Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Schedule of Income before Income Tax, Domestic and Foreign

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



	Year Ended
	June 30, 2013			June 30, 2012			July 3, 2011
Domestic	$	14,692		$	20,839		$	4,416
Foreign	(3,341		)	(3,771		)	(704		)
Total	$	11,351		$	17,068		$	3,712

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for fiscal 2013, 2012 and fiscal 2011 consisted of the following (in thousands):



	Year Ended
	June 30, 2013		June 30, 2012		July 3, 2011
Current:
Federal	$	225	$	114	$	142
State	140		79		92
Foreign	1,163		916		1,613
Total current	1,528		1,109		1,847
Deferred:
Federal	15		30		(639		)
Foreign	135		57		(209		)
Total deferred	150		87		(848		)
Provision for income taxes	$	1,678	$	1,196	$	999

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 before taxes is explained below (in thousands):



	Year Ended
	June 30, 2013			June 30, 2012			July 3, 2011
Tax at federal statutory rate	$	3,973		$	5,974		$	1,299
State income tax, net of federal benefit	105			51			57
Valuation allowance	(3,687		)	(8,035		)	(2,492		)
Foreign earnings taxed at other than U.S. rates	498			3,607			1,576
Deferred compensation	845			170			398
Other	(56		)	(571		)	161
Provision for income taxes	$	1,678		$	1,196		$	999

Schedule of Deferred Tax Assets and Liabilities

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



	June 30, 2013			June 30, 2012
Deferred tax assets:
Net operating loss carry-forwards	$	85,276		$	73,413
Tax credit carry-forwards	28,882			23,051
Depreciation	—			14,074
Deferred revenue (net)	9,710			8,722
Warrant amortization	3,991			5,489
Inventory write-downs	2,759			2,803
Other allowances and accruals	3,658			2,901
Other	8,714			10,895
Total deferred tax assets	142,990			141,348
Valuation allowance	(142,023		)	(140,641		)
Total net deferred tax assets	967			707
Deferred tax liabilities:
Depreciation	(388		)	—
Deferred tax liability on foreign withholdings	(134		)	(120		)
Total deferred tax liabilities	(522		)	(120		)
Net deferred tax assets	$	445		$	587
Recorded as:
Net current deferred tax assets	$	386		$	644
Net non-current deferred tax assets	294			178
Net current deferred tax liabilities	(235		)	(235		)
Net deferred tax assets	$	445		$	587

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 27, 2010	$	23,910
Increases related to prior year tax positions	464
Increases 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
Decrease related to prior year tax positions	(14,966		)
Increase related to prior year tax positions	45
Increase related to current year tax positions	270
Lapse of statute of limitations	(197		)
Balance at June 30, 2013	$	10,898