10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________

Form 10-K

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended July 3, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-33278

______________________________

AVIAT NETWORKS, INC.

(Exact name of registrant as specified in its charter)

______________________________

Delaware	20-5961564
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
5200 Great America Parkway Santa Clara, California	95054
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (408) 567-7000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	NASDAQ Stock Market LLC (NASDAQ Global Select Market)

Securities registered pursuant to Section 12(g) of the Act: None

_____________________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  o    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  o    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  o    No  x

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes x    No  o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o  (Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

As of December 26, 2014 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of the registrant’s common stock held by non-affiliates was approximately $62.8 million based upon the closing price for shares of the registrant’s common stock as reported by the NASDAQ Global Select Market on that date. For purposes of this calculation, the registrant has assumed that its directors, executive officers and holders of 5% or more of the outstanding common stock are affiliates.

The number of shares outstanding of the registrant’s common stock as of September 17, 2015 was 62,498,401 shares. 

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DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement for its Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended July 3, 2015, are incorporated by reference into Part III of this Annual Report on Form 10-K.

AVIAT NETWORKS, INC.

ANNUAL REPORT ON FORM 10-K

For the Fiscal Year Ended July 3, 2015

Table of Contents

PART I		5
Item 1.	Business	5
Item 1A.	Risk Factors	15
Item 1B.	Unresolved Staff Comments	26
Item 2.	Properties	26
Item 3.	Legal Proceedings	27
Item 4.	Mine Safety Disclosures	27
PART II		28
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	28
Item 6.	Selected Financial Data	30
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 8.	Financial Statements and Supplementary Data	46
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	84
Item 9A.	Controls and Procedures	84
Item 9B.	Other Information	86
PART III		87
Item 10.	Directors, Executive Officers and Corporate Governance	87
Item 11.	Executive Compensation	87
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	87
Item 13.	Certain Relationships and Related Transactions, and Director Independence	88
Item 14.	Principal Accountant Fees and Services	88
PART IV		89
Item 15.	Exhibits and Financial Statement Schedules	89
Signatures		93
Schedule II		94

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K, including “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not materialize or prove correct, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements of, about, concerning or regarding: our plans, strategies and objectives for future operations, including with respect to growing our business and sustaining profitability; our restructuring efforts; our research and development efforts and new product releases and services; trends in revenue; drivers of our business and the markets in which we operate; future economic conditions; performance or outlook and changes in our industry and the markets we serve; the outcome of contingencies; the value of our contract awards; beliefs or expectations; the sufficiency of our cash and our capital needs and expenditures; our intellectual property protection; our compliance with regulatory requirements and the associated expenses; expectations regarding litigation; our intention not to pay cash dividends; seasonality of our business; the impact of foreign exchange and inflation; taxes; and assumptions underlying any of the foregoing. Forward-looking statements may be identified by the use of forward-looking terminology, such as “anticipates,” “believes,” “expects,” “may,” “should,” “would,” “will,” “intends,” “plans,” “estimates,” “strategy,” “projects,” “targets,” “goals,” “seeing,” “delivering,” “continues,” “forecasts,” “future,” “predict,” “might,” “could,” “potential,” or the negative of these terms, and similar words or expressions.

These forward-looking statements are based on estimates reflecting the current beliefs of the senior management of Aviat Networks. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this Annual Report on Form 10-K. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, but are not limited to, the following:

• material weaknesses identified in our system of internal control and associated remediation efforts and investments and other actions needed to remedy those material weaknesses;

• continued price and margin erosion as a result of increased competition in the microwave transmission industry;

• the impact of the volume, timing and customer, product and geographic mix of our product orders;

• our ability to meet financial covenant requirements which could impact , among other things, our liquidity;

• our ability to meet projected new product development dates or anticipated cost reductions of new products;

• our suppliers’ inability to perform and deliver on time as a result of their financial condition, component shortages or other supply chain constraints;

• customer acceptance of new products;

• the ability of our subcontractors to timely perform;

• continued weakness in the global economy affecting customer spending;

• retention of our key personnel;

• our ability to manage and maintain key customer relationships;

• uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation;

• the timing of our receipt of payment for products or services from our customers;

• our failure to protect our intellectual property rights or defend against intellectual property infringement claims by others;

• the results of our restructuring efforts;

• the effects of currency and interest rate risks; and

• the impact of political turmoil in countries where we have significant business.

Other factors besides those listed here also could adversely affect us. See “Item 1A. Risk Factors” in this Annual Report on Form 10-K for more information regarding factors that may cause our results to differ materially from those expressed or implied by the forward-looking statements contained in this Annual Report on Form 10-K.

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You should not place undue reliance on these forward-looking statements, which reflect our management’s opinions only as of the date of the filing of this Annual Report on Form 10-K. Forward-looking statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, along with provisions of the Private Securities Litigation Reform Act of 1995, and we undertake no obligation, other than as imposed by law, to update any forward-looking statements to reflect further developments or information obtained after the date of filing of this Annual Report on Form 10-K or, in the case of any document incorporated by reference, the date of that document.

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PART I

Item 1. Business

Aviat Networks, Inc., together with its subsidiaries, is a global supplier of microwave networking solutions, backed by an extensive suite of professional services and support. Aviat Networks, Inc. may be referred to as “the Company,” “AVNW,” “Aviat Networks,” “we,” “us” and “our” in this Annual Report on Form 10-K.

We were incorporated in Delaware in 2006 to combine the businesses of Harris Corporation’s Microwave Communications Division (“MCD”) and Stratex Networks, Inc. (“Stratex”). On January 28, 2010, we changed our corporate name from Harris Stratex Networks, Inc. to Aviat Networks, Inc.

Our principal executive offices are located at 5200 Great America Parkway, Santa Clara, California 95054, and our telephone number is (408) 567-7000. Our common stock is listed on the NASDAQ Global Select Market under the symbol AVNW. As of July 3, 2015, we employed approximately 740 people, compared with approximately 960 people as of June 27, 2014.

Overview and Description of the Business

We design, manufacture and sell a range of wireless networking products, solutions and services to mobile and fixed public network operators, private network operators, government agencies, transportation, energy and utility companies, public safety agencies and broadcast network operators around the world. We sell products and services directly to our customers and also use agents and distributors.

Our products utilize microwave and millimeter wave technologies to create point to point wireless links for short, medium and long distance interconnections. Our products incorporate Ethernet switching and IP routing capabilities to form complete networking solutions. We also provide network management software tools to enable our customers to deploy, monitor and manage our systems; third party equipment such as antennas, routers, optical transmission equipment and other equipment necessary to build and deploy a complete telecommunications transmission network. We provide a full suite of professional services.

Our wireless systems deliver urban, suburban, regional and country-wide communications links as the primary alternative to fiber optic connections. In dense urban and suburban areas, short range wireless solutions are faster to deploy and lower cost per mile than new fiber deployments. In developing nations, fiber infrastructure is scarce and wireless systems are used for both long and short distance connections. Wireless systems also have advantages over optical fiber in areas with rugged terrain, and to provide connections over bodies of water such as between islands or even oil and gas production platforms.

Revenue from our North America and international regions represented approximately 46% and 54%, respectively, of our revenue in fiscal 2015, 41% and 59%, respectively, of our revenue in fiscal 2014, and 38% and 62%, respectively, of our revenue in fiscal 2013. Information about our revenue attributable to our geographic regions is set forth in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 10 of the accompanying consolidated financial statements in this Annual Report on Form 10-K.

Market Overview

We believe that future demand for microwave and millimeter wave transmission systems will be influenced by a number of factors across several market segments.

Mobile Networks

As Mobile Networks expand, add subscribers and increase the number of wirelessly connected devices, sensors and machines, they require investment in backhaul infrastructure. Whether Mobile Network operators choose to self-build this backhaul infrastructure or lease backhaul services from other network providers, the evolution of the network drives demand for transmission technologies such as microwave and millimeter wave wireless backhaul. Within this overall scope there are multiple individual drivers for investment in backhaul infrastructure.

• New RAN Technologies. The evolution of Mobile Radio Access Network (“RAN”) technologies from 2G to 3G (HSPA) or 4G (HSPA+ and LTE) technologies is providing subscribers with faster speed access to the internet, social media, and video streaming services. The rapid increases in data to be transported through

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the RAN and across the backhaul infrastructure drives requirements for higher data transport links necessitating upgrades to or replacement of the existing backhaul infrastructure.

• Subscriber Growth. Traffic on the backhaul infrastructure increases as the number of unique subscribers grows.

• Connected Devices. The number of devices such as smart phones and tablets connected to the Mobile Network is far greater than the number of unique subscribers and is continuing to grow as consumers adopt multiple mobile device types. There is also rapid growth in the number and type of wireless enabled sensors and machines being connected to the Mobile Network creating new revenue streams for network operators in healthcare, agriculture, transportation and education. As a result, the data traffic crossing the backhaul infrastructure continues to grow rapidly.

• RAN Capacity. RAN frequency spectrum is a limited resource and shared between all of the devices and users within the coverage area of each base station. Meeting the combined demand of increasing subscribers and devices will requires the deployment of much higher densities of base stations with smaller and smaller range (small cells) each requiring backhaul.

• Geographic Coverage. Expanding the geographic area covered by a Mobile Network requires the deployment of additional Cellular Base Station sites. Each additional base station site also needs to be connected to the core of the Mobile Network through expansion of the backhaul system.

• License Mandates. Mobile Operators are licensed telecommunications service providers. Licenses will typically mandate a minimum geographic footprint within a specific period of time and/or a minimum proportion of a national or regional population served. This can pace backhaul infrastructure investment and cause periodic spikes in demand.

• Evolution to IP. Network Infrastructure capacity, efficiency and flexibility is greatly enhanced by transitioning from legacy SDH (synchronous digital hierarchy) / SONET (synchronous optical network) / TDM (time division multiplexing) to IP (internet protocol) infrastructure. Our products offer integrated IP transport and routing functionality increasing the value they bring in the backhaul network.

• Expansion of Offered Services. Mobile Network operators especially in emerging markets now own and operate the most modern communications networks within their respective regions. These network assets can be further leveraged to provide high speed broadband services to fixed locations such as Small Medium and Large Business Enterprises, Airports, Hotels, Hospitals, and Educational institutions. Microwave and Millimeter Wave backhaul is ideally suited to providing high speed broadband connections to these end points due to the lack of fiber infrastructure.

Other Vertical Markets

In addition to mobile backhaul, we see demand for microwave technology in other vertical markets, including utility, public safety, financial institutions and broadcast.

• Many utility companies around the world are actively investing in Smart Grid solutions and energy demand management, which drive the need for network modernization and increased capacity of networks.

• The investments in network modernization in the public safety market can significantly enhance the capabilities of security agencies. Improving border patrol effectiveness, enabling inter-operable emergency communications services for local or state police, providing access to timely information from centralized databases, or utilizing video and imaging devices at the scene of an incident requires a high bandwidth and reliable network. The mission critical nature of Public Safety and National security networks can require that these networks are built, operated and maintained independently of other public network infrastructure and microwave is very well suited to this environment because it is a cost-effective alternative to fiber.

• Microwave technology can be used to engineer long distance and more direct connections than Optical Cable. Microwave signals also travel through the air much faster than light through glass and the combined effect of shorter distance and higher speed reduces latency, which is valued for trading applications in the financial industry. Our products have already been used to create low latency connections between major centers in the U.S., Europe and Asia and we see long term interest in the creation of further low latency routes in various geographies around the world.

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These factors are combining to create a range of opportunities for continued investment in networks favoring microwave and millimeter wave technologies. As we focus on our execution of the future generations of our technology, our goal is to make wireless a viable choice for an ever broadening range of network types.

Strategy

Over the past year, we made significant further enhancements to our product portfolio with new microwave and IP Routing solutions.We introduced the CTR 8311 and CTR 8312 variants of our CTR 8000 platform to complement the CTR 8540 specifically to address lower density network nodes. The CTR is a transformational microwave product line since it efficiently integrates microwave transport and IP routing in a single solution. The software defined functionality of the CTR platform allows us to expand its capability over time and create further revenue generating software releases in the future. We also introduced the highest power microwave radio in the industry as a variant of our North America flagship product the IRU 600.

We continued to develop our professional services portfolio as a key to our long term strategy and differentiation. During the year, we expanded the number of customer networks managed from our North America Network Operations Center (“NOC”) and opened an additional NOC in Mexico. We have also expanded our training and accreditation programs for microwave and IP network design, deployment and maintenance.

Our strategy includes partnering with companies with technical expertise in areas outside of our core competencies to meet our customers’ demand for an end-to-end solution. Our partner product strategy enables us to go beyond wireless transmission to address the vendor consolidation trend whereby customers are “buying more from fewer vendors” and in doing so providing expanding market share opportunity. A comprehensive solutions portfolio comprised of our wireless product and intelligent partner products can allow us to compete with vendors that offer turnkey solution portfolios and serve to focus our research and development (“R&D”) efforts on core competency wireless innovations. Having a broader portfolio will enable us to further differentiate our offerings from other independent microwave equipment suppliers.

We expect to continue to serve and expand upon our existing customer base and develop business with new customers. We have sold more than 1,000,000 microwave radios in over 140 countries and are present in more than 350 mobile networks worldwide. We intend to leverage our customer base, our longstanding presence in many countries, our distribution channels, our comprehensive product line, our superior customer service and our turnkey solution capability to continue to sell existing and new products and services to current and future customers.

Products and Solutions

We offer a comprehensive product and solutions portfolio that meets the needs of service providers and network operators in every region of the world and addresses a broad range of applications, frequencies, capacities and network topologies. Our product categories include point-to-point microwave and millimeter wave radios that are licensed (subject to local frequency regulatory requirements), lightly-licensed and license-exempt (operating in license-exempt frequencies), and element and network management software. In addition, we provide a full suite of professional services enabling us to deliver end-to-end turnkey networks, including complete design, deployment, maintenance, and managed services, while being an attentive and adaptable partner for our customers — a key competitive differentiator for us.

• Broad product and solution portfolio. We offer a comprehensive suite of wireless transmission networking systems for microwave and millimeter-wave networking applications. Our solution consists of tailored offerings of our own wireless products and our own integrated ancillary equipment or that of other manufacturers and providers of element and network management systems and professional services. These solutions address a wide range of transmission frequencies, ranging from 2.4 GHz to 90 GHz, and a wide range of transmission capacities, ranging up to over 4 Gbps. The major product families included in these solutions are CTR 8000, Eclipse, IRU 600, WTM 3000, WTM 6000 and ProVision, our network management software.

• Low total cost of ownership. Our wireless-based solutions offer a relatively low total cost of ownership, including savings on the combined costs of initial acquisition, installation and ongoing operation and maintenance. Our latest generation system designs reduce rack space requirements, require less power, are software-configurable to reduce spare parts requirements, and are simple to install, operate, upgrade and maintain. Our advanced wireless features can also enable operators to save on related costs, including spectrum fees and tower rental fees.

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• Futureproof network. Our solutions are designed to protect the network operator’s investment by incorporating software-configurable capacity upgrades and plug-in modules that provide a smooth migration path to Carrier Ethernet and IP/MPLS-based networking, without the need for costly equipment substitutions and additions. Our products include key technologies we believe will be needed by operators for their network evolution to support new broadband services.

• Flexible, easily configurable products. We use flexible architectures with a high level of software configurable features. This design approach produces high-performance products with reusable components while at the same time allowing for a manufacturing strategy with a high degree of flexibility, improved cost and reduced time-to-market. The software features of our products offer our customers a greater degree of flexibility in installing, operating and maintaining their networks.

• Comprehensive network management. We offer a range of flexible network management solutions, from element management to enterprise-wide network management and service assurance that we can optimize to work with our wireless systems.

• Complete professional services. In addition to our product offerings, we provide network planning and design, site surveys and builds, systems integration, installation, maintenance, network monitoring, training, customer service and many other professional services. Our services cover the entire evaluation, purchase, deployment and operational cycle and enable us to be one of the few complete turnkey solution providers in the industry.

Business Operations

Sales and Service

Our primary route to market is through our own direct sales, service and support organization. This provides us with the best opportunity to leverage our role as a technology specialist and differentiate ourselves from competitors. Our focus on key customers and geographies allows us to consistently achieve high customer satisfaction ratings leading to a high level of customer retention and repeat business. Our highest concentrations of Sales and Service resources are in the United States, Western and Southern Africa, the Philippines, and the European Union. We maintain a presence in a number of other countries, some of which are based on customer locations and include Nigeria, Kenya, Ghana, Ivory Coast, Algeria, South Africa, the United Arab Emirates, Saudi Arabia, Australia, Malaysia, New Zealand, Singapore, Slovenia and the Philippines.

In addition to our direct channel to market, we also have informal, and in some cases formal, relationships with original equipment manufacturers (“OEMs”) and system integrators especially towards large and complex projects in National Security and Government related applications, which include Nigeria, Kenya, Ghana, Ivory Coast, Algeria, South Africa, the United Arab Emirates, Saudi Arabia, Australia, Malaysia, New Zealand, Singapore, Slovenia and the Philippines. Our role in these relationships ranges from equipment supply only to being a sub-contractor for a portion of the project scope where we will supply equipment and a variety of design, deployment and maintenance services.

We also use indirect sales channels, including dealers, distributors and sales representatives, in the marketing and sale of some lines of products and equipment on a global basis. These independent representatives may buy for resale or, in some cases, solicit orders from commercial or governmental customers for direct sales by us. Prices to the ultimate customer in many instances may be recommended or established by the independent representative and may be above or below our list prices. These independent representatives generally receive a discount from our list prices and are free to set the final sales prices paid by the customer.

We have repair and service centers in India, Nigeria, Ghana, Mexico, the Philippines, the United Kingdom and the United States. We have customer service and support personnel who provide customers with training, installation, technical support, maintenance and other services on systems under contract. We install and maintain customer equipment directly in some cases and contract with third-party service providers in other cases, depending on the equipment being installed and customer requirements.

The specific terms and conditions of our product warranties vary depending upon the product sold and country in which we do business. On direct sales, warranty periods generally start on the delivery date and continue for one to three years.

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Manufacturing

Our global manufacturing strategy follows an outsourced manufacturing model using contract manufacturing partners in both the United States and Asia. Our strategy is based on balancing cost and supplier performance as well as taking into account qualification for localization requirements of certain market segments such as the Buy America statute. We continue to perform our system integration and customer acceptance and testing in an Aviat Networks facility co-located with one of our contract manufacturers in the United States.

In accordance with our global logistics requirements and customer geographic distribution, we are engaged with contract manufacturing partners in Asia and the United States. All manufacturing operations have been certified to International Standards Organization 9001, a recognized international quality standard. We have also been certified to the TL 9000 standard, a telecommunication industry-specific quality system standard.

Backlog

Our backlog by geographic region is as follows:

	July 3, 2015		June 27, 2014
	(In millions)
North America	$	88.2	$	105.5
International	63.5		69.3
Total backlog	$	151.7	$	174.8

Our backlog consists primarily of contracts or purchase orders for both product and service deliveries scheduled within the next 12 months and extended service warranties. We regularly review our backlog to ensure that our customers continue to honor their purchase commitments and have the financial means to purchase and deploy our products and services in accordance with the terms of their purchase contracts.

We expect to substantially fill the backlog as of July 3, 2015 during fiscal 2016, but we cannot be assured that this will occur. Product orders in our current backlog are subject to changes in delivery schedules or to cancellation at the option of the purchaser without significant penalty. Accordingly, although useful for scheduling production, backlog as of any particular date may not be a reliable measure of sales for any future period because of the timing of orders, delivery intervals, customer and product mix and the possibility of changes in delivery schedules and additions or cancellations of orders. The backlog figures exclude advance payments and unearned income amounts. As of July 3, 2015, Motorola Solutions, Inc. accounted for 11% of our total backlog and no other customers accounted for 10% or more of our total backlog.

Customers

Principal customers for our products and services include domestic and international wireless/mobile service providers, OEMs, and private network users such as public safety agencies, government institutions, and utility, pipeline, railroad and other industrial enterprises that operate wireless networks.

During fiscal 2015, the Mobile Telephone Networks Group (“MTN Group”) in Africa accounted for 14% of our total revenue compared with 17% in fiscal 2014 and 25% in fiscal 2013. We have entered into separate and distinct contracts with MTN Group as well as separate arrangements with MTN Group subsidiaries. The loss of all or a substantial portion of MTN Group’s business could adversely affect our results of operations, cash flows and financial position.

Although we have a large customer base, during any given fiscal year or quarter a small number of customers may account for a significant portion of our revenue. In certain circumstances, we sell our products to service providers through OEMs, which provide the service providers with access to financing and in some instances, protection from fluctuations in international currency exchange rates.

Competition

The microwave and millimeter wave wireless networking business is a specialized segment of the wireless telecommunications industry that is sensitive to technological advancements and is extremely competitive. Our principal competitors include business units of large mobile and IP network infrastructure manufacturers such as Ericsson, Huawei, NEC and Alcatel-Lucent, as well as a number of other smaller public and other microwave specialists companies such as Ceragon, DragonWave and privately-held SIAE.

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Some of our larger competitors may have greater name recognition, broader product lines (some including non-wireless telecommunications equipment and managed services), a larger installed base of products and longer-standing customer relationships. They may from time to time leverage their extensive overall portfolios into completely outsourced and managed network offerings restricting opportunities for specialist suppliers. In addition, some competitors may offer seller financing, which can be a competitive advantage under certain economic climates.

Some of our larger competitors may also act as systems integrators through which we sometimes distribute and sell products and services to end users.

The smaller independent private and public specialist competitors typically leverage new technologies and low products costs, but are generally less capable of offering a complete solution including professional services, especially in the North America and Africa regions which form the majority of our addressed market.

We concentrate on market opportunities that we believe are compatible with our resources, overall technological capabilities and objectives. Principal competitive factors are cost-effectiveness, product quality and reliability, technological capabilities, service, ability to meet delivery schedules and the effectiveness of dealers in international areas. We believe that the combination of our network and systems engineering support and service, global reach, technological innovation, agility and close collaborative relationships with our customers are the key competitive strengths for us. However, customers may still make decisions based primarily on factors such as price, financing terms and/or past or existing relationships, where it may be difficult for us to compete effectively or profitably.

Research and Development

We believe that our ability to enhance our current products, develop and introduce new products on a timely basis, maintain technological competitiveness and meet customer requirements is essential to our success. Accordingly, we allocate, and intend to continue to allocate, a significant portion of our resources to research and development efforts in two major product areas: backhaul solutions and network management systems. In addition, we are investing in key innovation that will help separate these products from the competition. The majority of such research and development resources will be used for point-to-point digital microwave radio systems for access, backhaul, trunking and license-exempt applications.

Our research and development expenditures totaled $25.4 million, or 7.6% of revenue, in fiscal 2015, $35.5 million, or 10.3% of revenue, in fiscal 2014, and $39.4 million, or 8.4% of revenue, in fiscal 2013.

Research and development are primarily directed to the development of new products and to building technological capability. We are an industry innovator and intend to continue to focus significant resources on product development in an effort to maintain our competitiveness and support our entry into new markets. We maintain development programs intended to result in new products, such as additions to our WTM3000, Eclipse and new CTR product platforms.

Our product development teams numbered 133 employees as of July 3, 2015, and were located in Santa Clara, California; Wellington, New Zealand; Singapore; Ljubljana, Slovenia; and Montreal, Canada.

Raw Materials and Supplies

Because of the range of our products and services, as well as the wide geographic dispersion of our facilities, we use numerous sources for the wide array of raw materials needed for our operations and for our products, such as electronic components, printed circuit boards, metals and plastics. We are dependent upon suppliers and subcontractors for a large number of components and subsystems and upon the ability of our suppliers and subcontractors to adhere to customer or regulatory materials restrictions and meet performance and quality specifications and delivery schedules.

Our strategy for procuring raw material and supplies includes dual sourcing on strategic assemblies and components. In general, we believe this reduces our risk with regard to the potential financial difficulties in our supply base. In some instances, we are dependent upon one or a few sources, either because of the specialized nature of a particular item or because of local content preference requirements pursuant to which we operate on a given project. Examples of sole or limited source categories include metal fabrications and castings, for which we own the tooling and therefore limit our supplier relationships, and MMICs (a type of integrated circuit used in manufacturing microwave radios), which we procure at volume discount from a single source. Our supply chain plan includes mitigation plans for alternative manufacturing sources and identified alternate suppliers.

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Although we have been affected by performance issues of some of our suppliers and subcontractors, we have not been materially adversely affected by the inability to obtain raw materials or products. In general, any performance issues causing short-term material shortages are within the normal frequency and impact range experienced by high-tech manufacturing companies. They are due primarily to the highly technical nature of many of our purchased components.

Looking ahead, we anticipate standard lead times for our raw materials and supplies.

Patents and Other Intellectual Property

We consider our patents and other intellectual property rights, in the aggregate, to constitute an important asset. We own a portfolio of patents, trade secrets, know-how, confidential information, trademarks, copyrights and other intellectual property. We also license intellectual property to and from third parties. As of September 17, 2015, we held 158 U.S. patents and 70 international patents and had 43 U.S. patent applications pending and 55 international patent applications pending. We do not consider our business to be materially dependent upon any single patent, license or other intellectual property right, or any group of related patents, licenses or other intellectual property rights. From time to time, we might engage in litigation to enforce our patents and other intellectual property or defend against claims of alleged infringement. Any of our patents, trade secrets, trademarks, copyrights and other proprietary rights could be challenged, invalidated or circumvented, or may not provide competitive advantages. Numerous trademarks used on or in connection with our products are also considered to be valuable assets.

In addition, to protect confidential information, including our trade secrets, we require our employees and contractors to sign confidentiality and invention assignment agreements. We also enter into non-disclosure agreements with our suppliers and appropriate customers to limit access to and disclosure of our proprietary information.

Although our ability to compete may be affected by our ability to protect our intellectual property, we believe that, because of the rapid pace of technological change in the wireless telecommunications industry, our innovative skills, technical expertise and ability to introduce new products on a timely basis will be more important in maintaining our competitive position than protection of our intellectual property. Trade secret, trademark, copyright and patent protections are important but must be supported by other factors such as the expanding knowledge, ability and experience of our personnel, new product introductions and product enhancements. Although we continue to implement protective measures and intend to vigorously defend our intellectual property rights, there can be no assurance that these measures will be successful.

Environmental and Other Regulations

Our facilities and operations, in common with those of our industry in general, are subject to numerous domestic and international laws and regulations designed to protect the environment, particularly with regard to wastes and emissions. We believe that we have complied with these requirements and that such compliance has not had a material adverse effect on our results of operations, financial condition or cash flows. Based upon currently available information, we do not expect expenditures to protect the environment and to comply with current environmental laws and regulations over the next several years to have a material impact on our competitive or financial position, but can give no assurance that such expenditures will not exceed current expectations. From time to time, we receive notices from the U.S. Environmental Protection Agency or equivalent state or international environmental agencies that we are a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act, which is commonly known as the Superfund Act, and equivalent laws. Such notices may assert potential liability for cleanup costs at various sites, which include sites owned by us, sites we previously owned and treatment or disposal sites not owned by us, allegedly containing hazardous substances attributable to us from past operations. We are not presently aware of any such liability that could be material to our business, financial condition or operating results, but due to the nature of our business and environmental risks, we cannot provide assurance that any such material liability will not arise in the future.

Electronic products are subject to environmental regulation in a number of jurisdictions. Equipment produced by us is subject to domestic and international requirements requiring end-of-life management and/or restricting materials in products delivered to customers. We believe that we have complied with such rules and regulations, where applicable, with respect to our existing products sold into such jurisdictions.

Radio communications are also subject to governmental regulation. Equipment produced by us is subject to domestic and international requirements to avoid interference among users of radio frequencies and to permit interconnection of telecommunications equipment. We believe that we have complied with such rules and regulations with respect to our existing products, and we intend to comply with such rules and regulations with respect to our future

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products. Reallocation of the frequency spectrum also could impact our business, financial condition and results of operations.

We are in the process of developing comprehensive policies and procedures concerning conflict minerals compliance.

Employees

As of July 3, 2015 we employed approximately 740 people, compared with approximately 960 as of the end of fiscal 2014 and approximately 1,000 as of the end of fiscal 2013. Approximately 270 of our employees are located in the U.S. We also utilized approximately 45 independent contractors as of July 3, 2015. None of our employees in the U.S. are represented by a labor union. In certain international subsidiaries, our employees are represented by workers’ councils or statutory labor unions. In general, we believe that our relations with our employees are good.

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Executive Officers of the Registrant

The name, age, position held with us, and principal occupation and employment during at least the past 5 years for each of our executive officers as of September 30, 2015, are as follows:

Name and Age	Position Currently Held and Past Business Experience
Michael A. Pangia, 54	Mr. Pangia has been our President and Chief Executive Officer and a member of the Board since July 18, 2011. From March 2009 to July 2011, he served as our Chief Sales Officer responsible for company-wide operations of the global sales and services organization. Prior to joining Aviat Networks, from 2008 to 2009, Mr. Pangia served as Senior Vice President, global sales operations and strategy at Nortel, where he was responsible for all operational aspects of the global sales function. From 2006 to 2008, he was President of Nortel’s Asia region where his key responsibilities included sales and overall business management for all countries where Nortel did business in the region.
Ralph Marimon, 58	Mr. Marimon joined Aviat Networks in May 2015 as our Senior Vice President, Finance and Chief Financial Officer and is responsible for the finance and IT organizations. Before joining Aviat, Mr. Marimon served as VP, Finance and CFO of QuickLogic, a provider of ultra-low power, customizable semiconductor solutions for smartphone, tablet, wearable, and mobile enterprise OEMs, since 2008. Prior to QuickLogic, Mr. Marimon served as CFO within a variety of organizations including Anchor Bay Technologies, Inc., Tymphany Corporation, and Scientific Technologies Incorporated. From 1999 to 2003, he served at Com21 Corporation, a global supplier of system solutions for the broadband access market, where he was promoted from Corporate Controller to VP of Finance and CFO. Prior to Com21, Mr. Marimon was at KLA-Tencor Corporation for 11 years in a variety of senior executive financial management positions.
Meena Elliott, 52	Ms. Elliott was appointed Senior Vice President, Chief Legal and Administrative Officer, Corporate Secretary in February 2015 and is responsible for the global legal and human resources organizations. From September 2011 to February 2015, she served as Senior Vice President, General Counsel, Secretary and had responsibilities for the global legal organization and took on responsibilities for global human resources organizations in 2014. From July 2009 to August 2011, she served as Vice President, General Counsel and Secretary. She joined our company as Associate General Counsel and Assistant Secretary in January 2007 when Harris Corporation’s MCD and Stratex Networks merged. Ms. Elliott joined MCD as Division Counsel in March 2006. Prior to joining MCD, she was Chief Counsel at the Department of Commerce from 2002 to 2006.
Heinz H. Stumpe, 60	Mr. Stumpe was appointed Chief Sales Officer on June 25, 2012. Before his appointment as Chief Sales Officer, Mr. Stumpe was our Senior Vice President and Chief Operation Officer since June 30, 2008. Previously, he was Vice President, Global Operations for Aviat Networks and Stratex Networks. He joined Stratex Networks as Director of Marketing in 1996. He was promoted to Vice President, Global Accounts in 1999, Vice President, Strategic Accounts in 2002 and Vice President, Global Operations in April 2006.
Shaun McFall, 55	Mr. McFall was appointed Chief Strategy Officer in 2015. He was our Chief Marketing Officer since July 2008. Previously, from 2000 to 2008, he served as Vice President, Marketing for Aviat Networks and Stratex Networks. He has been with us since 1989.

There is no family relationship between any of our executive officers or directors, and there are no arrangements or understandings between any of our executive officers or directors and any other person pursuant to which any of them was appointed or elected as an officer or director, other than arrangements or understandings with our directors.

Web site Access to Aviat Networks’ Reports; Available Information

We maintain an Internet Web site at http://www.aviatnetworks.com. Our annual reports on Form 10-K, proxy statements, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) are available free of charge on our Web site as soon as reasonably practicable after these reports are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”). Our website and the information posted thereon are not

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incorporated into this Annual Report on Form 10-K or any current or other periodic report that we file or furnish to the SEC.

We will also provide the reports in electronic or paper form, free of charge upon request. All reports we file with or furnish to the SEC are also available free of charge via EDGAR through the SEC’s website at http://www.sec.gov. The public may read and copy any materials filed by us with the SEC at the SEC’s Public Reference Room, 100 F. Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

Additional information relating to our business and operations is set forth in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K.

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Item 1A.Risk Factors

In addition to the risks described elsewhere in this Annual Report on Form 10-K and in certain of our other filings with the SEC, the following risks and uncertainties, among others, could cause our actual results to differ materially from those contemplated by us or by any forward-looking statement contained herein. Prospective and existing investors are strongly urged to carefully consider the various cautionary statements and risks set forth in this Annual Report on Form 10-K and our other public filings.

We have many business risks including those related to our financial performance, investments in our common stock, operating our business and legal matters. The risks and uncertainties described below are not the only ones facing us. Additional risks and uncertainties may also impair our business operations. If any of these risks actually occur, our financial condition and results of operations could be materially and adversely affected.

We have not been profitable and must increase our revenues and reduce costs if we hope to achieve profitability.

As measured under U.S. generally accepted accounting principles (“U.S. GAAP”), we incurred net losses of $24.6 million in fiscal 2015, $51.1 million in fiscal 2014 and $16.7 million in fiscal 2013 and have been unprofitable since we became a public company in January 2007. We also have incurred losses from operations in all fiscal years since we became a public company, although we previously generated cash from operations in fiscal 2013, 2012, 2010 and 2009.

Throughout fiscal 2015 we experienced strong price competition for new business in all regions while major customer consolidations also put pressure on revenue and gross margin. We saw pricing pressures in all markets, with increased pressure in international markets. In all markets, telecommunication operating companies consolidated through mergers or acquisitions, leading to fewer, but larger customers. This consolidation may have a negative impact on our revenue if Aviat is not selected as a vendor for the products and/or services we provide. In order to counter pricing pressures, we invested heavily in product improvements to reduce unit costs and enhance product features, exited manufacturing facilities and shifted production to fewer contract manufacturers, and worked with our vendors to attain more favorable pricing. If we are unable to reduce product unit costs associated with enhanced product features, including payments to contract manufacturers and other suppliers, we may not achieve profitability.

We cannot be certain that these actions or others that we may take in the future will result in operating profitability or net income as determined under U.S. GAAP.

Our success will depend on new products introduced to the marketplace in a timely manner, successfully completing product transitioning and achieving customer acceptance.

The market for our products and services is characterized by rapid technological change, evolving industry standards and frequent new product introductions. Our future success will depend, in part, on continuous, timely development and introduction of new products and enhancements that address evolving market requirements and are attractive to customers. If we fail to develop or introduce on a timely basis new products or product enhancements or features that achieve market acceptance, our business may suffer. Additionally, we work closely with a variety of third party partners to develop new product features and new platforms. Should our partners face delays in the development process, then the timing of the rollout of our new products may be significantly impacted which may negatively impact our revenue and gross margin. Another factor impacting our future success is the growth in the customer demand of our new products. Rapidly changing technology, frequent new products introductions and enhancements, short product life cycles and changes in customer requirements characterize the markets for our products. We believe that successful new product introductions provide a significant competitive advantage because of the significant resources committed by customers in adopting new products and their reluctance to change products after these resources have been expended. We have spent, and expect to continue to spend, significant resources on internal research and development to support our effort to develop and introduce new products and enhancements.

As we transition to new product platforms, we face significant risk that the development of our new products may not be accepted by our current customers or by new customers. To the extent that we fail to introduce new and innovative products that are adopted by customers, we could fail to obtain an adequate return on these investments and could lose market share to our competitors, which could be difficult or impossible to regain. Similarly we may face decreased revenue, gross margins and profitability due to a rapid decline in sales of current products as customers hold spending to focus purchases on new product platforms.We could incur significant costs in completing the transition, including costs of inventory write-downs of the current product as customers transition to new product platforms. In addition, products or technologies developed by others may render our products noncompetitive or obsolete and result in significant reduction in orders from our customers and the loss of existing and prospective customers.

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Our sales cycle may be lengthy, and the timing of sales, along with additional services such as warehousing, inventory management, installation and implementation of our products within our customers’ networks, may extend over more than one period, which can make our operating results difficult to predict.

We anticipate difficulty in accurately predicting the timing of the sale of products and amounts of revenue generated from sales of our products, primarily in developing countries. The establishment of a business relationship with a potential customer is a lengthy process, generally taking several months and sometimes longer. Following the establishment of the relationship, the negotiation of purchase terms can be time-consuming, and a potential customer may require an extended evaluation and testing period. We expect that our product sales cycle, which results in our products being designed into our customers’ networks, could take 12 to 24 months. A number of factors can contribute to the length of the sales cycle, including technical evaluations of our products, the design process required to integrate our products into our customers’ networks and warehousing and/or inventory management services that may be requested by certain large customers. In anticipation of product orders, we may incur substantial costs before the sales cycle is complete and before we receive any customer payments. Specifically, should a customer require warehousing and/or inventory management services, such services may impact our operating results in any period due to the costs associated with providing such services and the fact that the timing of the revenue recognition may be delayed. As a result, in the event that a sale is not completed or is canceled or delayed, we may have incurred substantial expenses, making it more difficult for us to become profitable or otherwise negatively impacting our financial results. Furthermore, because of our lengthy sales cycle, our recognition of revenue from our selling efforts may be substantially delayed, our ability to forecast our future revenue may be more limited and our revenue may fluctuate significantly from quarter to quarter.

Once a purchase agreement has been executed, the timing and amount of revenue, if applicable, may remain difficult to predict. The completion of services such as warehousing and inventory management, installation and testing of the customer’s networks and the completion of all other suppliers network elements are subject to the customer’s timing and efforts and other factors outside our control, each of which may prevent us from making predictions of revenue with any certainty and could cause us to experience substantial period-to-period fluctuations in our operating results.

Our average sales prices may decline in the future.

We are experiencing, and are likely to continue to experience, declining sales prices. This price pressure is likely to result in downward pricing pressure on our products and services. As a result, we are likely to experience declining average sales prices for our products. Our future profitability will depend upon our ability to improve manufacturing efficiencies, reduce costs of materials used in our products and to continue to introduce new lower-cost products and product enhancements and if we are unable to do so, we may not be able to respond to pricing pressures. If we are unable to respond to increased price competition, our business, financial condition and results of operations will be harmed. Because customers frequently negotiate supply arrangements far in advance of delivery dates, we may be required to commit to price reductions for our products before we are aware of how, or if, cost reductions can be obtained. As a result, current or future price reduction commitments and any inability on our part to respond to increased price competition could harm our business, financial condition and results of operations.

We may not be able to obtain capital when desired on favorable terms, if at all, or without dilution to our stockholders.

We believe that our existing cash and cash equivalents, the available line of credit under our credit facility and future cash collections from customers will be sufficient to provide for our anticipated requirements for working capital and capital expenditures for the next 12 months and the foreseeable future. However, it is possible that we may not generate sufficient cash flow from operations or otherwise have the capital resources to meet our longer term capital needs. If this occurs, we may need to sell assets, reduce capital expenditures, or obtain additional equity or debt financing. We cannot assure you that additional financing will be available on terms favorable to us, or at all. If adequate funds are not available or are not available on acceptable terms if and when needed, our business, financial condition and results of operations could be harmed.

If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders could be significantly diluted, and these newly-issued securities may have rights, preferences or privileges senior to those of existing stockholders.

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We may undertake further restructuring activities, which may adversely impact our operations, and we may not realize all of the anticipated benefits of these activities or any potential future restructurings. Any restructuring activities may harm our business.

We continue to evaluate our business to determine the potential need to realign our resources as we continue to transform our business in order to achieve desired cost savings in an increasingly competitive market. In prior years and again in fiscal 2015, we have undertaken a series of steps to restructure our operations involving, among other things and depending on the year, reductions of our workforce, the relocation of our corporate headquarters and the reduction and outsourcing of manufacturing activities. We incurred restructuring charges of $4.9 million, $11.1 million and $3.1 million in fiscal 2015, 2014 and 2013, respectively.

We have based our restructuring efforts on assumptions and plans regarding the appropriate cost structure of our business based on our product mix and projected sales, among other factors. Some of our assumptions include the elimination of jobs and the outsourcing of certain functions to reduce our operating expenses. These assumptions may not be correct and we may not be able to operate in accordance with our plans. Should this occur we may determine that we must incur additional restructuring charges in the future. Moreover, we cannot assure you that we will realize all of the anticipated benefits of our restructuring actions or that we will not further reduce or otherwise adjust our workforce or exit, or dispose of, certain businesses and product lines. Any decision to further limit investment, exit, or disposal of businesses or product lines may result in the recording of additional restructuring charges. Consequently, the costs actually incurred in connection with the restructuring efforts may be higher than originally planned and may not lead to the anticipated cost savings and/or improved results. For example, if we consolidate additional facilities in the future, we may incur additional restructuring and related expenses, which could have a material adverse effect on our business, financial condition or results of operations.

Our restructuring actions could harm our relationships with our employees and impact our ability to recruit new employees.

Employees, whether or not directly affected by any restructuring actions that we undertake, may seek employment with our business partners, customers or competitors. We cannot assure you that the confidential nature of our proprietary information will not be compromised by any such employees who terminate their employment with us. Further, we believe that our future success will depend in large part upon our ability to attract, motivate and retain highly skilled personnel. We may have difficulty attracting and retaining such personnel as a result of a perceived risk of future workforce reductions, and we may terminate the employment of employees as part of a restructuring and later determine that such employees were important to the success of the ongoing business.

Our business could be adversely affected if we are unable to attract and retain key personnel.

Our success and ability to invest and grow depend largely on our ability to attract and retain highly skilled technical, professional, managerial, sales and marketing personnel. Historically, competition for these key personnel has been intense. The loss of services of any of our key personnel (including key personnel joining our company through acquisitions), the inability to retain and attract qualified personnel in the future, delays in hiring required personnel, particularly engineering and sales personnel, or the loss of key personnel to competitors could make it difficult to meet key objectives, such as timely and effective product introductions and financial goals.

Our quarterly results may be volatile, which can adversely affect the trading price of our common stock.

Our quarterly operating results may vary significantly for a variety of reasons, many of which are outside our control. These factors could harm our business and include, among others:

• seasonality in the purchasing habits of our customers;

• the volume and timing of product orders and the timing of completion of our product deliveries and installations;

• our ability and the ability of our key suppliers to respond to changes on demand as needed;

• margin variability based on geographic and product mix;

• our suppliers’ inability to perform and deliver on time as a result of their financial condition, component shortages or other supply chain constraints;

• retention of key personnel;

• the length of our sales cycle;

• litigation costs and expenses;

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• continued timely rollout of new product functionality and features;

• increased competition resulting in downward pressure on the price of our products and services;

• unexpected delays in the schedule for shipments of existing products and new generations of the existing platforms;

• failure to realize expected cost improvement throughout our supply chain;

• order cancellations or postponements in product deliveries resulting in delayed revenue recognition;

• restructuring and streamlining of our operations;

• war and acts of terrorism;

• natural disasters;

• the ability of our customers to obtain financing to enable their purchase of our products;

• fluctuations in international currency exchange rates;

• regulatory developments including denial of export and import licenses; 

• general economic conditions worldwide that affect demand and financing for microwave and millimeter wave telecommunications networks; and

• the timing and size of future restructuring plans and write-offs.

Our quarterly results are expected to be difficult to predict and delays in product delivery or closing a sale can cause revenue, margins and net income or loss to fluctuate significantly from anticipated levels. A substantial portion of our contracts are completed in the latter part of a quarter and a significant percentage of these are large orders. Because a significant portion of our cost structure is largely fixed in the short term, revenue shortfalls tend to have a disproportionately negative impact on our profitability and can increase our inventory. The number of large new transactions also increases the risk of fluctuations in our quarterly results because a delay in even a small number of these transactions could cause our quarterly revenues and profitability to fall significantly short of our predictions. In addition, we may increase spending in response to competitive actions or in pursuit of new market opportunities. Accordingly, we cannot provide assurances that we will be able to achieve profitability in the future or that if profitability is attained, that we will be able to sustain profitability, particularly on a quarter-to-quarter basis.

Due to the volume of our international sales, we may be susceptible to a number of political, economic and geographic risks that could harm our business.

We are highly dependent on sales to customers outside the U.S. In fiscal 2015, 2014 and 2013, our sales to international customers accounted for 55%, 60% and 62%, respectively, of total revenue. Significant portions of our international sales are in less developed countries. Our international sales are likely to continue to account for a large percentage of our products and services revenue for the foreseeable future. As a result, the occurrence of any international, political, economic or geographic event could result in a significant decline in revenue. In addition, compliance with complex foreign and U.S. laws and regulations that apply to our international operations increases our cost of doing business in international jurisdictions. These numerous and sometimes conflicting laws and regulations include internal control and disclosure rules, data privacy and filtering requirements, anti-corruption laws, such as the Foreign Corrupt Practices Act, and other local laws prohibiting corrupt payments to governmental officials, and anti-competition regulations, among others. Violations of these laws and regulations could result in fines and penalties, criminal sanctions against us, our officers, or our employees, prohibitions on the conduct of our business and on our ability to offer our products and services in one or more countries, and could also materially affect our brand, our international expansion efforts, our ability to attract and retain employees, our business, and our operating results. Although we have implemented policies and procedures designed to ensure compliance with these laws and regulations, there can be no assurance that our employees, contractors, or agents will not violate our policies.

Some of the risks and challenges of doing business internationally include:

• unexpected changes in regulatory requirements;

• fluctuations in international currency exchange rates including its impact on unhedgeable currencies and our forecast variations for hedgeable currencies;

• imposition of tariffs and other barriers and restrictions;

• management and operation of an enterprise spread over various countries;

• the burden of complying with a variety of laws and regulations in various countries;

• application of the income tax laws and regulations of multiple jurisdictions, including relatively low-rate and relatively high-rate jurisdictions, to our sales and other transactions, which results in additional complexity and uncertainty;

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• general economic and geopolitical conditions, including inflation and trade relationships;

• war and acts of terrorism;

• kidnapping and high crime rate;

• natural disasters;

• currency exchange controls; and

• changes in export regulations.

While these factors and the impacts of these factors are difficult to predict, any one or more of them could adversely affect our business, financial condition and results of operations in the future.

We face strong competition for maintaining and improving our position in the market, which can adversely affect our revenue growth and operating results.

The wireless access, interconnection and backhaul business is a specialized segment of the wireless telecommunications industry and is extremely competitive. Competition in this segment is intense, and we expect it to increase. Some of our competitors have more extensive engineering, manufacturing and marketing capabilities and significantly greater financial, technical and personnel resources than we have. In addition, some of our competitors have greater name recognition, broader product lines, a larger installed base of products and longer-standing customer relationships. Our competitors include established companies, such as Ericsson, Huawei, NEC and Alcatel-Lucent, as well as a number of other public and private companies, such as Ceragon, DragonWave and SIAE. Some of our competitors are OEMs or systems integrators through whom we market and sell our products, which means our business success may depend on these competitors to some extent. One or more of our largest customers could internally develop the capability to manufacture products similar to those manufactured or outsourced by us and, as a result, the demand for our products and services may decrease.

In addition, we compete for acquisition and expansion opportunities with many entities that have substantially greater resources than we have. Our competitors may enter into business combinations in order to accelerate product development or to compete more aggressively and we may lack the resources to meet such enhanced competition.

Our ability to compete successfully will depend on a number of factors, including price, quality, availability, customer service and support, breadth of product lines, product performance and features, rapid time-to-market delivery capabilities, reliability, timing of new product introductions by us, our customers and competitors, the ability of our customers to obtain financing and the stability of regional sociopolitical and geopolitical circumstances, and the ability of large competitors to obtain business by providing more seller financing especially for large transactions. We can give no assurances that we will have the financial resources, technical expertise, or marketing, sales, distribution, customer service and support capabilities to compete successfully, or that regional sociopolitical and geographic circumstances will be favorable for our successful operation.

If we fail to accurately forecast our manufacturing requirements or customer demand, we could incur additional costs, which would adversely affect our business and results of operations.

If we fail to accurately predict our manufacturing requirements or forecast customer demand, we may incur additional costs of manufacturing and our gross margins and financial results could be adversely affected. If we overestimate our requirements, our contract manufacturers may experience an oversupply of components and assess us charges for excess or obsolete components that could adversely affect our gross margins. If we underestimate our requirements, our contract manufacturers may have inadequate inventory or components, which could interrupt manufacturing and result in higher manufacturing costs, shipment delays, damage to customer relationships and/or our payment of penalties to our customers. Our contract manufacturers also have other customers and may not have sufficient capacity to meet all of their customer’s needs, including ours, during periods of excess demand.

Part of our inventory may be written off, which would increase our cost of revenues. In addition, we may be exposed to inventory-related losses on inventories purchased by our contract manufacturers.

During fiscal 2015, 2014 and 2013, we recorded charges to reduce the carrying value of our inventory to the lower of cost or market totaling $9.3 million, $7.2 million and $9.7 million, respectively. Such charges equaled 2.8%, 2.1% and 2.1% of our revenue in fiscal 2015, 2014 and 2013, respectively. These charges were primarily due to excess and obsolete inventory, including deferred cost of sales, resulting from product transitioning and discontinuance.

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Inventory of raw materials, work in-process or finished products may accumulate in the future, and we may encounter losses due to a variety of factors, including:

• rapid technological change in the wireless telecommunications industry resulting in frequent product changes;

• the need of our contract manufacturers to order raw materials that have long lead times and our inability to estimate exact amounts and types of items thus needed, especially with regard to the frequencies in which the final products ordered will operate; and

• cost reduction initiatives resulting in component changes within the products.

Further, our inventory of finished products may accumulate as the result of cancellation of customer orders or our customers’ refusal to confirm the acceptance of our products. Our contract manufacturers are required to purchase inventory based on manufacturing projections we provide to them. If actual orders from our customers are lower than these manufacturing projections, our contract manufacturers will have excess inventory of raw materials or finished products which we would be required to purchase. In addition, we require our contract manufacturers from time to time to purchase more inventory than is immediately required, and to partially assemble components, in order to shorten our delivery time in case of an increase in demand for our products. In the absence of such increase in demand, we may need to compensate our contract manufacturers. If we are required to purchase excess inventory from our contract manufacturers or otherwise compensate our contract manufacturers for purchasing excess inventory, our business, financial condition and results of operations could be materially adversely affected. We also may purchase components or raw materials from time to time for use by our contract manufacturers in the manufacturing of our products. These purchases are based on our own manufacturing projections. If our actual orders are lower than these manufacturing projections, we may accumulate excess inventory, which we may be required to write-off. If we are forced to write-off this inventory other than in the normal course of business, our business, financial condition and results of operations could be materially adversely affected.

The effects of the poor global financial and economic conditions has had, and may continue to have, significant effects on our customers and suppliers, and has in the past, and may in the future have, a material adverse effect on our business, operating results, financial condition and stock price.

The effects of poor global financial and economic conditions include, among other things, significant reductions in available capital and liquidity from banks and other providers of credit, substantial reductions and/or fluctuations in equity and currency values worldwide.

Poor economic conditions have adversely affected and may continue to adversely affect our customers’ access to capital and/or willingness to spend capital on our products, and/or their levels of cash liquidity and/or their ability and/or willingness to pay for products that they will order or have already ordered from us, or result in their ceasing operations. Further, we have experienced an increasing number of our customers, principally in emerging markets, requesting longer payment terms, lease or vendor financing arrangements, longer terms for the letters of credit securing purchases of our products and services, which could potentially negatively impact our orders, revenue conversion cycle, and cash flows.

In seeking to reduce their expenses, we have also seen significant pressure from our customers to lower prices for our products as they try to improve their operating performance and procure additional capital equipment within their reduced budget levels. To the extent that we lower prices on our products and services, our orders, revenues, and gross margins may be negatively impacted. Additionally, certain emerging markets are particularly sensitive to pricing as a key differentiator. Where price is a primary decision driver, we may not be able to effectively compete or we may choose not to compete due to unacceptable margins.

In addition, poor economic conditions could materially adversely affect our suppliers’ access to capital and liquidity with which to maintain their inventories, production levels, and/or product quality, could cause them to raise prices or lower production levels, or result in their ceasing operations. Further, with respect to our credit facility discussed under “Liquidity, Capital Resources and Financial Strategies” in Item 7 of this Annual Report on Form 10-K, if continued uncertain economic conditions adversely affect Silicon Valley Bank, our ability to access the funds available under our credit facility could be materially adversely affected.

The potential effects of these economic factors are difficult to forecast and mitigate. As a consequence, our operating results for a particular period are difficult to predict, and, therefore, prior results are not necessarily indicative of results to be expected in future periods. Any of the foregoing effects could have a material adverse effect on our business, results of operations, and financial condition and could adversely affect our stock price.

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If we fail to effectively manage our contract manufacturer relationships, we could incur additional costs or be unable to timely fulfill our customer commitments, which would adversely affect our business and results of operations and, in the event of an inability to fulfill commitments, would harm our customer relationships.

We outsource all of our manufacturing and a substantial portion of our repair service operations to independent contract manufacturers and other third parties. Our contract manufacturers typically manufacture our products based on rolling forecasts of our product needs that we provide to them on a regular basis. The contract manufacturers are responsible for procuring components necessary to build our products based on our rolling forecasts, building and assembling the products, testing the products in accordance with our specifications and then shipping the products to us. We configure the products to our customer requirements, conduct final testing and then ship the products to our customers. Although we currently partner with multiple major contract manufacturers, there can be no assurance that we will not encounter problems as we are dependent on contract manufacturers to provide these manufacturing services or that we will be able to replace a contract manufacturer that is not able to meet our demand.

In addition, if we fail to effectively manage our relationships with our contract manufacturers or other service providers, or if one or more of them should not fully comply with their contractual obligations or should experience delays, disruptions, component procurement problems or quality control problems, then our ability to ship products to our customers or otherwise fulfill our contractual obligations to our customers could be delayed or impaired which would adversely affect our business, financial results and customer relationships.

We depend on sole or limited sources for some key components and failure to receive timely delivery of any of these components could result in deferred or lost sales.

In some instances, we are dependent upon one or a few sources, either because of the specialized nature of a particular item or because of local content preference requirements pursuant to which we operate on a given project. Examples of sole or limited sourcing categories include metal fabrications and castings, for which we own the tooling and therefore limit our supplier relationships, and MMICs (a type of integrated circuit used in manufacturing microwave radios), which we procure at a volume discount from a single source. Our supply chain plan includes mitigation plans for alternative manufacturing sources and identified alternate suppliers. However, if these alternatives cannot address our requirements when our existing sources of these components fail to deliver them on time, we could suffer delayed shipments, canceled orders and lost or deferred revenues, as well as material damage to our customer relationships. Should this occur, our operating results, cash flows and financial condition could be materially adversely affected.

Our effective tax rate could be highly volatile and could adversely affect our operating results.

Our future effective tax rate may be adversely affected by a number of factors, many of which are outside of our control, including:

• the jurisdictions in which profits are determined to be earned and taxed;

• adjustments to estimated taxes upon finalization of various tax returns;

• increases in expenses not deductible for tax purposes, including write-offs of acquired in-process research and development and impairment of goodwill in connection with acquisitions;

• changes in available tax credits;

• changes in share-based compensation expense;

• changes in the valuation of our deferred tax assets and liabilities;

• changes in domestic or international tax laws or the interpretation of such tax laws;

• the resolution of issues arising from tax audits with various tax authorities;

• the tax effects of purchase accounting for acquisitions and restructuring charges that may cause fluctuations between reporting periods; and

• taxes that may be incurred upon a repatriation of cash from foreign operations.

Any significant increase in our future effective tax rates could impact our results of operations for future periods adversely.

Credit and commercial risks and exposures could increase if the financial condition of our customers declines.

A substantial portion of our sales are to customers in the telecommunications industry. These customers may require their suppliers to provide extended payment terms, direct loans or other forms of financial support as a condition to obtaining commercial contracts. In addition, if local currencies cannot be hedged, we have an inherent exposure in our

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ability to convert monies at favorable rates from or to U.S. dollars. More generally, we expect to routinely enter into long-term contracts involving significant amounts to be paid by our customers over time. Pursuant to these contracts, we may deliver products and services representing an important portion of the contract price before receiving any significant payment from the customer. As a result of the financing that may be provided to customers and our commercial risk exposure under long-term contracts, our business could be adversely affected if the financial condition of our customers erodes. Over the past few years, certain of our customers have filed with the courts seeking protection under the bankruptcy or reorganization laws of the applicable jurisdiction, or have experienced financial difficulties. The financial healthiness may be exacerbated in many emerging markets, where our customers are being affected not only by recession, but by deteriorating local currencies and a lack of credit. Upon the financial failure of a customer, we may experience losses on credit extended and loans made to such customer, losses relating to our commercial risk exposure and the loss of the customer’s ongoing business. If customers fail to meet their obligations to us, we may experience reduced cash flows and losses in excess of reserves, which could materially adversely impact our results of operations and financial position.

Our customers may not pay for products and services in a timely manner, or at all, which would decrease our cash flows and adversely affect our working capital.

Our business requires extensive credit risk management that may not be adequate to protect against customer nonpayment. A risk of non-payment by customers is a significant focus of our business. We expect a significant amount of future revenue to come from international customers, many of whom will be startup telecommunications operators in developing countries. We do not generally expect to obtain collateral for sales, although we require letters of credit or credit insurance as appropriate for international customers. For information regarding the percentage of revenue attributable to certain key customers, see the risks discussed in the following risk factor. Our historical accounts receivable balances have been concentrated in a small number of significant customers. Unexpected adverse events impacting the financial condition of our customers, bank failures or other unfavorable regulatory, economic or political events in the countries in which we do business may impact collections and adversely impact our business, require increased bad debt expense or receivable write-offs and adversely impact our cash flows, financial condition and operating results, which could also result in a breach of our bank covenants.

Because a significant amount of our revenue may come from a limited number of customers, the termination of any of these customer relationships may adversely affect our business.

Sales of our products and services historically have been concentrated in a small number of customers. Principal customers for our products and services include domestic and international wireless/mobile service providers, OEMs, as well as private network users such as public safety agencies; government institutions; and utility, pipeline, railroad and other industrial enterprises that operate broadband wireless networks. We had revenue from one customer that exceeded 10% of our total revenue during fiscal 2015 and 2014, and two customers that each exceeded 10% of our total revenue during fiscal 2013. Although we have a large customer base, during any given quarter a small number of customers may account for a significant portion of our revenue.

It is possible that a significant portion of our future product sales also could become even more concentrated in a limited number of customers as currently, one of our customers, MTN Group, represented over 10% of our revenue. In addition, product sales to major customers have varied widely from period to period. The loss of any existing customer, a significant reduction in the level of sales to any existing customer, or our inability to gain additional customers could result in declines in our revenue or an inability to grow revenue. In addition, further consolidation of our potential customer base could result in purchasing decision delays as consolidating customers integrate their operations and could generally reduce our opportunities to win new customers to the extent that the number of potential customers decreases. Furthermore, as our customers become larger, they may have more leverage to negotiate better pricing which could adversely affect our revenues and gross margins.

Consolidation within the telecommunications industry could result in a decrease in our revenue.

The telecommunications industry has experienced significant consolidation among its participants, and we expect this trend to continue. Some operators in this industry have experienced financial difficulty and have filed, or may file, for bankruptcy protection. Other operators may merge and one or more of our competitors may supply products to the customers of the combined company following those mergers. This consolidation could result in purchasing decision delays and decreased opportunities for us to supply products to companies following any consolidation. This consolidation may also result in lost opportunities for cost reduction and economies of scale.

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We continually evaluate strategic opportunities which could involve merger and/or acquisition activities that could disrupt our operations and harm our operating results.

Our growth depends upon market growth, our ability to enhance our existing products and our ability to introduce new products on a timely basis. We intend to continue to address the need to develop new products and enhance existing products through acquisitions, or “tuck-ins,” product lines, technologies, and personnel. Acquisitions involve numerous risks, including the following:

• difficulties in integrating the operations, systems, technologies, products, and personnel of the acquired companies, particularly companies with large and widespread operations and/or complex products;

• diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations resulting from acquisitions;

• potential difficulties in completing projects associated with in-process research and development intangibles;

• difficulties in entering markets in which we have no or limited direct prior experience and where competitors in each market have stronger market positions;

• initial dependence on unfamiliar supply chains or relatively small supply partners;

• insufficient revenue to offset increased expenses associated with acquisitions; and

• the potential loss of key employees, customers, distributors, vendors and other business partners of the companies we acquire following and continuing after announcement of acquisition plans.

Acquisitions may also cause us to:

• issue common stock that would dilute our current stockholders;

• use a substantial portion of our cash resources, or incur debt;

• significantly increase our interest expense, leverage and debt service requirements if we incur additional debt to pay for an acquisition;

• assume material liabilities;

• record goodwill and non-amortizable intangible assets that are subject to impairment testing on a regular basis and potential periodic impairment charges;

• incur amortization expenses related to certain intangible assets;

• incur tax expenses related to the effect of acquisitions on our intercompany R&D cost sharing arrangement and legal structure;

• incur large and immediate write-offs and restructuring and other related expenses; and

• become subject to intellectual property or other litigation.

Mergers and acquisitions of high-technology companies are inherently risky and subject to many factors outside of our control. No assurance can be given that our previous or future acquisitions will be successful and will not materially adversely affect our business, operating results or financial condition. Failure to manage and successfully integrate acquisitions could materially harm our business and operating results. Even when an acquired company has already developed and marketed products, there can be no assurance that product enhancements will be made in a timely fashion or that pre-acquisition due diligence will have identified all possible issues that might arise with respect to such products.

If we are unable to adequately protect our intellectual property rights, we may be deprived of legal recourse against those who misappropriate our intellectual property.

Our ability to compete will depend, in part, on our ability to obtain and enforce intellectual property protection for our technology in the U.S. and internationally. We rely upon a combination of trade secrets, trademarks, copyrights, patents and contractual rights to protect our intellectual property. In addition, we enter into confidentiality and invention assignment agreements with our employees, and enter into non-disclosure agreements with our suppliers and appropriate customers so as to limit access to and disclosure of our proprietary information. We cannot give assurances that any steps taken by us will be adequate to deter misappropriation or impede independent third-party development of similar technologies. In the event that such intellectual property arrangements are insufficient, our business, financial condition and results of operations could be harmed. We cannot provide assurances that the protection provided to our intellectual property by the laws and courts of particular nations will be substantially similar to the protection and remedies available under U.S. law. Furthermore, we cannot provide assurances that third parties will not assert infringement claims against us based on intellectual property rights and laws in other nations that are different from those established in the U.S.

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If we fail to develop and maintain distribution and licensing relationships, our revenue may decrease.

Although a majority of our sales are made through our direct sales force, we also market our products through indirect sales channels such as independent agents, distributors, OEMs and systems integrators. These relationships enhance our ability to pursue major contract awards and, in some cases, are intended to provide our customers with easier access to financing and a greater variety of equipment and service capabilities, which an integrated system provider should be able to offer. We may not be able to maintain our current relationships or develop new ones. If additional relationships are developed, they may not be successful. Furthermore, as we consider increasing licensing revenue based on upgraded technology, we may not be successful in transitioning customers to the planned software upgrades. Our inability to establish or maintain these distribution and licensing relationships could restrict our ability to market our products and thereby result in significant reductions in revenue. If these revenue reductions occur, our business, financial condition and results of operations would be harmed.

If sufficient radio frequency spectrum is not allocated for use by our products,or we fail to obtain regulatory approval for our products, our ability to market our products may be restricted.

We will be affected by the allocation and auction of the radio frequency spectrum by governmental authorities both in the U.S. and internationally. These governmental authorities may not allocate sufficient radio frequency spectrum for use by our products or we may not be successful in obtaining regulatory approval for our products from these authorities. Historically, in many developed countries, the unavailability of frequency spectrum has inhibited the growth of wireless telecommunications networks. In addition, to operate in a jurisdiction, we must obtain regulatory approval for our products. Each jurisdiction in which we market our products has its own regulations governing radio communications. Products that support emerging wireless telecommunications services can be marketed in a jurisdiction only if permitted by suitable frequency allocations, auctions and regulations. The process of establishing new regulations is complex and lengthy. If we are unable to obtain sufficient allocation of radio frequency spectrum by the appropriate governmental authority or obtain the proper regulatory approval for our products, our business, financial condition and results of operations may be harmed.

Radio communications are subject to regulation by U.S. and foreign laws and international treaties. Generally, our products need to conform to a variety of United States and international requirements established to avoid interference among users of transmission frequencies and to permit interconnection of telecommunications equipment. Any delays in compliance with respect to our future products could delay the introduction of such products.

Our business is subject to changing regulation of corporate governance, public disclosure and anti-bribery measures which have resulted in increased costs and may continue to result in additional costs in the future and/or potential liabilities.

We are subject to rules and regulations of federal and state regulatory authorities, The NASDAQ Stock Market LLC (“NASDAQ”) and financial market entities charged with the protection of investors and the oversight of companies whose securities are publicly traded, and foreign and domestic legislative bodies. During the past few years, these entities, including the Public Company Accounting Oversight Board, the SEC, NASDAQ and several foreign governments such as the governments of the United Kingdom and Brazil, have issued requirements, laws and regulations and continue to develop additional requirements, laws and regulations, most notably the Sarbanes-Oxley Act of 2002 (“SOX”), and recent laws and regulations regarding bribery and unfair competition. Our efforts to comply with these requirements and regulations have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of substantial management time and attention from revenue-generating activities to compliance activities.

Moreover, because these laws, regulations and standards are subject to varying interpretations, their application in practice may evolve over time as new guidance becomes available. This evolution may result in continuing uncertainty regarding compliance matters and additional costs potentially necessitated by ongoing revisions to our disclosure and governance practices. Finally, if we are unable to ensure compliance with such requirements, laws, or regulations, we may be subject to costly prosecution and liability, and resulting reputational harm, from such noncompliance.

We have identified material weaknesses in our internal control over financial reporting that could, if not remediated, result in material misstatements in our financial statements.

In connection with the audit of our consolidated financial statements as of and for the year ended July 3, 2015, we have concluded that there are material weaknesses relating to our internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company’s annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

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Specifically, we identified material weaknesses relating to (i) our controls pertaining to risk assessment and monitoring activities; (ii) ensuring that account reconciliations were reviewed and approved for accuracy and completeness and that we identified, accumulated and documented appropriate information necessary to support account balances; (iii) ensuring that the terms and conditions of all negotiated customer discounts were agreed upon with the customer in advance of recognizing revenue to ensure that the reported amount and timing of revenue recognition was accurate; (iv) ensuring that all revenue recognized on shipments with FOB Destination terms was recognized in the proper period; (v) ensuring that the project accrual balances were accurate; and (vi) ensuring that the underlying quantities in support of inventory balances were accurate . For additional information on these matters, see Part II, Item 9A of this Annual Report on Form 10-K. As a result of these material weaknesses, management has determined that our disclosure controls and procedures and internal control over financial reporting were not effective as of July 3, 2015.

Subsequent to our July 3, 2015 fiscal year end, we began taking a number of actions, including designing and implementing new controls and revising existing controls, in order to remediate the material weaknesses described above. We expect to continue our remediation efforts, including testing of operating effectiveness of new controls during the fiscal year ending July 1, 2016. We expect to incur additional costs remediating these material weaknesses.

We may need to take additional measures to fully mitigate the material weaknesses, and the measures we have taken, and expect to take, to improve our internal controls may not be sufficient to address the issues identified, to ensure that our internal controls are effective or to ensure that the identified material weaknesses will not result in a material misstatement of our annual or interim consolidated financial statements. In addition, other material weaknesses or deficiencies may be identified in the future. If we are unable to correct material weaknesses or deficiencies in internal controls in a timely manner, our ability to record, process, summarize and report financial information accurately and within the time periods specified in the rules and forms of the SEC will be adversely affected. This failure could negatively affect the market price and trading liquidity of our common stock, cause investors to lose confidence in our reported financial information, subject us to civil and criminal investigations and penalties, and generally materially and adversely impact our business and financial condition.

Our products are used in critical communications networks which may subject us to significant liability claims.

Because our products are used in critical communications networks, we may be subject to significant liability claims if our products do not work properly. We warrant to our current customers that our products will operate in accordance with our product specifications. If our products fail to conform to these specifications, our customers could require us to remedy the failure or could assert claims for damages. The provisions in our agreements with customers that are intended to limit our exposure to liability claims may not preclude all potential claims. In addition, any insurance policies we have may not adequately limit our exposure with respect to such claims. Liability claims could require us to spend significant time and money in litigation or to pay significant damages. Any such claims, whether or not successful, would be costly and time-consuming to defend, and could divert management’s attention and seriously damage our reputation and our business.

We may be subject to litigation regarding our intellectual property. This litigation could be costly to defend and resolve, and could prevent us from using or selling the challenged technology.

The wireless telecommunications industry is characterized by vigorous protection and pursuit of intellectual property rights, which has resulted in often protracted and expensive litigation. Any litigation regarding patents or other intellectual property could be costly and time-consuming and could divert our management and key personnel from our business operations. The complexity of the technology involved and the uncertainty of intellectual property litigation increase these risks. Such litigation or claims could result in substantial costs and diversion of resources. In the event of an adverse result in any such litigation, we could be required to pay substantial damages, cease the use and transfer of allegedly infringing technology or the sale of allegedly infringing products and expend significant resources to develop non-infringing technology or obtain licenses for the infringing technology. We can give no assurances that we would be successful in developing such non-infringing technology or that any license for the infringing technology would be available to us on commercially reasonable terms, if at all. This could have a materially adverse effect on our business, results of operation, financial condition, competitive position and prospects.

System security risks, data protection breaches, and cyber attacks could compromise our proprietary information, disrupt our internal operations and harm public perception of our security products, which could cause our business and reputation to suffer and adversely affect our stock price.

In the ordinary course of business, we store sensitive data, including intellectual property, our proprietary business information and proprietary information of our customers, suppliers and business partners, on our networks. The secure maintenance of this information is critical to our operations and business strategy. Increasingly, companies, including

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ours, are subject to a wide variety of attacks on their networks on an ongoing basis. Despite our security measures, our information technology and infrastructure may be vulnerable to penetration or attacks by computer programmers and hackers, or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks, creating system disruptions or slowdowns and exploiting security vulnerabilities of our products, and the information stored on our networks could be accessed, publicly disclosed, lost or stolen, which could subject us to liability to our customers, suppliers, business partners and others, and cause us reputational and financial harm. In addition, sophisticated hardware and operating system software and applications that we produce or procure from third parties may contain defects in design or manufacture, including “bugs” and other problems that could unexpectedly interfere with the operation of our networks.

If an actual or perceived breach of network security occurs in our network or in the network of a customer of our security products, regardless of whether the breach is attributable to our products, the market perception of the effectiveness of our products could be harmed. Because the techniques used by computer programmers and hackers, many of whom are highly sophisticated and well-funded, to access or sabotage networks change frequently and generally are not recognized until after they are used, we may be unable to anticipate or immediately detect these techniques. This could impede our sales, manufacturing, distribution or other critical functions. In addition, the economic costs to us to eliminate or alleviate cyber or other security problems, bugs, viruses, worms, malicious software systems and security vulnerabilities could be significant and may be difficult to anticipate or measure because the damage may differ based on the identity and motive of the programmer or hacker, which are often difficult to identify.

Anti-takeover provisions of Delaware law and provisions in our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws could make a third-party acquisition of us difficult.

Because we are a Delaware corporation, the anti-takeover provisions of Delaware law could make it more difficult for a third party to acquire control of us, even if the change in control would be supported by our stockholders. We are subject to the provisions of Section 203 of the General Corporation Law of Delaware, which prohibits us from engaging in certain business combinations, unless the business combination is approved in a prescribed manner. In addition, our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws also contain certain provisions that may make a third-party acquisition of us difficult, including the ability of the Board of Directors to issue preferred stock and the requirement that nominations for directors and other proposals by stockholders must be made in advance of the meeting at which directors are elected or the proposals are voted upon.

Item 1B.Unresolved Staff Comments

None.

Item 2. Properties

As of July 3, 2015, we leased approximately 303,000 square feet of facilities worldwide, with approximately 61% in the United States, mostly in California, Texas, and North Carolina. Our corporate headquarters are located in Santa Clara, California, and consist of a building of approximately 129,000 square feet. The lease for our headquarters expires in April 2020 and we plan to sublease portions of the facility as part of our restructuring plans. We also lease approximately 54,000 square feet of office, assembly facilities and warehouse in certain locations in Texas. Internationally, we lease approximately 120,000 square feet of facilities throughout Europe, Canada, Central America, South America, Africa and Asia regions, including offices in Singapore, Slovenia, Philippine Islands, India, Mexico, South Africa, Algeria, Ghana, Ivory Coast, Kenya, Nigeria, France, Netherlands, Poland, Russia, Australia, Dubai, Saudi Arabia, Lebanon, China, Thailand, and Malaysia. In addition, we own approximately 108,000 square feet of facilities in Wellington, New Zealand and Lanarkshire, Scotland.

We maintain our facilities in good operating condition, and believe that they are suitable and adequate for our current and projected needs. We continuously review our anticipated requirements for facilities and may, from time to time, acquire additional facilities, expand existing facilities, or dispose of existing facilities or parts thereof, as we deem necessary.

For more information about our lease obligations, see “Note 13. Commitments and Contingencies” of notes to consolidated financial statements, which are included in Item 8 in this Annual Report on Form 10-K.

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Item 3.Legal Proceedings

From time to time, we may be involved in various legal claims and litigation that arise in the normal course of our operations. We are aggressively defending all current litigation matters. Although there can be no assurances and the outcome of these matters is currently not determinable, we currently believe that none of these claims or proceedings are likely to have a material adverse effect on our financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. As a result, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any.

We record accruals for our outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. We have not recorded any accrual for loss contingencies associated with such legal claims or litigation discussed above.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information and Price Range of Common Stock

Our common stock, with a par value of $0.01 per share, is listed and primarily traded on the NASDAQ Global Select Market, under the ticker symbol AVNW (prior to January 28, 2010 our ticker symbol was HSTX). There was no established trading market for shares of our common stock prior to January 29, 2007.

According to the records of our transfer agent, as of September 17, 2015, there were 4,110 holders of record of our common stock. The following table sets forth the high and low closing prices for a share of our common stock on NASDAQ Global Select Market for the periods indicated during our fiscal years 2015 and 2014:

	Fiscal 2015		Fiscal 2014
	High	Low	High	Low
First Quarter	$1.78	$1.16	$2.74	$2.39
Second Quarter	$1.90	$1.32	$2.57	$1.97
Third Quarter	$1.52	$1.10	$2.31	$1.60
Fourth Quarter	$1.32	$1.12	$1.66	$1.00

Dividend Policy

We have not paid cash dividends on our common stock and do not intend to pay cash dividends in the foreseeable future. We intend to retain any earnings for use in our business. In addition, the covenants of our credit facility may restrict us from paying dividends or making other distributions to our stockholders under certain circumstances.

Sales of Unregistered Securities

During the fourth quarter of fiscal 2015, we did not issue or sell any unregistered securities.

Issuer Repurchases of Equity Securities

During the fourth quarter of fiscal 2015, we did not repurchase any equity securities.

Performance Graph

The following graph and accompanying data compares the cumulative total return on our common stock with the cumulative total return of the Total Return Index for The NASDAQ Composite Market (U.S. Companies) and the NASDAQ Telecommunications Index for the five-year period ended July 3, 2015. The stock price performance shown on the graph below is not necessarily indicative of future price performance. Note that this graph and accompanying data is “furnished,” not “filed,” with the SEC.

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COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*

Among Aviat Networks, Inc., the NASDAQ Composite Index

and the NASDAQ Telecommunications Index

	7/2/2010	7/1/2011	6/29/2012	6/28/2013	6/27/2014	7/3/2015
Aviat Networks, Inc.	100.00	113.14	80.00	74.86	35.71	37.71
NASDAQ Composite	100.00	135.88	143.18	168.38	220.33	253.92
NASDAQ Telecommunications	100.00	117.67	102.89	132.14	153.53	160.75

 ____________________________

* Assumes (i) $100 invested on July 2, 2010 in Aviat Networks, Inc. common stock, the Total Return Index for The NASDAQ Composite Market (U.S. companies) and the NASDAQ Telecommunications Index; and (ii) immediate reinvestment of all dividends.

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Item 6.   Selected Financial Data

The following table summarizes our selected historical financial information for each of the last five fiscal years that has been derived from our consolidated financial statements. Data presented for fiscal years 2015, 2014 and 2013 are included elsewhere in this Annual Report on Form 10-K. This table should be read in conjunction with our other financial information, including “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and notes, included elsewhere in this Annual Report on Form 10-K.

	Fiscal Year Ended
	July 3, 2015			June 27, 2014(1)			June 28, 2013(1)			June 29, 2012(1) (Unaudited)			July 1, 2011(1) (Unaudited)
	(In millions)
Revenue from product sales and services	$	335.9		$	346.0		$	471.3		$	444.0		$	452.1
Cost of product sales and services	255.2			260.8			332.9			312.6			321.0
Loss from continuing operations	(24.7		)	(52.0		)	(12.6		)	(15.8		)	(55.8		)
Net loss	(24.6		)	(51.1		)	(16.7		)	(24.4		)	(87.5		)
Net income attributable to noncontrolling interests, net of tax	0.1			—			—			—			—
Net loss attributable to Aviat Networks	(24.7		)	(51.1		)	(16.7		)	(24.4		)	(87.5		)
Basic and diluted loss per common share:
Loss from continuing operations	$	(0.40	)	$	(0.84	)	$	(0.21	)	$	(0.27	)	$	(0.95	)
Net loss	(0.40		)	(0.83		)	(0.28		)	(0.41		)	(1.49		)

	As of
	July 3, 2015		June 27, 2014(1)		June 28, 2013(1)		June 29, 2012(1) (Unaudited)		July 1, 2011(1) (Unaudited)
	(In millions)
Total assets	$	229.4	$	253.2	$	305.8	$	329.6	$	383.9
Long-term liabilities	16.9		19.7		24.8		24.7		15.1
Total net assets	83.9		111.9		159.1		168.4		188.9

___________________________

(1) As revised, please refer to Note 2 to the consolidated financial statements in this Annual Report on Form 10-K.

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The following table summarizes certain charges, expenses and gains included in our net losses for each of the fiscal years in the five-year period ended July 3, 2015:

	Fiscal Year Ended
	July 3, 2015		June 27, 2014		June 28, 2013			June 29, 2012		July 1, 2011
	(In millions)
Share-based compensation expense	$	2.2	$	3.4	$	6.4		$	5.2	$	4.8
Goodwill impairment charges	—		—		—			5.6		—
Rebranding and transitional costs	—		—		—			—		0.9
Charges for product transition, product     discontinuances and inventory     mark-downs	—		1.2		—			1.0		6.6
Amortization of purchased technology and     intangible assets	0.4		0.4		1.0			2.3		3.4
Restructuring charges	4.9		11.1		3.1			2.3		15.4
Amortization of the fair value adjustments     related to fixed assets and inventory	—		—		—			—		0.2
NetBoss bad debt expenses and other	—		—		—			0.8		—
Loss on sale of NetBoss assets	—		—		—			—		4.6
Transactional tax assessments	—		0.6		1.4			0.6		2.8
Liquidation of entities	—		—		—			—		0.8
Other adjustments	—		0.2		(0.7		)	—		(0.9		)
	$	7.5	$	16.9	$	11.2		$	17.8	$	38.6

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview of Business; Operating Environment and Key Factors Impacting Fiscal 2015 and 2016 Results

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand our results of operations and financial condition. MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying notes. In the discussion below, our fiscal year ending July 1, 2016 is referred to as “fiscal 2016” or “2016”; our fiscal year ended July 3, 2015 is referred to as “fiscal 2015” or “2015”; our fiscal year ended June 27, 2014 is referred to as “fiscal 2014” or “2014”; and our fiscal year ended June 28, 2013 is referred to as “fiscal 2013” or “2013.”

We generate revenue by designing, developing, manufacturing and supporting a range of wireless networking products, solutions and services for mobile and fixed communications service providers, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast system operators across the globe. Our products include point-to-point (PTP) digital microwave transmission systems designed for first/last mile access, middle mile/backhaul, and long distance trunking applications. We also provide network management software solutions to enable operators to deploy, monitor and manage our systems, third party equipment such as antennas, routers, and multiplexers, necessary to build and deploy a wireless transmission network, and a full suite of turnkey support services.

We work continuously to improve our established brands and to create new products that meet our customers’ evolving needs and preferences. Our fundamental business goal is to generate superior returns for our stockholders over the long term. We believe that increases in revenue, operating profits and earnings per share are the key measures of financial performance for our business.

Our strategic focus in fiscal 2016 will be to continue to accelerate innovation and optimize our product portfolio, improve costs and operational efficiencies, grow our revenue and create a sustainable, profitable business model. To do this, we continue to examine our products, markets, facilities, development programs, and operational flows to ensure we are focused on what we do well and what will differentiate us in the future. We will continue working to streamline management processes to attain the efficiency levels required by the markets in which we do business.

Although the general trend of increasing demand for bandwidth to support mobile networks applies in all markets, we expect to see quarter-to-quarter fluctuations within markets and with individual customers based on customers’ past purchasing patterns. Seasonality is also a factor that impacts our business. Our fiscal third quarter revenue and orders have historically been lower than the revenue and orders in our second fiscal quarter because many of our customers utilize a significant portion of their capital budgets at the end of their fiscal years, which is typically the calendar year end and coincides with our second fiscal quarter. The majority of our customers begin a new fiscal year on January 1, and capital expenditures tend to be lower in an organization’s first quarter than in its fourth quarter. We anticipate that this seasonality will continue. The seasonality between the second quarter and third quarter may be affected by a variety of additional factors, including changes in the global economy.

In line with industry trends, we expect to provide increased managed services, including network design, inventory management, final configuration and warehousing services, to certain customers in certain geographies. Our operating results may be impacted by providing these services to the extent that we may need to postpone the recognition of revenue and incur upfront and ongoing expenses that are not offset with additional revenue from product sales associated with these services until a future period.

Operations Review

The market for mobile backhaul continues to be our primary addressable market segment and, over the long term, the demand for increasing the backhaul capacity in our customers’ networks continues to grow. In North America we supported long-term evolution (“LTE”) deployments of our mobile operator customers, public safety network deployments for state and local governments, and private network implementations for utilities and other customers. Internationally, our business continued to rely on a combination of customers increasing their capacity to handle subscriber growth, the ongoing build-out of some large 3G deployments, and the emergence of early stage LTE deployments. Our position continues to be to support our customers for LTE readiness and ensure that our technology roadmap is well aligned with evolving market requirements. We continue to find that our strength in turnkey and after-sale support services is a differentiating factor that wins business for us and enables us to expand our business with existing customers in all markets. However, as disclosed above and in the “Risk Factors” section in Item 1A of this

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Annual Report on Form 10-K, a number of factors could prevent us from achieving our objectives, including ongoing pricing pressures attributable to competition and macroeconomic conditions in the geographic markets that we service.

During the third quarter of fiscal 2015, with the intent to bring the Company’s operational cost structure in line with the changing dynamics of the microwave radio and telecommunications markets, we initiated a restructuring plan (the “Fiscal 2015-2016 Plan”) to lower fixed overhead costs and operating expenses and to preserve cash flow. Our restructuring expenses incurred during fiscal 2015 primarily related to the Fiscal 2015-2016 Plan and a plan we initiated in fiscal 2014 (the “Fiscal 2014-2015 Plan”). We intend to complete a majority of the remaining restructuring activities under the current plans by the first half of fiscal 2016. See “Restructuring Charges” below.

Revenue

We manage our sales activities primarily on a geographic basis in North America and three international geographic regions: (1) Africa and Middle East, (2) Europe and Russia and (3) Latin America and Asia Pacific. Revenue by region for fiscal 2015, 2014 and 2013 and the related changes were shown in the table below:

	Fiscal Year						$ Change						% Change
(In millions, except percentages)	2015		2014		2013		2015/2014			2014/2013			2015/2014		2014/2013
North America	$	153.2	$	142.0	$	180.5	$	11.2		$	(38.5	)	7.9	%	(21.3	)%
Africa and Middle East	97.1		108.9		182.2		(11.8		)	(73.3		)	(10.8	)%	(40.2	)%
Europe and Russia	36.0		36.0		48.0		—			(12.0		)	—	%	(25.0	)%
Latin America and Asia Pacific	49.6		59.1		60.6		(9.5		)	(1.5		)	(16.1	)%	(2.5	)%
Total Revenue	$	335.9	$	346.0	$	471.3	$	(10.1	)	$	(125.3	)	(2.9	)%	(26.6	)%

Our revenue in North America increased $11.2 million, or 7.9%, in fiscal 2015 compared with fiscal 2014. The increase in North America primarily resulted from increase of revenue from the government and utility markets, while revenue from network operator customers declined in fiscal 2015 compared with fiscal 2014.

Our revenue in North America decreased $38.5 million, or 21.3%, in fiscal 2014 compared with fiscal 2013. Revenue from wireless operator customers declined as they reach completion of their LTE network building period. We also saw lower revenue from private government and utility networks due to the timing of purchases and project deliveries to those customers.

Revenue in Africa and Middle East decreased $11.8 million, or 10.8%, in fiscal 2015 compared with fiscal 2014, reflecting network operator capital spending restraint in fiscal 2015 compared with fiscal 2014. Revenue in Europe and Russia remained approximately the same for fiscal 2015 compared with fiscal 2014. Revenue in Latin America and Asia Pacific declined $9.5 million, or 16.1%, in fiscal 2015 compared with fiscal 2014, mostly due to lower product sales to our larger customers in Latin America.

Revenue in Africa and Middle East decreased $73.3 million, or 40.2%, in fiscal 2014 compared with fiscal 2013. The majority of the decrease came from reduced capital spending by our largest customer in the region. Revenue in Europe and Russia declined $12.0 million, or 25.0%, in fiscal 2014 compared with fiscal 2013. This decrease was mostly from completion of a large project in fiscal 2013 that was not repeated in fiscal 2014 and from timing of customer purchases in fiscal 2014. Revenue in Latin America and Asia Pacific declined $1.5 million, or 2.5%, in fiscal 2014 compared with fiscal 2013. The decrease was primarily due to reduced sales in Thailand and Afghanistan.

	Fiscal Year						$ Change						% Change
(In millions, except percentages)	2015		2014		2013		2015/2014			2014/2013			2015/2014		2014/2013
Product sales	$	214.9	$	222.6	$	336.7	$	(7.7	)	$	(114.1	)	(3.5	)%	(33.9	)%
Services	121.0		123.4		134.6		(2.4		)	(11.2		)	(1.9	)%	(8.3	)%
Total Revenue	$	335.9	$	346.0	$	471.3	$	(10.1	)	$	(125.3	)	(2.9	)%	(26.6	)%

Our revenue from product sales decreased $7.7 million, or 3.5%, in fiscal 2015 compared with fiscal 2014. The decrease came primarily from weaker product sales in Africa and Latin America, offset in part by stronger product sales in North America, Europe and Asia. Our service revenue decreased $2.4 million, or 1.9%, in fiscal 2015 compared with fiscal 2014, due to reduced service activities in Asia Pacific, Europe and Latin America, partially offset by increased service activities in Africa and North America.

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Our revenue from product sales decreased $114.1 million, or 33.9%, in fiscal 2014 compared with fiscal 2013. The decrease was primarily due to reduced purchases of our products and services made by larger customers in Africa, North America and Europe compared to the previous year and continued reduction in fiscal 2014. Asia Pacific product sales were also down compared to fiscal 2013, with a small increase in Latin America. Our services revenue decreased $11.2 million, or 8.3%, in fiscal 2014 compared with fiscal 2013. The main reason for the decline was the reduced revenue in North America owing to the reduction in business with wireless network operators. Other regions had relatively flat service revenue performance between the years.

During fiscal 2015, the MTN Group in Africa accounted for 14% of our total revenue compared with 17% in fiscal 2014 and 25% in fiscal 2013. We have entered into separate and distinct contracts with MTN Group as well as separate arrangements with various MTN Group subsidiaries. For fiscal 2013, revenue from Verizon Wireless accounted for 11% of our total revenue. The loss of all or a substantial portion of MTN Group’s business could adversely affect our results of operations, cash flows and financial position.

Gross Margin

	Fiscal Year									$ Change						% Change
(In millions, except percentages)	2015			2014			2013			2015/2014			2014/2013			2015/2014		2014/2013
Revenue	$	335.9		$	346.0		$	471.3		$	(10.1	)	$	(125.3	)	(2.9	)%	(26.6	)%
Cost of revenue	255.2			260.8			332.9			(5.6		)	(72.1		)	(2.1	)%	(21.7	)%
Gross margin	$	80.7		$	85.2		$	138.4		(4.5		)	(53.2		)	(5.3	)%	(38.4	)%
% of revenue	24.0		%	24.6		%	29.4		%
Product margin %	23.7		%	22.4		%	28.8		%
Service margin %	24.5		%	28.6		%	30.7		%

Gross margin for fiscal 2015 decreased $4.5 million, or 5.3%, compared with fiscal 2014, primarily due to decreased profitability in Africa, Middle East, Europe and Latin America and a $2.5 million increase in foreign exchange loss, partially offset by improved profitability in North America and Asia along with reduced supply chain costs compared with fiscal 2014. Gross margin as a percentage of revenue decreased in fiscal 2015 compared with fiscal 2014 primarily due to lower profitability in Africa, Middle East, Europe and Latin America and increased foreign exchange losses compared with fiscal 2014, partially offset by higher gross margin rates in North America and Asia. Product margin as a percentage of product revenue increased over fiscal 2014 primarily to a greater portion of the overall business coming from North America along with improved pricing in that market, and better pricing on sales in Asia. Service margin as a percentage of service revenue declined primarily due to a less profitable service business in international markets.

Gross margin for fiscal 2014 decreased $53.2 million, or 38.4%, compared with fiscal 2013, primarily due to reduced sales volume. Gross margin as a percentage of revenue decreased in fiscal 2014 compared with fiscal 2013 primarily due to competitive market pricing pressure for our products and services and spreading our fixed costs into lower product and services revenue volumes. Product margin as a percentage of product revenue declined in fiscal 2014 primarily due to pricing pressures in international markets and the absorption of fixed costs over a lower revenue volume. Service margin as a percentage of service revenue declined primarily due to a less profitable service business in North America.

Research and Development Expenses

	Fiscal Year									$ Change						% Change
(In millions, except percentages)	2015			2014			2013			2015/2014			2014/2013			2015/2014		2014/2013
Research and development    expenses	$	25.4		$	35.5		$	39.4		$	(10.1	)	$	(3.9	)	(28.5	)%	(9.9	)%
% of revenue	7.6		%	10.3		%	8.4		%

Our R&D expenses decreased $10.1 million, or 28.5%, in fiscal 2015 compared with fiscal 2014. As a percentage of revenue, R&D expenses decreased to 7.6% in fiscal 2015 from 10.3% in fiscal 2014. The decrease in R&D expenses was primarily due to a $7.2 million reduction in personnel and related expenses, a $1.2 million decrease in new product development costs, a $2.0 million decrease in facility expense, a $0.2 million decrease in travel expense and a $0.2 million decrease in share-based compensation expenses primarily due to restructuring of R&D in Santa Clara, California.

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We continue to invest in new product features, new functionality and lower cost platforms that we believe will enable our product lines to retain their technology leads in a cost effective manner.

Our R&D expenses decreased $3.9 million, or 9.9%, in fiscal 2014 compared with fiscal 2013. As a percentage of revenue, R&D expenses also increased to 10.3% in fiscal 2014 from 8.4% in fiscal 2013. The decrease in R&D expenses of $3.9 million consisted primarily of a $3.8 million decrease of personnel expenses as a result of the restructuring programs we implemented and a $0.7 million decrease in stock based compensation, partially offset by a $0.3 million increase in expenses related to our investment in new product development.

Selling and Administrative Expenses

	Fiscal Year									$ Change						% Change
(In millions, except percentages)	2015			2014			2013			2015/2014			2014/2013			2015/2014		2014/2013
Selling and administrative     expenses	$	76.0		$	88.8		$	95.5		$	(12.8	)	$	(6.7	)	(14.4	)%	(7.0	)%
% of revenue	22.6		%	25.7		%	20.3		%

Our selling and administrative expenses decreased $12.8 million, or 14.4%, in fiscal 2015 compared with fiscal 2014. The decrease was due primarily to a $7.1 million decrease in personnel and related expenses, a $1.8 million decrease in IT consulting expenses as result of the completion of our ERP system implementation, a $1.7 million reduction in travel expenses, a $3.6 million decrease in sales commission and incentive compensation, and a $1.1 million decrease in share-based compensation expenses resulting from employee terminations and full vesting of prior stock awards. The decreases were partially offset by a $3.4 million increase in professional fees primarily associated with the annual audit of our fiscal 2014 financial statements. We will continue to seek ways to improve our operating efficiency in fiscal 2016.

Our selling and administrative expenses decreased $6.7 million, or 7.0%, in fiscal 2014 compared with fiscal 2013. The decrease was due primarily to a $2.9 million reduction in personnel expenses as a result of the restructuring programs we implemented, a $1.5 million reduction in bad debt expenses, a $1.9 million decrease in share-based compensation expenses and a $1.8 million decrease in agent commissions. This was partially offset by a $2.0 million increase in expenses for information technology projects.

Restructuring Charges

During the third quarter of fiscal 2015, with the intent to bring our operational cost structure in line with the changing dynamics of the microwave radio and telecommunications markets, we initiated the Fiscal 2015-2016 Plan to lower fixed overhead costs and operating expenses and to preserve cash flow. Activities under the Fiscal 2015-2016 Plan primarily include reductions in force across the Company, but primarily in operations outside the United States.

During the third quarter of fiscal 2014, in line with the decrease in revenue that we experienced and our reduced forecast for the immediate future, we initiated the Fiscal 2014-2015 Plan to reduce our operating costs, primarily in North America, Europe and Asia. Activities under the Fiscal 2014-2015 Plan primarily include reductions in force and additional facility downsizing of our Santa Clara, California headquarters.

During the fourth quarter of fiscal 2013, we initiated a restructuring plan (the “Fiscal 2013-2014 Plan”) that was intended to reduce our operating expenses primarily in North America, Europe and Asia. Activities under the Fiscal 2013-2014 Plan included reductions in force and the downsizing of our Santa Clara, California headquarters and certain international field offices.

During the first quarter of fiscal 2011, we initiated a restructuring plan (the “Fiscal 2011 Plan”) to reduce our operational costs primarily in North America, Europe and Asia. Activities under the Fiscal 2011 Plan included the reductions in force to reduce our operating expenses and downsizing or closures of our Morrisville, North Carolina, Santa Clara, California, Montreal, Canada offices and certain international field offices. The Fiscal 2011 Plan has been completed as of the end of fiscal 2013.

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Our restructuring charges by plan for fiscal 2015, 2014 and 2013 are summarized in the table below:

	Fiscal Year						$ Change						% Change
(In millions, except percentages)	2015		2014		2013		2015/2014			2014/2013			2015/2014		2014/2013
Restructuring charges:	$	4.9	$	11.1	$	3.1	$	(6.2	)	$	8.0		(55.9	)%	258.1	%
By Plan:
Fiscal 2015-2016 Plan	3.4		—		—		3.4			—			N/A		N/A
Fiscal 2014-2015 Plan	1.4		5.8		—		(4.4		)	5.8			(75.9	)%	N/A
Fiscal 2013-2014 Plan	0.1		5.3		1.8		(5.2		)	3.5			(98.1	)%	194.4	%
Fiscal 2011 Plan	—		—		1.3		—			(1.3		)	N/A		(100.0	)%

Our restructuring expenses consisted primarily of severance and related benefit charges and facilities costs related to obligations under non-cancelable leases for facilities that we ceased to use. Restructuring charges for fiscal 2015 included a $2.8 million employee termination charge primarily related to the Fiscal 2015-2016 Plan, a $1.5 million facility charge related to ceasing to use portion of our Santa Clara headquarters building and a $0.6 million Slovenia government fund penalty charge related to the workforce reduction. Restructuring charges for fiscal 2014 included a $4.7 million facilities charge primarily related to ceasing to use a portion of our Santa Clara headquarters building and a $6.4 million employee termination charge primarily related to our Fiscal 2014-2015 Plan. Restructuring charges for fiscal 2013 included a $3.0 million employee termination charge primarily related to our Fiscal 2013-2014 Plan and Fiscal 2011 Plan.

We have substantially completed our activities under the Fiscal 2014-2015 Plan and the Fiscal 2013-2014 Plan and intend to substantially complete the remaining restructuring activities under the Fiscal 2015-2016 Plan by the end of the second quarter of fiscal 2016.

Other Income, Interest Income and Interest Expense

	Fiscal Year
(In millions)	2015			2014			2013
Other income, net	$	—		$	—		$	0.7
Interest income	0.4			0.5			0.8
Interest expense	(0.4		)	(0.4		)	(0.8		)

Other income of $0.7 million for fiscal 2013 reflected a nonrecurring benefit related to a customer contract.

Interest income reflected interest earned on our cash equivalents which were comprised of money market funds and certificates of deposit.

Interest expense was primarily related to interest associated with borrowings and term loans under the SVB Credit Facility and discounts on customer letters of credit.

Income Taxes

	Fiscal Year									$ Change
(In millions, except percentages)	2015			2014			2013			2015/2014			2014/2013
Income (loss) from continuing operations before income     taxes	$	(26.0	)	$	(50.5	)	$	0.7		$	24.5		$	(51.2	)
Provision for income taxes	(1.3		)	1.5			13.3			(2.8		)	(11.8		)
As % of income (loss) from continuing operations     before income taxes	5.0		%	(3.0		)%	1,900.0		%

The income tax benefit from continuing operations for fiscal 2015 was $1.3 million. The difference between our income tax benefit from continuing operations and income tax expense at the statutory rate of 35% on our pre-tax loss of $26.0 million was primarily attributable to losses in tax jurisdictions in which we cannot recognize a tax benefit, an increase in foreign withholding taxes and the $4.4 million benefit from the release of valuation allowance.

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The income tax expense from continuing operations for fiscal 2014 was $1.5 million. The difference between our income tax expense from continuing operations and income tax benefit at the statutory rate of 35% on our pre-tax loss of $50.5 million was primarily attributable to losses in tax jurisdictions in which we cannot recognize a tax benefit and increase in foreign withholding taxes.

The income tax expense from continuing operations for fiscal 2013 was $13.3 million. The difference between our income tax expense from continuing operations and income tax benefit at the statutory rate of 35% on our pre-tax loss of $0.7 million was primarily attributable to a $11.7 million increase in our reserves for uncertain tax positions, losses in tax jurisdictions in which we cannot recognize a tax benefit and increase in foreign withholding taxes. The increase in our unrecognized tax benefits was the result of additional information obtained during the recent tax examinations in certain countries during fiscal 2013.

We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in determining our worldwide provision for income taxes and recording the related assets and liabilities. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain.

Income (loss) from Discontinued Operations

	Fiscal Year							$ Change
(In millions)	2015		2014		2013			2015/2014			2014/2013
Income (loss) from discontinued operations, net of tax	$	0.1	$	0.9	$	(4.1	)	$	(0.8	)	$	5.0

Our discontinued operations consist of the WiMAX business, which was sold to EION Networks, Inc. (“EION”) on September 2, 2011. We completed the business transition with EION in fiscal 2012. The income recognized in fiscal 2015 was primarily due to a $0.1 million write-off of accrued liabilities due to EION. The income incurred in fiscal 2014 was primarily due to recovery of certain WiMAX customer receivables that was previously written down. The loss incurred in fiscal 2013 was primarily due to $4.2 million write-downs of certain WiMAX deferred cost of sales that were not transferred to EION and certain expenses we incurred to support a remaining customer obligation. The loss was partially offset by a $0.3 million write down of our payable to EION related to customer receivables and $0.1 million contingent payments we received from EION.

Liquidity, Capital Resources and Financial Strategies

Sources of Cash

As of July 3, 2015, our total cash and cash equivalents were $34.7 million. Approximately $11.7 million, or 33.7%, was held by entities domiciled in the United States. The remaining balance of $23.0 million, or 66.3%, was held by entities outside the United States. Of the amount of cash and cash equivalents held by our foreign subsidiaries at July 3, 2015, $17.0 million was held in jurisdictions where our undistributed earnings are indefinitely reinvested, and if repatriated, would be subject to U.S. taxes which are currently nominal.

As of July 3, 2015, our principal sources of liquidity consisted of the $34.7 million in cash and cash equivalents, $26.9 million of available credit under our $40.0 million credit facility with Silicon Valley Bank (“SVB”), and future collections of receivables from customers. We regularly require letters of credit from some customers and, from time to time, these letters of credit are discounted without recourse shortly after shipment occurs in order to meet immediate liquidity requirements and to reduce our credit and sovereign risk. Historically our primary sources of liquidity have been cash flows from operations, credit facilities and cash proceeds from sale of our equity securities. During fiscal 2015, our total cash and cash equivalents decreased by $14.1 million primarily due to $9.0 million of cash used in operating activities, $3.7 million of cash used for capital expenditures and $4.3 million decrease due to foreign exchange rate impact, partially offset by $3.0 million net borrowing from our short-term debt arrangement.

Cash used in operating activities was $9.0 million in fiscal 2015, primarily due to our net loss of $24.6 million adjusted by non-cash expense items of $15.6 million, increases in accounts receivables of $13.5 million and inventories of $1.9 million and decreases in accounts payable and accrued expenses of $2.5 million, partially offset by decreases in unbilled costs of $6.1 million and in customer service inventories of $2.3 million, and increases in customer advance payments and unearned income of $9.3 million. The increase in accounts receivable was primarily due to higher revenue and billings to customer in the fourth quarter of fiscal 2015. The increase in inventories was primarily due to higher deferred cost of sales associated with higher unearned income and the timing of customer shipments. The decreases in accounts payable and accrued expenses were primarily due to the timing of vendor payments. The decrease in unbilled costs was due to the timing of billing of projects. The increase in customer advance payments and unearned income was

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due to the timing of revenue recognition on several large contracts. We used $5.6 million in cash during fiscal 2015 on expenses related to restructuring liabilities.

For fiscal 2016, we expect to spend approximately $4.0 million for capital expenditures, primarily on equipment for development and manufacturing of new products and to support customer managed services.

We believe that our existing cash and cash equivalents, the available line of credit under the SVB Credit Facility (as defined below) and future cash collections from customers will be sufficient to provide for our anticipated requirements for working capital and capital expenditures for at least the next 12 months. There can be no assurance, however, that our business will generate cash flow from operations, we will be in compliance with the quarterly financial covenants contained in the SVB Credit Facility, or that anticipated operational improvements will be achieved. If we are not in compliance with the financial covenants, the availability of our credit facility is not certain or may be diminished. Over the longer term, if we are unable to maintain cash balances or generate sufficient cash flow from operations to service our obligations that may arise in the future, we may be required to sell assets, reduce capital expenditures, or obtain financing. If we need to obtain additional financing, we cannot be assured that it will be available on favorable terms, or at all. Our ability to make scheduled principal payments or pay interest on or refinance any future indebtedness depends on our future performance and financial results, which, to a certain extent, are subject to general conditions in or affecting the microwave communications market and to general economic, political, financial, competitive, legislative and regulatory factors beyond our control.

Available Credit Facility, Borrowings and Repayment of Debt

On March 28, 2014, we entered into a Second Amended and Restated Loan Agreement with SVB (the “SVB Credit Facility”) which was amended subsequently in 2014 providing for the extensions of the deadline for preparing and filing our fiscal 2014 financial statements with the SEC. On February 27, 2015, the SVB Credit Facility was further amended providing for certain amendments to the financial covenants, borrowing base and an early termination fee if the credit facility is terminated prior to its expiration. This agreement amends and restates our First Amended and Restated Loan and Security Agreement, which was entered into on September 27, 2013 and amended on October 29, 2013, November 20, 2013 and February 10, 2014, respectively, which amendments provided for certain amendments to the maximum borrowing limit and financial covenants. As of September 27, 2013, we repaid the entire outstanding balance of the original $8.3 milliontwo-year term loan that we borrowed on January 30, 2012. During fiscal 2015, we made net borrowings of $3.0 million and our outstanding debt under the SVB Credit Facility was $9.0 million as of July 3, 2015.

The SVB Credit Facility provides for a committed amount of up to $40.0 million, with a $30.0 million sublimit that can be borrowed by our Singapore subsidiary. Borrowings that may be advanced under the SVB Credit Facility at the lesser of $40.0 million or a borrowing base equal to a specified percentage of the value of eligible accounts receivable and U.S. unbilled accounts of the Company, subject to certain reserves and eligibility criteria. The SVB Credit Facility can also be utilized to issue letters of credit. Principal, together with all accrued and unpaid interest, is due and payable on September 26, 2016. If the SVB Credit Facility is terminated by us in certain circumstances prior to its expiration, we are subject to an early termination fee equal to 1% of the revolving line. As of July 3, 2015, available credit under the SVB Credit Facility was $26.9 million reflecting the calculated borrowing base of $40.0 million less existing borrowings of $9.0 million and outstanding letters of credit of $4.1 million.

Borrowings under the SVB Credit Facility carry an interest rate computed at the daily prime rate as published in the Wall Street Journal plus a spread of 0.50% to 1.50%, with such spread determined based on our adjusted quick ratio. If a minimum adjusted quick ratio requirement is satisfied, LIBOR advances are offered at LIBOR plus a spread of 2.75%. Interest is due and payable in arrears monthly for prime rate loans and, for LIBOR rate loans, at the end of an interest period or at each 3-month interval if the interest period is greater than three months. During fiscal 2015, the weighted average interest rate on our outstanding loan was 3.75%.

The SVB Credit Facility contains quarterly financial covenants including minimum adjusted quick ratio and minimum profitability (EBITDA) requirements. In the event our adjusted quick ratio falls below a certain level, cash received in our accounts with SVB may be directly applied to reduce outstanding obligations under the SVB Credit Facility. The SVB Credit Facility also imposes certain restrictions on our ability to dispose of assets, permit a change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments, make certain restricted payments and enter into transactions with affiliates under certain circumstances. Certain of our assets, including accounts receivable, inventory, and equipment, are pledged as collateral for the SVB Credit Facility. Upon an event of default, outstanding obligations would be immediately due and payable. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default at a per annum rate of interest equal to 2.00% above the applicable interest rate.

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As of July 3, 2015, we were in compliance with the quarterly financial covenants contained in the SVB Credit Facility. However, as a result of uncertainty on our ability to meet the financial covenants in future and the fact that the SVB Credit Facility contains subjective acceleration clauses that could be triggered by the lender, the $9.0 million borrowing was classified as a current liability as of July 3, 2015.

Restructuring Payments

We have a liability for restructuring activities totaling $4.5 million as of July 3, 2015, of which $3.9 million is classified as current liability and expected to be paid out in cash over the next 12 months. We expect to fund these future payments with available cash and cash provided by operations.

Contractual Obligations

As of July 3, 2015, cash payments due under our contractual obligations were estimated as follows:

	Obligations Due by Fiscal Year
(In millions)	Total		2016		2017-2018		2019-2020		After 2020		Other
Borrowings under credit facility	$	9.0	$	9.0	$	—	$	—	$	—	$	—
Purchase obligations(1)(3)	38.2		38.2		—		—		—		—
Operating lease commitments(3)	16.4		5.4		5.9		5.1		—		—
Reserve for uncertain tax positions(2)	1.0		—		—		—		—		1.0
Total contractual cash obligations	$	64.6	$	52.6	$	5.9	$	5.1	$	—	$	1.0

 ___________________________

(1) From time to time in the normal course of business we may enter into purchasing agreements with our suppliers that require us to accept delivery of, and remit full payment for, finished products that we have ordered, finished products that we requested be held as safety stock, and work in process started on our behalf in the event we cancel or terminate the purchasing agreement. Because these agreements do not specify fixed or minimum quantities, do not specify minimum or variable price provisions, and do not specify the approximate timing of the transaction, and we have no present intention to cancel or terminate any of these agreements, we currently do not believe that we have any future liability under these agreements.

(2) Liabilities for uncertain tax positions of $1.0 million were included in long-term liabilities in the consolidated balance sheet. At this time, we are unable to make a reasonably reliable estimate of the timing of payments related to this amount due to uncertainties in the timing of tax audit outcomes.

(3) These items are not recorded on our balance sheet.

Commercial Commitments

We have entered into commercial commitments in the normal course of business including surety bonds, standby letters of credit and other arrangements with financial institutions and insurers primarily relating to the guarantee of future performance on certain tenders and contracts to provide products and services to customers. As of July 3, 2015, we had commercial commitments on outstanding surety bonds and standby letters of credit as follows:

	Expiration of Commitments by Fiscal Year
(In millions)	Total		2016		2017		2018		After 2018
Standby letters of credit used for:
Bids	$	0.1	$	0.1	$	—	$	—	$	—
Payment guarantees	0.3		0.2		—		—		0.1
Performance	4.8		4.7		0.1		—		—
	5.2		5.0		0.1		—		0.1
Surety bonds used for:
Tax and payment guarantees	3.8		3.8		—		—		—
Performance	24.1		24.1		—		—		—
	27.9		27.9		—		—		—
Total commercial commitments	$	33.1	$	32.9	$	0.1	$	—	$	0.1

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As we have not historically had to pay out on any of our performance guarantees, the outstanding commercial commitments have not been recorded in our consolidated balance sheet.

Off-Balance Sheet Arrangements

In accordance with the definition under SEC rules (Item 303(a) (4) (ii) of Regulation S-K), any of the following qualify as off-balance sheet arrangements:

• any obligation under certain guarantee contracts;

• a retained or contingent interest in assets transferred to an unconsolidated entity or similar entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets;

• any obligation, including a contingent obligation, under certain derivative instruments; and

• any obligation, including a contingent obligation, under a material variable interest held by the registrant in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing, hedging or research and development services with the registrant.

Currently we are not participating in transactions that generate relationships with unconsolidated entities or financial partnerships, including variable interest entities, and we do not have any material retained or contingent interest in assets as defined above. As of July 3, 2015, we did not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect liquidity. In addition, we are not currently a party to any related party transactions that materially affect our results of operations, cash flows or financial condition.

Due to the downsizing of certain of our operations pursuant to divestitures, restructuring plans or otherwise, some properties leased by us have been sublet to third parties. In the event any of these third parties vacate any of these premises, we would be legally obligated under master lease arrangements. We believe that the financial risk of default by such sublessors is not likely to be individually or in the aggregate material to our financial position, results of operations or cash flows.

Financial Risk Management

In the normal course of doing business, we are exposed to the risks associated with foreign currency exchange rates and changes in interest rates. We employ established policies and procedures governing the use of financial instruments to manage our exposure to such risks.

Exchange Rate Risk

We conduct business globally in numerous currencies and are therefore exposed to foreign currency risks. We use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not hold or issue derivatives for trading purposes or make speculative investments in foreign currencies.

We use foreign exchange forward contracts to hedge forecasted foreign currency transactions relating to forecasted sales and purchase transactions. Prior to the fourth quarter of fiscal 2015, these derivatives were designated as cash flow hedges and are carried at fair value. The effective portion of the gain or loss was initially reported as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, was subsequently reclassified into the income or expense line item to which the hedged transaction relates. Beginning the fourth quarter of fiscal 2015, we no longer prepared contemporaneous documentation of hedges therefore the foreign exchange hedges no longer qualified as cash flow hedge. The changes in fair value related to the hedges were recorded in income or expenses line items on our statements of operations. We also enter into foreign exchange forward contracts to mitigate the change in fair value of specific non-functional currency assets and liabilities on the balance sheet. All balance sheet hedges are marked to market through earnings every period. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities.

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As of July 3, 2015, we had foreign currency forward contracts outstanding with a total notional amount of $14.2 million consisting of 9 different currencies. The following is a summary of the gross notional amount of our outstanding contracts grouped by the underlying foreign currency as of July 3, 2015:

Currency	Notional Contract Amount (Local Currency)	Notional Contract Amount (USD)
	(In millions)
Australian dollar	2.6	$	2.0
Canadian dollar	2.6	2.1
Euro	2.9	3.2
Polish Zloty	3.7	1.0
Republic of South Africa rand	52.9	4.3
Other currencies	N/A	1.6
Total of all currency forward contracts		$	14.2

Net foreign exchange loss recorded in our consolidated statements of operations during fiscal 2015, 2014 and 2013 was as follows:

	Fiscal Year
(In millions)	2015			2014			2013
Foreign exchange loss, net	$	(3.3	)	$	(0.8	)	$	(1.5	)

A 10% adverse change in currency exchange rates for our foreign currency derivatives held as of July 3, 2015 would have an impact of approximately $1.4 million on the fair value of such instruments. This quantification of exposure to the market risk associated with foreign exchange financial instruments does not take into account the offsetting impact of changes in the fair value of our foreign denominated assets, liabilities and firm commitments.

Certain of our international business was transacted in non-U.S. dollar currency. As discussed above, we utilize foreign currency hedging instruments to minimize the currency risk of international transactions. The impact of translating the assets and liabilities of foreign operations to U.S. dollars is included as a component of stockholders’ equity. As of July 3, 2015 and June 27, 2014, the cumulative translation adjustment decreased our stockholders’ equity by $8.5 million and $2.9 million, respectively.

During fiscal 2015 the company experienced increased volatility in foreign currency markets, resulting in the increased year over year losses in foreign exchange and cumulative translation adjustments mentioned here, particularly in countries where there is no available market to hedge the local currency.  Market events at the time of this report would indicate that the volatility in currency markets will continue. 

Interest Rate Risk

Our exposure to market risk for changes in interest rates relates primarily to our cash equivalents and borrowings under our credit facility.

Exposure on Cash Equivalents

We had $34.7 million in total cash and cash equivalents as of July 3, 2015. Cash equivalents totaled $13.1 million as of July 3, 2015 and were comprised of money market funds and certificates of deposit. Cash equivalents have been recorded at fair value on our balance sheet.

We do not use derivative financial instruments in our short-term investment portfolio. We invest in high-credit quality issues and, by policy, limit the amount of credit exposure to any one issuer and country. The portfolio includes only marketable securities with active secondary or resale markets to ensure portfolio liquidity. The portfolio is also diversified by maturity to ensure that funds are readily available as needed to meet our liquidity needs. This policy reduces the potential need to sell securities in order to meet liquidity needs and therefore the potential effect of changing market rates on the value of securities sold.

The primary objective of our short-term investment activities is to preserve principal while maximizing yields, without significantly increasing risk. Our cash equivalents earn interest at fixed rates; therefore, changes in interest rates

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will not generate a gain or loss on these investments unless they are sold prior to maturity. Actual gains and losses due to the sale of our investments prior to maturity have been immaterial. The weighted average days to maturity for cash equivalents held as of July 3, 2015 was five days, and these investments had an average yield of 1.4% per annum. A 10% change in interest rates on our cash and cash equivalents is not expected to have a material impact on our financial position, results of operations or cash flows.

Exposure on Borrowings

During fiscal 2015, we had $9.0 million of demand borrowings outstanding under our credit facility that incurred interest at the prime rate or prime rate plus a spread of 0.50% to 1.50%. During fiscal 2015, our weighted average interest rate was 3.75% and we recorded total interest expense of $0.3 million on these borrowings.

A 10% change in interest rates on the current borrowings or on future borrowings is not expected to have a material impact on our financial position, results of operations or cash flows since interest on our borrowings is not material to our overall financial position.

Critical Accounting Estimates

Our consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us.

These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected.

The accounting policies that reflect our more significant estimates, judgments and assumptions and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

• revenue recognition and valuation of accounts receivable;

• inventory valuation and provision for excess and obsolete inventory losses;

• impairment of long-lived assets; and

• income taxes and tax valuation allowances.

In some cases, the accounting treatment of a particular transaction is specifically dictated by U.S. GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting among available alternatives would not produce a materially different result. Our senior management has reviewed these critical accounting policies and related disclosures with the Audit Committee of the Board of Directors.

The following is not intended to be a comprehensive list of all of our accounting policies or estimates. Our significant accounting policies are more fully described in “Note 1. The Company and Summary of Significant Accounting Policies” in the notes to consolidated financial statements. In preparing our financial statements and accounting for the underlying transactions and balances, we apply those accounting policies. We consider the estimates discussed below as critical to an understanding of our financial statements because their application places the most significant demands on our judgment, with financial reporting results relying on estimates about the effect of matters that are inherently uncertain.

Besides estimates that meet the “critical” accounting estimate criteria, we make many other accounting estimates in preparing our financial statements and related disclosures. All estimates, whether or not deemed critical, affect reported amounts of assets, liabilities, revenue and expenses as well as disclosures of contingent assets and liabilities. Estimates are based on experience and other information available prior to the issuance of the financial statements. Materially different results can occur as circumstances change and additional information becomes known, including for estimates that we do not deem “critical.”

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Revenue Recognition and Valuation of Accounts Receivable

We generate substantially all of our revenue from the sales or licensing of our microwave radio and wireless access systems, network management software, and professional services including installation and commissioning and training. Principal customers for our products and services include domestic and international wireless/mobile service providers, original equipment manufacturers, distributors, system integrators, as well as private network users such as public safety agencies, government institutions, and utility, pipeline, railroad and other industrial enterprises that operate broadband wireless networks. Our customers generally purchase a combination of our products and services as part of a multiple element arrangement. Our assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment. This assessment has a significant impact on the amount and timing of revenue recognition.

Revenue is recognized when all of the following criteria have been met:

• Persuasive evidence of an arrangement exists. Contracts and customer purchase orders are generally used to determine the existence of an arrangement.

• Delivery has occurred or services have been delivered. Shipping documents and customer acceptance, when applicable, are used to verify delivery.

• The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.

• Collectability is reasonably assured. We assess collectability based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history.

We often enter into multiple contractual agreements with the same customer. Such agreements are reviewed to determine whether they should be evaluated as one arrangement. If an arrangement, other than a long-term contract, requires the delivery or performance of multiple deliverables or elements, we determine whether the individual elements represent “separate units of accounting”. The determination as to whether multiple contractual agreements should be evaluated as one arrangement and the identification of units of accounting in an arrangement requires significant judgment and impacts the amount of product and service revenue recognized in a given period.

In accordance with ASC 605-25, Revenue Recognition — Multiple-Element Arrangements, based on the terms and conditions of the product arrangements, we believe that our products and services can be accounted for separately as our products and services have value to our customers on a stand-alone basis. Accordingly, the arrangement consideration is allocated among deliverables based on their relative selling price. We generally determine relative selling price using estimated selling price (“ESP”). Revenue from each deliverable is recognized when all requirements are met for that specific deliverable. There is generally no customer right of return in our sales agreements. The sequence for typical multiple-element arrangements is as follows: we deliver our products, perform installation services and then provide post-contract support services.

The selling price for each element is based upon the following selling price hierarchy: Vendor-specific objective evidence (“VSOE”) if available, third party evidence (“TPE”) if VSOE is not available or ESP if neither VSOE nor TPE are available. Generally, we are not able to determine TPE because our go-to-market strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. In determining ESP, we apply significant judgment as we weigh a variety of factors including our pricing policies, internal costs and gross margin objectives, method of distribution, information gathered from experience in customer negotiations, market research and information, recent technological trends, competitive landscape and geographies. The determination of ESP is approved by our management taking into consideration our pricing strategy. We regularly review VSOE, TPE and ESP and maintain internal controls over the establishment and updates of these estimates. We do not expect a material impact in future periods from changes in VSOE, TPE or ESP.

Revenues related to long-term contracts for customized network solutions are recognized using the percentage-of-completion method. In using the percentage-of-completion method, we generally apply the cost-to-cost method of accounting where sales and profits are recorded based on the ratio of costs incurred to estimated total costs at completion. Contracts are combined when specific aggregation criteria are met including when the contracts are in substance an arrangement to perform a single project with a customer; the contracts are negotiated as a package in the same economic environment with an overall profit objective; the contracts require interrelated activities with common costs that cannot be separately identified with, or reasonably allocated to the elements, phases or units of output and the contracts are performed concurrently or in a continuous sequence under the same project management at the same

43

location or at different locations in the same general vicinity. Recognition of profit on long-term contracts requires estimates of the total contract value, the total cost at completion and the measurement of progress towards completion. Significant judgment is required when estimating total contract costs and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Amounts representing contract change orders, claims or other items are included in sales only when they can be reliably estimated and realization is probable. When adjustments in contract value or estimated costs are determined, any changes from prior estimates are reflected in earnings in the current period. Anticipated losses on contracts or programs in progress are charged to earnings when identified.

Accounts receivable is presented net of allowance for estimated uncollectible accounts to reflect any loss anticipated on the collection of accounts receivable balances. We calculate the allowance for doubtful accounts based on our history of write-offs, level of past due accounts and the economic status of the customers. We regularly review the adequacy of these allowances by considering internal factors such as historical experience, credit quality and age of the receivable balances as well as external factors such as economic conditions that may affect a customer’s ability to pay and their expected default frequency rates, which are published by major third-party credit-rating agencies and are generally updated on a quarterly basis. If a major customer’s creditworthiness deteriorates, actual defaults are higher than our historical experience, or other circumstances arise, then our estimates of the recoverability of amounts due to us could be overstated, and additional allowances could be required, which could have an adverse impact on our operating results.

Inventory Valuation and Provisions for Excess and Obsolete Losses

Our inventories have been valued at the lower of cost or market. We balance the need to maintain prudent inventory levels to ensure competitive delivery performance with the risk of excess or obsolete inventory due to changing technology and customer requirements, and new product introductions. Beginning in the first quarter of fiscal 2011, the manufacturing of our products was handled primarily by contract manufacturers. Our contract manufacturers procure components and manufacture our products based on our forecast of product demand. We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory based primarily on our estimated forecast of product demand, the stage of the product life cycle, anticipated end of product life and production requirements. Several factors may influence the sale and use of our inventories, including decisions to exit a product line, technological change, new product development and competing product offerings. These factors could result in a change in the amount of obsolete inventory quantities on hand. Additionally, our estimates of future product demand may prove to be inaccurate, in which case the provision required for excess and obsolete inventory may be overstated or understated. In the future, if we determine that our inventory is overvalued, we would be required to recognize such costs in cost of product sales and services in our Statement of Operations at the time of such determination. In the case of goods which have been written down below cost at the close of a fiscal quarter, such reduced amount is considered the new lower cost basis for subsequent accounting purposes, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. We did not make any material changes in the valuation methodology during the past three fiscal years.

Our customer service inventories are stated at the lower of cost or market. We carry service parts because we generally provide product warranty for 12 to 36 months and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Customer service inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. We record adjustments to reduce the carrying value of customer service inventories to their net realizable value. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates.

Impairment of Long-Lived Assets

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups.

Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The actual cash flows realized from these assets may vary

44

significantly from our estimates due to increased competition, changes in technology, fluctuations in demand, consolidation of our customers, reductions in average selling prices and other factors. Assumptions underlying future cash flow estimates are therefore subject to significant risks and uncertainties.

Income Taxes and Tax Valuation Allowances

We record the estimated future tax effects of temporary differences between the tax basis of assets and liabilities of amounts reported in our consolidated balance sheet, as well as operating loss and tax credit carryforwards. Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. Although we believe our reserves are reasonable, no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in our historical income tax provisions and accruals. We adjust these reserves in light of changing facts and circumstances, such as the opening and closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences may result in an increase or decrease to our tax provision in a subsequent period in which such determination is made.

We record deferred taxes by applying enacted statutory tax rates to the respective jurisdictions and follow specific and detailed guidelines in each tax jurisdiction regarding the recoverability of any tax assets recorded on the balance sheet and provide necessary valuation allowances as required. Future realization of deferred tax assets ultimately depends on meeting certain criteria in ASC 740, Income Taxes. One of the major criteria is the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the tax law. We regularly review our deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. Our judgments regarding future profitability may change due to many factors, including future market conditions and our ability to successfully execute our business plans and/or tax planning strategies. Should there be a change in our ability to recover our deferred tax assets, our tax provision would increase or decrease in the period in which the assessment is changed.

The accounting estimates related to the liability for uncertain tax position require us to make judgments regarding the sustainability of each uncertain tax position based on its technical merits. It is inherently difficult and subjective to estimate our reserves for the uncertain tax positions. Although we believe our estimates are reasonable, no assurance can be given that the final tax outcome of these matters will be same as these estimates. These estimates are updated quarterly based on factors such as change in facts or circumstances, changes in tax law, new audit activity, and effectively settled issues.

Impact of Recently Issued Accounting Pronouncements

See Note 1 of the accompanying consolidated financial statements for a full description of recently issued accounting pronouncements, including the respective expected dates of adoption and effects on our consolidated financial position and results of operations.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

In the normal course of doing business, we are exposed to the risks associated with foreign currency exchange rates and changes in interest rates. We employ established policies and procedures governing the use of financial instruments to manage our exposure to such risks. For a discussion of such policies and procedures and the related risks, see “Financial Risk Management” in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is incorporated by reference into this Item 7A.

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Item 8. Financial Statements and Supplementary Data

Index to Financial Statements

	Page
Report of BDO USA, LLP, Independent Registered Public Accounting Firm	47
Report of BDO USA, LLP, Independent Registered Public Accounting Firm on Internal Control    over Financial Reporting	48
Report of KPMG LLP, Independent Registered Public Accounting Firm	50
Consolidated Statements of Operations for Fiscal Years Ended July 3, 2015, June 27, 2014 and June 28, 2013	51
Consolidated Statements of Comprehensive Loss for Fiscal Years Ended July 3, 2015, June 27, 2014  and June 28, 2013	52
Consolidated Balance Sheets as of July 3, 2015 and June 27, 2014	53
Consolidated Statements of Cash Flows for Fiscal Years Ended July 3, 2015, June 27, 2014 and June 28, 2013	54
Consolidated Statements of Stockholders’ Equity for Fiscal Years Ended July 3, 2015, June 27, 2014 and June 28, 2013	55
Notes to Consolidated Financial Statements	56
Financial Statement Schedule: Schedule II — Valuation and Qualifying Accounts	94

46

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

Aviat Networks, Inc.

Santa Clara, California:

We have audited the accompanying consolidated balance sheet of Aviat Networks, Inc. as of July 3, 2015 and the related consolidated statements of operations, comprehensive loss, equity and cash flows for the year ended July 3, 2015. In connection with our audit of the financial statements, we have also audited the financial statement schedule - Valuation and Qualifying Accounts as of and for the year ended July 3, 2015 listed in the Index at Item 15(a)(2). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and schedule. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Aviat Networks, Inc. as of July 3, 2015 and the results of its operations and its cash flows for the year ended July 3, 2015, in conformity with U.S. generally accepted accounting principles.

Also, in our opinion, the financial statement schedule - Valuation and Qualifying Accounts as of and for the year ended July 3, 2015, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Aviat Networks, Inc.’s internal control over financial reporting as of July 3, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria), and our report dated September 30, 2015 expressed an adverse opinion thereon.

/s/ BDO USA, LLP

San Jose, California

September 30, 2015

47

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

Aviat Networks, Inc.

Santa Clara, California:

We have audited Aviat Networks, Inc. and subsidiaries’ (“the Company”) internal control over financial reporting as of July 3, 2015, based on criteria established in Internal Control ‑ Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Item 9A, Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Material weaknesses related to the Company’s risk assessment processes, monitoring activities, as well as control activities specific to account reconciliations, revenue recognition, revenue cut-off procedures, project accruals and inventory existence have been identified and included in management’s assessment in Item 9A(a). These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the 2015 consolidated financial statements, and this report does not affect our report dated September 30, 2015 on those consolidated financial statements.

In our opinion, Aviat Networks, Inc. did not maintain, in all material respects, effective internal control over financial reporting as of July 3, 2015, based on the COSO criteria.

We do not express an opinion or any other form of assurance on management’s statements referring to corrective actions taken by the Company after the date of management’s assessment.

48

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Aviat Networks, Inc. as of July 3, 2015 and the related consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the year ended July 3, 2015 and our report dated September 30, 2015 expressed an unqualified opinion thereon.

/s/ BDO USA, LLP

San Jose, California

September 30, 2015

49

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

Aviat Networks, Inc.:

We have audited the accompanying consolidated balance sheet of Aviat Networks, Inc. and subsidiaries (“the Company”) as of June 27, 2014, and the related consolidated statements of operations, comprehensive loss, equity, and cash flows for each of the years in the two-year period ended June 27, 2014. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedule of valuation and qualifying accounts and reserves. These consolidated financial statements and consolidated financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Aviat Networks, Inc. and subsidiaries as of June 27, 2014, and the results of their operations and their cash flows for each of the years in the two-year period ended June 27, 2014, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

	/s/ KPMG LLP
Santa Clara, CA December 19, 2014

50

AVIAT NETWORKS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Fiscal Year Ended
(In millions, except per share amounts)	July 3, 2015			June 27, 2014			June 28, 2013
Revenues:
Revenue from product sales	$	214.9		$	222.6		$	336.7
Revenue from services	121.0			123.4			134.6
Total revenues	335.9			346.0			471.3
Cost of revenues:
Cost of product sales	163.9			172.7			239.6
Cost of services	91.3			88.1			93.3
Total cost of revenues	255.2			260.8			332.9
Gross margin	80.7			85.2			138.4
Operating expenses:
Research and development expenses	25.4			35.5			39.4
Selling and administrative expenses	76.0			88.8			95.5
Amortization of identifiable intangible assets	0.4			0.4			0.4
Restructuring charges	4.9			11.1			3.1
Total operating expenses	106.7			135.8			138.4
Operating income (loss)	(26.0		)	(50.6		)	—
Other income, net	—			—			0.7
Interest income	0.4			0.5			0.8
Interest expense	(0.4		)	(0.4		)	(0.8		)
Income (loss) from continuing operations before income taxes	(26.0		)	(50.5		)	0.7
Provision for (benefit from) income taxes	(1.3		)	1.5			13.3
Loss from continuing operations	(24.7		)	(52.0		)	(12.6		)
Income (loss) from discontinued operations, net of tax	0.1			0.9			(4.1		)
Net loss	(24.6		)	(51.1		)	(16.7		)
Less: Net income attributable to noncontrolling interests, net of tax	0.1			—			—
Net loss attributable to Aviat Networks	$	(24.7	)	$	(51.1	)	$	(16.7	)
Amount attributable to Aviat Networks
Net loss from continuing operations, net of tax	$	(24.8	)	$	(52.0	)	$	(12.6	)
Net income (loss) from discounting operations, net of tax	$	0.1		$	0.9		$	(4.1	)
Basic and diluted loss per share attributable to Aviat Networks’ common stockholders:
Continuing operations	$	(0.40	)	$	(0.84	)	$	(0.21	)
Discontinued operations	$	0.00		$	0.01		$	(0.07	)
Net loss	$	(0.40	)	$	(0.83	)	$	(0.28	)
Weighted average shares outstanding, basic and diluted	62.2			61.6			60.0

See accompanying notes to consolidated financial statements

51

AVIAT NETWORKS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

	Fiscal Year Ended
(In millions)	July 3, 2015			June 27, 2014			June 28, 2013
Net loss	$	(24.6	)	$	(51.1	)	$	(16.7	)
Other comprehensive income (loss):
Cash flow hedges:
Change in unrealized gain (loss) on cash flow hedges	0.4			(0.3		)	0.1
Reclassification adjustments for (gain) loss included in net loss	(0.4		)	0.2			—
Net change in unrealized gain (loss) on hedging activities	—			(0.1		)	0.1
Net change in cumulative translation adjustment	(5.6		)	0.5			0.6
Other comprehensive income (loss)	(5.6		)	0.4			0.7
Comprehensive loss	(30.2		)	(50.7		)	(16.0		)
Comprehensive income attributable to noncontrolling interests, net of tax	0.1			—			—
Comprehensive loss attributable to Aviat Networks	$	(30.3	)	$	(50.7	)	$	(16	)

See accompanying notes to consolidated financial statements

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AVIAT NETWORKS, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except share and par value amounts)	July 3, 2015			June 27, 2014
ASSETS
Current Assets:
Cash and cash equivalents	$	34.7		$	48.8
Accounts receivables, net	88.2			77.2
Unbilled costs	17.3			23.8
Inventories	32.9			38.1
Customer service inventories	6.2			11.4
Deferred income taxes	1.5			1.5
Other current assets	15.0			17.4
Total current assets	195.8			218.2
Property, plant and equipment, net	24.3			29.3
Identifiable intangible assets, net	—			0.4
Deferred income taxes	7.6			3.4
Other assets	1.7			1.9
TOTAL ASSETS	$	229.4		$	253.2
LIABILITIES AND EQUITY
Current Liabilities:
Short-term debt	$	9.0		$	6.0
Accounts payable	46.6			46.1
Accrued compensation and benefits	7.5			10.1
Other accrued expenses	19.7			23.1
Advance payments and unearned income	41.7			33.3
Deferred income taxes	0.2			0.2
Restructuring liabilities	3.9			2.8
Total current liabilities	128.6			121.6
Unearned income	8.6			8.5
Other long-term liabilities	2.2			5.0
Reserve for uncertain tax positions	1.4			1.0
Deferred income taxes	4.7			5.2
Total liabilities	145.5			141.3
Commitments and contingencies (Note 13)
Equity:
Aviat Networks stockholders’ equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued	—			—
Common stock, $0.01 par value; 300,000,000 shares authorized; 62,498,401 and 62,218,226 shares issued and outstanding as of as of July 3, 2015 and June 27, 2014, respectively	0.6			0.6
Additional paid-in-capital	809.2			807.0
Accumulated deficit	(717.5		)	(692.8		)
Accumulated other comprehensive loss	(8.5		)	(2.9		)
Total Aviat Networks stockholders’ equity	83.8			111.9
Noncontrolling interests	0.1			—
Total equity	83.9			111.9
TOTAL LIABILITIES AND EQUITY	$	229.4		$	253.2

See accompanying notes to consolidated financial statements

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AVIAT NETWORKS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Fiscal Year Ended
(In millions)	July 3, 2015			June 27, 2014			June 28, 2013
Operating Activities
Net loss	$	(24.6	)	$	(51.1	)	$	(16.7	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of identifiable intangible assets	0.4			0.4			1.0
Depreciation and amortization of property, plant and equipment	7.2			7.1			5.6
Provision for receivables	0.9			0.8			2.5
Share-based compensation	2.2			3.4			6.4
Deferred income taxes benefit	(4.7		)	(0.3		)	(0.2		)
Charges for inventory and customer service inventory write-downs	9.3			7.2			9.7
Gain on disposition of WiMAX business	(0.1		)	—			(0.4		)
Loss (gain) on disposition of property, plant and equipment, net	0.4			(0.1		)	(0.1		)
Changes in operating assets and liabilities:
Receivables	(13.5		)	8.2			1.9
Unbilled costs	6.1			5.1			(3.1		)
Inventories	(1.9		)	(7.0		)	13.6
Customer service inventories	2.3			1.5			0.9
Accounts payable	1.6			(2.7		)	(7.1		)
Accrued expenses	(4.1		)	(6.5		)	(1.5		)
Advance payments and unearned income	9.3			14.6			(14.1		)
Income taxes payable or receivable	1.4			(11.9		)	10.1
Other assets and liabilities	(1.2		)	2.0			(0.1		)
Net cash provided by (used in) operating activities	(9.0		)	(29.3		)	8.4
Investing Activities
Payments related to disposition of WiMAX business, net	—			—			(0.1		)
Payments for acquisition of property, plant and equipment	(3.7		)	(9.4		)	(10.4		)
Net cash used in investing activities	(3.7		)	(9.4		)	(10.5		)
Financing Activities
Proceeds from borrowings	54.0			—			—
Repayments of borrowings	(51.0		)	(2.8		)	(4.1		)
Proceeds from issuance of common stock under employee stock plans	—			0.1			0.3
Payments on capital lease obligations	(0.1		)	(0.1		)	(0.1		)
Net cash provided by (used in) financing activities	2.9			(2.8		)	(3.9		)
Effect of exchange rate changes on cash and cash equivalents	(4.3		)	0.3			—
Net decrease in cash and cash equivalents	(14.1		)	(41.2		)	(6.0		)
Cash and cash equivalents, beginning of year	48.8			90.0			96.0
Cash and cash equivalents, end of year	$	34.7		$	48.8		$	90.0
Supplemental disclosures of cash flow information:
Cash paid for interest	$	0.4		$	0.4		$	0.8
Cash paid for income taxes	$	2.0		$	14.7		$	3.0
Non-cash investing activities:
Property and equipment acquired under capital lease	$	—		$	—		$	0.4

See accompanying notes to consolidated financial statements

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AVIAT NETWORKS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

	Aviat Networks Stockholders’ Equity
	Common Stock			Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total Aviat Networks Stockholders’ Equity			Noncontrolling Interests		Total Equity
	Shares	$ Amount
	(In millions)
Balance as of June 29, 2012	61.3	$	0.6	$	796.8	$	(625.0	)	$	(4.0	)	$	168.4		$	—	$	168.4
Net loss	—	—		—		(16.7		)	—			(16.7		)	—		(16.7		)
Other comprehensive income, net	—	—		—		—			0.7			0.7			—		0.7
Issuance of common stock under employee stock plans	—	—		0.3		—			—			0.3			—		0.3
Share-based compensation	—	—		6.4		—			—			6.4			—		6.4
Balance as of June 28, 2013	61.3	0.6		803.5		(641.7		)	(3.3		)	159.1			—		159.1
Net loss	—	—		—		(51.1		)	—			(51.1		)	—		(51.1		)
Other comprehensive income, net	—	—		—		—			0.4			0.4			—		0.4
Issuance of common stock under employee stock plans	0.9	—		0.1		—			—			0.1			—		0.1
Share-based compensation	—	—		3.4		—			—			3.4			—		3.4
Balance as of June 27, 2014	62.2	0.6		807.0		(692.8		)	(2.9		)	111.9			—		111.9
Income (loss)	—	—		—		(24.7		)	—			(24.7		)	0.1		(24.6		)
Other comprehensive loss, net	—	—		—		—			(5.6		)	(5.6		)	—		(5.6		)
Issuance of common stock under employee stock plans	0.3	—		—		—			—			—			—		—
Share-based compensation	—	—		2.2		—			—			2.2			—		2.2
Balance as of July 3, 2015	62.5	$	0.6	$	809.2	$	(717.5	)	$	(8.5	)	$	83.8		$	0.1	$	83.9

See accompanying notes to consolidated financial statements

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AVIAT NETWORKS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. The Company and Summary of Significant Accounting Policies

The Company

We design, manufacture and sell a range of wireless networking solutions and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast system operators across the globe. Our products include broadband wireless access base stations and customer premises equipment for fixed and mobile, point-to-point digital microwave radio systems for access, backhaul, trunking and license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades.

We were incorporated in Delaware in 2006 to combine the businesses of Harris Corporation’s Microwave Communications Division (“MCD”) and Stratex Networks, Inc. (“Stratex”). On January 28, 2010, we changed our corporate name from Harris Stratex Networks, Inc. to Aviat Networks, Inc. (“Aviat Networks,” “we,” “us,” and “our”) to more effectively reflect our business and communicate our brand identity to customers. Additionally, the change of our corporate name was to comply with the termination of the Harris Corporation (“Harris”) trademark licensing agreement resulting from the spin-off by Harris of its interest in our stock to its stockholders in May 2009.

Basis of Presentation

The consolidated financial statements include the accounts of Aviat Networks and its wholly-owned and majority owned subsidiaries. Significant intercompany transactions and accounts have been eliminated.

Our fiscal year ends on the Friday nearest June 30. This was July 3 for fiscal 2015, June 27 for fiscal 2014 and June 28 for fiscal 2013. Fiscal year 2015 included 53 weeks and fiscal years 2014 and 2013 presented each included 52 weeks. In these notes to consolidated financial statements, we refer to our fiscal years as “fiscal 2015”, “fiscal 2014” and “fiscal 2013.”

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for doubtful accounts, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, restructuring obligations, product warranty obligations, share-based awards, contingencies and useful lives of property, plant and equipment.

Reclassifications

Certain amounts in the fiscal 2014 and 2013 financial statements have been reclassified to conform with fiscal 2015 presentation.

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are carried at amortized cost, which approximates fair value due to the short-term nature of these investments. We hold cash and cash equivalents at several major financial institutions, which often significantly exceed Federal Deposit Insurance Corporation insured limits. However, a substantial portion of the cash equivalents is invested in prime money market funds which are backed by the securities in the fund.

We may invest our excess cash in high-quality marketable debt securities to ensure that cash is readily available for use in our current operations. Investments with original maturities greater than three months but less than one year are accounted for as short-term and are classified as such at the time of purchase. Marketable securities are classified as

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“available-for-sale” and are classified as short-term because we view our entire portfolio as available for use in our current operations.

As of July 3, 2015 and June 27, 2014, all of our high-quality marketable debt securities were invested in prime money market funds and were classified as cash equivalents.

Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of contractual agreements are recorded as restricted cash. At July 3, 2015, restricted cash included cash balances in our disability insurance voluntary plan account that cannot be used by us for any operating purposes other than to pay benefits to the insured employees and was recorded in other assets in our consolidated balance sheets. The corresponding liabilities were included in other long-term liabilities in our consolidated balance sheets.

Significant Concentrations

We typically invoice our customers for the sales order (or contract) value of the related products delivered at various milestones, including order receipt, shipment, installation and acceptance and for services when rendered. Our trade receivables are derived from sales to customers located in North America, Africa, Europe, the Middle East, Russia, Asia-Pacific and Latin America.

Accounts receivable is presented net of allowance for estimated uncollectible accounts to reflect any loss anticipated on the collection of accounts receivable balances. We calculate the allowance based on our history of write-offs, level of past due accounts and the economic status of the customers. The fair value of our accounts receivable approximates their net realizable value.

We regularly require letters of credit from some customers and, from time to time, we discount these letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Under these arrangements, collection risk is fully transferred to the financial institutions. We record the financing charges on discounting these letters of credit as interest expense. Total customer letters of credit discounted and related interest expense were as follows:

	Fiscal Year
(In millions)	2015		2014		2013
Customer letters of credit discounted	$	11.6	$	1.8	$	36.8
Interest expense	$	0.1	$	—	$	0.2

During fiscal 2015, 2014 and 2013, we had one international customer in Africa, Mobile Telephone Networks Group (“MTN Group”) that accounted for 14%, 17% and 25%, respectively, of our total revenue. In addition, Verizon Wireless accounted for 11% of our total revenue during fiscal 2013. As of July 3, 2015 and June 27, 2014, MTN Group accounted for approximately 10% and 17%, respectively, of our accounts receivable. No other customers accounted for more than 10% of our revenue or accounts receivable for the years presented.

Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash equivalents, marketable debt securities, trade accounts receivable and financial instruments used in foreign currency hedging activities. We invest our excess cash primarily in prime money market funds and certificates of deposit. We are exposed to credit risks related to such instruments in the event of default or decrease in credit-worthiness of the issuers of the investments.

We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable, as the majority of our customers are large, well-established companies. However, in certain circumstances, we may require letters of credit, additional guarantees or advance payments. We maintain allowances for collection losses, but historically have not experienced any significant losses related to any particular geographic area. Our customers are primarily in the telecommunications industry, so our accounts receivable are concentrated within one industry and exposed to concentrations of credit risk within that industry. Accounts receivable are written off when attempts to collect outstanding amounts have been exhausted or there are other indicators that the amounts are no longer collectible.

We rely on third parties to manufacture our products and we purchase raw materials from third-party vendors. We outsourced our manufacturing services to two independent manufacturers. In addition, we purchase certain strategic component inventory which is consigned to our third-party manufacturers. Other components included in our products

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are sourced from various suppliers and are principally industry standard parts and components that are available from multiple vendors. The inability of a contract manufacturer or supplier to fulfill our supply requirements or changes in their financial or business condition could disrupt our ability to supply quality products to our customers, and thereby may have a material adverse effect on our business and operating results.

We have entered into agreements relating to our foreign currency contracts with large, multinational financial institutions. The amounts subject to credit risk arising from the possible inability of any such parties to meet the terms of their contracts are generally limited to the amounts, if any, by which such party’s obligations exceed our obligations to that party.

Inventories

Inventories are valued at the lower of cost or market. Cost is determined using standard cost, which approximates actual cost on a weighted-average basis. We regularly review inventory quantities on hand and record adjustments to reduce the cost of inventory for excess and obsolete inventory based primarily on our estimated forecast of product demand and production requirements. Inventory adjustments are measured as the difference between the cost of the inventory and estimated market value based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Customer Service Inventories

Our customer service inventories are stated at the lower of cost or market. We carry service parts because we generally provide product warranty for 12 to 36 months and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Customer service inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. We record adjustments to reduce the carrying value of customer service inventories to their net realizable value. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates.

Property, Plant and Equipment

Property, plant and equipment are stated on the basis of cost less accumulated depreciation and amortization. We capitalize costs of software, consulting services, hardware and other related costs incurred to purchase or develop internal-use software. We expense costs incurred during preliminary project assessment, re-engineering, training and application maintenance. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the remaining current lease term, or estimated life, if shorter.

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvements. The useful lives of the assets are generally as follows:

Buildings	40 years
Leasehold improvements	2 to 10 years
Software	3 to 5 years
Machinery and equipment	2 to 5 years

Expenditures for maintenance and repairs are charged to expense as incurred. Cost and accumulated depreciation of assets sold or retired are removed from the respective property accounts, and any gain or loss is reflected in the consolidated statements of operations.

Impairment of Long-Lived Assets

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment exists, the impairment loss

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is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups.

Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The actual cash flows realized from these assets may vary significantly from our estimates due to increased competition, changes in technology, fluctuations in demand, consolidation of our customers, reductions in average selling prices and other factors. Assumptions underlying future cash flow estimates are therefore subject to significant risks and uncertainties.

Other Accrued Expenses and Other Assets

No accrued liabilities or expenses within other accrued expenses in our consolidated balance sheets exceeded 5% of our total current liabilities as of July 3, 2015 or June 27, 2014. Other accrued expenses in our consolidated balance sheets primarily consists of accruals for sales commissions, warranties and severance. No current assets other than those already disclosed in the consolidated balance sheets exceeded 5% of our total current assets as of July 3, 2015 or June 27, 2014. No assets within other assets in the consolidated balance sheets exceeded 5% of total assets as of July 3, 2015 or June 27, 2014.

Warranties

On product sales we provide for future warranty costs upon product delivery. The specific terms and conditions of those warranties vary depending upon the product sold and country in which we do business. In the case of products sold by us, our warranties generally start from the delivery date and continue for one to three years, depending on the terms.

Many of our products are manufactured to customer specifications and their acceptance is based on meeting those specifications. Factors that affect our warranty liabilities include the number of product units subject to warranty protection, historical experience and management’s judgment regarding anticipated rates of warranty claims and cost per claim. We assess the adequacy of our recorded warranty liabilities every quarter and make adjustments to the liabilities as necessary.

Noncontrolling interests

A noncontrolling interest represents the equity interest in a subsidiary that is not attributable, either directly or indirectly, to Aviat Networks and is reported as our equity, separately from our controlling interests. Revenues, expenses, gains, losses, net income (loss) and other comprehensive income (loss) are reported in the consolidated financial statements at the consolidated amounts, which include the amounts attributable to both the controlling and noncontrolling interests.

Operating Leases

We lease facilities and equipment under various operating leases. These lease agreements generally include rent escalation clauses, and many include renewal periods at our option. We recognize expense for scheduled rent increases on a straight-line basis over the lease term beginning with the date we take possession of the leased space. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the current lease term, or estimated life, if shorter.

Foreign Currency Translation

The functional currency of our subsidiaries located in the United Kingdom, Singapore, Mexico, Algeria and New Zealand is the U.S. dollar. Determination of the functional currency is dependent upon the economic environment in which an entity operates as well as the customers and suppliers the entity conducts business with. Changes in facts and circumstances may occur which could lead to a change in the functional currency of that entity. Accordingly, all of the monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars at the current exchange rate as of the applicable balance sheet date, and all non-monetary assets and liabilities are re-measured at historical rates. Income and expenses are re-measured at the average exchange rate prevailing during the period. Gains and losses resulting from the re-measurement of these subsidiaries’ financial statements are included in the consolidated statements of operations.

Our other international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of these subsidiaries are translated at the local current exchange rates in effect at the balance sheet date, and

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income and expense accounts are translated at the average exchange rates during the period. The resulting translation adjustments are included in accumulated other comprehensive loss.

Gains and losses resulting from foreign exchange transactions and translation of monetary assets and liabilities in non-functional currencies are included in cost of product sales and services in the accompanying consolidated statements of operations. Net foreign exchange losses recorded in our consolidated statements of operations during fiscal 2015, 2014 and 2013 totaled $3.3 million, $0.8 million and $1.5 million, respectively.

Retirement Benefits

As of July 3, 2015, we provided retirement benefits to substantially all employees primarily through our defined contribution retirement plans. These plans have matching and savings elements. Contributions by us to these retirement plans are based on profits and employees’ savings with no other funding requirements. We halted making matching contributions to the U.S. plan from the second quarter of fiscal 2014 through the end of fiscal 2015. We may make additional contributions to the plans at our discretion.

Contributions to retirement plans are expensed as incurred. Retirement plan expense amounted to $1.7 million, $2.5 million and $2.9 million in fiscal 2015, 2014 and 2013, respectively.

Revenue Recognition

We generate substantially all of our revenue from the sales or licensing of our microwave radio and wireless access systems, network management software, and professional services including installation and commissioning and training. Principal customers for our products and services include domestic and international wireless/mobile service providers, original equipment manufacturers, distributors, system integrators, as well as private network users such as public safety agencies, government institutions, and utility, pipeline, railroad and other industrial enterprises that operate broadband wireless networks. Our customers generally purchase a combination of our products and services as part of a multiple element arrangement. Our assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment.

Revenue from product sales is generated predominately from the sales of products manufactured by third party manufacturers to whom we have outsourced our manufacturing processes. In general, printed circuit assemblies, mechanical housings, and packaged modules are manufactured by contract manufacturing partners, with periodic business reviews of material levels and obsolescence. Product assembly, product testing, complete system integration and system testing may either be performed within our own facilities or at the locations of our third party manufacturers.

Revenue from services includes certain installation, extended warranty, customer support, consulting, training and education. It also can include certain revenue generated from the resale of equipment purchased on behalf of customers for installation service contracts we perform for customers. Such equipment may include towers, antennas, and other related materials. Revenue from warranty services are recognized ratably over the service period.

Under our revenue recognition policy, revenue is recognized when all of the following criteria have been met:

• Persuasive evidence of an arrangement exists. Contracts and/or customer purchase orders are generally used to determine the existence of an arrangement.

• Delivery has occurred or services have been delivered. Shipping documents and customer acceptance, when applicable, are used to verify delivery.

• The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.

• Collectibility is reasonably assured. We assess collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history.

We often enter into multiple contractual agreements with the same customer. Such agreements are reviewed to determine whether they should be evaluated as one arrangement. If an arrangement, other than a long-term contract, requires the delivery or performance of multiple deliverables or elements, we determine whether the individual elements represent “separate units of accounting”. Based on the terms and conditions of our typical product sales arrangement, we believe that our products and services can be accounted for as separate units because our products and services have value to our customers on a stand-alone basis.

When a sale involves multiple deliverables, the entire fee from the arrangement is allocated to each unit of accounting based on the relative selling price of each deliverable. When applying the relative selling price method, the

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accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). Generally, we are not able to determine TPE because our go-to-market strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. When we are unable to establish a selling price using VSOE or TPE, we use ESP to allocate the arrangement fees to the deliverables. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for each element. There is generally no customer right of return in our sales agreements. The sequence for typical multiple element arrangements: we deliver our products, perform installation services and then provide post-contract support services.

ESP is determined by considering a number of factors including our pricing policies, internal costs and gross margin objectives, method of distribution, information gathered from experience in customer negotiations, market research and information, recent technological trends, competitive landscape and geographies. The determination of ESP is approved by our management taking into consideration our pricing strategy. We regularly review VSOE, TPE and ESP and maintain internal controls over the establishment and updating of these estimates.

Revenues related to long-term contracts for customized network solutions are recognized using the percentage-of-completion method. In using the percentage-of-completion method, we generally apply the cost-to-cost method of accounting where sales and profits are recorded based on the ratio of costs incurred to estimated total costs at completion. Recognition of profit on long-term contracts requires estimates of the total contract value, the total cost at completion and the measurement of progress towards completion. Significant judgment is required when estimating total contract costs and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Amounts representing contract change orders, claims or other items are included in sales only when they can be reliably estimated and realization is probable. When adjustments in contract value or estimated costs are determined, any changes from prior estimates are reflected in earnings in the current period. Anticipated losses on contracts or programs in progress are charged to earnings when identified. We establish billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled costs in our consolidated balance sheets.

We also consider whether contracts should be combined when specific aggregation criteria are met including when the contracts are in substance an arrangement to perform a single project with a customer; the contracts are negotiated as a package in the same economic environment with an overall profit objective; and the contracts require interrelated activities with common costs that cannot be separately identified with, or reasonably allocated to the elements, phases or units of output and the contracts are performed concurrently or in a continuous sequence under the same project management at the same location or at different locations in the same general vicinity.

Royalty income is recognized on the basis of terms specified in the contractual agreements.

Cost of Product Sales and Services

Cost of sales consists primarily of materials, labor and overhead costs incurred internally and amounts incurred for contract manufacturers to produce our products, personnel and other implementation costs incurred to install our products and train customer personnel, and customer service and third party original equipment manufacturer costs to provide continuing support to our customers. Also included in cost of sales is the amortization of purchased technology intangible assets.

Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because we include in revenue the related costs that we bill our customers.

Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities

We present transactional taxes such as sales and use tax collected from customers and remitted to governmental authorities on a net basis.

Research and Development Costs

Our sponsored research and development costs, which include costs in connection with new product development, improvement of existing products, process improvement, and product use technologies, are charged to operations in the period in which they are incurred.

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Share-Based Compensation

We have issued stock options, restricted stock and performance shares under our 2007 Stock Equity Plan and have assumed stock options from the acquisition of Stratex. We estimate the grant date fair value of our share-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term.

To estimate the fair value of our stock option awards, we use the Black-Scholes option pricing model. The determination of the fair value of stock option awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. Due to the inherent limitations of option valuation models, including consideration of future events that are unpredictable and the estimation process utilized in determining the valuation of the share-based awards, the ultimate value realized by our employees may vary significantly from the amounts expensed in our financial statements. For restricted stock and performance share awards, we measure the grant date fair value based upon the market price of our common stock on the date of the grant.

We generally recognize compensation cost for share-based payment awards on a straight-line basis over the requisite service period. For awards with a performance condition vesting feature, we recognize share-based compensation costs for the performance awards when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved.

We estimate forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ significantly from initial estimates. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those share-based awards that are expected to vest.

Cash flows, if any, resulting from the gross benefit of tax deductions related to share-based compensation in excess of the grant date fair value of the related share-based awards are presented as part of cash flows from financing activities. This amount is shown as a reduction to cash flows from operating activities and an increase to cash flow from financing activities.

Restructuring Charges

Our restructuring charges represent expenses incurred in connection with certain cost reduction programs that we have implemented, and consist of the costs of employee termination costs, lease and other contract termination charges and other costs of exiting activities or geographies. A liability for costs associated with an exit or disposal activity is measured at its fair value when the liability is incurred. Expenses for one-time termination benefits are recognized at the date we notify the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. We recognize severance benefits provided as part of an ongoing benefit arrangement when the payment is probable and the amounts can be reasonably estimated. Liabilities related to termination of an operating lease or contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates include anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. We expense all other costs related to an exit or disposal activity as incurred.

Income Taxes and Related Uncertainties

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement and tax bases of assets and liabilities, as measured by tax rates at which temporary differences are expected to reverse as well as operating loss and tax credit carry forwards. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. A valuation allowance is established to offset any deferred tax assets if, based upon the available information, it is more likely than not that some or all of the deferred tax assets will not be realized.

We are required to compute our income taxes in each federal, state, and international jurisdiction in which we operate. This process requires that we estimate the current tax exposure as well as assess temporary differences between the accounting and tax treatment of assets and liabilities, including items such as accruals and allowances not currently deductible for tax purposes as well as operating loss and tax credit carry forwards. The income tax effects of the

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differences we identify are classified as current or long-term deferred tax assets and liabilities in our consolidated balance sheets. Our judgments, assumptions, and estimates relative to the current provision for income taxes take into account current tax laws, our interpretation of current tax laws, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. Changes in tax laws or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our consolidated balance sheets and consolidated statements of operations. We must also assess the likelihood that deferred tax assets will be realized from future taxable income and, based on this assessment, establish a valuation allowance, if required. Our determination of our valuation allowance is based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic and international jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation allowance in a period, we reflect the change with a corresponding increase or decrease to our tax provision in our consolidated statements of operations.

We use a two-step process to determine the amount of tax benefit to be recognized. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

Recently Issued Accounting Standards

On May 28, 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of the new revenue standard from December 15, 2016 to December 15, 2017, with early adoption permitted before annual periods beginning after December 15, 2016. Accordingly, the new standard is effective for us beginning in our fiscal year 2019. The principles may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the transition methods and the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures.

In July 2015, the FASB issued ASU No. 2015-11 (Subtopic 330) - Simplifying the Measurement of Inventory, which provides guidance to companies who account for inventory using either the first-in, first-out (“FIFO”) or average cost methods. The guidance states that companies should measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures.

In August 2014, FASB issued a new standard on the disclosure of uncertainties about an entity’s ability to continue as a going concern. The guidance seeks to define management’s responsibility to decide whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures.

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Note 2. Revision of Prior Years Consolidated Financial Statements

During the fourth quarter of fiscal year 2015, we identified and corrected errors that originated in prior periods and assessed the materiality of the errors using quantitative and qualitative factors. The errors misstated our accrued liability related to cost of services revenue. In prior years, we estimated certain direct costs related to service projects and recorded the related accrued liabilities. During the fourth quarter of fiscal 2015, we recomputed our accruals for service arrangements based on actual service work performed at the end of each reporting periods, including interim periods, and determined that the prior methodology was misstating our costs and accrued liabilities for the work performed on service projects. 

Based on the analysis, we determined that the errors were immaterial to each of the prior reporting periods affected. However, we have concluded that correcting the errors in fiscal 2015 would materially misstate our fiscal 2015 consolidated financial statements. Accordingly, we have reflected the corrections of the prior period errors in the periods in which they originated and revised our consolidated balance sheet as of June 27, 2014 and our consolidated statements of operations, comprehensive loss, cash flows and equity for the years ended June 27, 2014 and June 28, 2013.

The total effects of the error corrections on our consolidated balance sheet as of June 27, 2014 and on our accumulated deficit as of June 29, 2012 were as follows:

	Previously Reported			Correction			Revised
	(In millions)
As of June 27, 2014:
Other accrued expenses	$	32.4		$	(9.3	)	$	23.1
Total current liabilities	$	130.9		$	(9.3	)	$	121.6
Total liabilities	$	150.6		$	(9.3	)	$	141.3
Accumulated deficit	$	(702.1	)	$	9.3		$	(692.8	)
Accumulated other comprehensive loss	$	(2.9	)	$	—		$	(2.9	)
Total Aviat Networks stockholders’ equity	$	102.6		$	9.3		$	111.9
Total equity	$	102.6		$	9.3		$	111.9
As of June 29, 2012:
Accumulated deficit	$	(635.9	)	$	10.9		$	(625.0	)

The effects of the error corrections on our consolidated statements of operations and comprehensive loss for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Cost of services	$	88.2		$	(0.1	)	$	88.1		$	91.6		$	1.7		$	93.3
Total cost of revenues	260.9			(0.1		)	260.8			331.2			1.7			332.9
Gross margin	85.1			0.1			85.2			140.1			(1.7		)	138.4
Operating income (loss)	(50.7		)	0.1			(50.6		)	1.7			(1.7		)	—
Income (loss) from continuing operations    before income taxes	(50.6		)	0.1			(50.5		)	2.4			(1.7		)	0.7
Loss from continuing operations	(52.1		)	0.1			(52.0		)	(10.9		)	(1.7		)	(12.6		)
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Comprehensive loss	$	(50.8	)	$	0.1		$	(50.7	)	$	(14.3	)	$	(1.7	)	$	(16.0	)

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The effects of the error corrections on our consolidated statements of cash flows for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Operating Activities
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Changes in operating assets and liabilities:
Accrued expenses	$	(6.4	)	$	(0.1	)	$	(6.5	)	$	(3.2	)	$	1.7		$	(1.5	)
Net cash provided by (used in) operating     activities	$	(29.3	)	$	—		$	(29.3	)	$	8.4		$	—		$	8.4

Note 3. Accumulated Other Comprehensive Loss

The changes in components of our accumulated other comprehensive loss during fiscal 2015, 2014 and 2013 were as follows:

	Foreign Currency Translation Adjustment (“CTA”)			Hedging Derivatives			Total Accumulated Other Comprehensive Income (Loss)
	(In millions)
Balance as of June 29, 2012	$	(4.0	)	$	—		$	(4.0	)
Other comprehensive income (loss) before reclassification	0.6			0.1			0.7
(Gain) loss reclassified out of accumulated other comprehensive loss	—			—			—
Balance as of June 28, 2013	(3.4		)	0.1			(3.3		)
Other comprehensive income (loss) before reclassification	0.5			(0.3		)	0.2
(Gain) loss reclassified out of accumulated other comprehensive loss	—			0.2			0.2
Balance as of June 27, 2014	(2.9		)	—			(2.9		)
Other comprehensive income (loss) before reclassification	(5.6		)	0.4			(5.2		)
(Gain) loss reclassified out of accumulated other comprehensive loss	—			(0.4		)	(0.4		)
Balance as of July 3, 2015	$	(8.5	)	$	—		$	(8.5	)

In fiscal 2015, 2014 and 2013, the realized gain or loss on cash flow hedges were reclassified out of accumulated other comprehensive loss into the following line item locations in our consolidated statements of operations:

	Fiscal Year
	2015		2014			2013
	(In millions)
Reclassification adjustment for gain (loss) on cash flow hedges included in:
Revenues	$	0.4	$	(0.2	)	$	(0.1	)
Cost of revenues	—		—			0.1
	$	0.4	$	(0.2	)	$	—

Beginning the fourth quarter of fiscal 2015, we no longer prepared contemporaneous documentation of hedges therefore the foreign exchange hedges no longer qualified as cash flow hedge. The changes in fair value related to the hedges were very insignificant for fiscal 2015 and were recorded in income or expense line item on our statements of operations to which the hedged transaction related.

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Note 4.    Net Loss per Share of Common Stock

We compute net income (loss) per share attributable to Aviat Networks’ common stockholders using the two-class method. Basic net income (loss) per share is computed using the weighted average number of common shares and participating securities outstanding during the period. Our unvested restricted shares contain rights to receive non-forfeitable dividends and therefore are considered to be participating securities and would be included in the calculations of net income per basic and diluted common share. However, we incurred a net loss in all periods presented. In accordance with ASC subtopic 260-10, undistributed losses are not allocated to unvested restricted shares due to the fact that the unvested restricted shares are not contractually obligated to share in the losses of the company.

As we incurred net loss for all periods in fiscal 2015, 2014 and 2013, the effect of outstanding stock options, restricted stocks and units and performance shares and units were anti-dilutive and therefore were excluded from the diluted net loss per share calculations. The following table summarizes the potential shares of common stock that were excluded from the diluted net loss per share calculations:

	Fiscal Year
	2015	2014	2013
	(In millions)
Stock options	7.4	7.5	6.2
Restricted stocks and units and performance shares and units	1.8	0.4	2.2
Total potential shares of common stock excluded	9.2	7.9	8.4

Note 5. Balance Sheet Components

Accounts Receivables, net

Our net accounts receivable is summarized below:

	July 3, 2015			June 27, 2014
	(In millions)
Accounts receivable	$	94.9		$	84.6
Less: allowances for collection losses	(6.7		)	(7.4		)
	$	88.2		$	77.2

Inventories

Our inventories are summarized below:

	July 3, 2015		June 27, 2014
	(In millions)
Finished products	$	21.1	$	25.3
Work in process	3.8		5.3
Raw materials and supplies	8.0		7.5
	$	32.9	$	38.1
Deferred cost of revenue included within finished goods	$	5.6	$	3.2
Consigned inventories included within raw materials	$	6.8	$	6.6

During fiscal 2015, 2014 and 2013, we recorded charges to adjust our inventory and customer service inventory to the lower of cost or market. These charges were primarily due to excess and obsolete inventory resulting from product transitioning and discontinuance or customer insolvency. Such charges incurred during fiscal 2015, 2014 and 2013 were classified in cost of product sales as follows:

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	Fiscal Year
	2015			2014			2013
	(In millions)
Excess and obsolete inventory charges	$	6.4		$	4.0		$	4.0
Customer service inventory write-downs	2.9			3.2			1.5
	$	9.3		$	7.2		$	5.5
As % of revenue	2.8		%	2.1		%	1.2		%

During fiscal 2013, we also incurred $4.2 million charges to write down deferred cost of revenue that were unlikely to derive revenue due to disposition of our WiMAX business. The charges were included in discontinued operations in our consolidated statement of operations for fiscal 2013.

Property, Plant and Equipment, net

Our property, plant and equipment, net are summarized below :

	July 3, 2015			June 27, 2014
	(In millions)
Land	$	0.7		$	0.7
Buildings and leasehold improvements	9.7			10.3
Software	13.6			13.2
Machinery and equipment	45.2			47.1
	69.2			71.3
Less accumulated depreciation and amortization	(44.9		)	(42.0		)
	$	24.3		$	29.3

Depreciation and amortization expense related to property, plant and equipment, including amortization of internal use software , was $7.2 million, $7.1 million and $5.6 million, respectively, in fiscal 2015, 2014 and 2013.

Accrued Warranties

We accrue for the estimated cost to repair or replace products under warranty. Changes in our warranty liability, which is included as a component of other accrued expenses in the consolidated balance sheets, during fiscal 2015 and 2014 were as follows:

	Fiscal Year
	2015			2014
	(In millions)
Balance as of the beginning of the fiscal year	$	3.8		$	3.3
Warranty provision recorded during the period	5.6			5.2
Consumption during the period	(5.2		)	(4.7		)
Balance as of the end of the period	$	4.2		$	3.8

Note 6. Fair Value Measurements of Assets and Liabilities

We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants as of the measurement date. We maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value and establish a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows:

• Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities;

• Level 2 — Observable market-based inputs or observable inputs that are corroborated by market data; and

• Level 3 — Unobservable inputs reflecting our own assumptions.

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The carrying amounts, estimated fair values and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of July 3, 2015 and June 27, 2014 were as follows:

	July 3, 2015				June 27, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
	(In millions)
Assets:
Cash equivalents:
Bank certificates of deposit	$	0.6	$	0.6	$	3.5	$	3.5	Level 2
Money market funds	$	12.5	$	12.5	$	10.2	$	10.2	Level 1

We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items include shares in money market funds purchased from two major financial institutions. As of July 3, 2015, these money market shares were valued at $1.00 net asset value per share by these financial institutions.

We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. The assets and liabilities related to our foreign currency forward contracts were not material as of July 3, 2015 and June 27, 2014. We did not have any recurring assets whose fair value was measured using significant unobservable inputs.

Our policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During fiscal 2015, 2014 and 2013, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

Note 7. Credit Facility and Debt

On March 28, 2014, we entered into a Second Amended and Restated Loan Agreement with Silicon Valley Bank (as amended, the “SVB Credit Facility”). The SVB Credit Facility was amended on September 25, 2014, October 30, 2014 and December 2, 2014 to provide for extensions to the deadline for preparing and filing our fiscal 2014 financial statements with the Securities and Exchange Commission (the “SEC”). On February 27, 2015, the SVB Credit Facility was further amended to provide for certain amendments to the financial covenants, borrowing base and an early termination fee if the SVB Credit Facility is terminated prior to its expiration. This agreement amends and restates our existing First Amended and Restated Loan and Security Agreement, which was entered into on September 27, 2013 and amended providing for certain amendments to the maximum borrowing limit and financial covenants. As of July 3, 2015 and June 27, 2014, our outstanding debt balance under the SVB Credit Facility was $9.0 million and $6.0 million, respectively, and the weighted average interest rate was the same at 3.75%.

The SVB Credit Facility provides for a committed amount of up to $40.0 million, with a $30.0 million sublimit that can be borrowed by our Singapore subsidiary. Borrowings may be advanced under the SVB Credit Facility at the lesser of $40.0 million or a borrowing base equal to a specified percentage of the value of eligible accounts receivable and U.S. unbilled accounts of the Company, subject to certain reserves and eligibility criteria. The SVB Credit Facility can also be utilized to issue letters of credit. Principal, together with all accrued and unpaid interest, is due and payable on September 26, 2016. If the SVB Credit Facility is terminated by us in certain circumstances prior to its expiration, we are subject to an early termination fee equal to 1% of the revolving line. As of July 3, 2015, available credit under the SVB Credit Facility was $26.9 million reflecting the calculated borrowing base of $40.0 million less existing borrowings of $9.0 million and outstanding letters of credit of $4.1 million.

Borrowings under the SVB Credit Facility carry an interest rate computed at the daily prime rate as published in the Wall Street Journal plus a spread of 0.50% to 1.50%, with such spread determined based on our adjusted quick ratio. If a minimum adjusted quick ratio requirement is satisfied, LIBOR advances are offered at LIBOR plus a spread of 2.75%. Interest is due and payable in arrears monthly for prime rate loans and, for LIBOR rate loans, at the end of an interest period or at each three-month interval if the interest period is greater than three months. During fiscal 2015, the weighted average interest rate on our outstanding loan was 3.75%.

The SVB Credit Facility contains quarterly financial covenants including minimum adjusted quick ratio and minimum profitability (EBITDA) requirements. In the event our adjusted quick ratio falls below a certain level, cash

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received in our accounts with SVB may be directly applied to reduce outstanding obligations under the SVB Credit Facility. The SVB Credit Facility also imposes certain restrictions on our ability to dispose of assets, permit a change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments, make certain restricted payments and enter into transactions with affiliates under certain circumstances. Certain of our assets, including accounts receivable, inventory, and equipment, are pledged as collateral for the SVB Credit Facility. Upon an event of default, outstanding obligations would be immediately due and payable. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default at a per annum rate of interest equal to 2.00% above the applicable interest rate.

As of July 3, 2015 and June 27, 2014, we were in compliance with the quarterly financial covenants contained in the SVB Credit Facility. However, as a result of uncertainty on our ability to meet the financial covenants in future and the fact that the SVB Credit Facility contains subjective acceleration clauses that could be triggered by the lender, the $9.0 million borrowing was classified as a current liability as of July 3, 2015 and June 27, 2014.

During the fourth quarter of fiscal 2015, we obtained an uncommitted short-term line of credit of $0.4 million from a bank in New Zealand to support the operations of our subsidiary located there. This line of credit provides for $0.3 million in short-term advances at various interest rates, all of which was available as of July 3, 2015. The line of credit also provides for the issuance of standby letters of credit and company credit cards, of which $0.1 million was outstanding as of July 3, 2015. This facility may be terminated upon notice, is reviewed annually for renewal or modification, and is supported by a corporate guarantee.

Note 8. Restructuring Activities

Fiscal 2015-2016 Plan

During the third quarter of fiscal 2015, with the intent to bring our operational cost structure in line with the changing dynamics of the microwave radio and telecommunications markets, we initiated a restructuring plan (the “Fiscal 2015-2016 Plan”) to lower fixed overhead costs and operating expenses and to preserve cash flow. Activities under the Fiscal 2015-2016 Plan primarily include reductions in force across the Company, but primarily in operations outside the United States.

The following table summarizes our costs incurred during fiscal 2015, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2015-2016 Plan:

	Costs Incurred During  Fiscal Year Ended		Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015
	(in millions)
Severance and benefits	$	2.8	$	2.8	$	1.4	$	4.2
Facilities and other	0.6		0.6		0.2		0.8
Total for Fiscal 2015-2016 Plan	$	3.4	$	3.4	$	1.6	$	5.0

During fiscal 2015, we recorded $2.8 million in severance and related benefits costs and $0.6 million for a Slovenia government fund penalty charge related to the workforce reduction. We intend to substantially complete the remaining restructuring activities under the Fiscal 2015-2016 Plan by the first half of fiscal 2016.

Fiscal 2014-2015 Plan

During the third quarter of fiscal 2014, in line with the decrease in revenue that we experienced and our reduced forecast for the immediate future, we initiated a restructuring plan (the “Fiscal 2014-2015 Plan”) to reduce our operating costs, primarily in North America, Europe and Asia. Activities under the Fiscal 2014-2015 Plan primarily include reductions in force and additional facility downsizing of our Santa Clara, California headquarters.

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The following table summarizes our costs incurred during fiscal 2014, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2014-2015 Plan:

	Costs Incurred During  Fiscal Year Ended				Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015		June 27, 2014
	(in millions)
Severance and benefits	$	—	$	5.4	$	5.4	$	—	$	5.4
Facilities and other	1.4		0.4		1.8		0.3		2.1
Total for Fiscal 2014-2015 Plan	$	1.4	$	5.8	$	7.2	$	0.3	$	7.5

We have substantially completed the restructuring activities under the Fiscal 2014-2015 Plan as of July 3, 2015. The remaining additional costs to be incurred under the Fiscal 2014-2015 Plan primarily included our facility costs related to the cease-to-use space at our Santa Clara, California headquarters through the remaining lease term.

Fiscal 2013-2014 Plan

During the fourth quarter of fiscal 2013, we initiated a restructuring plan (the “Fiscal 2013-2014 Plan”) that was intended to reduce our operating expenses primarily in North America, Europe and Asia. Activities under the Fiscal 2013-2014 Plan included reductions in force and facility downsizing of our Santa Clara, California headquarters and certain international field offices.

The following table summarizes our costs incurred during fiscal 2014 and 2013, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2013-2014 Plan:

	Costs Incurred During  Fiscal Year Ended						Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015		June 27, 2014		June 28, 2013
	(in millions)
Severance and benefits	$	—	$	1.0	$	1.8	$	2.8	$	—	$	2.8
Facilities and other	0.1		4.3		—		4.4		0.6		5.0
Total for Fiscal 2013-2014 Plan	$	0.1	$	5.3	$	1.8	$	7.2	$	0.6	$	7.8

We have substantially completed the restructuring activities under the Fiscal 2013-2014 Plan as of June 27, 2014. The remaining additional costs to be incurred under the Fiscal 2013-2014 Plan primarily included our facility costs related to the cease-to-use space at our Santa Clara, California headquarters through the remaining lease term.

Fiscal 2011 Plan

During the first quarter of fiscal 2011, we initiated a restructuring plan (the “Fiscal 2011 Plan”) to reduce our operational costs. The Fiscal 2011 Plan was intended to bring our cost structure in line with the changing dynamics of the worldwide microwave radio and telecommunication markets, primarily in North America, Europe and Asia. Activities under the Fiscal 2011 Plan included reductions in force to reduce our operating expenses and the downsizing or closure of our Morrisville, North Carolina, Santa Clara, California, Montreal, Canada and certain international field offices.

The following table summarizes our costs incurred during fiscal 2013 and 2012 and total costs incurred under the Fiscal 2011 Plan:

	Costs Incurred During  Fiscal Year Ended		Cumulative Costs Incurred Through June 28, 2013
	June 28, 2013
Severance and benefits	$	1.2	$	12.6
Facilities and other	0.1		3.7
Total for Fiscal 2011 Plan	$	1.3	$	16.3

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The initiatives under the Fiscal 2011 Plan were completed in fiscal 2013.

Restructuring Liabilities

Our restructuring liabilities consisted primarily of accrued severance and benefits relating to one-time and ongoing benefit arrangements, as well as facility exit cost reserves primarily related to our office leases in California. The fair value of the liabilities related to operating lease terminations was determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates included anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. To the extent there are material differences between these estimates or assumptions and actual results, our restructuring liabilities and restructuring charges would be significantly affected.

The information in the following table summarizes our restructuring activities during fiscal 2015, 2014 and 2013 and restructuring liability as of July 3, 2015:

	Severance and Benefits			Facilities and Other			Total
	(In millions)
Restructuring liability as of June 29, 2012	$	1.0		$	1.2		$	2.2
Provision related to Fiscal 2013-2014 Plan	1.8			—			1.8
Provision related to Fiscal 2011 Plan	1.2			0.1			1.3
Cash payments	(2.1		)	(0.5		)	(2.6		)
Restructuring liability as of June 28, 2013	1.9			0.8			2.7
Provision related to Fiscal 2014-2015 Plan	5.4			0.4			5.8
Provision related to Fiscal 2013-2014 Plan	1.0			4.3			5.3
Cash payments	(6.8		)	(1.8		)	(8.6		)
Restructuring liability as of June 27, 2014	1.5			3.7			5.2
Provision related to Fiscal 2015-2016 Plan	2.8			0.6			3.4
Provision related to Fiscal 2014-2015 Plan	—			1.4			1.4
Provision related to Fiscal 2013-2014 Plan	—			0.1			0.1
Cash payments	(3.5		)	(2.1		)	(5.6		)
Restructuring liability as of July 3, 2015	$	0.8		$	3.7		$	4.5
Current portion of restructuring liability as of July 3, 2015							$	3.9
Long-term portion of restructuring liability (included in other long-term liabilities) as of July 3, 2015							$	0.6

Note 9. Stockholders’ Equity

Stock Incentive Programs

2007 Stock Equity Plan

As of July 3, 2015, we had one stock incentive plan for our employees and nonemployee directors, the 2007 Stock Equity Plan, as amended and restated effective November 17, 2011 (the “2007 Stock Plan”). The 2007 Stock Plan provides for accelerated vesting of certain share-based awards if there is a change in control of the Company. The 2007 Stock Plan also provides for the issuance of share-based awards in the form of stock options, stock appreciation rights, restricted stock awards and units, and performance share awards and units. We have various incentive programs under the 2007 Stock Plan, including annual and long-term incentive programs (“AIP” or “LTIP”), a global equity program (“GEP”) and product development incentive programs (“PDIP”).

Under the 2007 Stock Plan, option exercise prices are equal to the fair market value on the date the options are granted using our closing stock price. Options may be exercised for a period set at the time of grant, which is generally seven years after the date of grant. Options generally vest in installments on one of four vesting schedules: (1) 25% one year from the grant date and 1/48 each month thereafter over the remaining three-year period; (2) 50% one year from the grant date and 25% each year thereafter over the remaining two-year period; (3) one-third annually over a three-year

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period from the date of grant; or (4) 25% annually over a four-year period from date of grant. Stock options are issued to directors annually and generally vest on the day before the annual stockholders’ meeting.

Restricted stock is not transferable until vested and the restrictions lapse upon the achievement of continued employment or service over a specified time period. Restricted stock issued to employees generally vests on one of three vesting schedules: (1) one-third annually over a three-year period from the date of grant (2) 25% annually over a four-year period from date of grant; or (3) in full three years after the grant date. Restricted stock issued to directors annually and generally vests on the day before the annual stockholders’ meeting.

Vesting of performance shares under our AIP, LTIP or GEP is subject to financial performance criteria including revenue, operating income, or cash flow targets for the periods as defined in the programs and continued employment through the end of the applicable period. Performance shares under our PDIPs are issued to employees related to certain new product development projects and vest upon achievement of the product development milestones as defined in the programs.

Upon the exercise of stock options, vesting of restricted stock awards and units, or vesting of performance share awards and units, we issue new shares of our common stock to our employees. All awards that are canceled prior to vesting or expire unexercised are returned to the approved pool of reserved shares under the 2007 Stock Plan and made available for future grants. Shares of our common stock remaining available for future issuance under the 2007 Stock Plan totaled 1,351,936 as of July 3, 2015.

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), employees are entitled to purchase shares of our common stock at a 5% discount from the fair market value at the end of a three-month purchase period. As of July 3, 2015, 755,636 shares were reserved for future issuances under the ESPP. We issued 10,621 shares under the ESPP during fiscal 2015.

Share-Based Compensation

Total compensation expense for share-based awards included in our consolidated statements of operations for fiscal 2015, 2014 and 2013 was as follows:

	Fiscal Year
(In millions)	2015		2014		2013
By Expense Category:
Cost of product sales and services	$	0.2	$	0.1	$	0.5
Research and development	0.1		0.3		1.0
Selling and administrative	1.9		3.0		4.9
Total share-based compensation expense	$	2.2	$	3.4	$	6.4
By Types of Award:
Options	$	1.5	$	1.9	$	2.5
Restricted stock awards and units	0.7		0.7		1.5
Performance shares	—		0.8		2.4
Total share-based compensation expense	$	2.2	$	3.4	$	6.4

Compensation expense for an award with only service conditions is recognized over the requisite service period, which is usually the vesting period of the award. For an award that have a graded vesting schedule, compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. The amount of compensation cost recognized at any date must at least equal the portion of the grant-date value of the award that is vested at that date. As of July 3, 2015, there was $2.1 million of total unrecognized compensation expense related to nonvested share-based awards units granted under our 2007 Stock Plan. This expense is expected to be recognized over a weighted-average period of 1.9 years.

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Stock Options

A summary of the combined stock option activity under our equity plans during fiscal 2015 is as follows:

	Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
				(Years)	($ in millions)
Options outstanding as of June 27, 2014	7,548,999		$3.31	4.53	$0.0
Granted	1,378,501		$1.27
Exercised	—
Forfeited	(1,552,689	)	$3.50
Expired	(840	)	$16.27
Options outstanding as of July 3, 2015	7,373,971		$2.88	4.05	$0.0
Options exercisable as of July 3, 2015	4,848,127		$3.40	3.14	$0.0
Options vested and expected to vest as of July 3, 2015	7,129,857		$2.92	3.99	$0.0

The aggregate intrinsic value represents the total pre-tax intrinsic value or the aggregate difference between the closing price of our common stock on July 3, 2015 of $1.32 and the exercise price for in-the-money options that would have been received by the optionees if all options had been exercised on July 3, 2015. The options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options.

Additional information related to our stock options is summarized below:

	Fiscal Year
(In millions, except per share amounts)	2015		2014		2013
Weighted average grant date fair value per share granted	$	0.55	$	1.06	$	1.30
Intrinsic value of options exercised	$	—	$	—	$	—
Fair value of options vested	$	2.0	$	2.2	$	3.0

The fair value of each option grant under our 2007 Stock Plan was estimated using the Black-Scholes option pricing model on the date of grant. A summary of the significant weighted average assumptions we used in the Black-Scholes valuation model is as follows:

	Fiscal Year
	2015		2014		2013
Expected dividends	—	%	—	%	—	%
Expected volatility	53.9	%	54.1	%	64.9	%
Risk-free interest rate	1.13	%	1.26	%	0.49	%
Expected term (years)	4.25		4.43		4.33

Expected volatility is based on implied volatility for the expected term of the options from our stock price. The expected term of the options is calculated using the simplified method described in the SEC’s Staff Accounting Bulletin Topic 14.D.2. We use the simplified method because we do not have sufficient stock option exercise data and the types of employees that receive share option grants have been significantly changed due to the implementation of our GEP in fiscal 2012, under which we granted share-based awards to employees who are not eligible for the long-term incentive programs. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is zero because we have not historically paid dividends on our common stock and have no intention to pay dividends in the foreseeable future. The following summarizes all of our stock options outstanding and exercisable as of July 3, 2015:

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			Options Outstanding			Options Exercisable
Actual Range of Exercise Prices			Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price	Number Exercisable	Weighted Average Exercise Price
				(Years)
$1.23	—	$1.30	1,373,501	6.98	$1.27	162,591	$1.23
$1.72	—	$2.19	1,562,340	3.68	$2.11	1,158,664	$2.08
$2.28	—	$2.56	1,447,833	3.73	$2.41	1,236,988	$2.40
$2.60	—	$2.71	1,404,994	4.40	$2.63	707,162	$2.65
$2.97	—	$6.11	1,196,133	1.97	$5.04	1,193,552	$5.04
$6.44	—	$24.60	389,170	1.55	$7.75	389,170	$7.75
$1.23	—	$24.60	7,373,971	4.05	$2.88	4,848,127	$3.40

Restricted Stock

A summary of the status of our restricted stock as of July 3, 2015 and changes during fiscal 2015 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Restricted stock outstanding as of June 27, 2014	314,658		$2.80
Granted	1,069,153		$1.17
Vested and released	(384,810	)	$2.17
Forfeited	(7,162	)	$2.34
Restricted stock outstanding as of July 3, 2015	991,839		$1.30

The fair value of each restricted stock grant is based on the closing price of our common stock on the date of grant. The total fair value of restricted stock that vested during fiscal 2015, 2014 and 2013 was $0.6 million, $0.7 million and $1.9 million, respectively.

Performance Share Awards

A summary of the status of our performance shares as of July 3, 2015 and changes during fiscal 2015 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Performance shares outstanding as of June 27, 2014	66,667		$2.59
Granted	803,210		$1.25
Vested and released	(47,820	)	$2.59
Forfeited due to terminations	(18,847	)	$2.59
Performance shares outstanding as of July 3, 2015	803,210		$1.25

The fair value of each performance share is based on the closing price of our common stock on the date of grant and is amortized over its vesting period. We begin to recognize share-based compensation costs for the performance shares when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved.

The total fair value of performance share awards that vested during fiscal 2015, 2014 and 2013 was $0.1 million, $3.0 million and $0.9 million, respectively.

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Note 10. Segment and Geographic Information

We operate in one reportable business segment: the design, manufacturing and sale of a range of wireless networking products, solutions and services. We conduct business globally and our sales and support activities are managed on a geographic basis. Our Chief Executive Officer is the Chief Operating Decision Maker (the “CODM”). Our CODM manages our business primarily by function globally and reviews financial information on a consolidated basis, accompanied by disaggregated information about revenues by geographic region, for purposes of allocating resources and evaluating financial performance. The profitability of our geographic region is not a determining factor in allocating resources and the CODM does not evaluate profitability below the level of the consolidated company.

We report revenue by region and country based on the location where our customers accept delivery of our products and services. Revenue by region for 2015, 2014 and 2013 were as follows:

	Fiscal Year
(In millions)	2015		2014		2013
North America	$	153.2	$	142.0	$	180.5
Africa and Middle East	97.1		108.9		182.2
Europe and Russia	36.0		36.0		48.0
Latin America and Asia Pacific	49.6		59.1		60.6
Total Revenue	$	335.9	$	346.0	$	471.3

Revenue by country comprising more than 5% of our total revenue for fiscal 2015, 2014 and 2013 were as follows:

(In millions, except %)	Revenue		% of  Total Revenue
Fiscal 2015:
United States	$	151.1	45.0	%
Nigeria	$	36.5	10.9	%
Fiscal 2014:
United States	$	139.2	40.2	%
Nigeria	$	52.2	15.1	%
Fiscal 2013:
United States	$	177.0	37.6	%
Nigeria	$	92.7	19.7	%

Our long-lived assets, consisting primarily of property, plant and equipment, by geographic areas based on the physical location of the assets as of July 3, 2015 and June 27, 2014 were as follows:

(In millions)	July 3, 2015		June 27, 2014
United States	$	17.6	$	21.5
United Kingdom	3.1		3.3
Other countries	3.6		4.5
Total	$	24.3	$	29.3

Note 11. Divestiture

In March 2011, our board of directors approved a plan for the sale of our WiMAX business. On September 2, 2011, we sold to EION Networks, Inc. (“EION”) our WiMAX business and related assets consisting of certain technology, inventory and equipment. As consideration for the sale of assets, EION agreed to pay us $0.4 million in cash and up to $2.8 million in additional cash payments contingent upon specific factors related to future WiMAX business performance. We had received $0.1 million in total of such contingent payments through June 27, 2014 and do not expect any further payments from EION. In addition, EION is entitled to receive cash payments up to $2.0 million upon collection of certain WiMAX accounts receivable. As of September 26, 2014, we made $1.6 million in total of such payments to EION and wrote-off the remaining $0.4 million balance resulting from the write-downs of the corresponding WiMAX accounts receivable. As of July 3, 2015 and June 27, 2014, our accrued liabilities related to the disposition of WiMAX business were zero and $0.1 million, respectively.

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In the third quarter of fiscal 2011, we began accounting for the WiMAX business as a discontinued operation and, therefore, the operating results of our WiMAX business were included in discontinued operations in our consolidated financial statements for all years presented. The loss incurred in fiscal 2013 was primarily due to write-down of certain WiMAX deferred cost of sales that were not transferred to EION and certain expenses we incurred to support a remaining customer obligation. The income recognized in fiscal 2015 and 2014 was primarily due to the recovery of certain WiMAX customer receivables that was previously written down.

Summary results of operations for the WiMAX business were as follows:

	Fiscal Year
	2015		2014			2013
	(In millions)
Revenues	$	—	$	—		$	0.1
Income (loss) from operations of WiMAX	—		1.2			(4.3		)
Gain on disposal	0.1		—			0.4
Income taxes	—		(0.3		)	(0.2		)
Income (loss) from discontinued operations, net of tax	$	0.1	$	0.9		$	(4.1	)

Note 12. Income Taxes

Income (loss) from continuing operations before provision for income taxes during fiscal year 2015, 2014 and 2013 is as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
United States	$	(18.6	)	$	(26.7	)	$	(5.2	)
Foreign	(7.4		)	(23.8		)	5.9
Total Income (loss) from continuing operations before income taxes	$	(26.0	)	$	(50.5	)	$	0.7

Provision for income taxes from continuing operations for fiscal year 2015, 2014 and 2013 were summarized as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
Current provision (benefit):
United States	$	—		$	(0.1	)	$	(0.1	)
Foreign	3.4			1.9			13.6
State and local	—			—			—
	3.4			1.8			13.5
Deferred provision (benefit):
United States	(0.2		)	—			—
Foreign	(4.5		)	(0.3		)	(0.2		)
State and local	—			—			—
	(4.7		)	(0.3		)	(0.2		)
Total provision (benefit) for income taxes from continuing operations	$	(1.3	)	$	1.5		$	13.3

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The following table summarizes the significant differences between the U.S. Federal statutory tax rate and our effective tax rate from continuing operations for fiscal year 2015, 2014 and 2013:

	Fiscal Year
	2015		2014		2013
Statutory U.S. federal tax rate	(35.0	)%	(35.0	)%	35.0	%
Valuation allowances	(15.1	)%	30.0	%	228.6	%
Foreign non-deductible expenses	(0.3	)%	0.9	%	37.1	%
State and local taxes, net of U.S. federal tax benefit	(1.9	)%	(1.3	)%	(5.7	)%
Foreign income taxed at rates less than the U.S. statutory rate	38.5	%	8.5	%	(132.7	)%
Foreign branch income/withholding taxes	5.2	%	2.0	%	92.9	%
Change in uncertain tax positions	2.4	%	(1.7	)%	1,660.0	%
Other	1.2	%	(0.4	)%	(15.2	)%
Effective tax rate	(5.0	)%	3.0	%	1,900.0	%

The income tax benefit from continuing operations for fiscal year 2015 was $1.3 million. The difference between our income tax benefit from continuing operations and income tax expense at the statutory rate of 35% on our pre-tax loss of $26.0 million was primarily attributable to losses in tax jurisdictions in which we cannot recognize a tax benefit and increases in foreign withholding taxes, offset with the $4.4 million tax benefit from the release of valuation allowance in jurisdictions where management believes the utilization of deferred tax assets was more likely than not based on the weighting of positive and negative evidence.

The income tax expense from continuing operations for fiscal year 2014 was $1.5 million. The difference between our income tax expense from continuing operations and income tax expense at the statutory rate of 35% on our pre-tax loss of $50.5 million was primarily attributable to losses in tax jurisdictions in which we cannot recognize a tax benefit and increases in foreign withholding taxes.

The income tax expense from continuing operations for fiscal year 2013 was $13.3 million. The difference between our income tax expense from continuing operations and income tax benefit at the statutory rate of 35% on our pre-tax income of $0.7 million was primarily attributable to a $11.7 million increase in our reserve for uncertain tax positions, losses in tax jurisdictions in which we cannot recognize a tax benefit, and increases in foreign withholding taxes. The increase in our unrecognized tax benefits was the result of additional information obtained during the recent tax examinations in certain countries during fiscal 2013.

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The components of deferred tax assets and liabilities were as follows:

	July 3, 2015						June 27, 2014
	Current			Non-Current			Current			Non-Current
	(In millions)
Deferred tax assets:
Inventory	$	7.7		$	—		$	12.0		$	—
Accruals and reserves	4.7			0.1			4.7			0.1
Bad debts	1.4			—			2.4			—
Depreciation	—			—			—			0.2
Amortization	—			2.6			—			4.1
Stock compensation	—			3.3			—			4.0
Deferred revenue	—			1.9			—			3.9
Unrealized exchange gain/loss	3.6			—			3.2			—
Other	1.1			5.0			1.1			4.2
Tax credit carryforwards	—			17.9			—			21.5
Tax loss carryforwards	—			154.5			—			133.2
Total deferred tax assets before valuation allowance	18.5			185.3			23.4			171.2
Valuation allowance	(17.0		)	(177.7		)	(21.9		)	(167.8		)
Total deferred tax assets	1.5			7.6			1.5			3.4
Deferred tax liabilities:
Branch undistributed earnings reserve	0.1			1.2			0.1			1.4
Depreciation	—			3.5			—			3.8
Other accruals	0.1			—			0.1			—
Total deferred tax liabilities	0.2			4.7			0.2			5.2
Net deferred tax assets (liabilities)	$	1.3		$	2.9		$	1.3		$	(1.8	)

Our valuation allowance related to deferred income taxes, as reflected in our consolidated balance sheet, was $194.7 million as of July 3, 2015 and $189.7 million as of June 27, 2014. The increase in valuation allowance in fiscal 2015 was primarily due to the losses in tax jurisdictions in which we cannot recognize tax benefits, partially offset by the $4.4 million valuation allowance released in certain foreign jurisdictions.

Tax loss and credit carryforwards as of July 3, 2015 have expiration dates ranging between one year and no expiration in certain instances. The amount of U.S. federal tax loss carryforwards as of July 3, 2015 and June 27, 2014 were $328.7 million and $291.6 million, respectively, and begin to expire in fiscal 2023. Credit carryforwards as of July 3, 2015 were $21.3 million, and certain credits will begin to expire in fiscal 2017. The amount of foreign tax loss carryforwards as of July 3, 2015 was $129.0 million.

United States income taxes have not been provided on basis differences in foreign subsidiaries of $5.4 million and $5.7 million, respectively, as of July 3, 2015 and June 27, 2014, because of our intention to reinvest these earnings indefinitely. The residual U.S. tax liability, if such amounts were remitted, would be nominal.

We entered into a tax sharing agreement with Harris effective on January 26, 2007, the date of the acquisition of Stratex. The tax sharing agreement addresses, among other things, the settlement process associated with pre-merger tax liabilities and tax attributes that are attributable to the Microwave Communication Division when it was a division of Harris. There was no settlement payments recorded in fiscal year 2015, 2014 or 2013.

As of July 3, 2015 and June 27, 2014, we had unrecognized tax benefits of $26.9 million and $28.2 million, respectively, for various federal, foreign, and state income tax matters. Unrecognized tax benefits decreased by $1.3 million. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $1.4 million and $1.0 million, respectively, as of July 3, 2015 and June 27, 2014. These unrecognized tax benefits are presented on the accompanying consolidated balance sheet net of the tax effects of net operating loss carryforwards.

We account for interest and penalties related to unrecognized tax benefits as part of our provision for income taxes. We accrued such interest of zero as of July 3, 2015 and $0.1 million as of June 27, 2014. No penalties have been accrued.

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Our unrecognized tax benefit activity for fiscal 2015, 2014 and 2013 is as follows:

	Amount
	(In millions)
Unrecognized tax benefit as of June 29, 2012	$	13.4
Additions for tax positions in current periods	0.7
Additions for tax positions in prior periods	15.0
Decreases for tax positions in prior periods	(0.4		)
Unrecognized tax benefit as of June 28, 2013	28.7
Additions for tax positions in current periods	—
Additions for tax positions in prior periods	8.7
Decreases for tax positions in prior periods	(12.1		)
Increases related to change of foreign exchange rate	2.9
Unrecognized tax benefit as of June 27, 2014	28.2
Additions for tax positions in prior periods	0.6
Decreases for tax positions in prior periods	(0.2		)
Decreases related to change of foreign exchange rate	(1.7		)
Unrecognized tax benefit as of July 3, 2015	$	26.9

During the fiscal year 2014, we received an assessment letter from the Inland Revenue Authority of Singapore (“Singapore”) related to deductions claimed in prior years and made a prepayment of $13.2 million related to tax years 2007 through 2010, reflecting all of the taxes incrementally assessed by Singapore. We continue to defend our tax positions in Singapore and we continue to pursue remedies to object to this assessment. There was no settlement in fiscal year 2015. During the next twelve months, it is reasonably possible that an ultimate settlement will be achieved which would result in our unrecognized tax benefits changing by up to $14.0 million. We believe that we have adequately provided for any reasonably foreseeable outcomes related to our tax audits.

We have a number of years with open tax audits which vary from jurisdiction to jurisdiction. Our major tax jurisdictions include the U.S., Singapore and Nigeria. The earliest years still open and subject to potential audits for these jurisdictions are as follows: U.S. —2003; Singapore — 2006; and Nigeria — 2011.

Note 13. Commitments and Contingencies

Operating Lease Commitments

We lease office and manufacturing facilities under non-cancelable operating leases expiring at various dates through April 2020. We lease approximately 129,000 square feet of office space in Santa Clara, California as our corporate headquarters. Beginning in the first quarter of fiscal 2015, approximately three-fourths of our Santa Clara headquarters building was vacated and made available for sublease. As of July 3, 2015, future minimum lease payments for our headquarters total $12.8 million through April 2020.

As of July 3, 2015, our future minimum lease payments under all non-cancelable operating leases with an initial lease term in excess of one year were as follows:

Fiscal Years	Amount
	(In millions)
2016	$	5.4
2017	3.2
2018	2.7
2019	2.8
2020	2.3
Total	$	16.4

These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent concessions, leasehold improvement incentives or unusual provisions or conditions. We sublease a portion of our facilities to third

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parties and total minimum rentals to be received in the future under our non-cancelable subleases were $0.1 million as of July 3, 2015.

Rental expense for operating leases, including rentals on a month-to-month basis was $6.5 million, $7.7 million and $8.5 million in fiscal 2015, 2014 and 2013, respectively.

Purchase Orders and Other Commitments

From time to time in the normal course of business, we may enter into purchasing agreements with our suppliers that require us to accept delivery of, and remit full payment for, finished products that we have ordered, finished products that we requested be held as safety stock, and work in process started on our behalf in the event we cancel or terminate the purchasing agreement. Because these agreements do not specify fixed or minimum quantities, do not specify minimum or variable price provisions, and do not specify the approximate timing of the transaction, and we have no present intention to cancel or terminate any of these agreements, we currently do not believe that we have any future liability under these agreements. As of July 3, 2015, we had outstanding purchase obligations with our suppliers or contract manufacturers of $38.2 million.

Financial Guarantees and Commercial Commitments

Guarantees issued by banks, insurance companies or other financial institutions are contingent commitments issued to guarantee our performance under borrowing arrangements, such as bank overdraft facilities, tax and customs obligations and similar transactions or to ensure our performance under customer or vendor contracts. The terms of the guarantees are generally equal to the remaining term of the related debt or other obligations and are generally limited to two years or less. As of July 3, 2015, we had no guarantees applicable to our debt arrangements.

We have entered into commercial commitments in the normal course of business including surety bonds, standby letters of credit agreements and other arrangements with financial institutions primarily relating to the guarantee of future performance on certain contracts to provide products and services to customers. As of July 3, 2015, we had commercial commitments of $33.1 million outstanding that were not recorded in our consolidated balance sheets. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid on the performance guarantees.

Indemnifications

Under the terms of substantially all of our license agreements, we have agreed to defend and pay any final judgment against our customers arising from claims against such customers that our software products infringe the intellectual property rights of a third party. As of July 3, 2015, we have not received any notice that any customer is subject to an infringement claim arising from the use of our software products; we have not received any request to defend any customers from infringement claims arising from the use of our software products; and we have not paid any final judgment on behalf of any customer related to an infringement claim arising from the use of our software products. Because the outcome of infringement disputes is related to the specific facts of each case, and given the lack of previous or current indemnification claims, we cannot estimate the maximum amount of potential future payments, if any, related to our indemnification provisions. As of July 3, 2015, we had not recorded any liabilities related to these indemnifications.

Legal Proceedings

From time to time, we may be involved in various legal claims and litigation that arise in the normal course of our operations. We are aggressively defending all current litigation matters. Although there can be no assurances and the outcome of these matters is currently not determinable, we currently believe that none of these claims or proceedings are likely to have a material adverse effect on our financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. As a result, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any.

We record accruals for our outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. We have not recorded any accrual for loss contingencies associated with such legal claims or litigation discussed above.

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Contingent Liabilities

We record a loss contingency as a charge to operations when (i) it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements; and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both those conditions if there is a reasonable possibility that a loss may have been incurred. Gain contingencies are not recorded until realized. We expense all legal costs incurred to resolve regulatory, legal and tax matters as incurred.

Our Singapore subsidiary is in the process of evaluating its historical compliance with certain export regulations in Singapore. Depending on the results of this evaluation, we may take additional actions to ensure our compliance with these regulations in the future. As part of these additional actions, we could elect to make certain voluntary disclosures, which may, in certain circumstances, result in the imposition of various fines and penalties. Any fines and penalties will be based on the specific facts and findings of our evaluation, as well as negotiation with Singapore authorities. At this time, we cannot estimate the amount or range of any fines and penalties, if any should be imposed.

Periodically, we review the status of each significant matter to assess the potential financial exposure. If a potential loss is considered probable and the amount can be reasonably estimated, we reflect the estimated loss in our results of operations. Significant judgment is required to determine the probability that a liability has been incurred or an asset impaired and whether such loss is reasonably estimable. Further, estimates of this nature are highly subjective, and the final outcome of these matters could vary significantly from the amounts that have been included in our consolidated financial statements. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise estimates accordingly. Such revisions in the estimates of the potential liabilities could have a material impact on our results of operations and financial position.

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Note 14. Quarterly Financial Data (Unaudited)

The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Our fiscal quarters end on the Friday nearest the end of the calendar quarter. The third quarter of fiscal year 2015 included 14 weeks and other quarters each included 13 weeks. Summarized quarterly data for fiscal 2015 and 2014 were as follows:

	Q1 Ended 9/26/2014(1)			Q2 Ended 12/26/2014(1)(2)			Q3 Ended 4/3/2015(1)			Q4 Ended 7/3/2015
	(In millions, except per share amounts)
Fiscal 2015
Revenue	$	82.4		$	90.9		$	74.8		$	87.8
Gross margin	$	22.0		$	24.0		$	16.0		$	18.7
Operating income (loss)	$	(5.4	)	$	(3.7	)	$	(11.7	)	$	(5.2	)
Net income (loss)	$	(5.5	)	$	(4.5	)	$	(13.1	)	$	(1.5	)
Net income (loss) attributable to Aviat Networks	$	(5.5	)	$	(4.5	)	$	(13.1	)	$	(1.6	)
Per share data:
Basic net income (loss) per common share	$	(0.09	)	$	(0.07	)	$	(0.21	)	$	(0.03	)
Diluted net income (loss) per common share	$	(0.09	)	$	(0.07	)	$	(0.21	)	$	(0.03	)
	Q1 Ended 9/27/2013(1)			Q2 Ended 12/27/2013(1)			Q3 Ended 3/28/2014(1)			Q4 Ended 6/27/2014(1)
	(In millions, except per share amounts)
Fiscal 2014
Revenue	$	93.4		$	85.8		$	81.4		$	85.4
Gross margin	$	23.2		$	21.5		$	21.1		$	19.4
Operating loss	$	(13.3	)	$	(10.5	)	$	(14.6	)	$	(12.2	)
Net loss	$	(13.5	)	$	(9.7	)	$	(14.6	)	$	(13.3	)
Net loss attributable to Aviat Networks	$	(13.5	)	$	(9.7	)	$	(14.6	)	$	(13.3	)
Per share data:
Basic and diluted net loss per common share	$	(0.22	)	$	(0.16	)	$	(0.24	)	$	(0.21	)

_______________________

(1) Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

(2) Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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The effects of the error corrections set forth in Note 2 and adjustments to second quarter’s revenue and cost of revenue on the unaudited consolidated statements of operations for the interim periods within the years ended July 3, 2015 and June 27, 2014 were as follows:

	Previously Reported												Correction											Revised
	Q1			Q2			Q3			Q4			Q1		Q2			Q3			Q4			Q1			Q2			Q3			Q4
	(In millions)
Fiscal 2015 (Unaudited)
Revenue	$	82.4		$	92.5		$	74.8		N/A			$	—	$	(1.6	)	$	—		N/A			$	82.4		$	90.9		$	74.8		N/A
Gross margin	21.8			25.2			17.6			N/A			0.2		(1.2		)	(1.6		)	N/A			22.0			24.0			16.0			N/A
Operating loss	(5.4		)	(2.5		)	(10.1		)	N/A			—		(1.2		)	(1.6		)	N/A			(5.4		)	(3.7		)	(11.7		)	N/A
Net loss	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Net loss attributable   to Aviat Networks	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Fiscal 2014 (Unaudited)
Revenue	$	93.4		$	85.8		$	81.4		$	85.4		$	—	$	—		$	—		$	—		$	93.4		$	85.8		$	81.4		$	85.4
Gross margin	23.1			21.3			20.9			19.8			0.1		0.2			0.2			(0.4		)	23.2			21.5			21.1			19.4
Operating loss	(13.4		)	(10.7		)	(14.8		)	(11.8		)	0.1		0.2			0.2			(0.4		)	(13.3		)	(10.5		)	(14.6		)	(12.2		)
Net loss	(13.6		)	(9.9		)	(14.8		)	(12.9		)	0.1		0.2			0.2			(0.4		)	(13.5		)	(9.7		)	(14.6		)	(13.3		)

The following tables summarize certain charges, expenses and loss (income) from discontinued operations included in our results of operations for each of the fiscal quarters presented:

	Q1 Ended 9/26/2014		Q2 Ended 12/26/2014			Q3 Ended 4/3/2015		Q4 Ended 7/3/2015
	(In millions)
Fiscal 2015
Amortization of purchased technology and intangible assets	$	0.1	$	0.1		$	0.1	$	0.1
Restructuring charges	1.5		—			3.2		0.2
Share-based compensation expense	0.6		0.4			0.7		0.5
	$	2.2	$	0.5		$	4.0	$	0.8
Income (loss) from discontinued operations	$	0.2	$	(0.1	)	$	—	$	—
	Q1 Ended 9/27/2013		Q2 Ended 12/27/2013			Q3 Ended 3/28/2014		Q4 Ended 6/27/2014
	(In millions)
Fiscal 2014
Amortization of purchased technology and intangible assets	$	0.1	$	0.1		$	0.1	$	0.1
Restructuring charges	4.5		0.3			4.2		2.1
Charges for excess and obsolete inventory mark-downs	—		—			—		1.2
Transactional tax assessments	—		0.6			—		—
Share-based compensation expense	1.5		0.7			0.6		0.6
Warehouse consolidation costs	0.2		—			—		—
	$	6.3	$	1.7		$	4.9	$	4.0
Income from discontinued operations	$	0.1	$	0.3		$	0.3	$	0.2

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9A. Controls and Procedures

(a) Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed by, or under the supervision of, the Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, and effected by the board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP and includes those policies and procedures that: (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, management has assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria set forth in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

A material weakness is a control deficiency or a combination of control deficiencies that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. In connection with the Company’s assessment of the effectiveness of internal control over financial reporting, the Company identified the following material weaknesses that existed as of July 3, 2015:

• COSO Components - Risk Assessment and Monitoring Activities.We determined that our controls pertaining to risk assessment and monitoring activities did not operate effectively, resulting in a material weakness pertaining to these COSO components. Specifically, (i) with respect to risk assessment, we did not sufficiently identify and address risks associated with (a) the adequacy of training needs of employees whose job functions bear upon our accounting and financial reporting; (b) segregation of duty conflicts and the adequacy and effectiveness of compensating controls; and (c) certain processes, further noted in the Control Activities discussion below, resulting in inadequately designed control activities; and (ii) with respect to monitoring activities, (a) we did not design and maintain effective controls for the review, supervision and monitoring of our international accounting operations and for evaluating the adequacy of our internal control over financial reporting, including adequate documentation of control performance; and (b) there were insufficient procedures to effectively determine the adequacy of our internal control over financial reporting. The deficiencies in these COSO components are interrelated and represent a material weakness. This material weakness contributed to the other material weaknesses described below and an environment where there was more than a remote likelihood that a material misstatement of the interim and annual consolidated financial statements could occur and not be prevented or detected. As a result, adjustments to various accounts were made to correct errors that were determined to be immaterial to the prior period financial statements.

• Control Activities - Account Reconciliations.The design and operating effectiveness of our controls were inadequate to ensure that account reconciliations were reviewed and approved for accuracy and completeness and that we identified, accumulated and documented appropriate information necessary to support account balances.

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• Control Activities - Revenue Recognition.The design and operating effectiveness of our controls were inadequate to ensure that the terms and conditions of all negotiated customer discounts were agreed upon with the customer in advance of recognizing revenue to ensure that the reported amount and timing of revenue recognition was accurate.

• Control Activities - Revenue Cut-off Procedures. The design and operating effectiveness of our controls were inadequate to ensure that all revenue recognized on shipments made under FOB Destination terms was recognized in the proper period.

• Control Activities - Project Accruals.The design and operating effectiveness of our controls were inadequate to ensure that the project accrual balances were accurate.

• Control Activities - Inventory Existence. The design and operating effectiveness of our controls over inventory cycle counts and inventory at consigned locations were inadequate to ensure that the underlying quantities in support of inventory balances were accurate.

Errors identified in our financial statements and the aforementioned material weaknesses resulted in a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements would not be prevented or detected on a timely basis.

The material weaknesses identified by management could result in a material misstatement to our annual or interim financial statements that would not be prevented or detected. Management has concluded that our internal control over financial reporting was not effective as of July 3, 2015 due to the material weaknesses identified. We reviewed the results of management’s assessment with the Audit Committee of the Company’s Board of Directors.

BDO USA, LLP, our independent registered public accounting firm, has issued an attestation report regarding its assessment of our internal control over financial reporting as of July 3, 2015, as set forth at the beginning of Part II, Item 8 of this Annual Report on Form 10-K.

(b) Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

As of July 3, 2015, management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. Based upon the evaluation and as a result of the material weaknesses described above, our Chief Executive Officer and Chief Financial Officer concluded that, as of July 3, 2015, our disclosure controls and procedures were not effective at the reasonable assurance level.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurances of achieving their control objectives.

(c) Changes in Internal Control over Financial Reporting

Other than the material weaknesses noted above and the remediation actions described below, there were no changes in our internal control over financial reporting during the quarter ended July 3, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

(d) Remedial Actions to Address Material Weaknesses

We continue to evaluate the effectiveness of our remediation efforts, including demonstrating that the new or improved controls operate effectively for a reasonable period of time. If appropriate, we expect to make further changes to our internal controls. The following actions have been taken, or we expect to take as soon as practicable, to strengthen our controls and organizational structure:

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▪ We plan to provide additional training to employees whose job functions bear upon our accounting and financial reporting, including members of the sales and operations departments, in order to ensure that our employees develop a greater understanding of the control activities that they perform.

▪ We expect to enhance our risk assessment process. With regard to segregation of duty (“SOD”) conflicts associated with our worldwide enterprise resource planning system, we are streamlining and narrowing user system responsibilities in order to reduce the number of SOD conflicts and are developing processes to monitor all remaining SOD conflicts on an ongoing basis. With regard to control design deficiencies, we plan to perform a more robust assessment of risks impacting our accounting and financial reporting and implement new controls or revise existing controls to address such risks.

▪ We are implementing processes to improve monitoring activities involving the review and supervision of our accounting operations. We expect this to involve (i) implementing increased and enhanced balance sheet reviews to allow more focus on quality account reconciliations; and (ii) enhancing monitoring over international activities.

▪ To improve the accuracy of our revenue cut-off procedures, we are expanding the time period over which FOB Destination shipments are reviewed at quarter-end to provide additional assurance that revenue on all shipments made during the cut-off period is recognized in the proper period.

▪ To improve the accuracy of our inventory quantities, we are reviewing (i) our inventory cycle count procedures, (ii) our review and supervision of such procedures and (ii) our monitoring activities specifically pertaining to cycle counts to ensure that our cycle count procedures address all relevant risks, are adequately documented and are sufficiently supervised and monitored on an ongoing basis.

Item 9B. Other Information

None.

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PART III

Certain information required by Part III is omitted from this Annual Report on Form 10-K because we will file a definitive Proxy Statement with the SEC within 120 days after the end of our fiscal year ended July 3, 2015.

Item 10. Directors, Executive Officers and Corporate Governance

We adopted a Code of Conduct that is available at www.aviatnetworks.com. No amendments to our Code of Business Ethics or waivers from our Code of Conduct with respect to any of our executive officers or directors have been made. If, in the future, we amend our Code of Conduct or grant waivers from our Code of Conduct with respect to any of our executive officers or directors, we will make information regarding such amendments or waivers available on our corporate website (www.aviatnetworks.com) for a period of at least 12 months.

For information with respect to Executive Officers, see Part I, Item 1 of this Annual Report on Form 10-K, under “Executive Officers of the Registrant.”

Information regarding our directors and compliance with Section 16(a) of the Exchange Act by our directors and executive officers will appear in our definitive Proxy Statement and is incorporated herein by reference.

Item 11. Executive Compensation

Information regarding our executive compensation will appear in our definitive Proxy Statement and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Equity Compensation Plan Summary

The following table provides information as of July 3, 2015, relating to our equity compensation plan pursuant to which grants of options, restricted stock and performance shares may be granted from time to time and the option plans and agreements assumed by us in connection with the Stratex acquisition:

Plan Category	Number of Securities to be Issued Upon Exercise of Options and Vesting  of restricted Stock Units  and Performance Share  Units(1)	Weighted-Average Exercise Price of Outstanding  Options(2)		Number of Securities Remaining Available for Further Issuance Under Equity Compensation Plans (Excluding Securities Reflected in the First Column)
Equity Compensation plan approved by security holders(3)	9,107,014	$	2.80	1,351,936
Equity Compensation plans not approved by security      holders(4)	27,625	$	24.60	—
Total	9,134,639	$	2.88	1,351,936

 _________________________

(1) Under the 2007 Stock Plan, in addition to options, we have granted share-based compensation awards in the form of performance shares, restricted stock, performance share units and restricted stock units. As of July 3, 2015, there were 1,780,932 such awards outstanding under that plan. The outstanding awards consisted of (i) performance share awards at target and restricted stock awards, for which all 20,264 shares were issued and outstanding; and (ii) 1,760,668 performance share unit awards at target and restricted stock unit awards, for which all 1,760,668 were payable in shares but for which no shares were yet issued and outstanding. The 9,107,014 shares to be issued upon exercise of outstanding options and vesting of restricted stock units and performance share units as listed in the first column consisted of shares to be issued in respect of the exercise of 7,346,346 outstanding options and in respect of the 1,760,668 performance share unit awards and restricted stock units awards payable in shares.

(2) Excluded weighted average fair value of restricted stock units and performance share units at issuance date.

(3) Consisted solely of our 2007 Stock Plan, as amended and restated effective November 17, 2011.

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(4) Consisted of common stock that may be issued pursuant to option plans and agreements assumed pursuant to the Stratex acquisition. The Stratex plans were duly approved by the stockholders of Stratex prior to the merger with us. No shares are available for further issuance.

For further information on our equity compensation plans see “Note 1. The Company and Summary of Significant Accounting Policies” and “Note 9. Stockholders’ Equity” in the notes to consolidated financial statements included in Item 8.

The other information required by this item will appear in our definitive Proxy Statement and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence

Information regarding certain relationships and related transactions, and director independence will appear in our definitive Proxy Statement and is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services

Information regarding our principal accountant fees and services will appear in our definitive Proxy Statement and is incorporated herein by reference.

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PART IV

Item 15.Exhibits and Financial Statement Schedules

(a) The following documents are filed as part of this report.

1. Financial Statements.

The financial statements of Aviat Networks, Inc. are set forth in Item 8 of this Annual Report on Form 10-K.

2. Financial Statement Schedules.

Schedule II — Valuation and Qualifying Accounts for the three fiscal years ended July 3, 2015

All other schedules have been omitted because the required information is not present or is not present in amounts sufficient to require submission of the schedules or because the information required is included in the consolidated financial statements or notes thereto.

(b)Exhibits.

The following exhibits are filed herewith or are incorporated herein by reference to exhibits previously filed with the SEC:

Ex. #	Description
2.1	Intentionally omitted
2.2	Intentionally omitted
2.3	Intentionally omitted
2.4	Asset Purchase Agreement by and among Aviat U.S., Inc. and EION Networks, Inc., dated as of September 2, 2011 (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed with the SEC on September 9, 2011, File No. 001-33278)
3.1	Amended and Restated Certificate of Incorporation of Harris Stratex Networks, Inc. as filed with the Secretary of State of the State of Delaware on November 19, 2009 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on November 23, 2009, File No. 001-33278)
3.2	Amended and Restated Bylaws of Harris Stratex Networks, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed with the SEC on November 23, 2009, File No. 001-33278)
3.3	Certificate of Ownership and Merger Merging Aviat Networks, Inc. into Harris Stratex Networks, Inc., effective January 27, 2010, as filed with the Secretary of State of the State of Delaware on January 27, 2010 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on January 28, 2010, File No. 001-33278)
4.1	Intentionally omitted
4.1.1	Specimen common stock certificate, adopted as of January 29, 2010 (incorporated by reference to Exhibit 4.1.1 to the Annual Report on Form 10-K for fiscal year end July 2, 2010 filed with the SEC on September 9, 2010, File No. 001-33278)
4.2	Intentionally omitted
4.3	Intentionally omitted
10.1	Intentionally omitted
10.2	Intentionally omitted
10.3	Intellectual Property Agreement between Harris Stratex Networks, Inc. and Harris Corporation dated January 26, 2007 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed with the SEC on February 1, 2007, File No. 001-33278)
10.4	Intentionally omitted

89

Ex. #	Description
10.5	Intentionally omitted
10.6	Intentionally omitted
10.6.1	Intentionally omitted
10.7	Intentionally omitted
10.8	Intentionally omitted
10.9	Intentionally omitted
10.10	Tax Sharing Agreement between Harris Stratex Networks, Inc. and Harris Corporation dated January 26, 2007 (incorporated by reference to Exhibit 10.11 to the Current Report on Form 8-K filed with the SEC on February 1, 2007, File No. 001-33278)
10.11	Intentionally omitted
10.12*	Intentionally omitted
10.13*	Intentionally omitted
10.13.1*	Intentionally omitted
10.14*	Standard Form of Executive Employment Agreement between Harris Stratex Networks, Inc. and certain executives (incorporated by reference to Exhibit 10.16 to the Current Report on Form 8-K filed with the SEC on February 1, 2007, File No. 001-33278)
10.15	Form of Indemnification Agreement between Harris Stratex Networks, Inc. and its directors and certain officers (incorporated by reference to Exhibit 10.16 to the Registration Statement on Form S-1 of Stratex Networks, Inc., File No. 33-13431)
10.16	Intentionally omitted
10.17*	Harris Stratex Networks, Inc. Annual Incentive Plan (incorporated by reference to Exhibit 10.17 to the Annual Report on Form 10-K for the fiscal year ended June 27, 2008 filed with the SEC on September 25, 2008, File No. 001-33278)
10.18*	Intentionally omitted
10.18.1	Intentionally omitted
10.18.2	Aviat Networks, Inc. 2007 Stock Equity Plan (as Amended and Restated Effective November 17, 2011) (incorporated by reference to Appendix A to Schedule 14A filed with the SEC on October 3, 2011, File No. 001-33278)
10.19	Intentionally omitted
10.19.1	Intentionally omitted
10.20	Intentionally omitted
10.20.1	Intentionally omitted
10.20.2	Intentionally omitted
10.20.3	Second Amended and Restated Loan and Security Agreement, dated as of March 28, 2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd., and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on March 31, 2014, File No. 001-33278)
10.20.4	Amendment #1 to Second Amended and Restated Loan and Security Agreement, dated as of September 25, 2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd. and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on September 29, 2014, File No. 001-33278)

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Ex. #	Description
10.20.5	Amendment #2 to Second Amended and Restated Loan and Security Agreement, dated as of October 30,2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd. and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on October 30, 2014, File No. 001-33278)
10.20.6	Amendment #3 to Second Amended and Restated Loan and Security Agreement, dated as of December 2, 2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd., and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on December 5, 2014, File No. 001-33278)
10.20.7	Amendment #4 to Second Amended and Restated Loan and Security Agreement, dated February 27, 2015, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd., and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on March 3, 2015, File No. 001-33278)
10.21	Intentionally omitted
10.22*	Intentionally omitted
10.22.1*	Intentionally omitted
10.23*	Employment Agreement, dated as of April 1, 2006, between Harris Stratex Networks, Inc. and Heinz Stumpe (incorporated by reference to Exhibit 10.15.2 to the Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2007 filed with the SEC on May 8, 2007, File No. 001-33278)
10.24*	Intentionally omitted
10.24.1*	Intentionally omitted
10.24.2*	Intentionally omitted
10.25*	Employment Agreement, dated as of May 14, 2002, between Stratex Networks, Inc. and Shaun McFall (incorporated by reference to Exhibit 10.25 to the Annual Report on Form 10-K for the fiscal year ended July 3, 2009 filed with the SEC on September 4, 2009, File No. 001-33278)
10.25.1*	Amendment, effective April 1, 2006, to Employment Agreement, dated May 14, 2002, between Stratex Networks, Inc. and Shaun McFall (incorporated by reference to Exhibit 10.25.1 to the Annual Report on Form 10-K for the fiscal year ended July 3, 2009 filed with the SEC on September 4, 2009, File No. 001-33278)
10.26*	Intentionally omitted
10.26.1*	Intentionally omitted
10.27*	Intentionally omitted
10.28*	Employment Agreement, dated July 18, 2011, between Aviat Networks, Inc. and Michael Pangia (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 20, 2011, File No. 001-33278)
10.29*	Employment Agreement, dated December 30, 2010, between Aviat Networks, Inc. and John Madigan (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on January 4, 2011, File No. 001-33278)
10.30*	Employment Agreement, dated December 29, 2014, between Aviat Networks, Inc. and Michael Shahbazian (incorporated by reference to the Current Report on Form 8-K filed with the SEC on December 29, 2014, File No. 001-33278)
10.31*	Employment Agreement, dated April 29, 2015, between Aviat Networks, Inc. and Ralph S. Marimon (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on May 14, 2015, File No. 001-33278)
10.32	Letter Agreement, dated as of January 11, 2015, among Aviat Networks, Inc., Steel Partners Holdings L.P., Lone Star Value Management, LLC and certain other parties (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on January 12, 2015, File No. 001-33278)
16.1	Intentionally omitted

91

Ex. #	Description
16.2	Letter from KPMG LLP to the Securities and Exchange Commission dated February 26, 2015 (incorporated by reference to Exhibit 16.1 to the Current Report on Form 8-K filed with the SEC on March 3, 2015)
21	List of Subsidiaries of Aviat Networks, Inc.
23.1	Consent of BDO USA, LLP
23.2	Consent of KPMG LLP
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer
32.2	Section 1350 Certification of Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

 _____________________________

* Management compensatory contract, arrangement or plan required to be filed as an exhibit pursuant to Item 15(b) of this report.

92

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AVIAT NETWORKS, INC. (Registrant)
By:	/s/     Michael A. Pangia
	Michael A. Pangia President and Chief Executive Officer

Date: September 30, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/    Michael A. Pangia	President and Chief Executive Officer (Principal Executive Officer)	September 30, 2015
Michael A. Pangia
/s/    Ralph S. Marimon	Senior Vice President and Chief Financial Officer (Principal Financial Officer)	September 30, 2015
Ralph S. Marimon
/s/    John J. Madigan	Vice President, Corporate Controller and Principal Accounting Officer (Principal Accounting Officer)	September 30, 2015
John J. Madigan
/s/    John Mutch	Chairman of the Board	September 30, 2015
John Mutch
/s/    William A. Hasler	Director	September 30, 2015
William A. Hasler
/s/    Charles D. Kissner	Director	September 30, 2015
Charles D. Kissner
/s/    James R. Henderson	Director	September 30, 2015
James R. Henderson
/s/    Robert G. Pearse	Director	September 30, 2015
Robert G. Pearse
/s/    John Quicke	Director	September 30, 2015
John Quicke
/s/    James C. Stoffel	Director	September 30, 2015
James C. Stoffel

93

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

AVIAT NETWORKS, INC.

Years Ended July 3, 2015, June 27, 2014 and June 28, 2013

	Balance at Beginning  of Period		Additions Charged to Costs and Expenses		Deductions			Balance at End of Period
	(In millions)
Allowances for collection losses:
Year ended July 3, 2015	$	7.4	$	1.3	$	2.0	(A)	$	6.7
Year ended June 27, 2014	$	10.2	$	1.5	$	4.3	(B)	$	7.4
Year ended June 28, 2013	$	16.2	$	2.8	$	8.8	(C)	$	10.2

 ____________________________

Note A	Consisted of changes to allowance for collection losses of $0.2 million for foreign currency translation losses and $1.8 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.
Note B	Consisted of changes to allowance for collection losses of $4.3 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.
Note C	Consisted of changes to allowance for collection losses of $0.1 million for foreign currency translation losses and $8.9 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.

94

EXHIBIT INDEX

The following exhibits are filed herewith or are incorporated herein by reference to exhibits previously filed with the SEC:

Ex. #	Description
2.1	Intentionally omitted
2.2	Intentionally omitted
2.3	Intentionally omitted
2.4	Asset Purchase Agreement by and among Aviat U.S., Inc. and EION Networks, Inc., dated as of September 2, 2011 (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed with the SEC on September 9, 2011, File No. 001-33278)
3.1	Amended and Restated Certificate of Incorporation of Harris Stratex Networks, Inc. as filed with the Secretary of State of the State of Delaware on November 19, 2009 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on November 23, 2009, File No. 001-33278)
3.2	Amended and Restated Bylaws of Harris Stratex Networks, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed with the SEC on November 23, 2009, File No. 001-33278)
3.3	Certificate of Ownership and Merger Merging Aviat Networks, Inc. into Harris Stratex Networks, Inc., effective January 27, 2010, as filed with the Secretary of State of the State of Delaware on January 27, 2010 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on January 28, 2010, File No. 001-33278)
4.1	Intentionally omitted
4.1.1	Specimen common stock certificate, adopted as of January 29, 2010 (incorporated by reference to Exhibit 4.1.1 to the Annual Report on Form 10-K for fiscal year end July 2, 2010 filed with the SEC on September 9, 2010, File No. 001-33278)
4.2	Intentionally omitted
4.3	Intentionally omitted
10.1	Intentionally omitted
10.2	Intentionally omitted
10.3	Intellectual Property Agreement between Harris Stratex Networks, Inc. and Harris Corporation dated January 26, 2007 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed with the SEC on February 1, 2007, File No. 001-33278)
10.4	Intentionally omitted
10.5	Intentionally omitted
10.6	Intentionally omitted
10.6.1	Intentionally omitted
10.7	Intentionally omitted
10.8	Intentionally omitted
10.9	Intentionally omitted
10.10	Tax Sharing Agreement between Harris Stratex Networks, Inc. and Harris Corporation dated January 26, 2007 (incorporated by reference to Exhibit 10.11 to the Current Report on Form 8-K filed with the SEC on February 1, 2007, File No. 001-33278)
10.11	Intentionally omitted
10.12*	Intentionally omitted
10.13*	Intentionally omitted

95

Ex. #	Description
10.13.1*	Intentionally omitted
10.14*	Standard Form of Executive Employment Agreement between Harris Stratex Networks, Inc. and certain executives (incorporated by reference to Exhibit 10.16 to the Current Report on Form 8-K filed with the SEC on February 1, 2007, File No. 001-33278)
10.15	Form of Indemnification Agreement between Harris Stratex Networks, Inc. and its directors and certain officers (incorporated by reference to Exhibit 10.16 to the Registration Statement on Form S-1 of Stratex Networks, Inc., File No. 33-13431)
10.16	Intentionally omitted
10.17*	Harris Stratex Networks, Inc. Annual Incentive Plan (incorporated by reference to Exhibit 10.17 to the Annual Report on Form 10-K for the fiscal year ended June 27, 2008 filed with the SEC on September 25, 2008, File No. 001-33278)
10.18*	Intentionally omitted
10.18.1	Intentionally omitted
10.18.2	Aviat Networks, Inc. 2007 Stock Equity Plan (as Amended and Restated Effective November 17, 2011) (incorporated by reference to Appendix A to Schedule 14A filed with the SEC on October 3, 2011, File No. 001-33278)
10.19	Intentionally omitted
10.19.1	Intentionally omitted
10.20	Intentionally omitted
10.20.1	Intentionally omitted
10.20.2	Intentionally omitted
10.20.3	Second Amended and Restated Loan and Security Agreement, dated as of March 28, 2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd., and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on March 31, 2014, File No. 001-33278)
10.20.4	Amendment #1 to Second Amended and Restated Loan and Security Agreement, dated as of September 25, 2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd. and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on September 29, 2014, File No. 001-33278)
10.20.5	Amendment #2 to Second Amended and Restated Loan and Security Agreement, dated as of October 30,2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd. and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on October 30, 2014, File No. 001-33278)
10.20.6	Amendment #3 to Second Amended and Restated Loan and Security Agreement, dated as of December 2, 2014, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd., and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on December 5, 2014, File No. 001-33278)
10.20.7	Amendment #4 to Second Amended and Restated Loan and Security Agreement, dated February 27, 2015, by and among Aviat Networks, Inc., Aviat U.S., Inc., Aviat Networks (S) Pte. Ltd., and Silicon Valley Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on March 3, 2015, File No. 001-33278)
10.21	Intentionally omitted
10.22*	Intentionally omitted
10.22.1*	Intentionally omitted
10.23*	Employment Agreement, dated as of April 1, 2006, between Harris Stratex Networks, Inc. and Heinz Stumpe (incorporated by reference to Exhibit 10.15.2 to the Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2007 filed with the SEC on May 8, 2007, File No. 001-33278)

96

Ex. #	Description
10.24*	Intentionally omitted
10.24.1*	Intentionally omitted
10.24.2*	Intentionally omitted
10.25*	Employment Agreement, dated as of May 14, 2002, between Stratex Networks, Inc. and Shaun McFall (incorporated by reference to Exhibit 10.25 to the Annual Report on Form 10-K for the fiscal year ended July 3, 2009 filed with the SEC on September 4, 2009, File No. 001-33278)
10.25.1*	Amendment, effective April 1, 2006, to Employment Agreement, dated May 14, 2002, between Stratex Networks, Inc. and Shaun McFall (incorporated by reference to Exhibit 10.25.1 to the Annual Report on Form 10-K for the fiscal year ended July 3, 2009 filed with the SEC on September 4, 2009, File No. 001-33278)
10.26*	Intentionally omitted
10.26.1*	Intentionally omitted
10.27*	Intentionally omitted
10.28*	Employment Agreement, dated July 18, 2011, between Aviat Networks, Inc. and Michael Pangia (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 20, 2011, File No. 001-33278)
10.29*	Employment Agreement, dated December 30, 2010, between Aviat Networks, Inc. and John Madigan (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on January 4, 2011, File No. 001-33278)
10.30*	Employment Agreement, dated December 29, 2014, between Aviat Networks, Inc. and Michael Shahbazian (incorporated by reference to the Current Report on Form 8-K filed with the SEC on December 29, 2014, File No. 001-33278)
10.31*	Employment Agreement, dated April 29, 2015, between Aviat Networks, Inc. and Ralph S. Marimon (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on May 14, 2015, File No. 001-33278)
10.32	Letter Agreement, dated as of January 11, 2015, among Aviat Networks, Inc., Steel Partners Holdings L.P., Lone Star Value Management, LLC and certain other parties (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on January 12, 2015, File No. 001-33278)
16.1	Intentionally omitted
16.2	Letter from KPMG LLP to the Securities and Exchange Commission dated February 26, 2015 (incorporated by reference to Exhibit 16.1 to the Current Report on Form 8-K filed with the SEC on March 3, 2015)
21	List of Subsidiaries of Aviat Networks, Inc.
23.1	Consent of BDO USA, LLP
23.2	Consent of KPMG LLP
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer
32.2	Section 1350 Certification of Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

97

Ex. #	Description
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

 ______________________________

* Management compensatory contract, arrangement or plan required to be filed as an exhibit pursuant to Item 15(b) of this report.

98

EX-21

Exhibit 21

AVIAT NETWORKS, INC.

SUBSIDIARIES AS OF JULY 3, 2015(100% direct or indirect ownership by Aviat Networks, Inc.)

Name of Subsidiary	State or Other Jurisdiction of Incorporation
Aviat Networks Algeria S.A.R.L.	Algeria
Aviat Networks (Australia) Pty. Ltd. .	Australia
Aviat Networks (Bangladesh) Limited	Bangladesh
Aviat Networks Brasil Servicos em Communicacoes Ltda.	Brazil
Aviat Networks Canada ULC	Canada
Aviat Communications Technology (Shenzhen) Company Ltd.	The People’s Republic of China
Aviat Networks France S.A.S.	France
Aviat Networks Ghana Limited	Ghana
Aviat Networks Holland B.V.	The Netherlands
Aviat Networks HK Limited	Hong Kong
Aviat Networks (India) Private Limited	India
Telsima Communications Private Limited	India
Pt. Aviat Networks Indonesia	Indonesia
Aviat Networks Côte d’Ivoire	Ivory Coast
Aviat Networks (Kenya) Limited	Kenya
Aviat Networks Malaysia Sdn. Bhd.	Malaysia
Digital Microwave (Mauritius) Private Limited	Mauritius
Aviat Networks México S.A. de C.V.	Mexico
Aviat Networks (NZ) Limited	New Zealand
Aviat Networks Communication Solutions Limited	Nigeria
Stratex Networks Nigeria Limited	Nigeria
Aviat Networks (Clark) Corporation	The Philippines
Aviat Networks Philippines, Inc.	The Philippines
Aviat Networks Polska Sp. z.o.o.	Poland
Aviat Networks Solutions LLC	Russia
Aviat Networks (S) Pte. Ltd.	Republic of Singapore
Aviat storitveno podjetje, d.o.o.	Slovenia
Aviat Networks (South Africa) (Proprietary) Limited	Republic of South Africa
MAS Technology Holdings (Proprietary) Limited	Republic of South Africa
DMC Stratex Networks (South Africa) (Proprietary) Limited	Republic of South Africa
Aviat Ubuntu Telecommunication (Pty) Limited	Republic of South Africa
Aviat Networks Tanzania Limited	Tanzania
Aviat Networks (Thailand) Ltd.	Thailand
Aviat Networks (UK) Limited	Delaware
Aviat International Holdings, Inc.	Delaware
Aviat U.S., Inc.	Delaware
Telsima Corporation	Delaware

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

Aviat Networks, Inc.

Santa Clara, California

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-178467, 333-163542 and 333-140442) of Aviat Networks, Inc. of our reports dated September 30, 2015, relating to the fiscal 2015 consolidated financial statements and financial statement schedule, and the effectiveness of Aviat Networks, Inc.’s internal control over financial reporting, which appear in this Form 10-K. Our report on the effectiveness of internal control over financial reporting expresses an adverse opinion on the effectiveness of the Company’s internal control over financial reporting as of July 3, 2015.

/s/ BDO USA, LLP

San Jose, California

September 30, 2015

EX-23.2

Exhibit 23.2

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Aviat Networks, Inc.:

We consent to the incorporation by reference in the registration statements (No. 333-178467, 333-163542 and 333-140442) on Form S-8 of Aviat Networks, Inc. of our report dated December 19, 2014, with respect to the consolidated balance sheets of Aviat Networks, Inc. as of June 27, 2014, and the related consolidated statements of operations, comprehensive loss, equity, and cash flows for each of the years in the two-year period ended June 27, 2014, and related financial statement schedule, which report appears in the July 3, 2015 annual report on Form 10-K of Aviat Networks, Inc.

/s/ KPMG LLP

Santa Clara, California

September 30, 2015

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Michael A. Pangia, certify that:

1. I have reviewed this Annual Report on Form 10-K for the fiscal year ended July 3, 2015, of Aviat Networks, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	September 30, 2015	/s/ Michael A. Pangia
		Name:	Michael A. Pangia
		Title:	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Ralph S. Marimon, certify that:

1. I have reviewed this Annual Report on Form 10-K for the fiscal year ended July 3, 2015, of Aviat Networks, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	September 30, 2015	/s/ Ralph S. Marimon
		Name:	Ralph S. Marimon
		Title:	Senior Vice President and Chief Financial Officer, Principal Financial Officer

EX-32.1

Exhibit 32.1

Certification

Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Annual Report on Form 10-K of Aviat Networks, Inc. (“Aviat Networks”) for the fiscal year ended July 3, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Michael A. Pangia, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1350, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Aviat Networks as of the dates and for the periods expressed in the Report

Date:	September 30, 2015	/s/ Michael A. Pangia
		Name:	Michael A. Pangia
		Title:	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification

Pursuant to Section 1350 of Chapter 63 of Title 18 of the

United States Code as Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Annual Report on Form 10-K of Aviat Networks, Inc. (“Aviat Networks”) for the fiscal year ended July 3, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Edward J. Hayes, Jr., hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1350, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Aviat Networks as of the dates and for the periods expressed in the Report

Date:	September 30, 2015	/s/ Ralph S. Marimon
		Name:	Ralph S. Marimon
		Title:	Senior Vice President and Chief Financial Officer, Principal Financial Officer

XML

Revision of Prior Years Consolidated Financial Statements (Corrections to Consolidated Balance Sheet) (Details) - USD ($) $ in Millions	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013	Jun. 29, 2012
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other accrued expenses	$ 19.7	$ 23.1
Total current liabilities	128.6	121.6
Total liabilities	145.5	141.3
Accumulated deficit	(717.5)	(692.8)		$ (625.0)
Accumulated other comprehensive loss	(8.5)	(2.9)
Total Aviat Networks stockholders’ equity	83.8	111.9
Total equity	$ 83.9	111.9	$ 159.1	168.4
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other accrued expenses		32.4
Total current liabilities		130.9
Total liabilities		150.6
Accumulated deficit		(702.1)		(635.9)
Accumulated other comprehensive loss		(2.9)
Total Aviat Networks stockholders’ equity		102.6
Total equity		102.6
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other accrued expenses		(9.3)
Total current liabilities		(9.3)
Total liabilities		(9.3)
Accumulated deficit		9.3		$ 10.9
Accumulated other comprehensive loss		0.0
Total Aviat Networks stockholders’ equity		9.3
Total equity		$ 9.3

XML

Stockholders Equity (Narrative) (Details) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Jul. 03, 2015 USD ($) StockIncentivePlan $ / shares shares	Jul. 03, 2015 USD ($) StockIncentivePlan $ / shares shares	Jun. 27, 2014 USD ($)	Jun. 28, 2013 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, expense expected to be recognized, weighted average-period		1 year 10 months 12 days
Closing price of common stock | $ / shares	$ 1.32	$ 1.32
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options vested | $		$ 0.6	$ 0.7	$ 1.9
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options vested | $		$ 0.1	$ 3.0	$ 0.9
2007 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans | StockIncentivePlan	1	1
Number of shares available for grant	1,351,936	1,351,936
Nonvested awards, unrecognized compensation expense | $	$ 2.1	$ 2.1
2007 Stock Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration period		7 years
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 1 | First tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		25.00%
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 1 | Second tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		2.00%
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		33.33%
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 2 | First tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		50.00%
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 2 | Second tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		25.00%
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
2007 Stock Plan | Stock Options | Stock Options, Vesting Option 4 | First tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		25.00%
2007 Stock Plan | Restricted Stock | Restricted Stock, Option 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
2007 Stock Plan | Restricted Stock | Restricted Stock, Option 1 | First tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		33.33%
2007 Stock Plan | Restricted Stock | Restricted Stock, Option 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
2007 Stock Plan | Restricted Stock | Restricted Stock, Option 2 | First tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		25.00%
2007 Stock Plan | Restricted Stock | Restricted Stock, Option 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
2007 Stock Plan | Restricted Stock | Restricted Stock, Option 3 | First tranche of vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percentage		100.00%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	755,636	755,636
Employee stock purchase plan, percentage discount from fair market value		5.00%
Employee stock purchase plan, purchase period	3 months
Number of shares issued		10,621

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Balance Sheet Components (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Balance Sheet Related Disclosures [Abstract]
Depreciation and amortization	$ 7.2	$ 7.1	$ 5.6

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Income Taxes (Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning of period	$ 28.2	$ 28.7	$ 13.4
Additions for tax positions in current periods		0.0	0.7
Additions for tax positions in prior periods	0.6	8.7	15.0
Decreases for tax positions in prior periods	(0.2)	(12.1)	(0.4)
Increases related to change of foreign exchange rate		2.9
Decreases related to change of foreign exchange rate	(1.7)
Unrecognized tax benefit, end of period	$ 26.9	$ 28.2	$ 28.7

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Stockholders Equity (Stock Based Compensation Expense) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.5	$ 0.7	$ 0.4	$ 0.6	$ 0.6	$ 0.6	$ 0.7	$ 1.5	$ 2.2	$ 3.4	$ 6.4
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense									1.5	1.9	2.5
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense									0.7	0.7	1.5
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense									0.0	0.8	2.4
Cost of product sales and services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense									0.2	0.1	0.5
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense									0.1	0.3	1.0
Selling and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense									$ 1.9	$ 3.0	$ 4.9

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Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - Allowances for collection losses - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015		Jun. 27, 2014		Jun. 28, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 7.4		$ 10.2		$ 16.2
Additions Charged to Costs and Expenses	1.3		1.5		2.8
Deductions	2.0	[1]	4.3	[2]	8.8	[3]
Balance at End of Period	$ 6.7		$ 7.4		$ 10.2

[1] Consisted of changes to allowance for collection losses of $0.2 million for foreign currency translation losses and $1.8 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.

[2] Consisted of changes to allowance for collection losses of $4.3 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.

[3] Consisted of changes to allowance for collection losses of $0.1 million for foreign currency translation losses and $8.9 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.

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Balance Sheet Components (Inventory Adjustments) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Balance Sheet Related Disclosures [Abstract]
Excess and obsolete inventory charges	$ 6.4	$ 4.0	$ 4.0
Customer service inventory write-down	2.9	3.2	1.5
Charges for product transition and inventory write-downs	$ 9.3	$ 7.2	$ 5.5
As % of revenue	2.80%	2.10%	1.20%
Write off of deferred cost of revenue			$ 4.2

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Divestiture (Tables)

12 Months Ended

Jul. 03, 2015

Discontinued Operations and Disposal Groups [Abstract]

Summary Results of Operations for the WiMax Business

Summary results of operations for the WiMAX business were as follows:

	Fiscal Year
	2015		2014			2013
	(In millions)
Revenues	$	—	$	—		$	0.1
Income (loss) from operations of WiMAX	—		1.2			(4.3		)
Gain on disposal	0.1		—			0.4
Income taxes	—		(0.3		)	(0.2		)
Income (loss) from discontinued operations, net of tax	$	0.1	$	0.9		$	(4.1	)

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Schedule II - Valuation and Qualifying Accounts and Reserves Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Valuation and Qualifying Accounts [Abstract]
Foreign currency translation loss	$ 0.2		$ 0.1
Uncollectible accounts charged off, net of recoveries	$ 1.8	$ 4.3	$ 8.9

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Commitments and Contingencies (Narrative) (Details) ft² in Thousands, $ in Millions	12 Months Ended
	Jul. 03, 2015 USD ($) ft²	Jun. 27, 2014 USD ($)	Jun. 28, 2013 USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Future minimum commitments	$ 16.4
Future proceeds from non-cancelable subleases	0.1
Rental expense for operating leases	6.5	$ 7.7	$ 8.5
Purchase obligations	38.2
Commercial commitments, outstanding	$ 33.1
Corporate Headquarters
Property Subject to or Available for Operating Lease [Line Items]
Office Space (in sq ft) | ft²	129
Future minimum commitments	$ 12.8
Maximum
Property Subject to or Available for Operating Lease [Line Items]
Guarantee term	2 years

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Stockholders Equity (Additional Option Information) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average grant date fair value per share granted (dollars per share)	$ 0.55	$ 1.06	$ 1.30
Intrinsic value of options exercised	$ 0.0	$ 0.0	$ 0.0
Fair value of options vested	$ 2.0	$ 2.2	$ 3.0

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Quarterly Financial Data (Unaudited) (Corrections to Quarterly Financial) (Details) - USD ($) $ in Millions	3 Months Ended															12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015		Dec. 26, 2014		Sep. 26, 2014		Jun. 27, 2014		Mar. 28, 2014		Dec. 27, 2013		Sep. 27, 2013		Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 87.8	$ 74.8	[1]	$ 90.9	[1],[2]	$ 82.4	[1]	$ 85.4	[1]	$ 81.4	[1]	$ 85.8	[1],[2]	$ 93.4	[1]	$ 335.9	$ 346.0	$ 471.3
Gross margin	18.7	16.0	[1]	24.0	[1],[2]	22.0	[1]	19.4	[1]	21.1	[1]	21.5	[1],[2]	23.2	[1]	80.7	85.2	138.4
Operating income (loss)	(5.2)	(11.7)	[1]	(3.7)	[1],[2]	(5.4)	[1]	(12.2)	[1]	(14.6)	[1]	(10.5)	[1],[2]	(13.3)	[1]	(26.0)	(50.6)	0.0
Net loss	(1.5)	(13.1)	[1]	(4.5)	[1],[2]	(5.5)	[1]	(13.3)	[1]	(14.6)	[1]	(9.7)	[1],[2]	(13.5)	[1]	(24.6)	(51.1)	(16.7)
Net income (loss) attributable to Aviat Networks	$ (1.6)	(13.1)	[1]	(4.5)	[1],[2]	(5.5)	[1]	(13.3)	[1]	(14.6)	[1]	(9.7)	[1],[2]	(13.5)	[1]	$ (24.7)	(51.1)	(16.7)
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue		74.8		92.5		82.4		85.4		81.4		85.8		93.4
Gross margin		17.6		25.2		21.8		19.8		20.9		21.3		23.1			85.1	140.1
Operating income (loss)		(10.1)		(2.5)		(5.4)		(11.8)		(14.8)		(10.7)		(13.4)			(50.7)	1.7
Net loss		(11.5)		(3.3)		(5.7)		(12.9)		(14.8)		(9.9)		(13.6)			(51.2)	(15.0)
Net income (loss) attributable to Aviat Networks		(11.5)		(3.3)		(5.7)
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue		0.0		(1.6)		0.0		0.0		0.0		0.0		0.0
Gross margin		(1.6)		(1.2)		0.2		(0.4)		0.2		0.2		0.1			0.1	(1.7)
Operating income (loss)		(1.6)		(1.2)		0.0		(0.4)		0.2		0.2		0.1			0.1	(1.7)
Net loss		(1.6)		(1.2)		0.2		$ (0.4)		$ 0.2		$ 0.2		$ 0.1			$ 0.1	$ (1.7)
Net income (loss) attributable to Aviat Networks		$ (1.6)		$ (1.2)		$ 0.2

[1] Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

[2] Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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Quarterly Financial Data (Unaudited) (Certain Items on Income Statements and Discontinued Operations) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Quarterly Financial Data [Abstract]
Amortization of purchased technology and intangible assets	$ 0.1	$ 0.1	$ 0.1	$ 0.1	$ 0.1	$ 0.1	$ 0.1	$ 0.1	$ 0.4	$ 0.4	$ 0.4
Restructuring charges	0.2	3.2	0.0	1.5	2.1	4.2	0.3	4.5	4.9	11.1	3.1
Charges for excess and obsolete inventory mark-downs					1.2	0.0	0.0	0.0
Transactional tax assessments					0.0	0.0	0.6	0.0
Share-based compensation expense	0.5	0.7	0.4	0.6	0.6	0.6	0.7	1.5	2.2	3.4	6.4
Warehouse consolidation costs					0.0	0.0	0.0	0.2
Operating expenses	0.8	4.0	0.5	2.2	4.0	4.9	1.7	6.3
Income (loss) from discontinued operations	$ 0.0	$ 0.0	$ (0.1)	$ 0.2	$ 0.2	$ 0.3	$ 0.3	$ 0.1	$ 0.1	$ 0.9	$ (4.1)

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013	Jun. 29, 2012
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (1.3)	$ 1.5	$ 13.3
Statutory U.S. federal tax rate	35.00%	(35.00%)	(35.00%)
Pre-tax income (loss)	$ (26.0)	$ (50.5)	$ 0.7
Tax benefit from the release of valuation allowance	4.4
Increase in reserve for uncertain tax positions			11.7
Valuation allowance	194.7	189.7
Operating loss carryforwards, domestic	328.7	291.6
Tax credit carryforward, amount	21.3
Operating loss carryforwards, foreign	129.0
Income tax basis difference in foreign subsidiaries	5.4	5.7
Unrecognized tax benefits	26.9	28.2	$ 28.7	$ 13.4
Increase (decrease) in unrecognized tax benefits	(1.3)
Unrecognized tax benefits that would impact effective tax rate	1.4	1.0
Unrecognized tax benefits, income tax penalties and interest accrued	0.0	$ 0.1
Prepayment of tax assessment	13.2
Amount of unrecognized tax benefits may change in the next twelve months	$ 14.0

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Revision of Prior Years Consolidated Financial Statements (Tables)

12 Months Ended

Jul. 03, 2015

Accounting Changes and Error Corrections [Abstract]

Error Corrections on Consolidated Financial Statements

The total effects of the error corrections on our consolidated balance sheet as of June 27, 2014 and on our accumulated deficit as of June 29, 2012 were as follows:

	Previously Reported			Correction			Revised
	(In millions)
As of June 27, 2014:
Other accrued expenses	$	32.4		$	(9.3	)	$	23.1
Total current liabilities	$	130.9		$	(9.3	)	$	121.6
Total liabilities	$	150.6		$	(9.3	)	$	141.3
Accumulated deficit	$	(702.1	)	$	9.3		$	(692.8	)
Accumulated other comprehensive loss	$	(2.9	)	$	—		$	(2.9	)
Total Aviat Networks stockholders’ equity	$	102.6		$	9.3		$	111.9
Total equity	$	102.6		$	9.3		$	111.9
As of June 29, 2012:
Accumulated deficit	$	(635.9	)	$	10.9		$	(625.0	)

The effects of the error corrections on our consolidated statements of operations and comprehensive loss for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Cost of services	$	88.2		$	(0.1	)	$	88.1		$	91.6		$	1.7		$	93.3
Total cost of revenues	260.9			(0.1		)	260.8			331.2			1.7			332.9
Gross margin	85.1			0.1			85.2			140.1			(1.7		)	138.4
Operating income (loss)	(50.7		)	0.1			(50.6		)	1.7			(1.7		)	—
Income (loss) from continuing operations    before income taxes	(50.6		)	0.1			(50.5		)	2.4			(1.7		)	0.7
Loss from continuing operations	(52.1		)	0.1			(52.0		)	(10.9		)	(1.7		)	(12.6		)
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Comprehensive loss	$	(50.8	)	$	0.1		$	(50.7	)	$	(14.3	)	$	(1.7	)	$	(16.0	)

The effects of the error corrections on our consolidated statements of cash flows for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Operating Activities
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Changes in operating assets and liabilities:
Accrued expenses	$	(6.4	)	$	(0.1	)	$	(6.5	)	$	(3.2	)	$	1.7		$	(1.5	)
Net cash provided by (used in) operating     activities	$	(29.3	)	$	—		$	(29.3	)	$	8.4		$	—		$	8.4

The effects of the error corrections set forth in Note 2 and adjustments to second quarter’s revenue and cost of revenue on the unaudited consolidated statements of operations for the interim periods within the years ended July 3, 2015 and June 27, 2014 were as follows:

	Previously Reported												Correction											Revised
	Q1			Q2			Q3			Q4			Q1		Q2			Q3			Q4			Q1			Q2			Q3			Q4
	(In millions)
Fiscal 2015 (Unaudited)
Revenue	$	82.4		$	92.5		$	74.8		N/A			$	—	$	(1.6	)	$	—		N/A			$	82.4		$	90.9		$	74.8		N/A
Gross margin	21.8			25.2			17.6			N/A			0.2		(1.2		)	(1.6		)	N/A			22.0			24.0			16.0			N/A
Operating loss	(5.4		)	(2.5		)	(10.1		)	N/A			—		(1.2		)	(1.6		)	N/A			(5.4		)	(3.7		)	(11.7		)	N/A
Net loss	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Net loss attributable   to Aviat Networks	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Fiscal 2014 (Unaudited)
Revenue	$	93.4		$	85.8		$	81.4		$	85.4		$	—	$	—		$	—		$	—		$	93.4		$	85.8		$	81.4		$	85.4
Gross margin	23.1			21.3			20.9			19.8			0.1		0.2			0.2			(0.4		)	23.2			21.5			21.1			19.4
Operating loss	(13.4		)	(10.7		)	(14.8		)	(11.8		)	0.1		0.2			0.2			(0.4		)	(13.3		)	(10.5		)	(14.6		)	(12.2		)
Net loss	(13.6		)	(9.9		)	(14.8		)	(12.9		)	0.1		0.2			0.2			(0.4		)	(13.5		)	(9.7		)	(14.6		)	(13.3		)

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Fair Value Measurements Of Assets And Liabilities (Details) $ / shares in Units, $ in Millions	Jul. 03, 2015 USD ($) institution $ / shares	Jun. 27, 2014 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of financial institutions company purchased money market funds from | institution	2
Level 1 | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money Market, net asset value, per share | $ / shares	$ 1.00
Recurring | Level 1 | Carrying Amount | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 12.5	$ 10.2
Recurring | Level 1 | Fair Value | Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	12.5	10.2
Recurring | Level 2 | Carrying Amount | Bank certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0.6	3.5
Recurring | Level 2 | Fair Value | Bank certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 0.6	$ 3.5

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Accumulated Other Comprehensive Loss (Reclassification out of AOCI) (Details) - USD ($) $ in Millions	3 Months Ended															12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015	[1]	Dec. 26, 2014	[1],[2]	Sep. 26, 2014	[1]	Jun. 27, 2014	[1]	Mar. 28, 2014	[1]	Dec. 27, 2013	[1],[2]	Sep. 27, 2013	[1]	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	$ 87.8	$ 74.8		$ 90.9		$ 82.4		$ 85.4		$ 81.4		$ 85.8		$ 93.4		$ 335.9	$ 346.0	$ 471.3
Cost of revenues																(255.2)	(260.8)	(332.9)
Net income (loss)	$ (1.5)	$ (13.1)		$ (4.5)		$ (5.5)		$ (13.3)		$ (14.6)		$ (9.7)		$ (13.5)		(24.6)	(51.1)	(16.7)
Cash Flow Hedges | Reclassification out of AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues																0.4	(0.2)	(0.1)
Cost of revenues																0.0	0.0	0.1
Net income (loss)																$ 0.4	$ (0.2)	$ 0.0

[1] Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

[2] Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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Quarterly Financial Data (Unaudited) (Quarter Financial Footnote) (Details) - USD ($) $ in Millions	3 Months Ended															12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015		Dec. 26, 2014		Sep. 26, 2014		Jun. 27, 2014		Mar. 28, 2014		Dec. 27, 2013		Sep. 27, 2013		Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 87.8	$ 74.8	[1]	$ 90.9	[1],[2]	$ 82.4	[1]	$ 85.4	[1]	$ 81.4	[1]	$ 85.8	[1],[2]	$ 93.4	[1]	$ 335.9	$ 346.0	$ 471.3
Cost of sales																$ 163.9	$ 172.7	$ 239.6
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue		$ 0.0		(1.6)		$ 0.0		$ 0.0		$ 0.0		$ 0.0		$ 0.0
Adjustments for Recognition of Revenue and Cost of Revenue | Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue				(1.6)
Cost of sales				$ (0.9)

[1] Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

[2] Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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The Company and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Concentration Risk [Line Items]
Fiscal period duration	91 days	98 days	91 days	91 days	91 days	91 days	91 days	91 days	371 days	364 days	364 days
Customer letters of credit discounted									$ 11.6	$ 1.8	$ 36.8
Interest expense									0.1	0.0	0.2
Net foreign currency exchange gain (loss)									(3.3)	(0.8)	(1.5)
Retirement plan expense									$ 1.7	$ 2.5	$ 2.9
Minimum
Concentration Risk [Line Items]
Product warranty period									12 months
Maximum
Concentration Risk [Line Items]
Product warranty period									36 months
Verizon Wireless
Concentration Risk [Line Items]
Concentration risk, percentage											11.00%
Customer Concentration Risk | Total Revenue | Mobile Telephone Networks
Concentration Risk [Line Items]
Concentration risk, percentage									14.00%	17.00%	25.00%
Customer Concentration Risk | Accounts Receivable | Mobile Telephone Networks
Concentration Risk [Line Items]
Concentration risk, percentage									10.00%	17.00%

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Restructuring Activities (Costs Incurred) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Restructuring Cost and Reserve [Line Items]
Cost Incurred	$ 0.2	$ 3.2	$ 0.0	$ 1.5	$ 2.1	$ 4.2	$ 0.3	$ 4.5	$ 4.9	$ 11.1	$ 3.1
Fiscal 2015-2016 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									3.4
Cumulative Costs Incurred Through July 3, 2015	3.4								3.4
Estimated Additional Costs to be Incurred	1.6								1.6
Total Restructuring Costs Expected to be Incurred	5.0								5.0
Fiscal 2014-2015 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									1.4	5.8
Cumulative Costs Incurred Through July 3, 2015	7.2								7.2
Estimated Additional Costs to be Incurred	0.3								0.3
Total Restructuring Costs Expected to be Incurred	7.5								7.5
Fiscal 2013-2014 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									0.1	5.3	1.8
Cumulative Costs Incurred Through July 3, 2015	7.2								7.2
Estimated Additional Costs to be Incurred	0.6								0.6
Total Restructuring Costs Expected to be Incurred	7.8								7.8
Fiscal 2011 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred											1.3
Cumulative Costs Incurred Through July 3, 2015					16.3					16.3
Severance and benefits | Fiscal 2015-2016 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									2.8
Cumulative Costs Incurred Through July 3, 2015	2.8								2.8
Estimated Additional Costs to be Incurred	1.4								1.4
Total Restructuring Costs Expected to be Incurred	4.2								4.2
Severance and benefits | Fiscal 2014-2015 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									0.0	5.4
Cumulative Costs Incurred Through July 3, 2015	5.4								5.4
Estimated Additional Costs to be Incurred	0.0								0.0
Total Restructuring Costs Expected to be Incurred	5.4								5.4
Severance and benefits | Fiscal 2013-2014 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									0.0	1.0	1.8
Cumulative Costs Incurred Through July 3, 2015	2.8								2.8
Estimated Additional Costs to be Incurred	0.0								0.0
Total Restructuring Costs Expected to be Incurred	2.8								2.8
Severance and benefits | Fiscal 2011 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred											1.2
Cumulative Costs Incurred Through July 3, 2015					12.6					12.6
Facilities and other | Fiscal 2015-2016 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									0.6
Cumulative Costs Incurred Through July 3, 2015	0.6								0.6
Estimated Additional Costs to be Incurred	0.2								0.2
Total Restructuring Costs Expected to be Incurred	0.8								0.8
Facilities and other | Fiscal 2014-2015 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									1.4	0.4
Cumulative Costs Incurred Through July 3, 2015	1.8								1.8
Estimated Additional Costs to be Incurred	0.3								0.3
Total Restructuring Costs Expected to be Incurred	2.1								2.1
Facilities and other | Fiscal 2013-2014 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									0.1	4.3	0.0
Cumulative Costs Incurred Through July 3, 2015	4.4								4.4
Estimated Additional Costs to be Incurred	0.6								0.6
Total Restructuring Costs Expected to be Incurred	$ 5.0								5.0
Facilities and other | Fiscal 2011 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred											$ 0.1
Cumulative Costs Incurred Through July 3, 2015					$ 3.7					$ 3.7
Government fund penalty | Fiscal 2015-2016 Plan
Restructuring Cost and Reserve [Line Items]
Cost Incurred									$ 0.6

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Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Current provision (benefit):
United States	$ 0.0	$ (0.1)	$ (0.1)
Foreign	3.4	1.9	13.6
State and local	0.0	0.0	0.0
Total current provision	3.4	1.8	13.5
Deferred provision (benefit):
United States	(0.2)	0.0	0.0
Foreign	(4.5)	(0.3)	(0.2)
State and local	0.0	0.0	0.0
Total deferred provision (benefit)	(4.7)	(0.3)	(0.2)
Total provision (benefit) for income taxes from continuing operations	$ (1.3)	$ 1.5	$ 13.3

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Stockholders Equity (Performance Share Activity) (Details) - Performance Shares	12 Months Ended
	Jul. 03, 2015 $ / shares shares
Performance Share Awards, Shares [Roll Forward]
Shares outstanding as of June 28, 2013	66,667
Granted, Shares	803,210
Vested and released, Shares	(47,820)
Forfeited due to terminations, Shares	(18,847)
Shares outstanding as of June 27, 2014	803,210
Performance Share Awards, Weighted Average Grant Date Fair Value [Roll Forward]
Shares outstanding as of June 28, 2013, Weighted Average Grant Date Fair Value | $ / shares	$ 2.59
Vested and released, Weighted Average Grant Date Fair Value | $ / shares	2.59
Forfeited due to terminations, Weighted Average Grant Date Fair Value | $ / shares	2.59
Shares outstanding as of June 27, 2014, Weighted Average Grant Date Fair Value | $ / shares	$ 1.25

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Balance Sheet Components (Property Plant and Equipment) (Details) - USD ($) $ in Millions	Jul. 03, 2015	Jun. 27, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 69.2	$ 71.3
Less accumulated depreciation and amortization	(44.9)	(42.0)
Property, plant and equipment, net	24.3	29.3
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	0.7	0.7
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9.7	10.3
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	13.6	13.2
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 45.2	$ 47.1

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Revision of Prior Years Consolidated Financial Statements (Notes)

12 Months Ended

Jul. 03, 2015

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Years Consolidated Financial Statements

Revision of Prior Years Consolidated Financial Statements

During the fourth quarter of fiscal year 2015, we identified and corrected errors that originated in prior periods and assessed the materiality of the errors using quantitative and qualitative factors. The errors misstated our accrued liability related to cost of services revenue. In prior years, we estimated certain direct costs related to service projects and recorded the related accrued liabilities. During the fourth quarter of fiscal 2015, we recomputed our accruals for service arrangements based on actual service work performed at the end of each reporting periods, including interim periods, and determined that the prior methodology was misstating our costs and accrued liabilities for the work performed on service projects. 

Based on the analysis, we determined that the errors were immaterial to each of the prior reporting periods affected. However, we have concluded that correcting the errors in fiscal 2015 would materially misstate our fiscal 2015 consolidated financial statements. Accordingly, we have reflected the corrections of the prior period errors in the periods in which they originated and revised our consolidated balance sheet as of June 27, 2014 and our consolidated statements of operations, comprehensive loss, cash flows and equity for the years ended June 27, 2014 and June 28, 2013.

The total effects of the error corrections on our consolidated balance sheet as of June 27, 2014 and on our accumulated deficit as of June 29, 2012 were as follows:

	Previously Reported			Correction			Revised
	(In millions)
As of June 27, 2014:
Other accrued expenses	$	32.4		$	(9.3	)	$	23.1
Total current liabilities	$	130.9		$	(9.3	)	$	121.6
Total liabilities	$	150.6		$	(9.3	)	$	141.3
Accumulated deficit	$	(702.1	)	$	9.3		$	(692.8	)
Accumulated other comprehensive loss	$	(2.9	)	$	—		$	(2.9	)
Total Aviat Networks stockholders’ equity	$	102.6		$	9.3		$	111.9
Total equity	$	102.6		$	9.3		$	111.9
As of June 29, 2012:
Accumulated deficit	$	(635.9	)	$	10.9		$	(625.0	)

The effects of the error corrections on our consolidated statements of operations and comprehensive loss for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Cost of services	$	88.2		$	(0.1	)	$	88.1		$	91.6		$	1.7		$	93.3
Total cost of revenues	260.9			(0.1		)	260.8			331.2			1.7			332.9
Gross margin	85.1			0.1			85.2			140.1			(1.7		)	138.4
Operating income (loss)	(50.7		)	0.1			(50.6		)	1.7			(1.7		)	—
Income (loss) from continuing operations    before income taxes	(50.6		)	0.1			(50.5		)	2.4			(1.7		)	0.7
Loss from continuing operations	(52.1		)	0.1			(52.0		)	(10.9		)	(1.7		)	(12.6		)
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Comprehensive loss	$	(50.8	)	$	0.1		$	(50.7	)	$	(14.3	)	$	(1.7	)	$	(16.0	)

The effects of the error corrections on our consolidated statements of cash flows for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Operating Activities
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Changes in operating assets and liabilities:
Accrued expenses	$	(6.4	)	$	(0.1	)	$	(6.5	)	$	(3.2	)	$	1.7		$	(1.5	)
Net cash provided by (used in) operating     activities	$	(29.3	)	$	—		$	(29.3	)	$	8.4		$	—		$	8.4

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Segment and Geographic Information (Schedule of Revenues by Geographic Region) (Details) $ in Millions	3 Months Ended															12 Months Ended
	Jul. 03, 2015 USD ($)	Apr. 03, 2015 USD ($)	[1]	Dec. 26, 2014 USD ($)	[1],[2]	Sep. 26, 2014 USD ($)	[1]	Jun. 27, 2014 USD ($)	[1]	Mar. 28, 2014 USD ($)	[1]	Dec. 27, 2013 USD ($)	[1],[2]	Sep. 27, 2013 USD ($)	[1]	Jul. 03, 2015 USD ($) segments	Jun. 27, 2014 USD ($)	Jun. 28, 2013 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | segments																1
Revenue	$ 87.8	$ 74.8		$ 90.9		$ 82.4		$ 85.4		$ 81.4		$ 85.8		$ 93.4		$ 335.9	$ 346.0	$ 471.3
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue																153.2	142.0	180.5
Africa and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue																97.1	108.9	182.2
Europe and Russia
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue																36.0	36.0	48.0
Latin America and Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue																$ 49.6	$ 59.1	$ 60.6

[1] Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

[2] Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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Net Loss per Share of Common Stock (Details) - shares shares in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded	9.2	7.9	8.4
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded	7.4	7.5	6.2
Restricted stocks and units and performance shares and units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potential shares of common stock excluded	1.8	0.4	2.2

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Fair Value Measurements Of Assets And Liabilities (Tables)

12 Months Ended

Jul. 03, 2015

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The carrying amounts, estimated fair values and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of July 3, 2015 and June 27, 2014 were as follows:

	July 3, 2015				June 27, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
	(In millions)
Assets:
Cash equivalents:
Bank certificates of deposit	$	0.6	$	0.6	$	3.5	$	3.5	Level 2
Money market funds	$	12.5	$	12.5	$	10.2	$	10.2	Level 1

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Balance Sheet Components (Tables)

12 Months Ended

Jul. 03, 2015

Balance Sheet Related Disclosures [Abstract]

Schedule of Accounts Receivable

Our net accounts receivable is summarized below:

	July 3, 2015			June 27, 2014
	(In millions)
Accounts receivable	$	94.9		$	84.6
Less: allowances for collection losses	(6.7		)	(7.4		)
	$	88.2		$	77.2

Schedule of Inventories

Our inventories are summarized below:

	July 3, 2015		June 27, 2014
	(In millions)
Finished products	$	21.1	$	25.3
Work in process	3.8		5.3
Raw materials and supplies	8.0		7.5
	$	32.9	$	38.1
Deferred cost of revenue included within finished goods	$	5.6	$	3.2
Consigned inventories included within raw materials	$	6.8	$	6.6

Schedule of Adjustments to Inventory

These charges were primarily due to excess and obsolete inventory resulting from product transitioning and discontinuance or customer insolvency. Such charges incurred during fiscal 2015, 2014 and 2013 were classified in cost of product sales as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
Excess and obsolete inventory charges	$	6.4		$	4.0		$	4.0
Customer service inventory write-downs	2.9			3.2			1.5
	$	9.3		$	7.2		$	5.5
As % of revenue	2.8		%	2.1		%	1.2		%

Property, Plant and Equipment

The useful lives of the assets are generally as follows:

Buildings	40 years
Leasehold improvements	2 to 10 years
Software	3 to 5 years
Machinery and equipment	2 to 5 years

Our property, plant and equipment, net are summarized below :

	July 3, 2015			June 27, 2014
	(In millions)
Land	$	0.7		$	0.7
Buildings and leasehold improvements	9.7			10.3
Software	13.6			13.2
Machinery and equipment	45.2			47.1
	69.2			71.3
Less accumulated depreciation and amortization	(44.9		)	(42.0		)
	$	24.3		$	29.3

Schedule of Product Warranty Liability

Changes in our warranty liability, which is included as a component of other accrued expenses in the consolidated balance sheets, during fiscal 2015 and 2014 were as follows:

	Fiscal Year
	2015			2014
	(In millions)
Balance as of the beginning of the fiscal year	$	3.8		$	3.3
Warranty provision recorded during the period	5.6			5.2
Consumption during the period	(5.2		)	(4.7		)
Balance as of the end of the period	$	4.2		$	3.8

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Stockholders Equity (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014
Stock Options, Shares [Roll Forward]
Options outstanding as of June 27, 2014	7,548,999
Granted	1,378,501
Exercised	0
Forfeited	(1,552,689)
Expired	(840)
Options outstanding as of July 3, 2015	7,373,971	7,548,999
Stock Options, Weighted Average Exercise Price [Roll Forward]
Options outstanding as of June 28, 2013, Weighted Average Exercise Price	$ 3.31
Granted, Weighted Average Exercise Price	$ 1.27
Exercised, Weighted Average Exercise Price
Forfeited, Weighted Average Exercise Price	$ 3.50
Expired, Weighted Average Exercise Price	16.27
Options outstanding as of June 27, 2014, Weighted Average Exercise Price	$ 2.88	$ 3.31
Options outstanding, Weighted Average Remaining Contractual Life	4 years 17 days	4 years 6 months 10 days
Options outstanding as of June 28, 2013, Aggregate Intrinsic Value	$ 0.0
Options Exercisable as June 27, 2014	4,848,127
Options vested and expected to vest as of June 27, 2014	7,129,857
Options exercisable as of June 27, 2014, Weighted Average Exercise Price	$ 3.40
Options vested and expected to vest as of June 27, 2014, Weighted Average Exercise Price	$ 2.92
Options outstanding as of June 27, 2014, Aggregate Intrinsic Value	$ 0.0	$ 0.0
Options exercisable as of June 27, 2014, Weighted Average Remaining Contractual Life	3 years 1 month 20 days
Options vested and expected to vest as of June 27, 2014, Weighted Average Remaining Contractual Life	3 years 11 months 27 days
Options exercisable as of June 27, 2014, Aggregate Intrinsic Value	$ 0.0
Options vested and expected to vest as of June 27, 2014, Aggregate Intrinsic Value	$ 0.0

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Balance Sheet Components (Receivables) (Details) - USD ($) $ in Millions	Jul. 03, 2015	Jun. 27, 2014
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 94.9	$ 84.6
Less: allowances for collection losses	(6.7)	(7.4)
Receivables, net	$ 88.2	$ 77.2

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Restructuring Activities (Tables)

12 Months Ended

Jul. 03, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

The following table summarizes our costs incurred during fiscal 2014 and 2013, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2013-2014 Plan:

	Costs Incurred During  Fiscal Year Ended						Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015		June 27, 2014		June 28, 2013
	(in millions)
Severance and benefits	$	—	$	1.0	$	1.8	$	2.8	$	—	$	2.8
Facilities and other	0.1		4.3		—		4.4		0.6		5.0
Total for Fiscal 2013-2014 Plan	$	0.1	$	5.3	$	1.8	$	7.2	$	0.6	$	7.8

The following table summarizes our costs incurred during fiscal 2014, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2014-2015 Plan:

	Costs Incurred During  Fiscal Year Ended				Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015		June 27, 2014
	(in millions)
Severance and benefits	$	—	$	5.4	$	5.4	$	—	$	5.4
Facilities and other	1.4		0.4		1.8		0.3		2.1
Total for Fiscal 2014-2015 Plan	$	1.4	$	5.8	$	7.2	$	0.3	$	7.5

The following table summarizes our costs incurred during fiscal 2013 and 2012 and total costs incurred under the Fiscal 2011 Plan:

	Costs Incurred During  Fiscal Year Ended		Cumulative Costs Incurred Through June 28, 2013
	June 28, 2013
Severance and benefits	$	1.2	$	12.6
Facilities and other	0.1		3.7
Total for Fiscal 2011 Plan	$	1.3	$	16.3

The following table summarizes our costs incurred during fiscal 2015, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2015-2016 Plan:

	Costs Incurred During  Fiscal Year Ended		Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015
	(in millions)
Severance and benefits	$	2.8	$	2.8	$	1.4	$	4.2
Facilities and other	0.6		0.6		0.2		0.8
Total for Fiscal 2015-2016 Plan	$	3.4	$	3.4	$	1.6	$	5.0

Schedule of Restructuring Reserve by Type of Cost

The information in the following table summarizes our restructuring activities during fiscal 2015, 2014 and 2013 and restructuring liability as of July 3, 2015:

	Severance and Benefits			Facilities and Other			Total
	(In millions)
Restructuring liability as of June 29, 2012	$	1.0		$	1.2		$	2.2
Provision related to Fiscal 2013-2014 Plan	1.8			—			1.8
Provision related to Fiscal 2011 Plan	1.2			0.1			1.3
Cash payments	(2.1		)	(0.5		)	(2.6		)
Restructuring liability as of June 28, 2013	1.9			0.8			2.7
Provision related to Fiscal 2014-2015 Plan	5.4			0.4			5.8
Provision related to Fiscal 2013-2014 Plan	1.0			4.3			5.3
Cash payments	(6.8		)	(1.8		)	(8.6		)
Restructuring liability as of June 27, 2014	1.5			3.7			5.2
Provision related to Fiscal 2015-2016 Plan	2.8			0.6			3.4
Provision related to Fiscal 2014-2015 Plan	—			1.4			1.4
Provision related to Fiscal 2013-2014 Plan	—			0.1			0.1
Cash payments	(3.5		)	(2.1		)	(5.6		)
Restructuring liability as of July 3, 2015	$	0.8		$	3.7		$	4.5
Current portion of restructuring liability as of July 3, 2015							$	3.9
Long-term portion of restructuring liability (included in other long-term liabilities) as of July 3, 2015							$	0.6

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Stockholders Equity (Tables)

12 Months Ended

Jul. 03, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Compensation Expense for Share-based Compensation Awards

Total compensation expense for share-based awards included in our consolidated statements of operations for fiscal 2015, 2014 and 2013 was as follows:

	Fiscal Year
(In millions)	2015		2014		2013
By Expense Category:
Cost of product sales and services	$	0.2	$	0.1	$	0.5
Research and development	0.1		0.3		1.0
Selling and administrative	1.9		3.0		4.9
Total share-based compensation expense	$	2.2	$	3.4	$	6.4
By Types of Award:
Options	$	1.5	$	1.9	$	2.5
Restricted stock awards and units	0.7		0.7		1.5
Performance shares	—		0.8		2.4
Total share-based compensation expense	$	2.2	$	3.4	$	6.4

Schedule of Stock Options Activities

A summary of the combined stock option activity under our equity plans during fiscal 2015 is as follows:

	Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
				(Years)	($ in millions)
Options outstanding as of June 27, 2014	7,548,999		$3.31	4.53	$0.0
Granted	1,378,501		$1.27
Exercised	—
Forfeited	(1,552,689	)	$3.50
Expired	(840	)	$16.27
Options outstanding as of July 3, 2015	7,373,971		$2.88	4.05	$0.0
Options exercisable as of July 3, 2015	4,848,127		$3.40	3.14	$0.0
Options vested and expected to vest as of July 3, 2015	7,129,857		$2.92	3.99	$0.0

Additional Information of Stock Options

Additional information related to our stock options is summarized below:

	Fiscal Year
(In millions, except per share amounts)	2015		2014		2013
Weighted average grant date fair value per share granted	$	0.55	$	1.06	$	1.30
Intrinsic value of options exercised	$	—	$	—	$	—
Fair value of options vested	$	2.0	$	2.2	$	3.0

Schedule of Stock Options Valuation Assumptions

A summary of the significant weighted average assumptions we used in the Black-Scholes valuation model is as follows:

	Fiscal Year
	2015		2014		2013
Expected dividends	—	%	—	%	—	%
Expected volatility	53.9	%	54.1	%	64.9	%
Risk-free interest rate	1.13	%	1.26	%	0.49	%
Expected term (years)	4.25		4.43		4.33

Stock Options Outstanding and Exercisable

The following summarizes all of our stock options outstanding and exercisable as of July 3, 2015:

			Options Outstanding			Options Exercisable
Actual Range of Exercise Prices			Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price	Number Exercisable	Weighted Average Exercise Price
				(Years)
$1.23	—	$1.30	1,373,501	6.98	$1.27	162,591	$1.23
$1.72	—	$2.19	1,562,340	3.68	$2.11	1,158,664	$2.08
$2.28	—	$2.56	1,447,833	3.73	$2.41	1,236,988	$2.40
$2.60	—	$2.71	1,404,994	4.40	$2.63	707,162	$2.65
$2.97	—	$6.11	1,196,133	1.97	$5.04	1,193,552	$5.04
$6.44	—	$24.60	389,170	1.55	$7.75	389,170	$7.75
$1.23	—	$24.60	7,373,971	4.05	$2.88	4,848,127	$3.40

Status of Restricted Stock

A summary of the status of our restricted stock as of July 3, 2015 and changes during fiscal 2015 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Restricted stock outstanding as of June 27, 2014	314,658		$2.80
Granted	1,069,153		$1.17
Vested and released	(384,810	)	$2.17
Forfeited	(7,162	)	$2.34
Restricted stock outstanding as of July 3, 2015	991,839		$1.30

Status of Performance-based Shares

A summary of the status of our performance shares as of July 3, 2015 and changes during fiscal 2015 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Performance shares outstanding as of June 27, 2014	66,667		$2.59
Granted	803,210		$1.25
Vested and released	(47,820	)	$2.59
Forfeited due to terminations	(18,847	)	$2.59
Performance shares outstanding as of July 3, 2015	803,210		$1.25

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The Company and Summary of Significant Accounting Policies

12 Months Ended

Jul. 03, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies

The Company and Summary of Significant Accounting Policies

The Company

We design, manufacture and sell a range of wireless networking solutions and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast system operators across the globe. Our products include broadband wireless access base stations and customer premises equipment for fixed and mobile, point-to-point digital microwave radio systems for access, backhaul, trunking and license-exempt applications, supporting new network deployments, network expansion, and capacity upgrades.

We were incorporated in Delaware in 2006 to combine the businesses of Harris Corporation’s Microwave Communications Division (“MCD”) and Stratex Networks, Inc. (“Stratex”). On January 28, 2010, we changed our corporate name from Harris Stratex Networks, Inc. to Aviat Networks, Inc. (“Aviat Networks,” “we,” “us,” and “our”) to more effectively reflect our business and communicate our brand identity to customers. Additionally, the change of our corporate name was to comply with the termination of the Harris Corporation (“Harris”) trademark licensing agreement resulting from the spin-off by Harris of its interest in our stock to its stockholders in May 2009.

Basis of Presentation

The consolidated financial statements include the accounts of Aviat Networks and its wholly-owned and majority owned subsidiaries. Significant intercompany transactions and accounts have been eliminated.

Our fiscal year ends on the Friday nearest June 30. This was July 3 for fiscal 2015, June 27 for fiscal 2014 and June 28 for fiscal 2013. Fiscal year 2015 included 53 weeks and fiscal years 2014 and 2013 presented each included 52 weeks. In these notes to consolidated financial statements, we refer to our fiscal years as “fiscal 2015”, “fiscal 2014” and “fiscal 2013.”

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for doubtful accounts, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, restructuring obligations, product warranty obligations, share-based awards, contingencies and useful lives of property, plant and equipment.

Reclassifications

Certain amounts in the fiscal 2014 and 2013 financial statements have been reclassified to conform with fiscal 2015 presentation.

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are carried at amortized cost, which approximates fair value due to the short-term nature of these investments. We hold cash and cash equivalents at several major financial institutions, which often significantly exceed Federal Deposit Insurance Corporation insured limits. However, a substantial portion of the cash equivalents is invested in prime money market funds which are backed by the securities in the fund.

We may invest our excess cash in high-quality marketable debt securities to ensure that cash is readily available for use in our current operations. Investments with original maturities greater than three months but less than one year are accounted for as short-term and are classified as such at the time of purchase. Marketable securities are classified as “available-for-sale” and are classified as short-term because we view our entire portfolio as available for use in our current operations.

As of July 3, 2015 and June 27, 2014, all of our high-quality marketable debt securities were invested in prime money market funds and were classified as cash equivalents.

Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of contractual agreements are recorded as restricted cash. At July 3, 2015, restricted cash included cash balances in our disability insurance voluntary plan account that cannot be used by us for any operating purposes other than to pay benefits to the insured employees and was recorded in other assets in our consolidated balance sheets. The corresponding liabilities were included in other long-term liabilities in our consolidated balance sheets.

Significant Concentrations

We typically invoice our customers for the sales order (or contract) value of the related products delivered at various milestones, including order receipt, shipment, installation and acceptance and for services when rendered. Our trade receivables are derived from sales to customers located in North America, Africa, Europe, the Middle East, Russia, Asia-Pacific and Latin America.

Accounts receivable is presented net of allowance for estimated uncollectible accounts to reflect any loss anticipated on the collection of accounts receivable balances. We calculate the allowance based on our history of write-offs, level of past due accounts and the economic status of the customers. The fair value of our accounts receivable approximates their net realizable value.

We regularly require letters of credit from some customers and, from time to time, we discount these letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Under these arrangements, collection risk is fully transferred to the financial institutions. We record the financing charges on discounting these letters of credit as interest expense. Total customer letters of credit discounted and related interest expense were as follows:

	Fiscal Year
(In millions)	2015		2014		2013
Customer letters of credit discounted	$	11.6	$	1.8	$	36.8
Interest expense	$	0.1	$	—	$	0.2

During fiscal 2015, 2014 and 2013, we had one international customer in Africa, Mobile Telephone Networks Group (“MTN Group”) that accounted for 14%, 17% and 25%, respectively, of our total revenue. In addition, Verizon Wireless accounted for 11% of our total revenue during fiscal 2013. As of July 3, 2015 and June 27, 2014, MTN Group accounted for approximately 10% and 17%, respectively, of our accounts receivable. No other customers accounted for more than 10% of our revenue or accounts receivable for the years presented.

Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash equivalents, marketable debt securities, trade accounts receivable and financial instruments used in foreign currency hedging activities. We invest our excess cash primarily in prime money market funds and certificates of deposit. We are exposed to credit risks related to such instruments in the event of default or decrease in credit-worthiness of the issuers of the investments.

We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable, as the majority of our customers are large, well-established companies. However, in certain circumstances, we may require letters of credit, additional guarantees or advance payments. We maintain allowances for collection losses, but historically have not experienced any significant losses related to any particular geographic area. Our customers are primarily in the telecommunications industry, so our accounts receivable are concentrated within one industry and exposed to concentrations of credit risk within that industry. Accounts receivable are written off when attempts to collect outstanding amounts have been exhausted or there are other indicators that the amounts are no longer collectible.

We rely on third parties to manufacture our products and we purchase raw materials from third-party vendors. We outsourced our manufacturing services to two independent manufacturers. In addition, we purchase certain strategic component inventory which is consigned to our third-party manufacturers. Other components included in our products are sourced from various suppliers and are principally industry standard parts and components that are available from multiple vendors. The inability of a contract manufacturer or supplier to fulfill our supply requirements or changes in their financial or business condition could disrupt our ability to supply quality products to our customers, and thereby may have a material adverse effect on our business and operating results.

We have entered into agreements relating to our foreign currency contracts with large, multinational financial institutions. The amounts subject to credit risk arising from the possible inability of any such parties to meet the terms of their contracts are generally limited to the amounts, if any, by which such party’s obligations exceed our obligations to that party.

Inventories

Inventories are valued at the lower of cost or market. Cost is determined using standard cost, which approximates actual cost on a weighted-average basis. We regularly review inventory quantities on hand and record adjustments to reduce the cost of inventory for excess and obsolete inventory based primarily on our estimated forecast of product demand and production requirements. Inventory adjustments are measured as the difference between the cost of the inventory and estimated market value based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Customer Service Inventories

Our customer service inventories are stated at the lower of cost or market. We carry service parts because we generally provide product warranty for 12 to 36 months and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Customer service inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. We record adjustments to reduce the carrying value of customer service inventories to their net realizable value. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates.

Property, Plant and Equipment

Property, plant and equipment are stated on the basis of cost less accumulated depreciation and amortization. We capitalize costs of software, consulting services, hardware and other related costs incurred to purchase or develop internal-use software. We expense costs incurred during preliminary project assessment, re-engineering, training and application maintenance. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the remaining current lease term, or estimated life, if shorter.

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvements. The useful lives of the assets are generally as follows:

Buildings	40 years
Leasehold improvements	2 to 10 years
Software	3 to 5 years
Machinery and equipment	2 to 5 years

Expenditures for maintenance and repairs are charged to expense as incurred. Cost and accumulated depreciation of assets sold or retired are removed from the respective property accounts, and any gain or loss is reflected in the consolidated statements of operations.

Impairment of Long-Lived Assets

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups.

Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The actual cash flows realized from these assets may vary significantly from our estimates due to increased competition, changes in technology, fluctuations in demand, consolidation of our customers, reductions in average selling prices and other factors. Assumptions underlying future cash flow estimates are therefore subject to significant risks and uncertainties.

Other Accrued Expenses and Other Assets

No accrued liabilities or expenses within other accrued expenses in our consolidated balance sheets exceeded 5% of our total current liabilities as of July 3, 2015 or June 27, 2014. Other accrued expenses in our consolidated balance sheets primarily consists of accruals for sales commissions, warranties and severance. No current assets other than those already disclosed in the consolidated balance sheets exceeded 5% of our total current assets as of July 3, 2015 or June 27, 2014. No assets within other assets in the consolidated balance sheets exceeded 5% of total assets as of July 3, 2015 or June 27, 2014.

Warranties

On product sales we provide for future warranty costs upon product delivery. The specific terms and conditions of those warranties vary depending upon the product sold and country in which we do business. In the case of products sold by us, our warranties generally start from the delivery date and continue for one to three years, depending on the terms.

Many of our products are manufactured to customer specifications and their acceptance is based on meeting those specifications. Factors that affect our warranty liabilities include the number of product units subject to warranty protection, historical experience and management’s judgment regarding anticipated rates of warranty claims and cost per claim. We assess the adequacy of our recorded warranty liabilities every quarter and make adjustments to the liabilities as necessary.

Noncontrolling interests

A noncontrolling interest represents the equity interest in a subsidiary that is not attributable, either directly or indirectly, to Aviat Networks and is reported as our equity, separately from our controlling interests. Revenues, expenses, gains, losses, net income (loss) and other comprehensive income (loss) are reported in the consolidated financial statements at the consolidated amounts, which include the amounts attributable to both the controlling and noncontrolling interests.

Operating Leases

We lease facilities and equipment under various operating leases. These lease agreements generally include rent escalation clauses, and many include renewal periods at our option. We recognize expense for scheduled rent increases on a straight-line basis over the lease term beginning with the date we take possession of the leased space. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the current lease term, or estimated life, if shorter.

Foreign Currency Translation

The functional currency of our subsidiaries located in the United Kingdom, Singapore, Mexico, Algeria and New Zealand is the U.S. dollar. Determination of the functional currency is dependent upon the economic environment in which an entity operates as well as the customers and suppliers the entity conducts business with. Changes in facts and circumstances may occur which could lead to a change in the functional currency of that entity. Accordingly, all of the monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars at the current exchange rate as of the applicable balance sheet date, and all non-monetary assets and liabilities are re-measured at historical rates. Income and expenses are re-measured at the average exchange rate prevailing during the period. Gains and losses resulting from the re-measurement of these subsidiaries’ financial statements are included in the consolidated statements of operations.

Our other international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of these subsidiaries are translated at the local current exchange rates in effect at the balance sheet date, and income and expense accounts are translated at the average exchange rates during the period. The resulting translation adjustments are included in accumulated other comprehensive loss.

Gains and losses resulting from foreign exchange transactions and translation of monetary assets and liabilities in non-functional currencies are included in cost of product sales and services in the accompanying consolidated statements of operations. Net foreign exchange losses recorded in our consolidated statements of operations during fiscal 2015, 2014 and 2013 totaled $3.3 million, $0.8 million and $1.5 million, respectively.

Retirement Benefits

As of July 3, 2015, we provided retirement benefits to substantially all employees primarily through our defined contribution retirement plans. These plans have matching and savings elements. Contributions by us to these retirement plans are based on profits and employees’ savings with no other funding requirements. We halted making matching contributions to the U.S. plan from the second quarter of fiscal 2014 through the end of fiscal 2015. We may make additional contributions to the plans at our discretion.

Contributions to retirement plans are expensed as incurred. Retirement plan expense amounted to $1.7 million, $2.5 million and $2.9 million in fiscal 2015, 2014 and 2013, respectively.

Revenue Recognition

We generate substantially all of our revenue from the sales or licensing of our microwave radio and wireless access systems, network management software, and professional services including installation and commissioning and training. Principal customers for our products and services include domestic and international wireless/mobile service providers, original equipment manufacturers, distributors, system integrators, as well as private network users such as public safety agencies, government institutions, and utility, pipeline, railroad and other industrial enterprises that operate broadband wireless networks. Our customers generally purchase a combination of our products and services as part of a multiple element arrangement. Our assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment.

Revenue from product sales is generated predominately from the sales of products manufactured by third party manufacturers to whom we have outsourced our manufacturing processes. In general, printed circuit assemblies, mechanical housings, and packaged modules are manufactured by contract manufacturing partners, with periodic business reviews of material levels and obsolescence. Product assembly, product testing, complete system integration and system testing may either be performed within our own facilities or at the locations of our third party manufacturers.

Revenue from services includes certain installation, extended warranty, customer support, consulting, training and education. It also can include certain revenue generated from the resale of equipment purchased on behalf of customers for installation service contracts we perform for customers. Such equipment may include towers, antennas, and other related materials. Revenue from warranty services are recognized ratably over the service period.

Under our revenue recognition policy, revenue is recognized when all of the following criteria have been met:

• Persuasive evidence of an arrangement exists. Contracts and/or customer purchase orders are generally used to determine the existence of an arrangement.

• Delivery has occurred or services have been delivered. Shipping documents and customer acceptance, when applicable, are used to verify delivery.

• The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.

• Collectibility is reasonably assured. We assess collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history.

We often enter into multiple contractual agreements with the same customer. Such agreements are reviewed to determine whether they should be evaluated as one arrangement. If an arrangement, other than a long-term contract, requires the delivery or performance of multiple deliverables or elements, we determine whether the individual elements represent “separate units of accounting”. Based on the terms and conditions of our typical product sales arrangement, we believe that our products and services can be accounted for as separate units because our products and services have value to our customers on a stand-alone basis.

When a sale involves multiple deliverables, the entire fee from the arrangement is allocated to each unit of accounting based on the relative selling price of each deliverable. When applying the relative selling price method, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). Generally, we are not able to determine TPE because our go-to-market strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. When we are unable to establish a selling price using VSOE or TPE, we use ESP to allocate the arrangement fees to the deliverables. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for each element. There is generally no customer right of return in our sales agreements. The sequence for typical multiple element arrangements: we deliver our products, perform installation services and then provide post-contract support services.

ESP is determined by considering a number of factors including our pricing policies, internal costs and gross margin objectives, method of distribution, information gathered from experience in customer negotiations, market research and information, recent technological trends, competitive landscape and geographies. The determination of ESP is approved by our management taking into consideration our pricing strategy. We regularly review VSOE, TPE and ESP and maintain internal controls over the establishment and updating of these estimates.

Revenues related to long-term contracts for customized network solutions are recognized using the percentage-of-completion method. In using the percentage-of-completion method, we generally apply the cost-to-cost method of accounting where sales and profits are recorded based on the ratio of costs incurred to estimated total costs at completion. Recognition of profit on long-term contracts requires estimates of the total contract value, the total cost at completion and the measurement of progress towards completion. Significant judgment is required when estimating total contract costs and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Amounts representing contract change orders, claims or other items are included in sales only when they can be reliably estimated and realization is probable. When adjustments in contract value or estimated costs are determined, any changes from prior estimates are reflected in earnings in the current period. Anticipated losses on contracts or programs in progress are charged to earnings when identified. We establish billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled costs in our consolidated balance sheets.

We also consider whether contracts should be combined when specific aggregation criteria are met including when the contracts are in substance an arrangement to perform a single project with a customer; the contracts are negotiated as a package in the same economic environment with an overall profit objective; and the contracts require interrelated activities with common costs that cannot be separately identified with, or reasonably allocated to the elements, phases or units of output and the contracts are performed concurrently or in a continuous sequence under the same project management at the same location or at different locations in the same general vicinity.

Royalty income is recognized on the basis of terms specified in the contractual agreements.

Cost of Product Sales and Services

Cost of sales consists primarily of materials, labor and overhead costs incurred internally and amounts incurred for contract manufacturers to produce our products, personnel and other implementation costs incurred to install our products and train customer personnel, and customer service and third party original equipment manufacturer costs to provide continuing support to our customers. Also included in cost of sales is the amortization of purchased technology intangible assets.

Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because we include in revenue the related costs that we bill our customers.

Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities

We present transactional taxes such as sales and use tax collected from customers and remitted to governmental authorities on a net basis.

Research and Development Costs

Our sponsored research and development costs, which include costs in connection with new product development, improvement of existing products, process improvement, and product use technologies, are charged to operations in the period in which they are incurred.

Share-Based Compensation

We have issued stock options, restricted stock and performance shares under our 2007 Stock Equity Plan and have assumed stock options from the acquisition of Stratex. We estimate the grant date fair value of our share-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term.

To estimate the fair value of our stock option awards, we use the Black-Scholes option pricing model. The determination of the fair value of stock option awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. Due to the inherent limitations of option valuation models, including consideration of future events that are unpredictable and the estimation process utilized in determining the valuation of the share-based awards, the ultimate value realized by our employees may vary significantly from the amounts expensed in our financial statements. For restricted stock and performance share awards, we measure the grant date fair value based upon the market price of our common stock on the date of the grant.

We generally recognize compensation cost for share-based payment awards on a straight-line basis over the requisite service period. For awards with a performance condition vesting feature, we recognize share-based compensation costs for the performance awards when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved.

We estimate forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ significantly from initial estimates. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those share-based awards that are expected to vest.

Cash flows, if any, resulting from the gross benefit of tax deductions related to share-based compensation in excess of the grant date fair value of the related share-based awards are presented as part of cash flows from financing activities. This amount is shown as a reduction to cash flows from operating activities and an increase to cash flow from financing activities.

Restructuring Charges

Our restructuring charges represent expenses incurred in connection with certain cost reduction programs that we have implemented, and consist of the costs of employee termination costs, lease and other contract termination charges and other costs of exiting activities or geographies. A liability for costs associated with an exit or disposal activity is measured at its fair value when the liability is incurred. Expenses for one-time termination benefits are recognized at the date we notify the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. We recognize severance benefits provided as part of an ongoing benefit arrangement when the payment is probable and the amounts can be reasonably estimated. Liabilities related to termination of an operating lease or contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates include anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. We expense all other costs related to an exit or disposal activity as incurred.

Income Taxes and Related Uncertainties

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement and tax bases of assets and liabilities, as measured by tax rates at which temporary differences are expected to reverse as well as operating loss and tax credit carry forwards. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. A valuation allowance is established to offset any deferred tax assets if, based upon the available information, it is more likely than not that some or all of the deferred tax assets will not be realized.

We are required to compute our income taxes in each federal, state, and international jurisdiction in which we operate. This process requires that we estimate the current tax exposure as well as assess temporary differences between the accounting and tax treatment of assets and liabilities, including items such as accruals and allowances not currently deductible for tax purposes as well as operating loss and tax credit carry forwards. The income tax effects of the differences we identify are classified as current or long-term deferred tax assets and liabilities in our consolidated balance sheets. Our judgments, assumptions, and estimates relative to the current provision for income taxes take into account current tax laws, our interpretation of current tax laws, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. Changes in tax laws or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our consolidated balance sheets and consolidated statements of operations. We must also assess the likelihood that deferred tax assets will be realized from future taxable income and, based on this assessment, establish a valuation allowance, if required. Our determination of our valuation allowance is based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic and international jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation allowance in a period, we reflect the change with a corresponding increase or decrease to our tax provision in our consolidated statements of operations.

We use a two-step process to determine the amount of tax benefit to be recognized. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

Recently Issued Accounting Standards

On May 28, 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of the new revenue standard from December 15, 2016 to December 15, 2017, with early adoption permitted before annual periods beginning after December 15, 2016. Accordingly, the new standard is effective for us beginning in our fiscal year 2019. The principles may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the transition methods and the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures.

In July 2015, the FASB issued ASU No. 2015-11 (Subtopic 330) - Simplifying the Measurement of Inventory, which provides guidance to companies who account for inventory using either the first-in, first-out (“FIFO”) or average cost methods. The guidance states that companies should measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures.

In August 2014, FASB issued a new standard on the disclosure of uncertainties about an entity’s ability to continue as a going concern. The guidance seeks to define management’s responsibility to decide whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures.

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Segment and Geographic Information (Tables)

12 Months Ended

Jul. 03, 2015

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Revenue by region for 2015, 2014 and 2013 were as follows:

	Fiscal Year
(In millions)	2015		2014		2013
North America	$	153.2	$	142.0	$	180.5
Africa and Middle East	97.1		108.9		182.2
Europe and Russia	36.0		36.0		48.0
Latin America and Asia Pacific	49.6		59.1		60.6
Total Revenue	$	335.9	$	346.0	$	471.3

Revenue by Country

Revenue by country comprising more than 5% of our total revenue for fiscal 2015, 2014 and 2013 were as follows:

(In millions, except %)	Revenue		% of  Total Revenue
Fiscal 2015:
United States	$	151.1	45.0	%
Nigeria	$	36.5	10.9	%
Fiscal 2014:
United States	$	139.2	40.2	%
Nigeria	$	52.2	15.1	%
Fiscal 2013:
United States	$	177.0	37.6	%
Nigeria	$	92.7	19.7	%

Schedule of Long-Lived Assets by Country

Our long-lived assets, consisting primarily of property, plant and equipment, by geographic areas based on the physical location of the assets as of July 3, 2015 and June 27, 2014 were as follows:

(In millions)	July 3, 2015		June 27, 2014
United States	$	17.6	$	21.5
United Kingdom	3.1		3.3
Other countries	3.6		4.5
Total	$	24.3	$	29.3

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Revision of Prior Years Consolidated Financial Statements (Corrections to Statement of Operations & Cash Flow) (Details) - USD ($) $ in Millions	3 Months Ended															12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015		Dec. 26, 2014		Sep. 26, 2014		Jun. 27, 2014		Mar. 28, 2014		Dec. 27, 2013		Sep. 27, 2013		Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of services																$ 91.3	$ 88.1	$ 93.3
Total cost of revenues																255.2	260.8	332.9
Gross margin	$ 18.7	$ 16.0	[1]	$ 24.0	[1],[2]	$ 22.0	[1]	$ 19.4	[1]	$ 21.1	[1]	$ 21.5	[1],[2]	$ 23.2	[1]	80.7	85.2	138.4
Operating income (loss)	(5.2)	(11.7)	[1]	(3.7)	[1],[2]	(5.4)	[1]	(12.2)	[1]	(14.6)	[1]	(10.5)	[1],[2]	(13.3)	[1]	(26.0)	(50.6)	0.0
Income (loss) from continuing operations before income taxes																(26.0)	(50.5)	0.7
Loss from continuing operations																(24.7)	(52.0)	(12.6)
Net loss	$ (1.5)	(13.1)	[1]	(4.5)	[1],[2]	(5.5)	[1]	(13.3)	[1]	(14.6)	[1]	(9.7)	[1],[2]	(13.5)	[1]	(24.6)	(51.1)	(16.7)
Comprehensive loss																(30.2)	(50.7)	(16.0)
Accrued expenses																(4.1)	(6.5)	(1.5)
Net cash provided by (used in) operating activities																$ (9.0)	(29.3)	8.4
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of services																	88.2	91.6
Total cost of revenues																	260.9	331.2
Gross margin		17.6		25.2		21.8		19.8		20.9		21.3		23.1			85.1	140.1
Operating income (loss)		(10.1)		(2.5)		(5.4)		(11.8)		(14.8)		(10.7)		(13.4)			(50.7)	1.7
Income (loss) from continuing operations before income taxes																	(50.6)	2.4
Loss from continuing operations																	(52.1)	(10.9)
Net loss		(11.5)		(3.3)		(5.7)		(12.9)		(14.8)		(9.9)		(13.6)			(51.2)	(15.0)
Comprehensive loss																	(50.8)	(14.3)
Accrued expenses																	(6.4)	(3.2)
Net cash provided by (used in) operating activities																	(29.3)	8.4
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of services																	(0.1)	1.7
Total cost of revenues																	(0.1)	1.7
Gross margin		(1.6)		(1.2)		0.2		(0.4)		0.2		0.2		0.1			0.1	(1.7)
Operating income (loss)		(1.6)		(1.2)		0.0		(0.4)		0.2		0.2		0.1			0.1	(1.7)
Income (loss) from continuing operations before income taxes																	0.1	(1.7)
Loss from continuing operations																	0.1	(1.7)
Net loss		$ (1.6)		$ (1.2)		$ 0.2		$ (0.4)		$ 0.2		$ 0.2		$ 0.1			0.1	(1.7)
Comprehensive loss																	0.1	(1.7)
Accrued expenses																	(0.1)	1.7
Net cash provided by (used in) operating activities																	$ 0.0	$ 0.0

[1] Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

[2] Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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Restructuring Activities (Restructuring Liability) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period				$ 5.2				$ 2.7	$ 5.2	$ 2.7	$ 2.2
Provision	$ 0.2	$ 3.2	$ 0.0	1.5	$ 2.1	$ 4.2	$ 0.3	4.5	4.9	11.1	3.1
Cash payments									(5.6)	(8.6)	(2.6)
Restructuring liability, end of period	4.5				5.2				4.5	5.2	2.7
Current portion of restructuring liability as of July 3, 2015	3.9				2.8				3.9	2.8
Long-term portion of restructuring liability (included in other long-term liabilities) as of July 3, 2015	0.6								0.6
Fiscal 2015-2016 Plan
Restructuring Reserve [Roll Forward]
Provision									3.4
Fiscal 2014-2015 Plan
Restructuring Reserve [Roll Forward]
Provision									1.4	5.8
Fiscal 2013-2014 Plan
Restructuring Reserve [Roll Forward]
Provision									0.1	5.3	1.8
Fiscal 2011 Plan
Restructuring Reserve [Roll Forward]
Provision											1.3
Severance and Benefits
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period				1.5				1.9	1.5	1.9	1.0
Cash payments									(3.5)	(6.8)	(2.1)
Restructuring liability, end of period	0.8				1.5				0.8	1.5	1.9
Severance and Benefits | Fiscal 2015-2016 Plan
Restructuring Reserve [Roll Forward]
Provision									2.8
Severance and Benefits | Fiscal 2014-2015 Plan
Restructuring Reserve [Roll Forward]
Provision									0.0	5.4
Severance and Benefits | Fiscal 2013-2014 Plan
Restructuring Reserve [Roll Forward]
Provision									0.0	1.0	1.8
Severance and Benefits | Fiscal 2011 Plan
Restructuring Reserve [Roll Forward]
Provision											1.2
Facilities and Other
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning of period				$ 3.7				$ 0.8	3.7	0.8	1.2
Cash payments									(2.1)	(1.8)	(0.5)
Restructuring liability, end of period	$ 3.7				$ 3.7				3.7	3.7	0.8
Facilities and Other | Fiscal 2015-2016 Plan
Restructuring Reserve [Roll Forward]
Provision									0.6
Facilities and Other | Fiscal 2014-2015 Plan
Restructuring Reserve [Roll Forward]
Provision									1.4	0.4
Facilities and Other | Fiscal 2013-2014 Plan
Restructuring Reserve [Roll Forward]
Provision									$ 0.1	$ 4.3	0.0
Facilities and Other | Fiscal 2011 Plan
Restructuring Reserve [Roll Forward]
Provision											$ 0.1

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Commitments and Contingencies (Details) $ in Millions	Jul. 03, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016	$ 5.4
2017	3.2
2018	2.7
2019	2.8
2020	2.3
Total	$ 16.4

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Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Revenues:
Revenue from product sales	$ 214.9	$ 222.6	$ 336.7
Revenue from services	121.0	123.4	134.6
Total revenues	335.9	346.0	471.3
Cost of revenues:
Cost of product sales	163.9	172.7	239.6
Cost of services	91.3	88.1	93.3
Total cost of revenues	255.2	260.8	332.9
Gross margin	80.7	85.2	138.4
Operating expenses:
Research and development expenses	25.4	35.5	39.4
Selling and administrative expenses	76.0	88.8	95.5
Amortization of identifiable intangible assets	0.4	0.4	0.4
Restructuring charges	4.9	11.1	3.1
Total operating expenses	106.7	135.8	138.4
Operating income (loss)	(26.0)	(50.6)	0.0
Other income, net	0.0	0.0	0.7
Interest income	0.4	0.5	0.8
Interest expense	(0.4)	(0.4)	(0.8)
Income (loss) from continuing operations before income taxes	(26.0)	(50.5)	0.7
Provision for (benefit from) income taxes	(1.3)	1.5	13.3
Loss from continuing operations	(24.7)	(52.0)	(12.6)
Income (loss) from discontinued operations, net of tax	0.1	0.9	(4.1)
Net loss	(24.6)	(51.1)	(16.7)
Less: Net income attributable to noncontrolling interests, net of tax	0.1	0.0	0.0
Net loss attributable to Aviat Networks	(24.7)	(51.1)	(16.7)
Amount attributable to Aviat Networks
Net loss from continuing operations, net of tax	(24.8)	(52.0)	(12.6)
Net income (loss) from discounting operations, net of tax	$ 0.1	$ 0.9	$ (4.1)
Basic and diluted loss per share attributable to Aviat Networks’ common stockholders:
Continuing operations (dollars per share)	$ (0.40)	$ (0.84)	$ (0.21)
Discontinued operations (dollars per share)	0.00	0.01	(0.07)
Net Loss (dollars per share)	$ (0.40)	$ (0.83)	$ (0.28)
Weighted average shares outstanding, basic and diluted (in shares)	62.2	61.6	60.0

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Balance Sheet Components (Inventories) (Details) - USD ($) $ in Millions	Jul. 03, 2015	Jun. 27, 2014
Balance Sheet Related Disclosures [Abstract]
Finished products	$ 21.1	$ 25.3
Work in process	3.8	5.3
Raw materials and supplies	8.0	7.5
Inventories	32.9	38.1
Deferred cost of revenue included within finished goods	5.6	3.2
Consigned inventories included within raw materials	$ 6.8	$ 6.6

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Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Operating Activities
Net loss	$ (24.6)	$ (51.1)	$ (16.7)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of identifiable intangible assets	0.4	0.4	1.0
Depreciation and amortization of property, plant and equipment	7.2	7.1	5.6
Provision for receivables	0.9	0.8	2.5
Share-based compensation	2.2	3.4	6.4
Deferred income taxes benefit	(4.7)	(0.3)	(0.2)
Charges for inventory and customer service inventory write-downs	9.3	7.2	9.7
Gain on disposition of WiMAX business	(0.1)	0.0	(0.4)
Loss (gain) on disposition of property, plant and equipment, net	0.4	(0.1)	(0.1)
Changes in operating assets and liabilities:
Receivables	(13.5)	8.2	1.9
Unbilled costs	6.1	5.1	(3.1)
Inventories	(1.9)	(7.0)	13.6
Customer service inventories	2.3	1.5	0.9
Accounts payable	1.6	(2.7)	(7.1)
Accrued expenses	(4.1)	(6.5)	(1.5)
Advance payments and unearned income	9.3	14.6	(14.1)
Income taxes payable or receivable	1.4	(11.9)	10.1
Other assets and liabilities	(1.2)	2.0	(0.1)
Net cash provided by (used in) operating activities	(9.0)	(29.3)	8.4
Investing Activities
Payments related to disposition of WiMAX business, net	0.0	0.0	(0.1)
Payments for acquisition of property, plant and equipment	(3.7)	(9.4)	(10.4)
Net cash used in investing activities	(3.7)	(9.4)	(10.5)
Financing Activities
Proceeds from borrowings	54.0	0.0	0.0
Repayments of borrowings	(51.0)	(2.8)	(4.1)
Proceeds from issuance of common stock under employee stock plans	0.0	0.1	0.3
Payments on capital lease obligations	(0.1)	(0.1)	(0.1)
Net cash provided by (used in) financing activities	2.9	(2.8)	(3.9)
Effect of exchange rate changes on cash and cash equivalents	(4.3)	0.3	0.0
Net decrease in cash and cash equivalents	(14.1)	(41.2)	(6.0)
Cash and cash equivalents, beginning of year	48.8	90.0	96.0
Cash and cash equivalents, end of year	34.7	48.8	90.0
Supplemental disclosures of cash flow information:
Cash paid for interest	0.4	0.4	0.8
Cash paid for income taxes	2.0	14.7	3.0
Non-cash investing activities:
Property and equipment acquired under capital lease	$ 0.0	$ 0.0	$ 0.4

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Stockholders Equity (Options by Exercise Price Range) (Details)	12 Months Ended
	Jul. 03, 2015 $ / shares shares
1.3
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (dollars per share)	$ 1.23
Actual Range of Exercise Prices, Upper Limit (dollars per share)	$ 1.30
Number Outstanding (shares) | shares	1,373,501
Weighted Average Remaining Contractual Life	6 years 11 months 24 days
Weighted Average Exercise Price (dollars per share)	$ 1.27
Number Exercisable (shares) | shares	162,591
Weighted Average Exercise Price (dollars per share)	$ 1.23
2.19
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (dollars per share)	1.72
Actual Range of Exercise Prices, Upper Limit (dollars per share)	$ 2.19
Number Outstanding (shares) | shares	1,562,340
Weighted Average Remaining Contractual Life	3 years 8 months 6 days
Weighted Average Exercise Price (dollars per share)	$ 2.11
Number Exercisable (shares) | shares	1,158,664
Weighted Average Exercise Price (dollars per share)	$ 2.08
2.56
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (dollars per share)	2.28
Actual Range of Exercise Prices, Upper Limit (dollars per share)	$ 2.56
Number Outstanding (shares) | shares	1,447,833
Weighted Average Remaining Contractual Life	3 years 8 months 23 days
Weighted Average Exercise Price (dollars per share)	$ 2.41
Number Exercisable (shares) | shares	1,236,988
Weighted Average Exercise Price (dollars per share)	$ 2.40
2.71
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (dollars per share)	2.60
Actual Range of Exercise Prices, Upper Limit (dollars per share)	$ 2.71
Number Outstanding (shares) | shares	1,404,994
Weighted Average Remaining Contractual Life	4 years 4 months 24 days
Weighted Average Exercise Price (dollars per share)	$ 2.63
Number Exercisable (shares) | shares	707,162
Weighted Average Exercise Price (dollars per share)	$ 2.65
6.11
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (dollars per share)	2.97
Actual Range of Exercise Prices, Upper Limit (dollars per share)	$ 6.11
Number Outstanding (shares) | shares	1,196,133
Weighted Average Remaining Contractual Life	1 year 11 months 21 days
Weighted Average Exercise Price (dollars per share)	$ 5.04
Number Exercisable (shares) | shares	1,193,552
Weighted Average Exercise Price (dollars per share)	$ 5.04
24.60
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (dollars per share)	6.44
Actual Range of Exercise Prices, Upper Limit (dollars per share)	$ 24.60
Number Outstanding (shares) | shares	389,170
Weighted Average Remaining Contractual Life	1 year 6 months 17 days
Weighted Average Exercise Price (dollars per share)	$ 7.75
Number Exercisable (shares) | shares	389,170
Weighted Average Exercise Price (dollars per share)	$ 7.75
24.60
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Actual Range of Exercise Prices, Lower Limit (dollars per share)	1.23
Actual Range of Exercise Prices, Upper Limit (dollars per share)	$ 24.60
Number Outstanding (shares) | shares	7,373,971
Weighted Average Remaining Contractual Life	4 years 17 days
Weighted Average Exercise Price (dollars per share)	$ 2.88
Number Exercisable (shares) | shares	4,848,127
Weighted Average Exercise Price (dollars per share)	$ 3.40

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Commitments and Contingencies (Tables)

12 Months Ended

Jul. 03, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments Under All Non-cancelable Operating Leases

As of July 3, 2015, our future minimum lease payments under all non-cancelable operating leases with an initial lease term in excess of one year were as follows:

Fiscal Years	Amount
	(In millions)
2016	$	5.4
2017	3.2
2018	2.7
2019	2.8
2020	2.3
Total	$	16.4

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Divestiture (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions		12 Months Ended
	Sep. 02, 2011	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013	Sep. 27, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payment on divestiture payables		$ 1.6
WiMAX
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses	$ 0.4
Proceeds from Contingent Payments		0.1
Discontinued operations contingent consideration	$ 2.8
Potential cash payments to EION for collections of WiMAX receivables		2.0
WiMax accounts receivables, written off					$ 0.4
Accrued Liabilities related to disposition of WiMAX		0.0	$ 0.1
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Revenues		0.0	0.0	$ 0.1
Income (loss) from operations of WiMAX		0.0	1.2	(4.3)
Gain on disposal		0.1	0.0	0.4
Income taxes		0.0	(0.3)	(0.2)
Income (loss) from discontinued operations, net of tax		$ 0.1	$ 0.9	$ (4.1)

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Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Jul. 03, 2015

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

AVIAT NETWORKS, INC.

Years Ended July 3, 2015, June 27, 2014 and June 28, 2013

	Balance at Beginning  of Period		Additions Charged to Costs and Expenses		Deductions			Balance at End of Period
	(In millions)
Allowances for collection losses:
Year ended July 3, 2015	$	7.4	$	1.3	$	2.0	(A)	$	6.7
Year ended June 27, 2014	$	10.2	$	1.5	$	4.3	(B)	$	7.4
Year ended June 28, 2013	$	16.2	$	2.8	$	8.8	(C)	$	10.2

 ____________________________

Note A	Consisted of changes to allowance for collection losses of $0.2 million for foreign currency translation losses and $1.8 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.
Note B	Consisted of changes to allowance for collection losses of $4.3 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.
Note C	Consisted of changes to allowance for collection losses of $0.1 million for foreign currency translation losses and $8.9 million for uncollectible accounts charged off, net of recoveries on accounts previously charged off.

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Jul. 03, 2015

Quarterly Financial Data [Abstract]

Schedule of Quarterly Financial Information

Summarized quarterly data for fiscal 2015 and 2014 were as follows:

	Q1 Ended 9/26/2014(1)			Q2 Ended 12/26/2014(1)(2)			Q3 Ended 4/3/2015(1)			Q4 Ended 7/3/2015
	(In millions, except per share amounts)
Fiscal 2015
Revenue	$	82.4		$	90.9		$	74.8		$	87.8
Gross margin	$	22.0		$	24.0		$	16.0		$	18.7
Operating income (loss)	$	(5.4	)	$	(3.7	)	$	(11.7	)	$	(5.2	)
Net income (loss)	$	(5.5	)	$	(4.5	)	$	(13.1	)	$	(1.5	)
Net income (loss) attributable to Aviat Networks	$	(5.5	)	$	(4.5	)	$	(13.1	)	$	(1.6	)
Per share data:
Basic net income (loss) per common share	$	(0.09	)	$	(0.07	)	$	(0.21	)	$	(0.03	)
Diluted net income (loss) per common share	$	(0.09	)	$	(0.07	)	$	(0.21	)	$	(0.03	)
	Q1 Ended 9/27/2013(1)			Q2 Ended 12/27/2013(1)			Q3 Ended 3/28/2014(1)			Q4 Ended 6/27/2014(1)
	(In millions, except per share amounts)
Fiscal 2014
Revenue	$	93.4		$	85.8		$	81.4		$	85.4
Gross margin	$	23.2		$	21.5		$	21.1		$	19.4
Operating loss	$	(13.3	)	$	(10.5	)	$	(14.6	)	$	(12.2	)
Net loss	$	(13.5	)	$	(9.7	)	$	(14.6	)	$	(13.3	)
Net loss attributable to Aviat Networks	$	(13.5	)	$	(9.7	)	$	(14.6	)	$	(13.3	)
Per share data:
Basic and diluted net loss per common share	$	(0.22	)	$	(0.16	)	$	(0.24	)	$	(0.21	)

_______________________

(1) Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

(2) Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

Error Corrections on Consolidated Financial Statements

The total effects of the error corrections on our consolidated balance sheet as of June 27, 2014 and on our accumulated deficit as of June 29, 2012 were as follows:

	Previously Reported			Correction			Revised
	(In millions)
As of June 27, 2014:
Other accrued expenses	$	32.4		$	(9.3	)	$	23.1
Total current liabilities	$	130.9		$	(9.3	)	$	121.6
Total liabilities	$	150.6		$	(9.3	)	$	141.3
Accumulated deficit	$	(702.1	)	$	9.3		$	(692.8	)
Accumulated other comprehensive loss	$	(2.9	)	$	—		$	(2.9	)
Total Aviat Networks stockholders’ equity	$	102.6		$	9.3		$	111.9
Total equity	$	102.6		$	9.3		$	111.9
As of June 29, 2012:
Accumulated deficit	$	(635.9	)	$	10.9		$	(625.0	)

The effects of the error corrections on our consolidated statements of operations and comprehensive loss for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Cost of services	$	88.2		$	(0.1	)	$	88.1		$	91.6		$	1.7		$	93.3
Total cost of revenues	260.9			(0.1		)	260.8			331.2			1.7			332.9
Gross margin	85.1			0.1			85.2			140.1			(1.7		)	138.4
Operating income (loss)	(50.7		)	0.1			(50.6		)	1.7			(1.7		)	—
Income (loss) from continuing operations    before income taxes	(50.6		)	0.1			(50.5		)	2.4			(1.7		)	0.7
Loss from continuing operations	(52.1		)	0.1			(52.0		)	(10.9		)	(1.7		)	(12.6		)
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Comprehensive loss	$	(50.8	)	$	0.1		$	(50.7	)	$	(14.3	)	$	(1.7	)	$	(16.0	)

The effects of the error corrections on our consolidated statements of cash flows for the years ended June 27, 2014 and June 28, 2013 were as follows:

	Year Ended June 27, 2014									Year Ended June 28, 2013
	Previously Reported			Correction			Revised			Previously Reported			Correction			Revised
	(In millions)
Operating Activities
Net loss	$	(51.2	)	$	0.1		$	(51.1	)	$	(15.0	)	$	(1.7	)	$	(16.7	)
Changes in operating assets and liabilities:
Accrued expenses	$	(6.4	)	$	(0.1	)	$	(6.5	)	$	(3.2	)	$	1.7		$	(1.5	)
Net cash provided by (used in) operating     activities	$	(29.3	)	$	—		$	(29.3	)	$	8.4		$	—		$	8.4

The effects of the error corrections set forth in Note 2 and adjustments to second quarter’s revenue and cost of revenue on the unaudited consolidated statements of operations for the interim periods within the years ended July 3, 2015 and June 27, 2014 were as follows:

	Previously Reported												Correction											Revised
	Q1			Q2			Q3			Q4			Q1		Q2			Q3			Q4			Q1			Q2			Q3			Q4
	(In millions)
Fiscal 2015 (Unaudited)
Revenue	$	82.4		$	92.5		$	74.8		N/A			$	—	$	(1.6	)	$	—		N/A			$	82.4		$	90.9		$	74.8		N/A
Gross margin	21.8			25.2			17.6			N/A			0.2		(1.2		)	(1.6		)	N/A			22.0			24.0			16.0			N/A
Operating loss	(5.4		)	(2.5		)	(10.1		)	N/A			—		(1.2		)	(1.6		)	N/A			(5.4		)	(3.7		)	(11.7		)	N/A
Net loss	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Net loss attributable   to Aviat Networks	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Fiscal 2014 (Unaudited)
Revenue	$	93.4		$	85.8		$	81.4		$	85.4		$	—	$	—		$	—		$	—		$	93.4		$	85.8		$	81.4		$	85.4
Gross margin	23.1			21.3			20.9			19.8			0.1		0.2			0.2			(0.4		)	23.2			21.5			21.1			19.4
Operating loss	(13.4		)	(10.7		)	(14.8		)	(11.8		)	0.1		0.2			0.2			(0.4		)	(13.3		)	(10.5		)	(14.6		)	(12.2		)
Net loss	(13.6		)	(9.9		)	(14.8		)	(12.9		)	0.1		0.2			0.2			(0.4		)	(13.5		)	(9.7		)	(14.6		)	(13.3		)

Schedule of Certain Charges, Expenses and Loss (Income) from Discontinued Operations

The following tables summarize certain charges, expenses and loss (income) from discontinued operations included in our results of operations for each of the fiscal quarters presented:

	Q1 Ended 9/26/2014		Q2 Ended 12/26/2014			Q3 Ended 4/3/2015		Q4 Ended 7/3/2015
	(In millions)
Fiscal 2015
Amortization of purchased technology and intangible assets	$	0.1	$	0.1		$	0.1	$	0.1
Restructuring charges	1.5		—			3.2		0.2
Share-based compensation expense	0.6		0.4			0.7		0.5
	$	2.2	$	0.5		$	4.0	$	0.8
Income (loss) from discontinued operations	$	0.2	$	(0.1	)	$	—	$	—
	Q1 Ended 9/27/2013		Q2 Ended 12/27/2013			Q3 Ended 3/28/2014		Q4 Ended 6/27/2014
	(In millions)
Fiscal 2014
Amortization of purchased technology and intangible assets	$	0.1	$	0.1		$	0.1	$	0.1
Restructuring charges	4.5		0.3			4.2		2.1
Charges for excess and obsolete inventory mark-downs	—		—			—		1.2
Transactional tax assessments	—		0.6			—		—
Share-based compensation expense	1.5		0.7			0.6		0.6
Warehouse consolidation costs	0.2		—			—		—
	$	6.3	$	1.7		$	4.9	$	4.0
Income from discontinued operations	$	0.1	$	0.3		$	0.3	$	0.2

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The Company and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jul. 03, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Customer Letters of Credits Being Discounted and Related Interest Expense

Total customer letters of credit discounted and related interest expense were as follows:

	Fiscal Year
(In millions)	2015		2014		2013
Customer letters of credit discounted	$	11.6	$	1.8	$	36.8
Interest expense	$	0.1	$	—	$	0.2

Property, Plant and Equipment

The useful lives of the assets are generally as follows:

Buildings	40 years
Leasehold improvements	2 to 10 years
Software	3 to 5 years
Machinery and equipment	2 to 5 years

Our property, plant and equipment, net are summarized below :

	July 3, 2015			June 27, 2014
	(In millions)
Land	$	0.7		$	0.7
Buildings and leasehold improvements	9.7			10.3
Software	13.6			13.2
Machinery and equipment	45.2			47.1
	69.2			71.3
Less accumulated depreciation and amortization	(44.9		)	(42.0		)
	$	24.3		$	29.3

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Income Taxes (Effective Income Tax Reconciliation) (Details)	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Income Tax Disclosure [Abstract]
Statutory U.S. federal tax rate	35.00%	(35.00%)	(35.00%)
Valuation allowances	15.10%	30.00%	(228.60%)
Foreign non-deductible expenses	0.30%	0.90%	(37.10%)
State and local taxes, net of U.S. federal tax benefit	1.90%	(1.30%)	5.70%
Foreign income taxed at rates less than the U.S. statutory rate	(38.50%)	8.50%	132.70%
Foreign branch income/withholding taxes	(5.20%)	2.00%	(92.90%)
Change in uncertain tax positions	(2.40%)	(1.70%)	(1660.00%)
Other	(1.20%)	(0.40%)	15.20%
Effective tax rate	5.00%	3.00%	(1900.00%)

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Consolidated Statements of Equity - USD ($) $ in Millions	Total	Total Aviat Networks Stockholders’ Equity	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Balance in shares at Jun. 29, 2012			61,300,000
Balance at Jun. 29, 2012	$ 168.4	$ 168.4	$ 0.6	$ 796.8	$ (625.0)	$ (4.0)	$ 0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income (loss)	(16.7)	(16.7)			(16.7)
Other comprehensive income (loss), net	0.7	0.7				0.7
Issuance of common stock under employee stock plans	0.3	0.3		0.3
Share-based compensation	6.4	6.4		6.4
Balance in shares at Jun. 28, 2013			61,300,000
Balance at Jun. 28, 2013	159.1	159.1	$ 0.6	803.5	(641.7)	(3.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income (loss)	(51.1)	(51.1)			(51.1)
Other comprehensive income (loss), net	0.4	0.4				0.4
Issuance of common stock under employee stock plans, shares			900,000
Issuance of common stock under employee stock plans	0.1	0.1		0.1
Share-based compensation	$ 3.4	3.4		3.4
Balance in shares at Jun. 27, 2014	62,218,226		62,200,000
Balance at Jun. 27, 2014	$ 111.9	111.9	$ 0.6	807.0	(692.8)	(2.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income (loss)	(24.6)	(24.7)			(24.7)		0.1
Other comprehensive income (loss), net	(5.6)	(5.6)				(5.6)
Issuance of common stock under employee stock plans, shares			300,000
Share-based compensation	$ 2.2	2.2		2.2
Balance in shares at Jul. 03, 2015	62,498,401		62,500,000
Balance at Jul. 03, 2015	$ 83.9	$ 83.8	$ 0.6	$ 809.2	$ (717.5)	$ (8.5)	$ 0.1

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Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Statement of Comprehensive Income [Abstract]
Net loss	$ (24.6)	$ (51.1)	$ (16.7)
Cash flow hedges:
Change in unrealized gain (loss) on cash flow hedges	0.4	(0.3)	0.1
Reclassification adjustments for (gain) loss included in net loss	(0.4)	0.2	0.0
Net change in unrealized gain (loss) on hedging activities	0.0	(0.1)	0.1
Net change in cumulative translation adjustment	(5.6)	0.5	0.6
Other comprehensive income (loss)	(5.6)	0.4	0.7
Comprehensive loss	(30.2)	(50.7)	(16.0)
Comprehensive income attributable to noncontrolling interests, net of tax	0.1	0.0	0.0
Comprehensive loss attributable to Aviat Networks	$ (30.3)	$ (50.7)	$ (16.0)

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Segment and Geographic Information

12 Months Ended

Jul. 03, 2015

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

We operate in one reportable business segment: the design, manufacturing and sale of a range of wireless networking products, solutions and services. We conduct business globally and our sales and support activities are managed on a geographic basis. Our Chief Executive Officer is the Chief Operating Decision Maker (the “CODM”). Our CODM manages our business primarily by function globally and reviews financial information on a consolidated basis, accompanied by disaggregated information about revenues by geographic region, for purposes of allocating resources and evaluating financial performance. The profitability of our geographic region is not a determining factor in allocating resources and the CODM does not evaluate profitability below the level of the consolidated company.

We report revenue by region and country based on the location where our customers accept delivery of our products and services. Revenue by region for 2015, 2014 and 2013 were as follows:

	Fiscal Year
(In millions)	2015		2014		2013
North America	$	153.2	$	142.0	$	180.5
Africa and Middle East	97.1		108.9		182.2
Europe and Russia	36.0		36.0		48.0
Latin America and Asia Pacific	49.6		59.1		60.6
Total Revenue	$	335.9	$	346.0	$	471.3

Revenue by country comprising more than 5% of our total revenue for fiscal 2015, 2014 and 2013 were as follows:

(In millions, except %)	Revenue		% of  Total Revenue
Fiscal 2015:
United States	$	151.1	45.0	%
Nigeria	$	36.5	10.9	%
Fiscal 2014:
United States	$	139.2	40.2	%
Nigeria	$	52.2	15.1	%
Fiscal 2013:
United States	$	177.0	37.6	%
Nigeria	$	92.7	19.7	%

Our long-lived assets, consisting primarily of property, plant and equipment, by geographic areas based on the physical location of the assets as of July 3, 2015 and June 27, 2014 were as follows:

(In millions)	July 3, 2015		June 27, 2014
United States	$	17.6	$	21.5
United Kingdom	3.1		3.3
Other countries	3.6		4.5
Total	$	24.3	$	29.3

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Document and Entity Information Document - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Sep. 17, 2015	Dec. 26, 2014
Document Information [Line Items]
Entity Registrant Name	AVIAT NETWORKS, INC.
Entity Central Index Key	0001377789
Current Fiscal Year End Date	--07-03
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Jul. 03, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		62,498,401
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 62.8

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Divestiture

12 Months Ended

Jul. 03, 2015

Discontinued Operations and Disposal Groups [Abstract]

Divestiture

Divestiture

In March 2011, our board of directors approved a plan for the sale of our WiMAX business. On September 2, 2011, we sold to EION Networks, Inc. (“EION”) our WiMAX business and related assets consisting of certain technology, inventory and equipment. As consideration for the sale of assets, EION agreed to pay us $0.4 million in cash and up to $2.8 million in additional cash payments contingent upon specific factors related to future WiMAX business performance. We had received $0.1 million in total of such contingent payments through June 27, 2014 and do not expect any further payments from EION. In addition, EION is entitled to receive cash payments up to $2.0 million upon collection of certain WiMAX accounts receivable. As of September 26, 2014, we made $1.6 million in total of such payments to EION and wrote-off the remaining $0.4 million balance resulting from the write-downs of the corresponding WiMAX accounts receivable. As of July 3, 2015 and June 27, 2014, our accrued liabilities related to the disposition of WiMAX business were zero and $0.1 million, respectively.

In the third quarter of fiscal 2011, we began accounting for the WiMAX business as a discontinued operation and, therefore, the operating results of our WiMAX business were included in discontinued operations in our consolidated financial statements for all years presented. The loss incurred in fiscal 2013 was primarily due to write-down of certain WiMAX deferred cost of sales that were not transferred to EION and certain expenses we incurred to support a remaining customer obligation. The income recognized in fiscal 2015 and 2014 was primarily due to the recovery of certain WiMAX customer receivables that was previously written down.

Summary results of operations for the WiMAX business were as follows:

	Fiscal Year
	2015		2014			2013
	(In millions)
Revenues	$	—	$	—		$	0.1
Income (loss) from operations of WiMAX	—		1.2			(4.3		)
Gain on disposal	0.1		—			0.4
Income taxes	—		(0.3		)	(0.2		)
Income (loss) from discontinued operations, net of tax	$	0.1	$	0.9		$	(4.1	)

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Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 03, 2015	Jun. 27, 2014
Current Assets:
Cash and cash equivalents	$ 34.7	$ 48.8
Accounts receivables, net	88.2	77.2
Unbilled costs	17.3	23.8
Inventories	32.9	38.1
Customer service inventories	6.2	11.4
Deferred income taxes	1.5	1.5
Other current assets	15.0	17.4
Total current assets	195.8	218.2
Property, plant and equipment, net	24.3	29.3
Identifiable intangible assets, net	0.0	0.4
Deferred income taxes	7.6	3.4
Other assets	1.7	1.9
TOTAL ASSETS	229.4	253.2
Current Liabilities:
Short-term debt	9.0	6.0
Accounts payable	46.6	46.1
Accrued compensation and benefits	7.5	10.1
Other accrued expenses	19.7	23.1
Advance payments and unearned income	41.7	33.3
Deferred income taxes	0.2	0.2
Restructuring liabilities	3.9	2.8
Total current liabilities	128.6	121.6
Unearned income	8.6	8.5
Other long-term liabilities	2.2	5.0
Reserve for uncertain tax positions	1.4	1.0
Deferred income taxes	4.7	5.2
Total liabilities	$ 145.5	$ 141.3
Commitments and contingencies (Note 13)
Aviat Networks stockholders’ equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued	$ 0.0	$ 0.0
Common stock, $0.01 par value; 300,000,000 shares authorized; 62,498,401 and 62,218,226 shares issued and outstanding as of as of July 3, 2015 and June 27, 2014, respectively	0.6	0.6
Additional paid-in-capital	809.2	807.0
Accumulated deficit	(717.5)	(692.8)
Accumulated other comprehensive loss	(8.5)	(2.9)
Total Aviat Networks stockholders’ equity	83.8	111.9
Noncontrolling interests	0.1	0.0
Total equity	83.9	111.9
TOTAL LIABILITIES AND EQUITY	$ 229.4	$ 253.2

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Balance Sheet Components

12 Months Ended

Jul. 03, 2015

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Balance Sheet Components

Accounts Receivables, net

Our net accounts receivable is summarized below:

	July 3, 2015			June 27, 2014
	(In millions)
Accounts receivable	$	94.9		$	84.6
Less: allowances for collection losses	(6.7		)	(7.4		)
	$	88.2		$	77.2

Inventories

Our inventories are summarized below:

	July 3, 2015		June 27, 2014
	(In millions)
Finished products	$	21.1	$	25.3
Work in process	3.8		5.3
Raw materials and supplies	8.0		7.5
	$	32.9	$	38.1
Deferred cost of revenue included within finished goods	$	5.6	$	3.2
Consigned inventories included within raw materials	$	6.8	$	6.6

During fiscal 2015, 2014 and 2013, we recorded charges to adjust our inventory and customer service inventory to the lower of cost or market. These charges were primarily due to excess and obsolete inventory resulting from product transitioning and discontinuance or customer insolvency. Such charges incurred during fiscal 2015, 2014 and 2013 were classified in cost of product sales as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
Excess and obsolete inventory charges	$	6.4		$	4.0		$	4.0
Customer service inventory write-downs	2.9			3.2			1.5
	$	9.3		$	7.2		$	5.5
As % of revenue	2.8		%	2.1		%	1.2		%

During fiscal 2013, we also incurred $4.2 million charges to write down deferred cost of revenue that were unlikely to derive revenue due to disposition of our WiMAX business. The charges were included in discontinued operations in our consolidated statement of operations for fiscal 2013.

Property, Plant and Equipment, net

Our property, plant and equipment, net are summarized below :

	July 3, 2015			June 27, 2014
	(In millions)
Land	$	0.7		$	0.7
Buildings and leasehold improvements	9.7			10.3
Software	13.6			13.2
Machinery and equipment	45.2			47.1
	69.2			71.3
Less accumulated depreciation and amortization	(44.9		)	(42.0		)
	$	24.3		$	29.3

Depreciation and amortization expense related to property, plant and equipment, including amortization of internal use software , was $7.2 million, $7.1 million and $5.6 million, respectively, in fiscal 2015, 2014 and 2013.

Accrued Warranties

We accrue for the estimated cost to repair or replace products under warranty. Changes in our warranty liability, which is included as a component of other accrued expenses in the consolidated balance sheets, during fiscal 2015 and 2014 were as follows:

	Fiscal Year
	2015			2014
	(In millions)
Balance as of the beginning of the fiscal year	$	3.8		$	3.3
Warranty provision recorded during the period	5.6			5.2
Consumption during the period	(5.2		)	(4.7		)
Balance as of the end of the period	$	4.2		$	3.8

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Net Loss per Share of Common Stock

12 Months Ended

Jul. 03, 2015

Earnings Per Share [Abstract]

Net Loss per Share of Common Stock

Net Loss per Share of Common Stock

We compute net income (loss) per share attributable to Aviat Networks’ common stockholders using the two-class method. Basic net income (loss) per share is computed using the weighted average number of common shares and participating securities outstanding during the period. Our unvested restricted shares contain rights to receive non-forfeitable dividends and therefore are considered to be participating securities and would be included in the calculations of net income per basic and diluted common share. However, we incurred a net loss in all periods presented. In accordance with ASC subtopic 260-10, undistributed losses are not allocated to unvested restricted shares due to the fact that the unvested restricted shares are not contractually obligated to share in the losses of the company.

As we incurred net loss for all periods in fiscal 2015, 2014 and 2013, the effect of outstanding stock options, restricted stocks and units and performance shares and units were anti-dilutive and therefore were excluded from the diluted net loss per share calculations. The following table summarizes the potential shares of common stock that were excluded from the diluted net loss per share calculations:

	Fiscal Year
	2015	2014	2013
	(In millions)
Stock options	7.4	7.5	6.2
Restricted stocks and units and performance shares and units	1.8	0.4	2.2
Total potential shares of common stock excluded	9.2	7.9	8.4

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The Company and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jul. 03, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of Aviat Networks and its wholly-owned and majority owned subsidiaries. Significant intercompany transactions and accounts have been eliminated.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates, assumptions and judgments affecting the amounts reported and related disclosures. Estimates are based upon historical factors, current circumstances and the experience and judgment of our management. We evaluate our estimates and assumptions on an ongoing basis and may employ outside experts to assist us in making these evaluations. Changes in such estimates, based on more accurate information, or different assumptions or conditions, may affect amounts reported in future periods. Such estimates affect significant items, including revenue recognition, provision for doubtful accounts, inventory valuation, valuation allowances for deferred tax assets, uncertainties in income taxes, restructuring obligations, product warranty obligations, share-based awards, contingencies and useful lives of property, plant and equipment.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are carried at amortized cost, which approximates fair value due to the short-term nature of these investments. We hold cash and cash equivalents at several major financial institutions, which often significantly exceed Federal Deposit Insurance Corporation insured limits. However, a substantial portion of the cash equivalents is invested in prime money market funds which are backed by the securities in the fund.

We may invest our excess cash in high-quality marketable debt securities to ensure that cash is readily available for use in our current operations. Investments with original maturities greater than three months but less than one year are accounted for as short-term and are classified as such at the time of purchase. Marketable securities are classified as “available-for-sale” and are classified as short-term because we view our entire portfolio as available for use in our current operations.

As of July 3, 2015 and June 27, 2014, all of our high-quality marketable debt securities were invested in prime money market funds and were classified as cash equivalents.

Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of contractual agreements are recorded as restricted cash. At July 3, 2015, restricted cash included cash balances in our disability insurance voluntary plan account that cannot be used by us for any operating purposes other than to pay benefits to the insured employees and was recorded in other assets in our consolidated balance sheets. The corresponding liabilities were included in other long-term liabilities in our consolidated balance sheets.

Accounts Receivables, Major Customers and Other Significant Concentrations

We typically invoice our customers for the sales order (or contract) value of the related products delivered at various milestones, including order receipt, shipment, installation and acceptance and for services when rendered. Our trade receivables are derived from sales to customers located in North America, Africa, Europe, the Middle East, Russia, Asia-Pacific and Latin America.

Accounts receivable is presented net of allowance for estimated uncollectible accounts to reflect any loss anticipated on the collection of accounts receivable balances. We calculate the allowance based on our history of write-offs, level of past due accounts and the economic status of the customers. The fair value of our accounts receivable approximates their net realizable value.

We regularly require letters of credit from some customers and, from time to time, we discount these letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Under these arrangements, collection risk is fully transferred to the financial institutions. We record the financing charges on discounting these letters of credit as interest expense. Total customer letters of credit discounted and related interest expense were as follows:

	Fiscal Year
(In millions)	2015		2014		2013
Customer letters of credit discounted	$	11.6	$	1.8	$	36.8
Interest expense	$	0.1	$	—	$	0.2

During fiscal 2015, 2014 and 2013, we had one international customer in Africa, Mobile Telephone Networks Group (“MTN Group”) that accounted for 14%, 17% and 25%, respectively, of our total revenue. In addition, Verizon Wireless accounted for 11% of our total revenue during fiscal 2013. As of July 3, 2015 and June 27, 2014, MTN Group accounted for approximately 10% and 17%, respectively, of our accounts receivable. No other customers accounted for more than 10% of our revenue or accounts receivable for the years presented.

Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash equivalents, marketable debt securities, trade accounts receivable and financial instruments used in foreign currency hedging activities. We invest our excess cash primarily in prime money market funds and certificates of deposit. We are exposed to credit risks related to such instruments in the event of default or decrease in credit-worthiness of the issuers of the investments.

We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable, as the majority of our customers are large, well-established companies. However, in certain circumstances, we may require letters of credit, additional guarantees or advance payments. We maintain allowances for collection losses, but historically have not experienced any significant losses related to any particular geographic area. Our customers are primarily in the telecommunications industry, so our accounts receivable are concentrated within one industry and exposed to concentrations of credit risk within that industry. Accounts receivable are written off when attempts to collect outstanding amounts have been exhausted or there are other indicators that the amounts are no longer collectible.

Inventories

Inventories

Inventories are valued at the lower of cost or market. Cost is determined using standard cost, which approximates actual cost on a weighted-average basis. We regularly review inventory quantities on hand and record adjustments to reduce the cost of inventory for excess and obsolete inventory based primarily on our estimated forecast of product demand and production requirements. Inventory adjustments are measured as the difference between the cost of the inventory and estimated market value based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Customer Service Inventories

Customer Service Inventories

Our customer service inventories are stated at the lower of cost or market. We carry service parts because we generally provide product warranty for 12 to 36 months and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Customer service inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. We record adjustments to reduce the carrying value of customer service inventories to their net realizable value. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are stated on the basis of cost less accumulated depreciation and amortization. We capitalize costs of software, consulting services, hardware and other related costs incurred to purchase or develop internal-use software. We expense costs incurred during preliminary project assessment, re-engineering, training and application maintenance. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the remaining current lease term, or estimated life, if shorter.

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvements. The useful lives of the assets are generally as follows:

Buildings	40 years
Leasehold improvements	2 to 10 years
Software	3 to 5 years
Machinery and equipment	2 to 5 years

Expenditures for maintenance and repairs are charged to expense as incurred. Cost and accumulated depreciation of assets sold or retired are removed from the respective property accounts, and any gain or loss is reflected in the consolidated statements of operations.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups.

Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The actual cash flows realized from these assets may vary significantly from our estimates due to increased competition, changes in technology, fluctuations in demand, consolidation of our customers, reductions in average selling prices and other factors. Assumptions underlying future cash flow estimates are therefore subject to significant risks and uncertainties.

Warranties

Warranties

On product sales we provide for future warranty costs upon product delivery. The specific terms and conditions of those warranties vary depending upon the product sold and country in which we do business. In the case of products sold by us, our warranties generally start from the delivery date and continue for one to three years, depending on the terms.

Many of our products are manufactured to customer specifications and their acceptance is based on meeting those specifications. Factors that affect our warranty liabilities include the number of product units subject to warranty protection, historical experience and management’s judgment regarding anticipated rates of warranty claims and cost per claim. We assess the adequacy of our recorded warranty liabilities every quarter and make adjustments to the liabilities as necessary.

Noncontrolling Interest

Noncontrolling interests

A noncontrolling interest represents the equity interest in a subsidiary that is not attributable, either directly or indirectly, to Aviat Networks and is reported as our equity, separately from our controlling interests. Revenues, expenses, gains, losses, net income (loss) and other comprehensive income (loss) are reported in the consolidated financial statements at the consolidated amounts, which include the amounts attributable to both the controlling and noncontrolling interests.

Operating Leases

Operating Leases

We lease facilities and equipment under various operating leases. These lease agreements generally include rent escalation clauses, and many include renewal periods at our option. We recognize expense for scheduled rent increases on a straight-line basis over the lease term beginning with the date we take possession of the leased space. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the current lease term, or estimated life, if shorter.

Foreign Currency Translation

Foreign Currency Translation

The functional currency of our subsidiaries located in the United Kingdom, Singapore, Mexico, Algeria and New Zealand is the U.S. dollar. Determination of the functional currency is dependent upon the economic environment in which an entity operates as well as the customers and suppliers the entity conducts business with. Changes in facts and circumstances may occur which could lead to a change in the functional currency of that entity. Accordingly, all of the monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars at the current exchange rate as of the applicable balance sheet date, and all non-monetary assets and liabilities are re-measured at historical rates. Income and expenses are re-measured at the average exchange rate prevailing during the period. Gains and losses resulting from the re-measurement of these subsidiaries’ financial statements are included in the consolidated statements of operations.

Our other international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of these subsidiaries are translated at the local current exchange rates in effect at the balance sheet date, and income and expense accounts are translated at the average exchange rates during the period. The resulting translation adjustments are included in accumulated other comprehensive loss.

Gains and losses resulting from foreign exchange transactions and translation of monetary assets and liabilities in non-functional currencies are included in cost of product sales and services in the accompanying consolidated statements of operations.

Retirement Benefits

Retirement Benefits

As of July 3, 2015, we provided retirement benefits to substantially all employees primarily through our defined contribution retirement plans. These plans have matching and savings elements. Contributions by us to these retirement plans are based on profits and employees’ savings with no other funding requirements. We halted making matching contributions to the U.S. plan from the second quarter of fiscal 2014 through the end of fiscal 2015. We may make additional contributions to the plans at our discretion.

Contributions to retirement plans are expensed as incurred.

Revenue Recognition

Revenue Recognition

We generate substantially all of our revenue from the sales or licensing of our microwave radio and wireless access systems, network management software, and professional services including installation and commissioning and training. Principal customers for our products and services include domestic and international wireless/mobile service providers, original equipment manufacturers, distributors, system integrators, as well as private network users such as public safety agencies, government institutions, and utility, pipeline, railroad and other industrial enterprises that operate broadband wireless networks. Our customers generally purchase a combination of our products and services as part of a multiple element arrangement. Our assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment.

Revenue from product sales is generated predominately from the sales of products manufactured by third party manufacturers to whom we have outsourced our manufacturing processes. In general, printed circuit assemblies, mechanical housings, and packaged modules are manufactured by contract manufacturing partners, with periodic business reviews of material levels and obsolescence. Product assembly, product testing, complete system integration and system testing may either be performed within our own facilities or at the locations of our third party manufacturers.

Revenue from services includes certain installation, extended warranty, customer support, consulting, training and education. It also can include certain revenue generated from the resale of equipment purchased on behalf of customers for installation service contracts we perform for customers. Such equipment may include towers, antennas, and other related materials. Revenue from warranty services are recognized ratably over the service period.

Under our revenue recognition policy, revenue is recognized when all of the following criteria have been met:

• Persuasive evidence of an arrangement exists. Contracts and/or customer purchase orders are generally used to determine the existence of an arrangement.

• Delivery has occurred or services have been delivered. Shipping documents and customer acceptance, when applicable, are used to verify delivery.

• The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.

• Collectibility is reasonably assured. We assess collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history.

We often enter into multiple contractual agreements with the same customer. Such agreements are reviewed to determine whether they should be evaluated as one arrangement. If an arrangement, other than a long-term contract, requires the delivery or performance of multiple deliverables or elements, we determine whether the individual elements represent “separate units of accounting”. Based on the terms and conditions of our typical product sales arrangement, we believe that our products and services can be accounted for as separate units because our products and services have value to our customers on a stand-alone basis.

When a sale involves multiple deliverables, the entire fee from the arrangement is allocated to each unit of accounting based on the relative selling price of each deliverable. When applying the relative selling price method, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). Generally, we are not able to determine TPE because our go-to-market strategy differs from that of our peers and our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. When we are unable to establish a selling price using VSOE or TPE, we use ESP to allocate the arrangement fees to the deliverables. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for each element. There is generally no customer right of return in our sales agreements. The sequence for typical multiple element arrangements: we deliver our products, perform installation services and then provide post-contract support services.

ESP is determined by considering a number of factors including our pricing policies, internal costs and gross margin objectives, method of distribution, information gathered from experience in customer negotiations, market research and information, recent technological trends, competitive landscape and geographies. The determination of ESP is approved by our management taking into consideration our pricing strategy. We regularly review VSOE, TPE and ESP and maintain internal controls over the establishment and updating of these estimates.

Revenues related to long-term contracts for customized network solutions are recognized using the percentage-of-completion method. In using the percentage-of-completion method, we generally apply the cost-to-cost method of accounting where sales and profits are recorded based on the ratio of costs incurred to estimated total costs at completion. Recognition of profit on long-term contracts requires estimates of the total contract value, the total cost at completion and the measurement of progress towards completion. Significant judgment is required when estimating total contract costs and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Amounts representing contract change orders, claims or other items are included in sales only when they can be reliably estimated and realization is probable. When adjustments in contract value or estimated costs are determined, any changes from prior estimates are reflected in earnings in the current period. Anticipated losses on contracts or programs in progress are charged to earnings when identified. We establish billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled costs in our consolidated balance sheets.

We also consider whether contracts should be combined when specific aggregation criteria are met including when the contracts are in substance an arrangement to perform a single project with a customer; the contracts are negotiated as a package in the same economic environment with an overall profit objective; and the contracts require interrelated activities with common costs that cannot be separately identified with, or reasonably allocated to the elements, phases or units of output and the contracts are performed concurrently or in a continuous sequence under the same project management at the same location or at different locations in the same general vicinity.

Royalty income is recognized on the basis of terms specified in the contractual agreements.

Cost of Product Sales and Services

Cost of Product Sales and Services

Cost of sales consists primarily of materials, labor and overhead costs incurred internally and amounts incurred for contract manufacturers to produce our products, personnel and other implementation costs incurred to install our products and train customer personnel, and customer service and third party original equipment manufacturer costs to provide continuing support to our customers. Also included in cost of sales is the amortization of purchased technology intangible assets.

Shipping and handling costs are included as a component of costs of product sales in our consolidated statements of operations because we include in revenue the related costs that we bill our customers.

Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities

Presentation of Transactional Taxes Collected from Customers and Remitted to Government Authorities

We present transactional taxes such as sales and use tax collected from customers and remitted to governmental authorities on a net basis.

Research and Development Costs

Research and Development Costs

Our sponsored research and development costs, which include costs in connection with new product development, improvement of existing products, process improvement, and product use technologies, are charged to operations in the period in which they are incurred.

Share-Based Compensation

Share-Based Compensation

We have issued stock options, restricted stock and performance shares under our 2007 Stock Equity Plan and have assumed stock options from the acquisition of Stratex. We estimate the grant date fair value of our share-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term.

To estimate the fair value of our stock option awards, we use the Black-Scholes option pricing model. The determination of the fair value of stock option awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. Due to the inherent limitations of option valuation models, including consideration of future events that are unpredictable and the estimation process utilized in determining the valuation of the share-based awards, the ultimate value realized by our employees may vary significantly from the amounts expensed in our financial statements. For restricted stock and performance share awards, we measure the grant date fair value based upon the market price of our common stock on the date of the grant.

We generally recognize compensation cost for share-based payment awards on a straight-line basis over the requisite service period. For awards with a performance condition vesting feature, we recognize share-based compensation costs for the performance awards when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved.

We estimate forfeitures at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ significantly from initial estimates. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those share-based awards that are expected to vest.

Cash flows, if any, resulting from the gross benefit of tax deductions related to share-based compensation in excess of the grant date fair value of the related share-based awards are presented as part of cash flows from financing activities. This amount is shown as a reduction to cash flows from operating activities and an increase to cash flow from financing activities.

Restructuring Charges

Restructuring Charges

Our restructuring charges represent expenses incurred in connection with certain cost reduction programs that we have implemented, and consist of the costs of employee termination costs, lease and other contract termination charges and other costs of exiting activities or geographies. A liability for costs associated with an exit or disposal activity is measured at its fair value when the liability is incurred. Expenses for one-time termination benefits are recognized at the date we notify the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. We recognize severance benefits provided as part of an ongoing benefit arrangement when the payment is probable and the amounts can be reasonably estimated. Liabilities related to termination of an operating lease or contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates include anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. We expense all other costs related to an exit or disposal activity as incurred.

Income Taxes and Related Uncertainties

Income Taxes and Related Uncertainties

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement and tax bases of assets and liabilities, as measured by tax rates at which temporary differences are expected to reverse as well as operating loss and tax credit carry forwards. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. A valuation allowance is established to offset any deferred tax assets if, based upon the available information, it is more likely than not that some or all of the deferred tax assets will not be realized.

We are required to compute our income taxes in each federal, state, and international jurisdiction in which we operate. This process requires that we estimate the current tax exposure as well as assess temporary differences between the accounting and tax treatment of assets and liabilities, including items such as accruals and allowances not currently deductible for tax purposes as well as operating loss and tax credit carry forwards. The income tax effects of the differences we identify are classified as current or long-term deferred tax assets and liabilities in our consolidated balance sheets. Our judgments, assumptions, and estimates relative to the current provision for income taxes take into account current tax laws, our interpretation of current tax laws, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. Changes in tax laws or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our consolidated balance sheets and consolidated statements of operations. We must also assess the likelihood that deferred tax assets will be realized from future taxable income and, based on this assessment, establish a valuation allowance, if required. Our determination of our valuation allowance is based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic and international jurisdictions in which we operate. To the extent we establish a valuation allowance or change the valuation allowance in a period, we reflect the change with a corresponding increase or decrease to our tax provision in our consolidated statements of operations.

We use a two-step process to determine the amount of tax benefit to be recognized. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

On May 28, 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of the new revenue standard from December 15, 2016 to December 15, 2017, with early adoption permitted before annual periods beginning after December 15, 2016. Accordingly, the new standard is effective for us beginning in our fiscal year 2019. The principles may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the transition methods and the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures.

In July 2015, the FASB issued ASU No. 2015-11 (Subtopic 330) - Simplifying the Measurement of Inventory, which provides guidance to companies who account for inventory using either the first-in, first-out (“FIFO”) or average cost methods. The guidance states that companies should measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures.

In August 2014, FASB issued a new standard on the disclosure of uncertainties about an entity’s ability to continue as a going concern. The guidance seeks to define management’s responsibility to decide whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the effect of the adoption of the standard will have on our consolidated financial statements and related disclosures.

Net Income (Loss) per Share of Common Stock

We compute net income (loss) per share attributable to Aviat Networks’ common stockholders using the two-class method. Basic net income (loss) per share is computed using the weighted average number of common shares and participating securities outstanding during the period. Our unvested restricted shares contain rights to receive non-forfeitable dividends and therefore are considered to be participating securities and would be included in the calculations of net income per basic and diluted common share. However, we incurred a net loss in all periods presented. In accordance with ASC subtopic 260-10, undistributed losses are not allocated to unvested restricted shares due to the fact that the unvested restricted shares are not contractually obligated to share in the losses of the company.

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Income Taxes

12 Months Ended

Jul. 03, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income (loss) from continuing operations before provision for income taxes during fiscal year 2015, 2014 and 2013 is as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
United States	$	(18.6	)	$	(26.7	)	$	(5.2	)
Foreign	(7.4		)	(23.8		)	5.9
Total Income (loss) from continuing operations before income taxes	$	(26.0	)	$	(50.5	)	$	0.7

Provision for income taxes from continuing operations for fiscal year 2015, 2014 and 2013 were summarized as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
Current provision (benefit):
United States	$	—		$	(0.1	)	$	(0.1	)
Foreign	3.4			1.9			13.6
State and local	—			—			—
	3.4			1.8			13.5
Deferred provision (benefit):
United States	(0.2		)	—			—
Foreign	(4.5		)	(0.3		)	(0.2		)
State and local	—			—			—
	(4.7		)	(0.3		)	(0.2		)
Total provision (benefit) for income taxes from continuing operations	$	(1.3	)	$	1.5		$	13.3

The following table summarizes the significant differences between the U.S. Federal statutory tax rate and our effective tax rate from continuing operations for fiscal year 2015, 2014 and 2013:

	Fiscal Year
	2015		2014		2013
Statutory U.S. federal tax rate	(35.0	)%	(35.0	)%	35.0	%
Valuation allowances	(15.1	)%	30.0	%	228.6	%
Foreign non-deductible expenses	(0.3	)%	0.9	%	37.1	%
State and local taxes, net of U.S. federal tax benefit	(1.9	)%	(1.3	)%	(5.7	)%
Foreign income taxed at rates less than the U.S. statutory rate	38.5	%	8.5	%	(132.7	)%
Foreign branch income/withholding taxes	5.2	%	2.0	%	92.9	%
Change in uncertain tax positions	2.4	%	(1.7	)%	1,660.0	%
Other	1.2	%	(0.4	)%	(15.2	)%
Effective tax rate	(5.0	)%	3.0	%	1,900.0	%

The income tax benefit from continuing operations for fiscal year 2015 was $1.3 million. The difference between our income tax benefit from continuing operations and income tax expense at the statutory rate of 35% on our pre-tax loss of $26.0 million was primarily attributable to losses in tax jurisdictions in which we cannot recognize a tax benefit and increases in foreign withholding taxes, offset with the $4.4 million tax benefit from the release of valuation allowance in jurisdictions where management believes the utilization of deferred tax assets was more likely than not based on the weighting of positive and negative evidence.

The income tax expense from continuing operations for fiscal year 2014 was $1.5 million. The difference between our income tax expense from continuing operations and income tax expense at the statutory rate of 35% on our pre-tax loss of $50.5 million was primarily attributable to losses in tax jurisdictions in which we cannot recognize a tax benefit and increases in foreign withholding taxes.

The income tax expense from continuing operations for fiscal year 2013 was $13.3 million. The difference between our income tax expense from continuing operations and income tax benefit at the statutory rate of 35% on our pre-tax income of $0.7 million was primarily attributable to a $11.7 million increase in our reserve for uncertain tax positions, losses in tax jurisdictions in which we cannot recognize a tax benefit, and increases in foreign withholding taxes. The increase in our unrecognized tax benefits was the result of additional information obtained during the recent tax examinations in certain countries during fiscal 2013.

The components of deferred tax assets and liabilities were as follows:

	July 3, 2015						June 27, 2014
	Current			Non-Current			Current			Non-Current
	(In millions)
Deferred tax assets:
Inventory	$	7.7		$	—		$	12.0		$	—
Accruals and reserves	4.7			0.1			4.7			0.1
Bad debts	1.4			—			2.4			—
Depreciation	—			—			—			0.2
Amortization	—			2.6			—			4.1
Stock compensation	—			3.3			—			4.0
Deferred revenue	—			1.9			—			3.9
Unrealized exchange gain/loss	3.6			—			3.2			—
Other	1.1			5.0			1.1			4.2
Tax credit carryforwards	—			17.9			—			21.5
Tax loss carryforwards	—			154.5			—			133.2
Total deferred tax assets before valuation allowance	18.5			185.3			23.4			171.2
Valuation allowance	(17.0		)	(177.7		)	(21.9		)	(167.8		)
Total deferred tax assets	1.5			7.6			1.5			3.4
Deferred tax liabilities:
Branch undistributed earnings reserve	0.1			1.2			0.1			1.4
Depreciation	—			3.5			—			3.8
Other accruals	0.1			—			0.1			—
Total deferred tax liabilities	0.2			4.7			0.2			5.2
Net deferred tax assets (liabilities)	$	1.3		$	2.9		$	1.3		$	(1.8	)

Our valuation allowance related to deferred income taxes, as reflected in our consolidated balance sheet, was $194.7 million as of July 3, 2015 and $189.7 million as of June 27, 2014. The increase in valuation allowance in fiscal 2015 was primarily due to the losses in tax jurisdictions in which we cannot recognize tax benefits, partially offset by the $4.4 million valuation allowance released in certain foreign jurisdictions.

Tax loss and credit carryforwards as of July 3, 2015 have expiration dates ranging between one year and no expiration in certain instances. The amount of U.S. federal tax loss carryforwards as of July 3, 2015 and June 27, 2014 were $328.7 million and $291.6 million, respectively, and begin to expire in fiscal 2023. Credit carryforwards as of July 3, 2015 were $21.3 million, and certain credits will begin to expire in fiscal 2017. The amount of foreign tax loss carryforwards as of July 3, 2015 was $129.0 million.

United States income taxes have not been provided on basis differences in foreign subsidiaries of $5.4 million and $5.7 million, respectively, as of July 3, 2015 and June 27, 2014, because of our intention to reinvest these earnings indefinitely. The residual U.S. tax liability, if such amounts were remitted, would be nominal.

We entered into a tax sharing agreement with Harris effective on January 26, 2007, the date of the acquisition of Stratex. The tax sharing agreement addresses, among other things, the settlement process associated with pre-merger tax liabilities and tax attributes that are attributable to the Microwave Communication Division when it was a division of Harris. There was no settlement payments recorded in fiscal year 2015, 2014 or 2013.

As of July 3, 2015 and June 27, 2014, we had unrecognized tax benefits of $26.9 million and $28.2 million, respectively, for various federal, foreign, and state income tax matters. Unrecognized tax benefits decreased by $1.3 million. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $1.4 million and $1.0 million, respectively, as of July 3, 2015 and June 27, 2014. These unrecognized tax benefits are presented on the accompanying consolidated balance sheet net of the tax effects of net operating loss carryforwards.

We account for interest and penalties related to unrecognized tax benefits as part of our provision for income taxes. We accrued such interest of zero as of July 3, 2015 and $0.1 million as of June 27, 2014. No penalties have been accrued.

Our unrecognized tax benefit activity for fiscal 2015, 2014 and 2013 is as follows:

	Amount
	(In millions)
Unrecognized tax benefit as of June 29, 2012	$	13.4
Additions for tax positions in current periods	0.7
Additions for tax positions in prior periods	15.0
Decreases for tax positions in prior periods	(0.4		)
Unrecognized tax benefit as of June 28, 2013	28.7
Additions for tax positions in current periods	—
Additions for tax positions in prior periods	8.7
Decreases for tax positions in prior periods	(12.1		)
Increases related to change of foreign exchange rate	2.9
Unrecognized tax benefit as of June 27, 2014	28.2
Additions for tax positions in prior periods	0.6
Decreases for tax positions in prior periods	(0.2		)
Decreases related to change of foreign exchange rate	(1.7		)
Unrecognized tax benefit as of July 3, 2015	$	26.9

During the fiscal year 2014, we received an assessment letter from the Inland Revenue Authority of Singapore (“Singapore”) related to deductions claimed in prior years and made a prepayment of $13.2 million related to tax years 2007 through 2010, reflecting all of the taxes incrementally assessed by Singapore. We continue to defend our tax positions in Singapore and we continue to pursue remedies to object to this assessment. There was no settlement in fiscal year 2015. During the next twelve months, it is reasonably possible that an ultimate settlement will be achieved which would result in our unrecognized tax benefits changing by up to $14.0 million. We believe that we have adequately provided for any reasonably foreseeable outcomes related to our tax audits.

We have a number of years with open tax audits which vary from jurisdiction to jurisdiction. Our major tax jurisdictions include the U.S., Singapore and Nigeria. The earliest years still open and subject to potential audits for these jurisdictions are as follows: U.S. —2003; Singapore — 2006; and Nigeria — 2011.

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Restructuring Activities

12 Months Ended

Jul. 03, 2015

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

Fiscal 2015-2016 Plan

During the third quarter of fiscal 2015, with the intent to bring our operational cost structure in line with the changing dynamics of the microwave radio and telecommunications markets, we initiated a restructuring plan (the “Fiscal 2015-2016 Plan”) to lower fixed overhead costs and operating expenses and to preserve cash flow. Activities under the Fiscal 2015-2016 Plan primarily include reductions in force across the Company, but primarily in operations outside the United States.

The following table summarizes our costs incurred during fiscal 2015, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2015-2016 Plan:

	Costs Incurred During  Fiscal Year Ended		Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015
	(in millions)
Severance and benefits	$	2.8	$	2.8	$	1.4	$	4.2
Facilities and other	0.6		0.6		0.2		0.8
Total for Fiscal 2015-2016 Plan	$	3.4	$	3.4	$	1.6	$	5.0

During fiscal 2015, we recorded $2.8 million in severance and related benefits costs and $0.6 million for a Slovenia government fund penalty charge related to the workforce reduction. We intend to substantially complete the remaining restructuring activities under the Fiscal 2015-2016 Plan by the first half of fiscal 2016.

Fiscal 2014-2015 Plan

During the third quarter of fiscal 2014, in line with the decrease in revenue that we experienced and our reduced forecast for the immediate future, we initiated a restructuring plan (the “Fiscal 2014-2015 Plan”) to reduce our operating costs, primarily in North America, Europe and Asia. Activities under the Fiscal 2014-2015 Plan primarily include reductions in force and additional facility downsizing of our Santa Clara, California headquarters.

The following table summarizes our costs incurred during fiscal 2014, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2014-2015 Plan:

	Costs Incurred During  Fiscal Year Ended				Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015		June 27, 2014
	(in millions)
Severance and benefits	$	—	$	5.4	$	5.4	$	—	$	5.4
Facilities and other	1.4		0.4		1.8		0.3		2.1
Total for Fiscal 2014-2015 Plan	$	1.4	$	5.8	$	7.2	$	0.3	$	7.5

We have substantially completed the restructuring activities under the Fiscal 2014-2015 Plan as of July 3, 2015. The remaining additional costs to be incurred under the Fiscal 2014-2015 Plan primarily included our facility costs related to the cease-to-use space at our Santa Clara, California headquarters through the remaining lease term.

Fiscal 2013-2014 Plan

During the fourth quarter of fiscal 2013, we initiated a restructuring plan (the “Fiscal 2013-2014 Plan”) that was intended to reduce our operating expenses primarily in North America, Europe and Asia. Activities under the Fiscal 2013-2014 Plan included reductions in force and facility downsizing of our Santa Clara, California headquarters and certain international field offices.

The following table summarizes our costs incurred during fiscal 2014 and 2013, estimated additional costs to be incurred and estimated total costs expected to be incurred as of July 3, 2015 under the Fiscal 2013-2014 Plan:

	Costs Incurred During  Fiscal Year Ended						Cumulative Costs Incurred Through July 3, 2015		Estimated Additional Costs to be Incurred		Total Restructuring Costs Expected to be Incurred
	July 3, 2015		June 27, 2014		June 28, 2013
	(in millions)
Severance and benefits	$	—	$	1.0	$	1.8	$	2.8	$	—	$	2.8
Facilities and other	0.1		4.3		—		4.4		0.6		5.0
Total for Fiscal 2013-2014 Plan	$	0.1	$	5.3	$	1.8	$	7.2	$	0.6	$	7.8

We have substantially completed the restructuring activities under the Fiscal 2013-2014 Plan as of June 27, 2014. The remaining additional costs to be incurred under the Fiscal 2013-2014 Plan primarily included our facility costs related to the cease-to-use space at our Santa Clara, California headquarters through the remaining lease term.

Fiscal 2011 Plan

During the first quarter of fiscal 2011, we initiated a restructuring plan (the “Fiscal 2011 Plan”) to reduce our operational costs. The Fiscal 2011 Plan was intended to bring our cost structure in line with the changing dynamics of the worldwide microwave radio and telecommunication markets, primarily in North America, Europe and Asia. Activities under the Fiscal 2011 Plan included reductions in force to reduce our operating expenses and the downsizing or closure of our Morrisville, North Carolina, Santa Clara, California, Montreal, Canada and certain international field offices.

The following table summarizes our costs incurred during fiscal 2013 and 2012 and total costs incurred under the Fiscal 2011 Plan:

	Costs Incurred During  Fiscal Year Ended		Cumulative Costs Incurred Through June 28, 2013
	June 28, 2013
Severance and benefits	$	1.2	$	12.6
Facilities and other	0.1		3.7
Total for Fiscal 2011 Plan	$	1.3	$	16.3

The initiatives under the Fiscal 2011 Plan were completed in fiscal 2013.

Restructuring Liabilities

Our restructuring liabilities consisted primarily of accrued severance and benefits relating to one-time and ongoing benefit arrangements, as well as facility exit cost reserves primarily related to our office leases in California. The fair value of the liabilities related to operating lease terminations was determined based on the present value of the remaining lease obligations, adjusted for the effects of deferred items recognized under the lease, and reduced by estimated sublease rentals that could be reasonably obtained for the property. The assumptions in determining such estimates included anticipated timing of sublease rentals and estimates of sublease rental receipts and related costs based on market conditions. To the extent there are material differences between these estimates or assumptions and actual results, our restructuring liabilities and restructuring charges would be significantly affected.

The information in the following table summarizes our restructuring activities during fiscal 2015, 2014 and 2013 and restructuring liability as of July 3, 2015:

	Severance and Benefits			Facilities and Other			Total
	(In millions)
Restructuring liability as of June 29, 2012	$	1.0		$	1.2		$	2.2
Provision related to Fiscal 2013-2014 Plan	1.8			—			1.8
Provision related to Fiscal 2011 Plan	1.2			0.1			1.3
Cash payments	(2.1		)	(0.5		)	(2.6		)
Restructuring liability as of June 28, 2013	1.9			0.8			2.7
Provision related to Fiscal 2014-2015 Plan	5.4			0.4			5.8
Provision related to Fiscal 2013-2014 Plan	1.0			4.3			5.3
Cash payments	(6.8		)	(1.8		)	(8.6		)
Restructuring liability as of June 27, 2014	1.5			3.7			5.2
Provision related to Fiscal 2015-2016 Plan	2.8			0.6			3.4
Provision related to Fiscal 2014-2015 Plan	—			1.4			1.4
Provision related to Fiscal 2013-2014 Plan	—			0.1			0.1
Cash payments	(3.5		)	(2.1		)	(5.6		)
Restructuring liability as of July 3, 2015	$	0.8		$	3.7		$	4.5
Current portion of restructuring liability as of July 3, 2015							$	3.9
Long-term portion of restructuring liability (included in other long-term liabilities) as of July 3, 2015							$	0.6

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Stockholders Equity (Restricted Stock Activity) (Details) - Restricted Stock	12 Months Ended
	Jul. 03, 2015 $ / shares shares
Restricted Stock, Shares [Roll Forward]
Shares outstanding as of June 28, 2013	314,658
Granted, Shares	1,069,153
Vested and released, Shares	(384,810)
Forfeited, Shares	(7,162)
Shares outstanding as of June 27, 2014	991,839
Restricted Stock, Weighted Average Grant Date Fair Value [Roll Forward]
Shares outstanding as of June 28, 2013, Weighted Average Grant Date Fair Value | $ / shares	$ 2.80
Granted, Weighted Average Grant Date Fair Value | $ / shares	1.17
Vested and released, Weighted Average Grant Date Fair Value | $ / shares	2.17
Forfeited, Weighted Average Grant Date Fair Value | $ / shares	2.34
Shares outstanding as of June 27, 2014, Weighted Average Grant Date Fair Value | $ / shares	$ 1.30

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Fair Value Measurements Of Assets And Liabilities

12 Months Ended

Jul. 03, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements Of Assets And Liabilities

Fair Value Measurements of Assets and Liabilities

We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants as of the measurement date. We maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value and establish a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows:

• Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities;

• Level 2 — Observable market-based inputs or observable inputs that are corroborated by market data; and

• Level 3 — Unobservable inputs reflecting our own assumptions.

The carrying amounts, estimated fair values and valuation input levels of our assets and liabilities that are measured at fair value on a recurring basis as of July 3, 2015 and June 27, 2014 were as follows:

	July 3, 2015				June 27, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
	(In millions)
Assets:
Cash equivalents:
Bank certificates of deposit	$	0.6	$	0.6	$	3.5	$	3.5	Level 2
Money market funds	$	12.5	$	12.5	$	10.2	$	10.2	Level 1

We classify items within Level 1 if quoted prices are available in active markets. Our Level 1 items include shares in money market funds purchased from two major financial institutions. As of July 3, 2015, these money market shares were valued at $1.00 net asset value per share by these financial institutions.

We classify items in Level 2 if the observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources are available with reasonable levels of price transparency. Our bank certificates of deposit and foreign exchange forward contracts are classified within Level 2. Foreign currency forward contracts are measured at fair value using observable foreign currency exchange rates. The assets and liabilities related to our foreign currency forward contracts were not material as of July 3, 2015 and June 27, 2014. We did not have any recurring assets whose fair value was measured using significant unobservable inputs.

Our policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During fiscal 2015, 2014 and 2013, we had no transfers between levels of the fair value hierarchy of our assets or liabilities measured at fair value.

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Credit Facility And Debt

12 Months Ended

Jul. 03, 2015

Debt Disclosure [Abstract]

Credit Facility And Debt

Credit Facility and Debt

On March 28, 2014, we entered into a Second Amended and Restated Loan Agreement with Silicon Valley Bank (as amended, the “SVB Credit Facility”). The SVB Credit Facility was amended on September 25, 2014, October 30, 2014 and December 2, 2014 to provide for extensions to the deadline for preparing and filing our fiscal 2014 financial statements with the Securities and Exchange Commission (the “SEC”). On February 27, 2015, the SVB Credit Facility was further amended to provide for certain amendments to the financial covenants, borrowing base and an early termination fee if the SVB Credit Facility is terminated prior to its expiration. This agreement amends and restates our existing First Amended and Restated Loan and Security Agreement, which was entered into on September 27, 2013 and amended providing for certain amendments to the maximum borrowing limit and financial covenants. As of July 3, 2015 and June 27, 2014, our outstanding debt balance under the SVB Credit Facility was $9.0 million and $6.0 million, respectively, and the weighted average interest rate was the same at 3.75%.

The SVB Credit Facility provides for a committed amount of up to $40.0 million, with a $30.0 million sublimit that can be borrowed by our Singapore subsidiary. Borrowings may be advanced under the SVB Credit Facility at the lesser of $40.0 million or a borrowing base equal to a specified percentage of the value of eligible accounts receivable and U.S. unbilled accounts of the Company, subject to certain reserves and eligibility criteria. The SVB Credit Facility can also be utilized to issue letters of credit. Principal, together with all accrued and unpaid interest, is due and payable on September 26, 2016. If the SVB Credit Facility is terminated by us in certain circumstances prior to its expiration, we are subject to an early termination fee equal to 1% of the revolving line. As of July 3, 2015, available credit under the SVB Credit Facility was $26.9 million reflecting the calculated borrowing base of $40.0 million less existing borrowings of $9.0 million and outstanding letters of credit of $4.1 million.

Borrowings under the SVB Credit Facility carry an interest rate computed at the daily prime rate as published in the Wall Street Journal plus a spread of 0.50% to 1.50%, with such spread determined based on our adjusted quick ratio. If a minimum adjusted quick ratio requirement is satisfied, LIBOR advances are offered at LIBOR plus a spread of 2.75%. Interest is due and payable in arrears monthly for prime rate loans and, for LIBOR rate loans, at the end of an interest period or at each three-month interval if the interest period is greater than three months. During fiscal 2015, the weighted average interest rate on our outstanding loan was 3.75%.

The SVB Credit Facility contains quarterly financial covenants including minimum adjusted quick ratio and minimum profitability (EBITDA) requirements. In the event our adjusted quick ratio falls below a certain level, cash received in our accounts with SVB may be directly applied to reduce outstanding obligations under the SVB Credit Facility. The SVB Credit Facility also imposes certain restrictions on our ability to dispose of assets, permit a change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments, make certain restricted payments and enter into transactions with affiliates under certain circumstances. Certain of our assets, including accounts receivable, inventory, and equipment, are pledged as collateral for the SVB Credit Facility. Upon an event of default, outstanding obligations would be immediately due and payable. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default at a per annum rate of interest equal to 2.00% above the applicable interest rate.

As of July 3, 2015 and June 27, 2014, we were in compliance with the quarterly financial covenants contained in the SVB Credit Facility. However, as a result of uncertainty on our ability to meet the financial covenants in future and the fact that the SVB Credit Facility contains subjective acceleration clauses that could be triggered by the lender, the $9.0 million borrowing was classified as a current liability as of July 3, 2015 and June 27, 2014.

During the fourth quarter of fiscal 2015, we obtained an uncommitted short-term line of credit of $0.4 million from a bank in New Zealand to support the operations of our subsidiary located there. This line of credit provides for $0.3 million in short-term advances at various interest rates, all of which was available as of July 3, 2015. The line of credit also provides for the issuance of standby letters of credit and company credit cards, of which $0.1 million was outstanding as of July 3, 2015. This facility may be terminated upon notice, is reviewed annually for renewal or modification, and is supported by a corporate guarantee.

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Stockholders Equity

12 Months Ended

Jul. 03, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Incentive Programs

2007 Stock Equity Plan

As of July 3, 2015, we had one stock incentive plan for our employees and nonemployee directors, the 2007 Stock Equity Plan, as amended and restated effective November 17, 2011 (the “2007 Stock Plan”). The 2007 Stock Plan provides for accelerated vesting of certain share-based awards if there is a change in control of the Company. The 2007 Stock Plan also provides for the issuance of share-based awards in the form of stock options, stock appreciation rights, restricted stock awards and units, and performance share awards and units. We have various incentive programs under the 2007 Stock Plan, including annual and long-term incentive programs (“AIP” or “LTIP”), a global equity program (“GEP”) and product development incentive programs (“PDIP”).

Under the 2007 Stock Plan, option exercise prices are equal to the fair market value on the date the options are granted using our closing stock price. Options may be exercised for a period set at the time of grant, which is generally seven years after the date of grant. Options generally vest in installments on one of four vesting schedules: (1) 25% one year from the grant date and 1/48 each month thereafter over the remaining three-year period; (2) 50% one year from the grant date and 25% each year thereafter over the remaining two-year period; (3) one-third annually over a three-year period from the date of grant; or (4) 25% annually over a four-year period from date of grant. Stock options are issued to directors annually and generally vest on the day before the annual stockholders’ meeting.

Restricted stock is not transferable until vested and the restrictions lapse upon the achievement of continued employment or service over a specified time period. Restricted stock issued to employees generally vests on one of three vesting schedules: (1) one-third annually over a three-year period from the date of grant (2) 25% annually over a four-year period from date of grant; or (3) in full three years after the grant date. Restricted stock issued to directors annually and generally vests on the day before the annual stockholders’ meeting.

Vesting of performance shares under our AIP, LTIP or GEP is subject to financial performance criteria including revenue, operating income, or cash flow targets for the periods as defined in the programs and continued employment through the end of the applicable period. Performance shares under our PDIPs are issued to employees related to certain new product development projects and vest upon achievement of the product development milestones as defined in the programs.

Upon the exercise of stock options, vesting of restricted stock awards and units, or vesting of performance share awards and units, we issue new shares of our common stock to our employees. All awards that are canceled prior to vesting or expire unexercised are returned to the approved pool of reserved shares under the 2007 Stock Plan and made available for future grants. Shares of our common stock remaining available for future issuance under the 2007 Stock Plan totaled 1,351,936 as of July 3, 2015.

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), employees are entitled to purchase shares of our common stock at a 5% discount from the fair market value at the end of a three-month purchase period. As of July 3, 2015, 755,636 shares were reserved for future issuances under the ESPP. We issued 10,621 shares under the ESPP during fiscal 2015.

Share-Based Compensation

Total compensation expense for share-based awards included in our consolidated statements of operations for fiscal 2015, 2014 and 2013 was as follows:

	Fiscal Year
(In millions)	2015		2014		2013
By Expense Category:
Cost of product sales and services	$	0.2	$	0.1	$	0.5
Research and development	0.1		0.3		1.0
Selling and administrative	1.9		3.0		4.9
Total share-based compensation expense	$	2.2	$	3.4	$	6.4
By Types of Award:
Options	$	1.5	$	1.9	$	2.5
Restricted stock awards and units	0.7		0.7		1.5
Performance shares	—		0.8		2.4
Total share-based compensation expense	$	2.2	$	3.4	$	6.4

Compensation expense for an award with only service conditions is recognized over the requisite service period, which is usually the vesting period of the award. For an award that have a graded vesting schedule, compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. The amount of compensation cost recognized at any date must at least equal the portion of the grant-date value of the award that is vested at that date. As of July 3, 2015, there was $2.1 million of total unrecognized compensation expense related to nonvested share-based awards units granted under our 2007 Stock Plan. This expense is expected to be recognized over a weighted-average period of 1.9 years.

Stock Options

A summary of the combined stock option activity under our equity plans during fiscal 2015 is as follows:

	Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
				(Years)	($ in millions)
Options outstanding as of June 27, 2014	7,548,999		$3.31	4.53	$0.0
Granted	1,378,501		$1.27
Exercised	—
Forfeited	(1,552,689	)	$3.50
Expired	(840	)	$16.27
Options outstanding as of July 3, 2015	7,373,971		$2.88	4.05	$0.0
Options exercisable as of July 3, 2015	4,848,127		$3.40	3.14	$0.0
Options vested and expected to vest as of July 3, 2015	7,129,857		$2.92	3.99	$0.0

The aggregate intrinsic value represents the total pre-tax intrinsic value or the aggregate difference between the closing price of our common stock on July 3, 2015 of $1.32 and the exercise price for in-the-money options that would have been received by the optionees if all options had been exercised on July 3, 2015. The options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options.

Additional information related to our stock options is summarized below:

	Fiscal Year
(In millions, except per share amounts)	2015		2014		2013
Weighted average grant date fair value per share granted	$	0.55	$	1.06	$	1.30
Intrinsic value of options exercised	$	—	$	—	$	—
Fair value of options vested	$	2.0	$	2.2	$	3.0

The fair value of each option grant under our 2007 Stock Plan was estimated using the Black-Scholes option pricing model on the date of grant. A summary of the significant weighted average assumptions we used in the Black-Scholes valuation model is as follows:

	Fiscal Year
	2015		2014		2013
Expected dividends	—	%	—	%	—	%
Expected volatility	53.9	%	54.1	%	64.9	%
Risk-free interest rate	1.13	%	1.26	%	0.49	%
Expected term (years)	4.25		4.43		4.33

Expected volatility is based on implied volatility for the expected term of the options from our stock price. The expected term of the options is calculated using the simplified method described in the SEC’s Staff Accounting Bulletin Topic 14.D.2. We use the simplified method because we do not have sufficient stock option exercise data and the types of employees that receive share option grants have been significantly changed due to the implementation of our GEP in fiscal 2012, under which we granted share-based awards to employees who are not eligible for the long-term incentive programs. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is zero because we have not historically paid dividends on our common stock and have no intention to pay dividends in the foreseeable future. The following summarizes all of our stock options outstanding and exercisable as of July 3, 2015:

			Options Outstanding			Options Exercisable
Actual Range of Exercise Prices			Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price	Number Exercisable	Weighted Average Exercise Price
				(Years)
$1.23	—	$1.30	1,373,501	6.98	$1.27	162,591	$1.23
$1.72	—	$2.19	1,562,340	3.68	$2.11	1,158,664	$2.08
$2.28	—	$2.56	1,447,833	3.73	$2.41	1,236,988	$2.40
$2.60	—	$2.71	1,404,994	4.40	$2.63	707,162	$2.65
$2.97	—	$6.11	1,196,133	1.97	$5.04	1,193,552	$5.04
$6.44	—	$24.60	389,170	1.55	$7.75	389,170	$7.75
$1.23	—	$24.60	7,373,971	4.05	$2.88	4,848,127	$3.40

Restricted Stock

A summary of the status of our restricted stock as of July 3, 2015 and changes during fiscal 2015 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Restricted stock outstanding as of June 27, 2014	314,658		$2.80
Granted	1,069,153		$1.17
Vested and released	(384,810	)	$2.17
Forfeited	(7,162	)	$2.34
Restricted stock outstanding as of July 3, 2015	991,839		$1.30

The fair value of each restricted stock grant is based on the closing price of our common stock on the date of grant. The total fair value of restricted stock that vested during fiscal 2015, 2014 and 2013 was $0.6 million, $0.7 million and $1.9 million, respectively.

Performance Share Awards

A summary of the status of our performance shares as of July 3, 2015 and changes during fiscal 2015 were as follows:

	Shares		Weighted Average Grant Date Fair Value
Performance shares outstanding as of June 27, 2014	66,667		$2.59
Granted	803,210		$1.25
Vested and released	(47,820	)	$2.59
Forfeited due to terminations	(18,847	)	$2.59
Performance shares outstanding as of July 3, 2015	803,210		$1.25

The fair value of each performance share is based on the closing price of our common stock on the date of grant and is amortized over its vesting period. We begin to recognize share-based compensation costs for the performance shares when achievement of the performance conditions is considered probable. Any previously recognized compensation cost would be reversed if the performance condition is not satisfied or if it is not probable that the performance conditions will be achieved.

The total fair value of performance share awards that vested during fiscal 2015, 2014 and 2013 was $0.1 million, $3.0 million and $0.9 million, respectively.

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Segment and Geographic Information (Long-Lived Assets by Country) (Details) - USD ($) $ in Millions	Jul. 03, 2015	Jun. 27, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 24.3	$ 29.3
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	17.6	21.5
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	3.1	3.3
Other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 3.6	$ 4.5

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Income Taxes (Loss from continuing operations) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Income Tax Disclosure [Abstract]
United States	$ (18.6)	$ (26.7)	$ (5.2)
Foreign	(7.4)	(23.8)	5.9
Income (loss) from continuing operations before income taxes	$ (26.0)	$ (50.5)	$ 0.7

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Segment and Geographic Information (Revenue by Country) (Details) - USD ($) $ in Millions	3 Months Ended															12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015	[1]	Dec. 26, 2014	[1],[2]	Sep. 26, 2014	[1]	Jun. 27, 2014	[1]	Mar. 28, 2014	[1]	Dec. 27, 2013	[1],[2]	Sep. 27, 2013	[1]	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 87.8	$ 74.8		$ 90.9		$ 82.4		$ 85.4		$ 81.4		$ 85.8		$ 93.4		$ 335.9	$ 346.0	$ 471.3
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue																151.1	139.2	177.0
Nigeria
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue																$ 36.5	$ 52.2	$ 92.7
Revenue by Country | Total Revenue | United States
Revenues from External Customers and Long-Lived Assets [Line Items]
% of Total Revenue																45.00%	40.20%	37.60%
Revenue by Country | Total Revenue | Nigeria
Revenues from External Customers and Long-Lived Assets [Line Items]
% of Total Revenue																10.90%	15.10%	19.70%

[1] Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

[2] Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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Income Taxes (Tables)

12 Months Ended

Jul. 03, 2015

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) from continuing operations before provision for income taxes during fiscal year 2015, 2014 and 2013 is as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
United States	$	(18.6	)	$	(26.7	)	$	(5.2	)
Foreign	(7.4		)	(23.8		)	5.9
Total Income (loss) from continuing operations before income taxes	$	(26.0	)	$	(50.5	)	$	0.7

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes from continuing operations for fiscal year 2015, 2014 and 2013 were summarized as follows:

	Fiscal Year
	2015			2014			2013
	(In millions)
Current provision (benefit):
United States	$	—		$	(0.1	)	$	(0.1	)
Foreign	3.4			1.9			13.6
State and local	—			—			—
	3.4			1.8			13.5
Deferred provision (benefit):
United States	(0.2		)	—			—
Foreign	(4.5		)	(0.3		)	(0.2		)
State and local	—			—			—
	(4.7		)	(0.3		)	(0.2		)
Total provision (benefit) for income taxes from continuing operations	$	(1.3	)	$	1.5		$	13.3

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes the significant differences between the U.S. Federal statutory tax rate and our effective tax rate from continuing operations for fiscal year 2015, 2014 and 2013:

	Fiscal Year
	2015		2014		2013
Statutory U.S. federal tax rate	(35.0	)%	(35.0	)%	35.0	%
Valuation allowances	(15.1	)%	30.0	%	228.6	%
Foreign non-deductible expenses	(0.3	)%	0.9	%	37.1	%
State and local taxes, net of U.S. federal tax benefit	(1.9	)%	(1.3	)%	(5.7	)%
Foreign income taxed at rates less than the U.S. statutory rate	38.5	%	8.5	%	(132.7	)%
Foreign branch income/withholding taxes	5.2	%	2.0	%	92.9	%
Change in uncertain tax positions	2.4	%	(1.7	)%	1,660.0	%
Other	1.2	%	(0.4	)%	(15.2	)%
Effective tax rate	(5.0	)%	3.0	%	1,900.0	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:

	July 3, 2015						June 27, 2014
	Current			Non-Current			Current			Non-Current
	(In millions)
Deferred tax assets:
Inventory	$	7.7		$	—		$	12.0		$	—
Accruals and reserves	4.7			0.1			4.7			0.1
Bad debts	1.4			—			2.4			—
Depreciation	—			—			—			0.2
Amortization	—			2.6			—			4.1
Stock compensation	—			3.3			—			4.0
Deferred revenue	—			1.9			—			3.9
Unrealized exchange gain/loss	3.6			—			3.2			—
Other	1.1			5.0			1.1			4.2
Tax credit carryforwards	—			17.9			—			21.5
Tax loss carryforwards	—			154.5			—			133.2
Total deferred tax assets before valuation allowance	18.5			185.3			23.4			171.2
Valuation allowance	(17.0		)	(177.7		)	(21.9		)	(167.8		)
Total deferred tax assets	1.5			7.6			1.5			3.4
Deferred tax liabilities:
Branch undistributed earnings reserve	0.1			1.2			0.1			1.4
Depreciation	—			3.5			—			3.8
Other accruals	0.1			—			0.1			—
Total deferred tax liabilities	0.2			4.7			0.2			5.2
Net deferred tax assets (liabilities)	$	1.3		$	2.9		$	1.3		$	(1.8	)

Schedule of Unrecognized Tax Benefits Roll Forward

Our unrecognized tax benefit activity for fiscal 2015, 2014 and 2013 is as follows:

	Amount
	(In millions)
Unrecognized tax benefit as of June 29, 2012	$	13.4
Additions for tax positions in current periods	0.7
Additions for tax positions in prior periods	15.0
Decreases for tax positions in prior periods	(0.4		)
Unrecognized tax benefit as of June 28, 2013	28.7
Additions for tax positions in current periods	—
Additions for tax positions in prior periods	8.7
Decreases for tax positions in prior periods	(12.1		)
Increases related to change of foreign exchange rate	2.9
Unrecognized tax benefit as of June 27, 2014	28.2
Additions for tax positions in prior periods	0.6
Decreases for tax positions in prior periods	(0.2		)
Decreases related to change of foreign exchange rate	(1.7		)
Unrecognized tax benefit as of July 3, 2015	$	26.9

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Credit Facility And Debt (Details) - USD ($)		12 Months Ended
	Mar. 28, 2014	Jul. 03, 2015	Jun. 27, 2014
Silicon Valley Bank
Line of Credit Facility [Line Items]
Outstanding debt balance		$ 9,000,000	$ 6,000,000
Weighted average interest rate at period end		3.75%
Credit facility, maximum borrowing capacity	$ 40,000,000
Credit facility, early termination fee as percentage of the revolving line		1.00%
Available credit under credit facility		$ 26,900,000
Borrowing base, calculated amount		$ 40,000,000
Weight average interest rate during reporting period		3.75%
Additional spread on applicable rate in event of default	2.00%
Silicon Valley Bank | Foreign Line of Credit
Line of Credit Facility [Line Items]
Credit facility sublimit available for Singapore	$ 30,000,000
Silicon Valley Bank | Letter of Credit
Line of Credit Facility [Line Items]
Line of credit facility, amount outstanding		$ 4,100,000
Prime Rate | Silicon Valley Bank
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis	prime rate
Prime Rate | Silicon Valley Bank | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Prime Rate | Silicon Valley Bank | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
LIBOR | Silicon Valley Bank
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis	LIBOR
Basis spread on variable rate	2.75%
Period of interest payment due	3 months
New Zealand
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 400,000.0
New Zealand | Short-term Advances
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	300,000
Available credit under credit facility	300,000
New Zealand | Standby Letters of Credit
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	100,000
Line of credit facility, amount outstanding	$ 100,000

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Quarterly Financial Data (Unaudited)

12 Months Ended

Jul. 03, 2015

Quarterly Financial Data [Abstract]

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Our fiscal quarters end on the Friday nearest the end of the calendar quarter. The third quarter of fiscal year 2015 included 14 weeks and other quarters each included 13 weeks. Summarized quarterly data for fiscal 2015 and 2014 were as follows:

	Q1 Ended 9/26/2014(1)			Q2 Ended 12/26/2014(1)(2)			Q3 Ended 4/3/2015(1)			Q4 Ended 7/3/2015
	(In millions, except per share amounts)
Fiscal 2015
Revenue	$	82.4		$	90.9		$	74.8		$	87.8
Gross margin	$	22.0		$	24.0		$	16.0		$	18.7
Operating income (loss)	$	(5.4	)	$	(3.7	)	$	(11.7	)	$	(5.2	)
Net income (loss)	$	(5.5	)	$	(4.5	)	$	(13.1	)	$	(1.5	)
Net income (loss) attributable to Aviat Networks	$	(5.5	)	$	(4.5	)	$	(13.1	)	$	(1.6	)
Per share data:
Basic net income (loss) per common share	$	(0.09	)	$	(0.07	)	$	(0.21	)	$	(0.03	)
Diluted net income (loss) per common share	$	(0.09	)	$	(0.07	)	$	(0.21	)	$	(0.03	)
	Q1 Ended 9/27/2013(1)			Q2 Ended 12/27/2013(1)			Q3 Ended 3/28/2014(1)			Q4 Ended 6/27/2014(1)
	(In millions, except per share amounts)
Fiscal 2014
Revenue	$	93.4		$	85.8		$	81.4		$	85.4
Gross margin	$	23.2		$	21.5		$	21.1		$	19.4
Operating loss	$	(13.3	)	$	(10.5	)	$	(14.6	)	$	(12.2	)
Net loss	$	(13.5	)	$	(9.7	)	$	(14.6	)	$	(13.3	)
Net loss attributable to Aviat Networks	$	(13.5	)	$	(9.7	)	$	(14.6	)	$	(13.3	)
Per share data:
Basic and diluted net loss per common share	$	(0.22	)	$	(0.16	)	$	(0.24	)	$	(0.21	)

_______________________

(1) Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

(2) Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

The effects of the error corrections set forth in Note 2 and adjustments to second quarter’s revenue and cost of revenue on the unaudited consolidated statements of operations for the interim periods within the years ended July 3, 2015 and June 27, 2014 were as follows:

	Previously Reported												Correction											Revised
	Q1			Q2			Q3			Q4			Q1		Q2			Q3			Q4			Q1			Q2			Q3			Q4
	(In millions)
Fiscal 2015 (Unaudited)
Revenue	$	82.4		$	92.5		$	74.8		N/A			$	—	$	(1.6	)	$	—		N/A			$	82.4		$	90.9		$	74.8		N/A
Gross margin	21.8			25.2			17.6			N/A			0.2		(1.2		)	(1.6		)	N/A			22.0			24.0			16.0			N/A
Operating loss	(5.4		)	(2.5		)	(10.1		)	N/A			—		(1.2		)	(1.6		)	N/A			(5.4		)	(3.7		)	(11.7		)	N/A
Net loss	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Net loss attributable   to Aviat Networks	(5.7		)	(3.3		)	(11.5		)	N/A			0.2		(1.2		)	(1.6		)	N/A			(5.5		)	(4.5		)	(13.1		)	N/A
Fiscal 2014 (Unaudited)
Revenue	$	93.4		$	85.8		$	81.4		$	85.4		$	—	$	—		$	—		$	—		$	93.4		$	85.8		$	81.4		$	85.4
Gross margin	23.1			21.3			20.9			19.8			0.1		0.2			0.2			(0.4		)	23.2			21.5			21.1			19.4
Operating loss	(13.4		)	(10.7		)	(14.8		)	(11.8		)	0.1		0.2			0.2			(0.4		)	(13.3		)	(10.5		)	(14.6		)	(12.2		)
Net loss	(13.6		)	(9.9		)	(14.8		)	(12.9		)	0.1		0.2			0.2			(0.4		)	(13.5		)	(9.7		)	(14.6		)	(13.3		)

The following tables summarize certain charges, expenses and loss (income) from discontinued operations included in our results of operations for each of the fiscal quarters presented:

	Q1 Ended 9/26/2014		Q2 Ended 12/26/2014			Q3 Ended 4/3/2015		Q4 Ended 7/3/2015
	(In millions)
Fiscal 2015
Amortization of purchased technology and intangible assets	$	0.1	$	0.1		$	0.1	$	0.1
Restructuring charges	1.5		—			3.2		0.2
Share-based compensation expense	0.6		0.4			0.7		0.5
	$	2.2	$	0.5		$	4.0	$	0.8
Income (loss) from discontinued operations	$	0.2	$	(0.1	)	$	—	$	—
	Q1 Ended 9/27/2013		Q2 Ended 12/27/2013			Q3 Ended 3/28/2014		Q4 Ended 6/27/2014
	(In millions)
Fiscal 2014
Amortization of purchased technology and intangible assets	$	0.1	$	0.1		$	0.1	$	0.1
Restructuring charges	4.5		0.3			4.2		2.1
Charges for excess and obsolete inventory mark-downs	—		—			—		1.2
Transactional tax assessments	—		0.6			—		—
Share-based compensation expense	1.5		0.7			0.6		0.6
Warehouse consolidation costs	0.2		—			—		—
	$	6.3	$	1.7		$	4.9	$	4.0
Income from discontinued operations	$	0.1	$	0.3		$	0.3	$	0.2

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Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Jul. 03, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in components of our accumulated other comprehensive loss during fiscal 2015, 2014 and 2013 were as follows:

	Foreign Currency Translation Adjustment (“CTA”)			Hedging Derivatives			Total Accumulated Other Comprehensive Income (Loss)
	(In millions)
Balance as of June 29, 2012	$	(4.0	)	$	—		$	(4.0	)
Other comprehensive income (loss) before reclassification	0.6			0.1			0.7
(Gain) loss reclassified out of accumulated other comprehensive loss	—			—			—
Balance as of June 28, 2013	(3.4		)	0.1			(3.3		)
Other comprehensive income (loss) before reclassification	0.5			(0.3		)	0.2
(Gain) loss reclassified out of accumulated other comprehensive loss	—			0.2			0.2
Balance as of June 27, 2014	(2.9		)	—			(2.9		)
Other comprehensive income (loss) before reclassification	(5.6		)	0.4			(5.2		)
(Gain) loss reclassified out of accumulated other comprehensive loss	—			(0.4		)	(0.4		)
Balance as of July 3, 2015	$	(8.5	)	$	—		$	(8.5	)

Reclassification out of Accumulated Other Comprehensive Income

In fiscal 2015, 2014 and 2013, the realized gain or loss on cash flow hedges were reclassified out of accumulated other comprehensive loss into the following line item locations in our consolidated statements of operations:

	Fiscal Year
	2015		2014			2013
	(In millions)
Reclassification adjustment for gain (loss) on cash flow hedges included in:
Revenues	$	0.4	$	(0.2	)	$	(0.1	)
Cost of revenues	—		—			0.1
	$	0.4	$	(0.2	)	$	—

Beginning the fourth quarter of fiscal 2015, we no longer prepared contemporaneous documentation of hedges therefore the foreign exchange hedges no longer qualified as cash flow hedge. The changes in fair value related to the hedges were very insignificant for fiscal 2015 and were recorded in income or expense line item on our statements of operations to which the hedged transaction related.

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Balance Sheet Components (Accrued Warranties) (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance as of the beginning of the fiscal year	$ 3.8	$ 3.3
Warranty provision recorded during the period	5.6	5.2
Consumption during the period	(5.2)	(4.7)
Balance as of the end of the period	$ 4.2	$ 3.8

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ (2.9)
Balance at end of period	(8.5)	$ (2.9)
Total Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(2.9)	(3.3)	$ (4.0)
Other comprehensive income (loss) before reclassification	(5.2)	0.2	0.7
(Gain) loss reclassified out of accumulated other comprehensive loss	(0.4)	0.2	0.0
Balance at end of period	(8.5)	(2.9)	(3.3)
Foreign Currency Translation Adjustment (“CTA”)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(2.9)	(3.4)	(4.0)
Other comprehensive income (loss) before reclassification	(5.6)	0.5	0.6
(Gain) loss reclassified out of accumulated other comprehensive loss	0.0	0.0	0.0
Balance at end of period	(8.5)	(2.9)	(3.4)
Hedging Derivatives
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	0.0	0.1	0.0
Other comprehensive income (loss) before reclassification	0.4	(0.3)	0.1
(Gain) loss reclassified out of accumulated other comprehensive loss	(0.4)	0.2	0.0
Balance at end of period	$ 0.0	$ 0.0	$ 0.1

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 03, 2015	Jun. 27, 2014
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, shares issued	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	62,498,401	62,218,226
Common stock, shares outstanding	62,498,401	62,218,226

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Accumulated Other Comprehensive Loss

12 Months Ended

Jul. 03, 2015

Equity [Abstract]

Accumulated Other Comprehensive Loss

 Accumulated Other Comprehensive Loss

The changes in components of our accumulated other comprehensive loss during fiscal 2015, 2014 and 2013 were as follows:

	Foreign Currency Translation Adjustment (“CTA”)			Hedging Derivatives			Total Accumulated Other Comprehensive Income (Loss)
	(In millions)
Balance as of June 29, 2012	$	(4.0	)	$	—		$	(4.0	)
Other comprehensive income (loss) before reclassification	0.6			0.1			0.7
(Gain) loss reclassified out of accumulated other comprehensive loss	—			—			—
Balance as of June 28, 2013	(3.4		)	0.1			(3.3		)
Other comprehensive income (loss) before reclassification	0.5			(0.3		)	0.2
(Gain) loss reclassified out of accumulated other comprehensive loss	—			0.2			0.2
Balance as of June 27, 2014	(2.9		)	—			(2.9		)
Other comprehensive income (loss) before reclassification	(5.6		)	0.4			(5.2		)
(Gain) loss reclassified out of accumulated other comprehensive loss	—			(0.4		)	(0.4		)
Balance as of July 3, 2015	$	(8.5	)	$	—		$	(8.5	)

In fiscal 2015, 2014 and 2013, the realized gain or loss on cash flow hedges were reclassified out of accumulated other comprehensive loss into the following line item locations in our consolidated statements of operations:

	Fiscal Year
	2015		2014			2013
	(In millions)
Reclassification adjustment for gain (loss) on cash flow hedges included in:
Revenues	$	0.4	$	(0.2	)	$	(0.1	)
Cost of revenues	—		—			0.1
	$	0.4	$	(0.2	)	$	—

Beginning the fourth quarter of fiscal 2015, we no longer prepared contemporaneous documentation of hedges therefore the foreign exchange hedges no longer qualified as cash flow hedge. The changes in fair value related to the hedges were very insignificant for fiscal 2015 and were recorded in income or expense line item on our statements of operations to which the hedged transaction related.

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Stockholders Equity (Weighted Average Assumptions) (Details)	12 Months Ended
	Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividends	0.00%	0.00%	0.00%
Expected volatility	53.90%	54.10%	64.90%
Risk-free interest rate	1.13%	1.26%	0.49%
Expected term	4 years 3 months	4 years 3 months 29 days	4 years 5 months 4 days

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Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions	Jul. 03, 2015	Jun. 27, 2014
Deferred Tax Assets:
Valuation allowance	$ (194.7)	$ (189.7)
Current
Deferred Tax Assets:
Inventory	7.7	12.0
Accruals and reserves	4.7	4.7
Bad debts	1.4	2.4
Depreciation	0.0	0.0
Amortization	0.0	0.0
Stock compensation	0.0	0.0
Deferred revenue	0.0	0.0
Unrealized exchange gain/loss	3.6	3.2
Other	1.1	1.1
Tax credit carryforwards	0.0	0.0
Tax loss carryforwards	0.0	0.0
Total deferred tax assets before valuation allowance	18.5	23.4
Valuation allowance	(17.0)	(21.9)
Total deferred tax assets	1.5	1.5
Deferred tax liabilities:
Branch undistributed earnings reserve	0.1	0.1
Depreciation	0.0	0.0
Other accruals	0.1	0.1
Total deferred tax liabilities	0.2	0.2
Net deferred tax assets, current	1.3	1.3
Non-Current
Deferred Tax Assets:
Inventory	0.0	0.0
Accruals and reserves	0.1	0.1
Bad debts	0.0	0.0
Depreciation	0.0	0.2
Amortization	2.6	4.1
Stock compensation	3.3	4.0
Deferred revenue	1.9	3.9
Unrealized exchange gain/loss	0.0	0.0
Other	5.0	4.2
Tax credit carryforwards	17.9	21.5
Tax loss carryforwards	154.5	133.2
Total deferred tax assets before valuation allowance	185.3	171.2
Valuation allowance	(177.7)	(167.8)
Total deferred tax assets	7.6	3.4
Deferred tax liabilities:
Branch undistributed earnings reserve	1.2	1.4
Depreciation	3.5	3.8
Other accruals	0.0	0.0
Total deferred tax liabilities	4.7	5.2
Net deferred tax assets, noncurrent	$ 2.9
Net deferred tax liabilities, noncurrent		$ 1.8

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Net Loss per Share of Common Stock (Tables)

12 Months Ended

Jul. 03, 2015

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table summarizes the potential shares of common stock that were excluded from the diluted net loss per share calculations:

	Fiscal Year
	2015	2014	2013
	(In millions)
Stock options	7.4	7.5	6.2
Restricted stocks and units and performance shares and units	1.8	0.4	2.2
Total potential shares of common stock excluded	9.2	7.9	8.4

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Quarterly Financial Data (Unaudited) (Summarized Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended															12 Months Ended
	Jul. 03, 2015	Apr. 03, 2015		Dec. 26, 2014		Sep. 26, 2014		Jun. 27, 2014		Mar. 28, 2014		Dec. 27, 2013		Sep. 27, 2013		Jul. 03, 2015	Jun. 27, 2014	Jun. 28, 2013
Quarterly Financial Data [Abstract]
Fiscal period duration	91 days	98 days		91 days		91 days		91 days		91 days		91 days		91 days		371 days	364 days	364 days
Revenue	$ 87.8	$ 74.8	[1]	$ 90.9	[1],[2]	$ 82.4	[1]	$ 85.4	[1]	$ 81.4	[1]	$ 85.8	[1],[2]	$ 93.4	[1]	$ 335.9	$ 346.0	$ 471.3
Gross margin	18.7	16.0	[1]	24.0	[1],[2]	22.0	[1]	19.4	[1]	21.1	[1]	21.5	[1],[2]	23.2	[1]	80.7	85.2	138.4
Operating income (loss)	(5.2)	(11.7)	[1]	(3.7)	[1],[2]	(5.4)	[1]	(12.2)	[1]	(14.6)	[1]	(10.5)	[1],[2]	(13.3)	[1]	(26.0)	(50.6)	0.0
Net income (loss)	(1.5)	(13.1)	[1]	(4.5)	[1],[2]	(5.5)	[1]	(13.3)	[1]	(14.6)	[1]	(9.7)	[1],[2]	(13.5)	[1]	(24.6)	(51.1)	(16.7)
Net income (loss) attributable to Aviat Networks	$ (1.6)	$ (13.1)	[1]	$ (4.5)	[1],[2]	$ (5.5)	[1]	$ (13.3)	[1]	$ (14.6)	[1]	$ (9.7)	[1],[2]	$ (13.5)	[1]	$ (24.7)	$ (51.1)	$ (16.7)
Per share data:
Basic net income (loss) per common share (dollars per share)	$ (0.03)	$ (0.21)	[1]	$ (0.07)	[1],[2]	$ (0.09)	[1]
Diluted net income (loss) per common share (dollars per share)	$ (0.03)	$ (0.21)	[1]	$ (0.07)	[1],[2]	$ (0.09)	[1]
Earnings Per Share, Basic and Diluted								$ (0.21)	[1]	$ (0.24)	[1]	$ (0.16)	[1],[2]	$ (0.22)	[1]	$ (0.40)	$ (0.83)	$ (0.28)

[1] Revised to include the effects of the error corrections to costs of service revenue for the interim periods set forth in Note 2.

[2] Reflects revised amounts for all lines presented, resulting from adjustments to second quarter’s revenue (a decrease of $1.6 million) and cost of sales (a decrease of $0.9 million) during the third quarter of fiscal 2015.

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The Company and Summary of Significant Accounting Policies Property, Plant and Equipment (Details)	12 Months Ended
	Jul. 03, 2015
Buildings
Property, Plant and Equipment [Line Items]
Useful life	40 years
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Useful life	10 years
Software | Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Software | Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years

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Commitments and Contingencies

12 Months Ended

Jul. 03, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operating Lease Commitments

We lease office and manufacturing facilities under non-cancelable operating leases expiring at various dates through April 2020. We lease approximately 129,000 square feet of office space in Santa Clara, California as our corporate headquarters. Beginning in the first quarter of fiscal 2015, approximately three-fourths of our Santa Clara headquarters building was vacated and made available for sublease. As of July 3, 2015, future minimum lease payments for our headquarters total $12.8 million through April 2020.

As of July 3, 2015, our future minimum lease payments under all non-cancelable operating leases with an initial lease term in excess of one year were as follows:

Fiscal Years	Amount
	(In millions)
2016	$	5.4
2017	3.2
2018	2.7
2019	2.8
2020	2.3
Total	$	16.4

These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent concessions, leasehold improvement incentives or unusual provisions or conditions. We sublease a portion of our facilities to third parties and total minimum rentals to be received in the future under our non-cancelable subleases were $0.1 million as of July 3, 2015.

Rental expense for operating leases, including rentals on a month-to-month basis was $6.5 million, $7.7 million and $8.5 million in fiscal 2015, 2014 and 2013, respectively.

Purchase Orders and Other Commitments

From time to time in the normal course of business, we may enter into purchasing agreements with our suppliers that require us to accept delivery of, and remit full payment for, finished products that we have ordered, finished products that we requested be held as safety stock, and work in process started on our behalf in the event we cancel or terminate the purchasing agreement. Because these agreements do not specify fixed or minimum quantities, do not specify minimum or variable price provisions, and do not specify the approximate timing of the transaction, and we have no present intention to cancel or terminate any of these agreements, we currently do not believe that we have any future liability under these agreements. As of July 3, 2015, we had outstanding purchase obligations with our suppliers or contract manufacturers of $38.2 million.

Financial Guarantees and Commercial Commitments

Guarantees issued by banks, insurance companies or other financial institutions are contingent commitments issued to guarantee our performance under borrowing arrangements, such as bank overdraft facilities, tax and customs obligations and similar transactions or to ensure our performance under customer or vendor contracts. The terms of the guarantees are generally equal to the remaining term of the related debt or other obligations and are generally limited to two years or less. As of July 3, 2015, we had no guarantees applicable to our debt arrangements.

We have entered into commercial commitments in the normal course of business including surety bonds, standby letters of credit agreements and other arrangements with financial institutions primarily relating to the guarantee of future performance on certain contracts to provide products and services to customers. As of July 3, 2015, we had commercial commitments of $33.1 million outstanding that were not recorded in our consolidated balance sheets. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid on the performance guarantees.

Indemnifications

Under the terms of substantially all of our license agreements, we have agreed to defend and pay any final judgment against our customers arising from claims against such customers that our software products infringe the intellectual property rights of a third party. As of July 3, 2015, we have not received any notice that any customer is subject to an infringement claim arising from the use of our software products; we have not received any request to defend any customers from infringement claims arising from the use of our software products; and we have not paid any final judgment on behalf of any customer related to an infringement claim arising from the use of our software products. Because the outcome of infringement disputes is related to the specific facts of each case, and given the lack of previous or current indemnification claims, we cannot estimate the maximum amount of potential future payments, if any, related to our indemnification provisions. As of July 3, 2015, we had not recorded any liabilities related to these indemnifications.

Legal Proceedings

From time to time, we may be involved in various legal claims and litigation that arise in the normal course of our operations. We are aggressively defending all current litigation matters. Although there can be no assurances and the outcome of these matters is currently not determinable, we currently believe that none of these claims or proceedings are likely to have a material adverse effect on our financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. As a result, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, if any.

We record accruals for our outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. We have not recorded any accrual for loss contingencies associated with such legal claims or litigation discussed above.

Contingent Liabilities

We record a loss contingency as a charge to operations when (i) it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements; and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both those conditions if there is a reasonable possibility that a loss may have been incurred. Gain contingencies are not recorded until realized. We expense all legal costs incurred to resolve regulatory, legal and tax matters as incurred.

Our Singapore subsidiary is in the process of evaluating its historical compliance with certain export regulations in Singapore. Depending on the results of this evaluation, we may take additional actions to ensure our compliance with these regulations in the future. As part of these additional actions, we could elect to make certain voluntary disclosures, which may, in certain circumstances, result in the imposition of various fines and penalties. Any fines and penalties will be based on the specific facts and findings of our evaluation, as well as negotiation with Singapore authorities. At this time, we cannot estimate the amount or range of any fines and penalties, if any should be imposed.

Periodically, we review the status of each significant matter to assess the potential financial exposure. If a potential loss is considered probable and the amount can be reasonably estimated, we reflect the estimated loss in our results of operations. Significant judgment is required to determine the probability that a liability has been incurred or an asset impaired and whether such loss is reasonably estimable. Further, estimates of this nature are highly subjective, and the final outcome of these matters could vary significantly from the amounts that have been included in our consolidated financial statements. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise estimates accordingly. Such revisions in the estimates of the potential liabilities could have a material impact on our results of operations and financial position.