Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) before income taxes is as follows (in thousands):



	Year Ended
	June 30, 2012			July 3, 2011			June 27, 2010
Domestic	$	20,839		$	4,416		$	(10,024	)
Foreign	(3,771		)	(704		)	9,841
Total	$	17,068		$	3,712		$	(183	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for (benefit from) income taxes for fiscal 2012, 2011 and fiscal 2010 consisted of the following (in thousands):



	Year Ended
	June 30, 2012		July 3, 2011			June 27, 2010
Current:
Federal	$	114	$	142		$	(1,062	)
State	79		92			106
Foreign	916		1,613			596
Total current	1,109		1,847			(360		)
Deferred:
Federal	30		(639		)	—
State	—		—			—
Foreign	57		(209		)	(50		)
Total deferred	87		(848		)	(50		)
Provision (benefit) for income taxes	$	1,196	$	999		$	(410	)

Schedule of Effective Income Tax Rate Reconciliation

The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate (35 percent) to income (loss) before taxes is explained below (in thousands):



	Year Ended
	June 30, 2012			July 3, 2011			June 27, 2010
Tax at federal statutory rate (benefit)	$	5,974		$	1,299		$	(64	)
State income tax, net of federal benefit	51			57			66
Valuation allowance	(8,035		)	(2,492		)	607
Foreign earnings taxed at other than U.S. rates	3,607			1,576			(3,348		)
Deferred compensation	170			398			2,196
Other	(571		)	161			133
Provision for income taxes	$	1,196		$	999		$	(410	)

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets are as follows (in thousands):



	June 30, 2012			July 3, 2011
Deferred tax assets:
Net operating loss carry-forwards	$	73,413		$	76,158
Tax credit carry-forwards	23,051			23,335
Depreciation	14,074			16,602
Deferred revenue (net)	8,722			9,160
Warrant amortization	5,489			6,854
Inventory write-downs	2,803			3,685
Other allowances and accruals	2,901			3,579
Other	10,895			11,912
Total deferred tax assets	141,348			151,285
Valuation allowance	(140,641		)	(150,503		)
Total net deferred tax assets	707			782
Deferred tax liabilities:
Deferred tax liability on foreign withholdings	(120		)	(93		)
Total deferred tax liabilities	(120		)	(93		)
Net deferred tax assets	$	587		$	689
Recorded as:
Net current deferred tax assets	$	644		$	681
Net non-current deferred tax assets	178			101
Net current deferred tax liabilities	(235		)	—
Net non-current deferred tax liabilities	—			(93		)
Net deferred tax assets (liabilities)	$	587		$	689

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows (in thousands):



Balance at June 28, 2009	$	22,578
Decrease related to prior year tax positions	(98		)
Increases related to prior year tax positions	1,094
Increases related to current year tax positions	1,414
Lapse of statute of limitations	(1,078		)
Balance at June 27, 2010	$	23,910
Increase related to prior year tax positions	464
Increase related to current year tax positions	1,636
Balance at July 3, 2011	$	26,010
Decrease related to prior year tax positions	(444		)
Increase related to current year tax positions	729
Lapse of statute of limitations	(549		)
Balance at June 30, 2012	$	25,746