SIGNIFICANT ACCOUNTING POLICIES AND DISCLOSURES (Tables)

12 Months Ended

Jun. 02, 2018

Accounting Policies [Abstract]

Schedule of property, plant and equipment

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

	June 2,  2018			May 27,  2017
Land and improvements	$	1,301		$	1,301
Buildings and improvements		21,673			19,885
Computer, communications equipment and software		9,652			8,551
Construction in progress		1,582			2,063
Machinery and other equipment		12,004			10,387
	$	46,212		$	42,187
Accumulated depreciation		(27,980	)		(26,374	)
Property, plant, and equipment, net	$	18,232		$	15,813

Schedule of property plant and equipment estimated useful lives

Supplemental disclosure information of the estimated useful life of the assets:

Land improvements	10 years
Buildings and improvements	10 - 30 years
Computer and communications equipment	3 - 10 years
Machinery and other equipment	3 - 20 years

Schedule of accrued liabilities

Accrued liabilities consist of the following (in thousands):

	June 2, 2018		May 27, 2017
Compensation and payroll taxes	$	3,449	$	3,250
Accrued severance(1)		454		706
Professional fees		527		535
Deferred revenue		2,395		1,460
Other accrued expenses		3,518		2,360
Accrued Liabilities	$	10,343	$	8,311

⁽¹⁾ In the second quarter of fiscal 2017, the Company executed a reduction in headcount to streamline operations and reduce costs and recorded $1.3 million of expense included in selling, general and administrative expenses for employee termination costs payable to terminated employees with employment and/or separation agreements with the Company. The changes in the severance accrual for fiscal 2018 included provisions and payments of $0.1 million and $0.3 million, respectively. The changes in the severance accrual for fiscal 2017 included provisions and payments of $1.3 million and $1.2 million, respectively.

Schedule of warranty reserve

Changes in the warranty reserve during fiscal 2018 and 2017 were as follows (in thousands):

	Warranty Reserve
Balance at May 30, 2016	$	210
Accruals for products sold		89
Utilization		(78	)
Recovery		(115	)
Balance at May 27, 2017	$	106
Accruals for products sold		65
Utilization		(22	)
Balance at June 2, 2018	$	149

Schedule of share-based compensation, stock options, activity

Stock options granted generally vest over a period of five years and have contractual terms to exercise of 10 years. A summary of stock option activity is as follows (in thousands, except option prices and years):

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Options Outstanding at May 30, 2015		1,137		$	10.35
Granted		122			5.88
Exercised		(28	)		5.18
Forfeited		(105	)		10.98
Cancelled		(107	)		9.97
Options Outstanding at May 28, 2016		1,019		$	9.93
Granted		190			6.90
Exercised		(5	)		5.61
Forfeited		(43	)		8.39
Cancelled		(88	)		11.17
Options Outstanding at May 27, 2017		1,073		$	9.38
Granted		200			6.08
Exercised		(16	)		5.85
Forfeited		(11	)		8.05
Cancelled		(51	)		9.36
Options Outstanding at June 2, 2018		1,195		$	8.89		5.8	$	2,033
Options Vested at June 2, 2018		746		$	9.87		4.5	$	876

Schedule of share-based payment award, stock options, valuation assumptions

The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:

	Fiscal Year Ended
	June 2,  2018			May 27,  2017			May 28,  2016
Expected volatility		21.92	%		25.41	%		32.21	%
Risk-free interest rate		2.22	%		1.46	%		1.78	%
Expected lives (years)		6.31			6.50			6.50
Annual cash dividend	$	0.24		$	0.24		$	0.24

Schedule of share-based compensation, shares outstanding under stock option plans, by exercise price range

The following table summarizes information about stock options outstanding at June 2, 2018 (in thousands, except option prices and years):

	Outstanding								Vested
Exercise Price Range	Shares		Weighted Average Exercise Price		Weighted Average Life		Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Weighted Average Life		Aggregate Intrinsic Value
$5.03 to $6.47		383	$	5.76		6.4	$	1,508		190	$	5.63		4.0	$	772
$6.90 to $10.85		385	$	8.48		7.3	$	525		159	$	9.31		6.4	$	104
$11.14 to $13.76		427	$	12.05		4.1	$	—		397	$	12.12		4.0	$	—
Total		1,195	$	8.89		5.8	$	2,033		746	$	9.87		4.5	$	876

Schedule of restricted stock award transactions

As of June 2, 2018, a summary of restricted stock award transactions was as follows (in thousands):

	Unvested Restricted Shares
Unvested at May 27, 2017		—
Granted		78
Unvested at June 2, 2018		78

Schedule of earnings per share, basic and diluted

The earnings per share (“EPS”) presented in our consolidated statements of comprehensive income (loss) are based on the following (in thousands, except per share amounts):

	For the Fiscal Year Ended
	June 2, 2018						May 27, 2017						May 28, 2016
	Basic			Diluted			Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Income (loss) from continuing operations	$	2,326		$	2,326		$	(6,928	)	$	(6,928	)	$	(6,766	)	$	(6,766	)
Less dividends:
Common stock		2,586			2,586			2,567			2,567			2,615			2,615
Class B common stock		462			462			464			464			464			464
Undistributed losses	$	(722	)	$	(722	)	$	(9,959	)	$	(9,959	)	$	(9,845	)	$	(9,845	)
Common stock undistributed losses	$	(613	)	$	(613	)	$	(8,440	)	$	(8,440	)	$	(8,367	)	$	(8,367	)
Class B common stock undistributed losses		(109	)		(109	)		(1,519	)		(1,519	)		(1,478	)		(1,478	)
Total undistributed losses	$	(722	)	$	(722	)	$	(9,959	)	$	(9,959	)	$	(9,845	)	$	(9,845	)
Income from discontinued operations	$	1,496		$	1,496		$	—		$	—		$	—		$	—
Less dividends:
Common stock		2,586			2,586			2,567			2,567			2,615			2,615
Class B common stock		462			462			464			464			464			464
Undistributed losses	$	(1,552	)	$	(1,552	)	$	(3,031	)	$	(3,031	)	$	(3,079	)	$	(3,079	)
Common stock undistributed losses	$	(1,317	)	$	(1,318	)	$	(2,567	)	$	(2,567	)	$	(2,615	)	$	(2,615	)
Class B common stock undistributed losses		(235	)		(234	)		(464	)		(464	)		(464	)		(464	)
Total undistributed losses	$	(1,552	)	$	(1,552	)	$	(3,031	)	$	(3,031	)	$	(3,079	)	$	(3,079	)
Net income (loss)	$	3,822		$	3,822		$	(6,928	)	$	(6,928	)	$	(6,766	)	$	(6,766	)
Less dividends:
Common stock		2,586			2,586			2,567			2,567			2,615			2,615
Class B common stock		462			462			464			464			464			464
Undistributed income (losses)	$	774		$	774		$	(9,959	)	$	(9,959	)	$	(9,845	)	$	(9,845	)
Common stock undistributed income (losses)	$	657		$	657		$	(8,440	)	$	(8,440	)	$	(8,367	)	$	(8,367	)
Class B common stock undistributed income (losses)		117			117			(1,519	)		(1,519	)		(1,478	)		(1,478	)
Total undistributed income (losses)	$	774		$	774		$	(9,959	)	$	(9,959	)	$	(9,845	)	$	(9,845	)
Denominator for Basic and Diluted EPS:
Common stock weighted average shares		10,765			10,765			10,705			10,705			10,908			10,908
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,137			2,137			2,140			2,140			2,141			2,141
Effect of dilutive securities
Dilutive stock options					59						—						—
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					12,961						12,845						13,049
Income (loss) from continuing operations per share:
Common stock	$	0.18		$	0.18		$	(0.55	)	$	(0.55	)	$	(0.53	)	$	(0.53	)
Class B common stock	$	0.16		$	0.16		$	(0.49	)	$	(0.49	)	$	(0.47	)	$	(0.47	)
Income from discontinued operations per share:
Common stock	$	0.12		$	0.12		$	—		$	—		$	—		$	—
Class B common stock	$	0.11		$	0.11		$	—		$	—		$	—		$	—
Net income (loss) per share:
Common stock	$	0.30		$	0.30		$	(0.55	)	$	(0.55	)	$	(0.53	)	$	(0.53	)
Class B common stock	$	0.27		$	0.27		$	(0.49	)	$	(0.49	)	$	(0.47	)	$	(0.47	)

 Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for fiscal 2017 and fiscal 2016 were 848 and 890 respectively.