—	$	2,736	$	(2	)
	$	34,962	$	(93	)	$	1,014	$	—	$	35,976	$	(93	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Fair value is measured based on a fair value hierarchy following three levels of inputs, of which the first two are considered observable and the last unobservable:

• Level 1	Quoted prices in active markets for identical assets or liabilities;
• Level 2	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
• Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis:

June 30, 2012	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Investments:
Municipal bonds	$	—	$	2,736	$	—	$	2,736
Federal agency notes	—		11,234		—		11,234
Money market funds	36,141		—		—		36,141
Corporate notes/bonds	—		84,949		—		84,949
Foreign currency forward contracts	—		179		—		179
Total	$	36,141	$	99,098	$	—	$	135,239

July 3, 2011	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Investments:
Federal agency notes	$	—	$	7,756	$	—	$	7,756
Money market funds	30,405		—		—		30,405
Corporate notes/bonds	—		89,249		—		89,249
Total	$	30,405	$	97,005	$	—	$	127,410
Liabilities
Foreign currency forward contracts	$	—	$	37	$	—	$	37
Total	$	—	$	37	$	—	$	37

Schedules of Concentration of Risk, by Risk Factor

The following table sets forth major customers accounting for 10% or more of our net revenue. The amounts for the fiscal year ended July 3, 2011 and June 27, 2010 have been revised to correct previously disclosed amounts:

	Fiscal Year Ended
	June 30, 2012		July 3, 2011		June 27, 2010
Westcon Group Inc.	19	%	16	%	16	%
Scansource, Inc.	13	%	14	%	13	%
Ericsson AB	12	%	11	%	*
Tech Data Corporation	*		11	%	12	%
* Less than 10% of revenue

The following table sets forth major customers accounting for 10% or more of our accounts receivable balance. The amounts for the fiscal year ended July 3, 2011 have been revised to correct previously disclosed amounts:

	June 30, 2012		July 3, 2011
Ericsson AB	21	%	18	%
Westcon Group Inc.	16	%	*
Scansource, Inc.	*		18	%
* Less than 10% of accounts receivable

Schedule of Inventory, Current

The Company holds service inventory to support customers who have purchased long term service contracts with a hardware replacement element.

	June 30, 2012		July 3, 2011
Service Inventory	$	13,109	$	13,555
Less: Excess and Obsolete Inventory	5,074		3,976
Service Inventory, Net	$	8,035	$	9,579

Inventories at June 30, 2012 and July 3, 2011, respectively, were (in thousands):

	June 30, 2012		July 3, 2011
Inventory	$	27,964	$	26,487
Less: Excess and Obsolete Inventory	1,355		4,904
Inventory, net	$	26,609	$	21,583

Property, Plant and Equipment

Property and equipment consist of the following (in thousands):

	June 30, 2012			July 3, 2011
Computer equipment	$	42,771		$	51,806
Land	10,300			20,600
Buildings and improvements	9,581			19,213
Purchased software	11,961			12,176
Office equipment, furniture and fixtures	3,201			3,774
Leasehold improvements	5,467			5,736
	83,281			113,305
Less: accumulated depreciation and amortization	(58,101		)	(71,428		)
Property and equipment, net	$	25,180		$	41,877

Schedule of Intangible Assets

The following tables summarize the components of gross and net intangible asset balances (in thousands):

	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
June 30, 2012
Patents	7.4 years	$	1,800	$	669	$	1,131
License Agreements	9.3 years	10,158		6,231		3,927
Other Intangibles	0.3 years	324		276		48
		$	12,282	$	7,176	$	5,106

	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
July 3, 2011
Patents	7.7 years	$	1,800	$	387	$	1,413
License Agreements	6.5 years	8,140		4,788		3,352
Other Intangibles	1.2 years	324		183		141
		$	10,264	$	5,358	$	4,906

Schedule of Expected Amortization Expense

Amortization expense expected to be recorded for each of the next five years is as follows (in thousands):

For the fiscal year ending:
2013	$	1,427
2014	834
2015	438
2016	308
2017	282
Thereafter	1,817
Total	$	5,106

Schedule of Deferred Revenue

The following table summarizes deferred revenue, net at the end of fiscal 2012 and 2011, respectively (in thousands):

	June 30, 2012			July 3, 2011
Deferred services	$	37,708		$	36,025
Deferred product:
Deferred revenue	2,236			1,984
Deferred cost of sales	(616		)	(1,036		)
Deferred product revenue, net	1,620			948
Balance at end of period	39,328			36,973
Less: current portion	31,769			29,613
Non-current deferred revenue, net	$	7,559		$	7,360

Deferred Revenue Roll Forward

The change in the Company’s deferred support revenue balance in relation to these arrangements was as follows (in thousands):

	Year Ended
	June 30, 2012			July 3, 2011
Balance beginning of period	$	35,802		$	36,193
New support arrangements	59,313			58,150
Recognition of support revenue	(57,654		)	(58,541		)
Balance end of period	37,461			35,802
Less: current portion	29,902			28,442
Non-current deferred revenue	$	7,559		$	7,360

Schedule of Deferred Distributors Revenue

The following table summarizes deferred distributors revenue, net of cost of sales to distributors at the end of fiscal 2012 and 2011, respectively (in thousands):

	Year Ended
	June 30, 2012			July 3, 2011
Deferred revenue	$	20,361		$	22,454
Deferred cost of Sales	(5,042		)	(5,902		)
Total deferred distributors revenue, net of cost of sales to distributors	$	15,319		$	16,552

Schedule of Product Warranty Liability

The following table summarizes the activity related to the Company’s product warranty liability during fiscal 2012 and fiscal 2011:

	Year ended
	June 30, 2012			July 3, 2011
Balance beginning of period	$	2,640		$	3,169
New warranties issued	3,117			2,351
Warranty expenditures	(2,886		)	(2,880		)
Balance end of period	$	2,871		$	2,640

Schedule of Other Accrued Liabilities

The following are the components of other accrued liabilities (in thousands):

	June 30, 2012		July 3, 2011
Accrued general and administrative costs	$	1,599	$	5,373
Other accrued liabilities	11,881		13,677
Total	$	13,480	$	19,050