Commintments and Contingencies

12 Months Ended

Dec. 29, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Leases

The Company leases facilities located in Westborough, Massachusetts, Scotts Valley, California, Dalgety Bay, Scotland, and Nottingham, United Kingdom under non-cancelable operating leases. The Westborough lease expires in 2023. The Scotts Valley lease expires in 2013.The Dalgety Bay lease expires in 2013. The Nottingham leases expire in 2016 and 2017. Substantially all real estate taxes, insurance and maintenance expenses under these leases are the Company’s obligations and are expensed as incurred and were immaterial. The following is a schedule of minimum rental commitments under non-cancelable operating leases at December 29, 2012:

Fiscal Year ending,	Amount
2013	$	972,000
2014	842,000
2015	825,000
2016	801,000
2017	665,000
Thereafter	3,409,000
Total minimum lease payments	$	7,514,000

Amounts incurred under operating leases are recorded as rent expense on a straight-line basis and aggregated approximately $0.8 million in fiscal year 2012, $1.1 million in fiscal year 2011 and $0.9 million in fiscal year 2010.

Other Agreements

The Company has entered into various license agreements which require payment of royalties based upon a set percentage of product sales, subject in some cases, to certain minimum amounts. Total royalty expense approximated $18,000, $18,000 and $27,000, respectively, in fiscal years 2012, 2011 and 2010.

Included in Billings in excess of revenue earned is $0.8 million which was received in 2008 from a state grant. Amounts from this grant are earned by achieving certain employment levels and other conditions through 2017. In the event the Company does not achieve these employment levels some or all of the $0.8 million will be refunded. As a result of the sale of its III-V product line subsequent to year end the Company does not anticipate achieving the milestones in the state grant and therefore the Company expects to repay the balance in the state grant. During the year ended December 29, 2012 the Company repaid $1.1 million related to this state grant.