10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2013

OR

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

For the transition period from                      to                     

Commission file number 0-02287

SYMMETRICOM, INC.

(Exact name of registrant as specified in our charter)

Delaware	No. 95-1906306
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

2300 Orchard Parkway, San Jose, California 95131-1017

(Address of principal executive offices)

Registrant’s telephone number: (408) 433-0910

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  x    No  ¨

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

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

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

Indicate number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:

Class	Outstanding as of April 28, 2013
Common Stock	40,982,073

SYMMETRICOM, INC.

FORM 10-Q

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheets—March 31, 2013 and July 1, 2012		3
	Condensed Consolidated Statements of Operations—Three and nine months ended March 31, 2013 and April 1, 2012		4
	Condensed Consolidated Statements of Comprehensive Income (Loss)—Three and nine months ended March 31, 2013 and April 1, 2012		5
	Condensed Consolidated Statements of Cash Flows—Nine months ended March 31, 2013 and April 1, 2012		6
	Notes to Condensed Consolidated Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		25
Item 4.	Controls and Procedures		25
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		26
Item 1A.	Risk Factors		26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		26
Item 3.	Defaults Upon Senior Securities		26
Item 4.	Mine Safety Disclosures		26
Item 5.	Other Information		26
Item 6.	Exhibits		27
SIGNATURES			28

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SYMMETRICOM, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	March 31, 2013			July 1, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	22,371		$	27,659
Short-term investments		47,351			39,280
Accounts receivable, net of allowance for doubtful accounts of $683 and $108		38,870			45,952
Inventories		47,195			47,618
Prepaids and other current assets		17,379			16,943
Total current assets		173,166			177,452
Property, plant and equipment, net		23,148			22,702
Intangible assets, net		3,519			3,458
Deferred taxes and other assets		28,898			27,413
Total assets	$	228,731		$	231,025
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,343		$	9,300
Accrued compensation		11,923			14,574
Accrued warranty		1,455			1,722
Other accrued liabilities		10,748			11,841
Total current liabilities		34,469			37,437
Long-term obligations		4,938			5,472
Deferred income taxes		334			334
Total liabilities		39,741			43,243
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 500 shares authorized, none issued		—			—
Common stock, $0.0001 par value; 70,000 shares authorized, 52,676 shares issued and 40,982 outstanding at March 31, 2013; 51,500 shares issued and 40,952 outstanding at July 1, 2012		195,821			193,478
Accumulated other comprehensive loss		(208	)		(232	)
Accumulated deficit		(6,623	)		(5,464	)
Total stockholders’ equity		188,990			187,782
Total liabilities and stockholders’ equity	$	228,731		$	231,025

See notes to the condensed consolidated financial statements.

3

SYMMETRICOM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
Net revenue	$	53,349		$	60,438		$	158,891		$	175,110
Cost of sales:
Cost of products and services		28,654			35,638			88,415			97,693
Acquisition-related costs		237			74			719			445
Restructuring charges		375			65			371			1,156
Total cost of sales		29,266			35,777			89,505			99,294
Gross profit		24,083			24,661			69,386			75,816
Operating expenses:
Research and development		8,291			7,129			24,409			20,575
Selling, general and administrative		14,593			14,281			45,598			43,955
Amortization of intangible assets		87			52			259			156
Restructuring charges		947			(76	)		2,148			123
Total operating expenses		23,918			21,386			72,414			64,809
Operating income (loss)		165			3,275			(3,028	)		11,007
Interest income, net of amortization (accretion) of premium (discount) on investments		98			225			240			(5	)
Income (loss) before taxes		263			3,500			(2,788	)		11,002
Income tax provision (benefit)		(556	)		1,296			(1,629	)		3,604
Net income (loss)	$	819		$	2,204		$	(1,159	)	$	7,398
Earnings (loss) per share:
Basic	$	0.02		$	0.05		$	(0.03	)	$	0.18
Diluted	$	0.02		$	0.05		$	(0.03	)	$	0.17
Shares used in computing earnings (loss) per share:
Weighted average shares outstanding - basic		40,502			41,795			40,456			42,258
Weighted average shares outstanding - diluted		40,956			42,615			40,456			42,937

See notes to the condensed consolidated financial statements.

4

SYMMETRICOM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months Ended					Nine Months Ended
	March 31, 2013			April 1, 2012		March 31, 2013			April 1, 2012
Net income (loss)	$	819		$	2,204	$	(1,159	)	$	7,398
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments		(86	)		110		32			(126	)
Unrealized gain (loss) on investments		(10	)		41		(8	)		10
Other comprehensive income (loss)		(96	)		151		24			(116	)
Total comprehensive income (loss)	$	723		$	2,355	$	(1,135	)	$	7,282

See notes to the condensed consolidated financial statements.

5

SYMMETRICOM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended
	March 31, 2013			April 1, 2012
Cash flows from operating activities:
Net income (loss)	$	(1,159	)	$	7,398
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,869			4,163
Deferred income taxes		(1,895	)		2,925
Loss on disposal of fixed assets		356			139
Stock-based compensation		5,250			4,581
Allowance for doubtful accounts		566			(102	)
Provision for excess and obsolete inventory		2,148			2,617
Changes in assets and liabilities:
Accounts receivable		6,516			205
Inventories		(1,725	)		3,219
Prepaids and other assets		799			(3,671	)
Accounts payable		621			(6,226	)
Accrued compensation		(2,651	)		(1,834	)
Other accrued liabilities		(2,244	)		(3,040	)
Net cash provided by operating activities		11,451			10,374
Cash flows from investing activities:
Purchases of short-term investments		(33,292	)		(20,171	)
Maturities/sale of short-term investments		24,500			26,816
Purchases of property, plant and equipment		(4,370	)		(3,152	)
Payment to acquire business and other assets		(702	)		(1,400	)
Remaining cash proceeds from sale of discontinued operations		—			210
Net cash provided by (used in) investing activities		(13,864	)		2,303
Cash flows from financing activities:
Proceeds from issuance of common stock		2,733			2,796
Repurchase of common stock		(5,640	)		(10,115	)
Net cash used in financing activities		(2,907	)		(7,319	)
Effect of exchange rate changes on cash		32			(126	)
Net increase (decrease) in cash and cash equivalents		(5,288	)		5,232
Cash and cash equivalents at beginning of period		27,659			20,318
Cash and cash equivalents at end of period	$	22,371		$	25,550
Non-cash investing and financing activities:
Unrealized gain (loss) on investments, net	$	(8	)	$	10
Property, plant and equipment purchases included in accounts payable		607			185
Unpaid Purchase consideration for acquired businesses		200			540
Cash payments for:
Income taxes		1,652			697

See notes to the condensed consolidated financial statements.

6

SYMMETRICOM, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation and Recently Issued Accounting Pronouncements

The condensed consolidated financial statements of Symmetricom, Inc. (“Symmetricom,” “we,” “us,” the “Company,” or “our”) included herein are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of the management, necessary for a fair presentation of the financial position, results of operations, comprehensive income loss and cash flows for the interim periods presented. In presenting the financial statements in accordance with accounting principles generally accepted in the United States (US GAAP), management makes certain estimates and assumptions that impact the amounts reported and related disclosures. Estimates, by their nature, are judgments based upon available information. Accordingly, actual results could differ from those estimates.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Symmetricom’s Annual Report on Form 10-K for the fiscal year ended July 1, 2012. The results of operations for the three and nine months ended March 31, 2013 are not necessarily indicative of the results to be anticipated for the entire fiscal year ending June 30, 2013.

The condensed consolidated balance sheet as of July 1, 2012 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes required by US GAAP for complete financial statements.

Fiscal Quarter

Our fiscal quarter is 13 weeks ending on the Sunday closest to the end of the calendar quarter.

Note 2. Financial Instruments

We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

• Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

• Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

• Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

7

Financial assets measured at fair value on a recurring basis consisted of the following types of instruments as of March 31, 2013 and July 1, 2012:

	Fair Value as of March 31, 2013		Quoted prices in Active Markets Identical Assets (Level 1)		Significant Observable (Level 2)		Significant Other Unobservable (Level 3)
	(In thousands)
Assets:
Money market funds	$	7,641	$	7,641			$	—
Short-term investments:
Certificates of deposit		2,450		—		2,450
Corporate debt securities		33,819		—		33,819		—
Government sponsored enterprise debt securities		8,258		—		8,258		—
Mutual funds		2,824		2,824		—		—
Total short-term investments		47,351		2,824		44,527		—
Total financial assets	$	54,992	$	10,465	$	44,527	$	—
Liabilities:
Contingent consideration	$	650	$	—	$	—	$	650
Total financial liabilities	$	650	$	—	$	—	$	650
	Fair Value as of July 1, 2012		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Money market funds	$	8,650	$	8,650	$	—	$	—
Short-term investments:
Corporate debt securities		23,703		—		23,703		—
Government sponsored enterprise debt securities		12,515		—		12,515		—
Mutual funds		3,062		3,062		—		—
Total short-term investments		39,280		3,062		36,218		—
Total financial assets	$	47,930	$	11,712	$	36,218	$	—
Liabilities:
Contingent consideration	$	540	$	—	$	—	$	540
Total financial liabilities	$	540	$	—	$	—	$	540

The fair values of our money market funds and mutual funds were derived from quoted market prices as active markets for these instruments exist. The fair values of certificates of deposit, corporate debt securities and government sponsored enterprise debt securities were derived from non-binding market consensus prices that are corroborated by observable market data.

The investments in mutual funds are held in a Rabbi trust to support the terms of our deferred compensation plan.

8

The following table summarizes available-for-sale and trading securities recorded as cash and cash equivalents or short-term investments:

	Amortized Cost		Gross Unrealized Gains (Losses)			Fair Value
March 31, 2013			(In thousands)
Money market funds	$	7,641	$	—		$	7,641
Certificates of deposit		2,450		—			2,450
Corporate debt securities		33,830		(11	)		33,819
Government sponsored enterprise debt securities		8,260		(2	)		8,258
Mutual funds		2,824		—			2,824
Total financial assets	$	55,005	$	(13	)	$	54,992

	Amortized Cost		Gross Unrealized Gains (Losses)			Fair Value
July 1, 2012			(In thousands)
Money market funds	$	8,650	$	—		$	8,650
Corporate debt securities		23,705		(2	)		23,703
Government sponsored enterprise debt securities		12,513		2			12,515
Mutual funds		3,062		—			3,062
Total financial assets	$	47,930	$	—		$	47,930

The following table summarizes the contractual maturities of fixed income securities (certificates of deposit, corporate debt securities and government sponsored enterprise debt securities) recorded as short-term investments as of March 31, 2013:

	Amortized Cost		Fair Value
	(In thousands)
Less than 1 year	$	19,518	$	19,521
Due in 1 to 3 years		25,022		25,006
Total	$	44,540	$	44,527

Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.

Level 3 financial liability:

The following table reconciles the beginning and ending balances for Level 3 liabilities for the first nine months of 2013 (in thousands):

	Contingent consideration
Balance as of July 1, 2012	$	540
Add: Adjustment to present value of contingent consideration		110
Balance as of March 31, 2013	$	650

9

Contingent consideration on acquired business is measured at fair value on a recurring basis using Level 3 inputs as defined in the fair value hierarchy. The following table presents certain information about the significant unobservable inputs used in the fair value measurement for the contingent consideration measured at fair value on a recurring basis using significant unobservable inputs:

Description	Valuation Techniques	Significant Unobservable Inputs
Liabilities: Contingent consideration	Present value of a Probability Weighted Earnout model using an appropriate discount rate.	Estimate of future revenue associated with acquired technology. Revenue of $4.9 million over a range of 3.5 years to 4 years.

An increase in the revenue growth percentage could result in a significantly higher estimated fair value of the contingent consideration liability. Alternatively, a decrease in the revenue growth percentage could result in a significantly lower estimated fair value of contingent consideration liability.

The fair value of contingent consideration was derived from a probability weighted earn-out model of future contingent payments. The cash payments, if any, are expected to be made quarterly, based upon revenue generated from the acquired product line, starting in the fourth quarter of fiscal 2013. No payments were made in the first nine months of fiscal 2013. The valuation of this liability is estimated based upon a collaborative effort of the Company’s marketing and finance departments. These future contingent payments are calculated based on estimates of future revenue attributable to the acquired technology (Note 12). To obtain a current valuation of these projected cash flows, an expected present value technique is applied using an appropriate discount rate. The cash flow projections and discount rates will be reviewed quarterly and updated as and when necessary. Potential valuation adjustments will be made as future revenue projections are updated which affect the calculation of the related contingent consideration payments. These adjustments will be recorded in the condensed consolidated statement of operations.

10

Note 3. Inventories

Components of inventories were as follows:

	March 31, 2013		July 1, 2012
	(In thousands)
Raw materials	$	18,105	$	21,003
Work-in-process		11,524		10,440
Finished goods		17,566		16,175
Inventories	$	47,195	$	47,618

Note 4. Intangible Assets

Intangible assets consist of:

	Gross Carrying Amount		Accumulated Amortization			Net Intangible Assets
	(in thousands)
Purchased technology	$	26,871	$	(24,424	)	$	2,447
Customer lists and trademarks		7,303		(6,231	)		1,072
Total as of March 31, 2013	$	34,174	$	(30,655	)	$	3,519
Purchased technology	$	25,970	$	(23,845	)	$	2,125
Customer lists and trademarks		7,303		(5,970	)		1,333
Total as of July 1, 2012	$	33,273	$	(29,815	)	$	3,458

11

The estimated future amortization expense by fiscal year is as follows:

Fiscal year:	(in thousands)
2013 (Remaining 3 months)	$	296
2014		1,149
2015		776
2016		602
2017		295
Thereafter		401
Total amortization	$	3,519

Intangible asset amortization expense for the third quarter of fiscal 2013 and 2012 was $0.3 million and $0.1 million, respectively. Intangible asset amortization expense for the first nine months of fiscal 2013 and 2012 was $0.8 million and $0.6 million, respectively.

Note 5. Warranty

Changes in our accrued warranty liability were as follows:

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
	(In thousands)						(In thousands)
Beginning balance	$	1,492		$	1,835		$	1,722		$	1,601
Provision for warranty		798			717			2,040			1,948
Accruals related to change in estimate		(164	)		54			(259	)		397
Less: Actual warranty costs		(671	)		(708	)		(2,048	)		(2,048	)
Ending balance	$	1,455		$	1,898		$	1,455		$	1,898

12

Note 6. Long-term Obligations

Long-term obligations consist of:

	March 31, 2013		July 1, 2012
	(In thousands)
Long-term obligations:
Deferred revenue	$	2,031	$	2,254
Lease loss accrual, net		895		1,240
Rent accrual		1,010		1,102
Post-retirement benefits		190		173
Income tax		216		216
Consideration for acquired businesses		596		487
Total	$	4,938	$	5,472

Note 7. Stockholders’ Equity

Stock Options and Awards Activity

Stock award activity for the nine months ended March 31, 2013 is as follows:

				Non Performance-based Options Outstanding					Restricted Stock Outstanding
	Shares Available For Grant			Number of Shares			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value
	(In thousands, except per share amounts)
Balances at July 1, 2012		2,889			7,316		$	5.54		261		$	5.68
Amendment of 2006 Plan		2,000
Granted - options		(1,475	)		1,475			6.09
Granted - restricted shares		(522	)							261			6.12
Exercised					(602	)		4.43
Vested										(162	)		5.84
Cancelled		231			(231	)		5.81
Balances at March 31, 2013		3,123			7,958		$	5.71		360		$	5.93

On October 26, 2012 at our annual meeting of shareholders, the shareholders approved an amendment to the 2006 Incentive Award Plan that included an additional 2.0 million shares for future issuance.

13

Stock options outstanding, vested and expected to vest, and exercisable as of March 31, 2013 were as follows:

Options	Number of Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value
	(In thousands)		(In years)				(In thousands)
Outstanding		7,958		4.50	$	5.71	$	103
Vested and expected to vest		7,754		4.46	$	5.71	$	102
Exercisable		4,375		3.58	$	5.73	$	77

The aggregate intrinsic value in the preceding table represents the total pre-tax value of stock options outstanding as of March 31, 2013, based on our common stock closing price of $4.54 on March 28, 2013, which would have been received by the option holders had all option holders exercised their options as of that date.

The total intrinsic value of options exercised during the third quarter of fiscal 2013 and 2012 was approximately $0.5 million and $0.4 million, respectively.

For the third quarter of fiscal 2013 and 2012, the weighted-average estimated fair value of options granted was $2.56 and $2.57 per share, respectively. For the nine months ended March 31, 2013 and April 1, 2012, the weighted-average estimated fair value of options granted was $2.87 and $2.45 per share, respectively. Our calculations were made using the Black-Scholes option-pricing model. The fair value of Symmetricom stock-based awards to employees was estimated assuming no expected dividend and the weighted-average assumptions for the three and nine months ended March 31, 2013 and April 1, 2012 as follows:

	Three months ended						Nine Months ended
	March 31, 2013			April 1, 2012			March 31, 2012			April 1, 2012
Expected life (in years)		4.3			4.4			4.9			4.9
Risk-free interest rate		0.6	%		0.7	%		0.5	%		0.7	%
Volatility		56.7	%		56.9	%		56.8	%		56.4	%

We calculated the stock-based compensation expense in the third quarter of fiscal 2013 and 2012, using an estimated annual forfeiture rate of 4.6% and 6.6%, respectively. At March 31, 2013, the total cumulative compensation cost related to unvested stock-based awards granted to employees, directors and consultants under the Company’s stock option plans, but not yet recognized, was approximately $6.0 million, net of estimated forfeitures of $0.8 million. This cost will be amortized on an accelerated method basis over a period of approximately 1.3 years and will be adjusted for subsequent changes in estimated forfeitures.

14

The following table shows total stock-based compensation costs included in the condensed consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	March 31, 2013		April 1, 2012		March 31, 2013		April 1, 2012
	(In thousands)				(In thousands)
Cost of sales	$	275	$	272	$	815	$	606
Research and development		306		312		984		896
Selling, general and administrative		1,209		1,154		3,451		3,079
Pre-tax stock-based compensation expense		1,790		1,738		5,250		4,581
Less: Income tax effect		662		643		1,943		1,695
Total	$	1,128	$	1,095	$	3,307	$	2,886

The above table includes expense of $0.1 million and $0.4 million, relating to the employee stock purchase plan (ESPP) for the third quarter and first nine months of both fiscal 2013 and 2012.

Performance Awards

In the second quarter of fiscal 2013, the Company communicated its intention to grant 103,000 shares of performance - based restricted stock to its executive management employees subject to the achievement of certain financial performance targets. The number of stock awards that will ultimately be granted depends on actual business performance measured for fiscal 2013 against certain targets for revenue and profitability for the Company’s business as well as continued employment with the Company.

In the second quarter of fiscal 2012, the Company had communicated its intention to grant 110,000 shares of performance - based restricted stock to its executive management employees. During the first quarter of fiscal 2013, 92,620 restricted shares were granted based on achievement against certain revenue and profitability targets.

Stock Repurchases

We repurchased 33,000 shares in the third quarter of fiscal 2013 for an aggregate price of approximately $0.2 million to cover the cost of employee income taxes on option exercises.

As of March 31, 2013, the total number of shares available for repurchase under the repurchase program authorized by the Board of Directors was approximately 1.9 million.

Note 8. Restructuring Charges

The following table shows the details of the restructuring cost accruals, which consist of facilities, severance costs, and consulting and outside services, at March 31, 2013 and July 1, 2012:

	July 1, 2012		Expense Additions			Payments			March 31, 2013
	(in thousands)
Lease loss accrual (fiscal 2004)	$	137	$	16		$	(31	)	$	122
All other restructuring changes (fiscal 2004)		68		30			(56	)		42
Lease loss accrual (fiscal 2009)		902		69			(231	)		740
All other restructuring changes (fiscal 2010)		75		(165	)		163			73
Lease loss accrual (fiscal 2011)		170		12			(38	)		144
Lease loss accrual (fiscal 2012)		698		34			(231	)		501
All other restructuring changes (fiscal 2012)		159		203			(360	)		2
All other restructuring changes (fiscal 2013)		—		2,320			(2,007	)		313
Total	$	2,209	$	2,517		$	(2,789	)	$	1,937

During the first nine months of fiscal 2013, we incurred approximately $2.5 million in severance, consulting, and outside service charges related to our reduction in work-force, reduction in facilities, and closing of research and development operations in China.

15

The lease loss accruals are subject to periodic revisions based on current market estimates. The lease loss accruals as of March 31, 2013 will be paid over the next three years.

Note 9. Net Income (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding and common equivalent shares from dilutive stock options, employee stock purchase plan and restricted stock using the treasury stock method, except when antidilutive.

The following table reconciles the number of shares utilized in the net income (loss) per share calculations:

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
	(In thousands, except per share amounts)
Numerator:
Net income (loss)	$	819		$	2,204		$	(1,159	)	$	7,398
Shares (denominator):
Weighted average common shares outstanding		40,862			42,056			40,816			42,494
Weighted average common shares outstanding subject to repurchase		(360	)		(261	)		(360	)		(236	)
Weighted average shares outstanding—basic		40,502			41,795			40,456			42,258
Weighted average dilutive share equivalents from stock options		338			741			—			578
Weighted average dilutive common shares subject to repurchase		116			79			—			101
Weighted average shares outstanding— diluted		40,956			42,615			40,456			42,937
Earnings (loss) per share:
Basic	$	0.02		$	0.05		$	(0.03	)	$	0.18
Diluted	$	0.02		$	0.05		$	(0.03	)	$	0.17

Unvested restricted stock is subject to repurchase by the Company and therefore is not included in the calculation of the weighted-average shares outstanding for basic earnings per share.

The following common stock equivalents were excluded from the earnings (loss) per share calculation as their effect would have been anti-dilutive:

	Three Months Ended				Nine Months Ended
	March 31, 2013		April 1, 2012		March 31, 2013		April 1, 2012
	(In thousands)				(In thousands)
Stock options		5,203		4,310		3,116		4,028
Common shares subject to repurchase		—		—		360		—
Total shares of common stock excluded from diluted net income (loss) per share calculation		5,203		4,310		3,476		4,028

Note 10. Litigation and Contingencies

Litigation—The Company is or was a party to the following material litigations:

Former Texas Facility Environmental Cleanup

We formerly leased a tract of land in Texas for our operations. Those operations involved the use of solvents and, at the end of the lease, we remediated an area where the solvents had been deposited on the ground and obtained regulatory approval for that remedial activity. In 1996, an environmental investigation of the property detected those same contaminants in groundwater in excess of then current regulatory standards. The groundwater contamination has migrated to some adjacent properties. We have entered into the Texas Natural Resource Conservation Commission’s Voluntary Cleanup Program (the “Voluntary Cleanup Program”) to obtain regulatory approval for closure of this site and a release from liability to the State of Texas for subsequent landowners and lenders. We have notified adjacent property owners affected by the contamination of participation in the Voluntary Cleanup Program. On May 20, 2004, we received a demand from the owner of several adjacent lots for damages in the amount of $1.3 million, as well as seeking an indemnity for the contamination and a promise to remediate the contamination. On March 14, 2006, the adjacent property owner filed suit in Probate Court No. 1, Travis County, Texas (Anna B. Miller, Individually and as Executrix of the Estate of Robert L. Miller, et al. vs. Austron, Inc., et al.), seeking damages. Symmetricom has not yet been served in this matter, but we intend to defend this lawsuit vigorously. We are continuing to work on the remediation of the formerly leased site as well as the adjacent properties, and have also taken steps to begin work on the Miller property. As of March 31, 2013, we had an accrual of $42,000 for remediation costs and other ongoing monitoring costs which has been included within “other accrued liabilities” on our condensed consolidated balance sheet.

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Michael E. McNeil, et al. vs. Jason Book, et al.

On or around May 25, 2010, Symmetricom was served with the first amended complaint in the case of Michael E. McNeil, et al. vs. Jason Book, et al. (Case No. CV165643) filed in Santa Cruz County Superior Court, California. The first amended complaint added Symmetricom and several other parties to the lawsuit, which had been originally filed in 2009 by plaintiffs against their former attorney for legal malpractice in connection with certain settlement agreements in 1999 between plaintiffs and Datum (a company acquired by Symmetricom) in which they assigned to Datum certain intellectual property rights. The complaint has since been amended for the second time and Symmetricom was served with the second amended complaint on or around January 7, 2011. The second amended complaint alleges several causes of action, including claims against Symmetricom for contract rescission, breach of contract, conversion and unjust enrichment, and seeks unspecified monetary damages along with equitable relief. Management believes that this lawsuit has no merit or basis and intends to defend this lawsuit vigorously and as a result, no accrual has been made in relation to this litigation. Management believes the final outcome of this matter will not have a material adverse effect on our financial position and results of operations.

General

Under the indemnification provisions of our standard sales contracts, we agree to defend the customer against third party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and to pay any judgments entered on such claims against the reseller/customer. The exposure to us under these indemnification provisions is generally limited to the total amount paid by the customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of the amount received under the agreement. To date, there have been no claims under such indemnification provisions. We believe the estimated fair value of these indemnification agreements is not material.

We are also a party to certain other claims in the normal course of our operations. While the results of these claims cannot be predicted with any certainty, we believe that the final outcome of these matters will not have a material adverse effect on our consolidated financial position and results of operations.

Note 11. Business Segment Information

Symmetricom has two operating segments: Communications and Government and Enterprise. These two operating segments are also our reporting segments. The Chief Operating Decision Maker (CODM), as defined by authoritative accounting guidance on Segment Reporting, is our President and Chief Executive Officer (CEO). Our CEO allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes.

With the exception of intangible assets, we do not identify or allocate assets by operating segment, nor does our CEO evaluate operating segments using discrete asset information. We do not allocate restructuring charges, interest and other income, interest expense, or income taxes to operating segments.

The following describes our two reporting segments:

Communications

Our Communications business supplies timing technologies and services for worldwide communications infrastructure. Products include primary reference sources, synchronization distribution systems and embedded components and software, all of which support the timing and synchronization requirements of telecommunications and cable networks and equipment.

Government and Enterprise

Our Government and Enterprise business provides time technology products for aerospace/defense, Power, IT infrastructure and science and metrology applications. Precision time and frequency systems enable a range of critical operations, including the international time scale, global navigation, the management of power grids, synchronization of complex control systems, and signals intelligence for securing communications in remote and hostile environments.

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Segment revenue, gross profit, and operating income (loss) were as follows during the periods presented:

Three months ended March 31, 2013
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	29,958	$	23,391	$	—		$	53,349
Cost of sales		14,144		14,753		369			29,266
Gross profit		15,814		8,638		(369	)		24,083
Operating expenses		8,916		7,137		7,865			23,918
Operating income (loss)	$	6,898	$	1,501	$	(8,234	)	$	165
Three months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	32,646	$	27,792	$	—		$	60,438
Cost of sales		16,672		19,041		64			35,777
Gross profit		15,974		8,751		(64	)		24,661
Operating expenses		9,121		6,697		5,568			21,386
Operating income (loss)	$	6,853	$	2,054	$	(5,632	)	$	3,275
Nine Months ended March 31, 2013
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	87,585	$	71,306	$	—		$	158,891
Cost of sales		42,779		46,351		375			89,505
Gross profit		44,806		24,955		(375	)		69,386
Operating expenses		27,705		20,994		23,715			72,414
Operating income (loss)	$	17,101	$	3,961	$	(24,090	)	$	(3,028	)
Nine Months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	99,523	$	75,587	$	—		$	175,110
Cost of sales		49,807		48,332		1,155			99,294
Gross profit		49,716		27,255		(1,155	)		75,816
Operating expenses		28,369		19,712		16,728			64,809
Operating income (loss)	$	21,347	$	7,543	$	(17,883	)	$	11,007

The information in the Corporate category above represents corporate-related costs that are not allocated to either of our two segments for the purpose of evaluating their performance. The following table outlines our major corporate-related costs:

	Three Months Ended					Nine Months Ended
	March 31, 2013		April 1, 2012			March 31, 2013		April 1, 2012
	(In thousands)					(In thousands)
Selling, general and administrative costs	$	6,912	$	5,643		$	21,571	$	16,604
Restructuring charges		1,322		(11	)		2,519		1,279
Corporate-related total	$	8,234	$	5,632		$	24,090	$	17,883

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Note 12. Business Combination

During the third quarter of fiscal 2012, the Company acquired a product line (existing technology, customer relationships, fixed assets and employees) to enhance the Company’s product offerings in embedded timing and synchronization solutions for residential small cell solutions. This transaction was recorded as an acquisition of a business. The transaction price was approximately $2.4 million, of which $1.4 million was paid in cash and approximately $1.0 million is contingent consideration payable as a royalty upon future sales of such products.

The fair value of the contingent consideration arrangement at the acquisition date was $0.5 million. We estimated the fair value of the contingent consideration using a probability-weighted discounted cash flow model (See Note 2). The purchase price was determined as follows (amounts in thousands):

Initial cash payment	$	1,400
Fair value of contingent consideration		540
Total	$	1,940

This purchase price was allocated to fixed assets and intangible assets based on their estimated fair values as follows (amounts in thousands):

Fixed assets	$	50
Intangible assets		1,890
Total	$	1,940

The estimated fair value of intangible assets acquired under the transaction consists of the following (in thousands):

Existing technology (estimated useful life 4 years)	$	1,612
Customer relationships (estimated useful life 2 years)		278
Total	$	1,890

The fair value of the acquired non-monetary assets, summarized above, were derived from significant unobservable inputs (“Level 3 inputs”) determined by the Company based on market analysis, income analysis (discounted cash flow model), or cost approach. The fair value of fixed assets acquired was determined using market data for similar assets. The fair value of existing technology was determined using a discounted cash flow model from cash flow projections prepared by management, including estimated undiscounted cash flows of approximately $3 million during the five to six year period after the acquisition, and a weighted average cost of capital. The fair value of customer relationships was determined using a cost approach which includes an estimate of time and expenses required to recreate the intangible asset.

During the second quarter of fiscal 2013, the Company acquired a product line (existing technology, inventories, and support from the former owner) to enhance the Company’s product offerings of test and measurement solutions. This transaction has been recorded as an acquisition of a business. The transaction price was approximately $0.5 million payable in cash in periodic installments to the former owner. The purchase price was entirely allocated to existing technology (the acquired intangible asset) which has an estimated useful life of 5 years.

Pro forma results of operations have not been presented because the effect of the business combinations described in this Note was not material to our condensed consolidated results of operations. Revenue and earnings per share for the acquired businesses from the date of acquisition through March 31, 2013, were not material.

Note 13. Subsequent Event

Effective as of April 29, 2013, the Board of Directors of the Company appointed Elizabeth A. Fetter, a member of the Board of Directors of the Company, as the Company’s Chief Executive Officer. Ms. Fetter replaces David G. Côté, who resigned as Chief Executive Officer and as a member of the Board of Directors of the Company effective as of the same date.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with the condensed consolidated financial statements and related notes included elsewhere in this report.

When used in this discussion or elsewhere in this report, the words “expects,” “anticipates,” “estimates,” “believes,” “plans,” “will,” “intend,” “can” and similar expressions are intended to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

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These risks and uncertainties include, but are not limited to, risks relating to general economic conditions in the markets we address and the telecommunications market in general, risks related to the development of our new products and services, our reliance on our contract manufacturer, the effects of increasing competition and competitive pricing pressure, uncertainties associated with changing intellectual property laws, developments in and expenses related to litigation, inability to obtain sufficient amounts of key components, the rescheduling or cancellations of key customer orders, the loss of a key customer, the effects of new and emerging technologies, the risk that excess inventory may result in write-offs, price erosion and decreased demand, fluctuations in the rate of exchange of foreign currency, changes in our effective tax rate, market acceptance of our new products and services, technological advancements, undetected errors or defects in our products, the risks associated with our international sales, potential short-term investment losses and other risks due to credit market dislocation, geopolitical risks and risk of terrorist activities, the risks associated with attempting to integrate other companies and businesses we acquire, and the other risks set forth below in Part II, Item 1A, “Risk Factors.”

These forward-looking statements speak only as of the date hereof. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances or on which any such statement is based.

All references to “Symmetricom,” “we,” “us,” and “our” mean Symmetricom, Inc. and its subsidiaries, except where it is made clear that the term means only the parent company. Dollar amounts in the tables in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are in thousands.

Overview

Symmetricom is a leading source worldwide of highly precise timekeeping technologies, instruments and solutions. We generate, distribute and apply precise time for the communications, aerospace/defense, power, IT infrastructure and metrology industries. Symmetricom’s customers, from communications service providers and network equipment manufacturers to governments and their suppliers worldwide, are able to build more reliable networks and systems by using our advanced timing technologies, atomic clocks, services and solutions. Our products support today’s precise timing standards, including GPS-based timing, IEEE 1588 (PTP), Network Time Protocol (NTP), Synchronous Ethernet, Building Integrated Timing Supply (BITS) and Data Over Cable Service Interface Specifications (DOCSIS(R)) timing.

Effective as of April 29, 2013, the Board of Directors of Symmetricom appointed Elizabeth A. Fetter, a member of Symmetricom’s Board of Directors, as the Chief Executive Officer of Symmetricom. Ms. Fetter replaces David G. Côté, who resigned as Chief Executive Officer and as a member of the Board of Directors of Symmetricom effective as of the same date.

Critical Accounting Estimates

Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, which require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures at the date of our financial statements. On an ongoing basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, if different estimates reasonably could have been used, or if changes in the estimate that are reasonably likely to occur could materially impact the financial statements. We believe that there have been no significant changes during the three and nine months ended March 31, 2013 to the items that we disclosed as our critical accounting policies and estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended July 1, 2012.

Known Trends and Uncertainties Impacting Future Results of Operations

Current macro-economic factors are dynamic and uncertain and are likely to remain so for the remainder of fiscal year 2013. If economic conditions remain uncertain or worsen, or if there are further reductions in government and/or defense spending, our customers may delay or reduce capital expenditures. Among other things, these factors could result in reductions in sales of our products and services, longer sales cycles, difficulties in collecting accounts receivable, additional excess and obsolete inventory, gross margin deterioration, slower adoption of new technologies, increased price competition and supplier difficulties.

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Results of Operations

The following table presents selected items in our condensed consolidated statements of operations as a percentage of total net revenue for the three and nine months ended March 31, 2013 and April 1, 2012:

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
Net revenue
Communications		56.2	%		54.0	%		55.1	%		56.8	%
Government and Enterprise		43.8	%		46.0	%		44.9	%		43.2	%
Total net revenue		100.0	%		100.0	%		100.0	%		100.0	%
Cost of products and services		53.7	%		59.0	%		55.6	%		55.8	%
Acquisition-related costs		0.4	%		0.1	%		0.5	%		0.3	%
Restructuring charges		0.7	%		0.1	%		0.2	%		0.7	%
Gross profit		45.1	%		40.8	%		43.7	%		43.3	%
Operating expenses:
Research and development		15.5	%		11.8	%		15.4	%		11.7	%
Selling, general and administrative		27.4	%		23.6	%		28.7	%		25.1	%
Amortization of intangible assets		0.2	%		0.1	%		0.2	%		0.1	%
Restructuring charges		1.8	%		(0.1	)%		1.4	%		0.1	%
Operating income (loss)		0.3	%		5.4	%		(1.9	)%		6.3	%
Interest income, net of amortization (accretion) of premium (discount) on investment		0.2	%		0.4	%		0.2	%		(0.0	)%
Income (loss) before taxes		0.5	%		5.8	%		(1.8	)%		6.3	%
Income tax provision (benefit)		(1.0	)%		2.1	%		(1.0	)%		2.1	%
Net income (loss)		1.5	%		3.6	%		(0.7	)%		4.2	%

Net Revenue

	Three Months Ended						Change			% Change			Nine Months Ended						$ Change			% Change
	March 31, 2013			April 1, 2012									March 31, 2013			April 1, 2012
Net Revenue:
Communications	$	29,958		$	32,646		$	(2,688	)		(8.2	)%	$	87,585		$	99,523		$	(11,938	)		(12.0	)%
Government and Enterprise		23,391			27,792			(4,401	)		(15.8	)		71,306			75,587			(4,281	)		(5.7	)
Total Net Revenue	$	53,349		$	60,438		$	(7,089	)		(11.7	)%	$	158,891		$	175,110		$	(16,219	)		(9.3	)%
Percentage of Revenue		100.0	%		100.0	%								100	%		100	%

Third Quarter of Fiscal 2013: Net revenue consists of sales of products, software licenses, and services. In the third quarter of fiscal 2013, net revenue decreased $7.1 million, or 11.7%, compared to the corresponding quarter of fiscal 2012. The decrease of $2.7 million, or 8.2%, in Communications revenue was due to lower sales of Traditional Synchronization equipment for wireline and cable network infrastructure. The decrease of $4.4 million, or 15.8%, in Government and Enterprise segment revenue was due to lower U.S. government spending partially offset by higher Quantum™ Chip Scale Atomic Clock (CSAC) revenue.

First Nine Months of Fiscal 2013: In the first nine months of fiscal 2013, net revenue decreased $16.2 million, or 9.3%, compared to the corresponding period of fiscal 2012. Communications revenue decreased $11.9 million, or 12.0%, compared to the same period for the prior year, due to lower sales of Traditional Synchronization equipment for wireline and cable network infrastructure, partially offset by higher Embedded Systems revenue. Government and Enterprise segment revenue decreased $4.3 million, or 5.7%, compared to the corresponding period of fiscal 2012 due to lower U.S. government spending partially offset by higher CSAC revenue.

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Gross Profit:

	Three Months Ended						Change			% Change			Nine Months Ended						$ Change			% Change
	March 31, 2013			April 1, 2012									March 31, 2013			April 1, 2012
Gross Profit:
Communications	$	15,814		$	15,974		$	(160	)		(1.0	)%	$	44,806		$	49,716		$	(4,910	)		(9.9	)%
Government and Enterprise		8,638			8,751			(113	)		(1.3	)		24,955			27,255			(2,300	)		(8.4	)
Corporate related		(369	)		(64	)		(305	)		476.6			(375	)		(1,155	)		780			(67.5	)
Total Gross Profit	$	24,083		$	24,661		$	(578	)		(2.3	)%	$	69,386		$	75,816		$	(6,430	)		(8.5	)%
Percentage of Revenue		45.1	%		40.8	%								43.7	%		43.3	%

Third Quarter of Fiscal 2013: Gross profit as a percentage of revenue in the third quarter of fiscal 2013 increased to 45.1%, compared to 40.8% in the corresponding quarter of fiscal 2012, due to lower manufacturing costs.

In the third quarter of fiscal 2013, gross profit as a percentage of revenue for our Communications segment increased to 52.8%, compared to 48.9% in the same period of the prior year, due to lower manufacturing costs. Gross profit as a percentage of revenue for our Government and Enterprise segment increased to 36.9% in the third quarter of fiscal 2013, compared to 31.5% in the third quarter of fiscal 2012, due to lower manufacturing costs. Corporate related charges increased by $0.3 million, or 476.6%, in the third quarter of fiscal 2013 due to higher restructuring charges.

First Nine Months of Fiscal 2013: Gross profit as a percentage of revenue in the first nine months of fiscal 2013 increased to 43.7% compared to 43.3% in the corresponding period of fiscal 2012 due to lower manufacturing costs and a decline in corporate related charges.

In the first nine months of fiscal 2013, gross profit as a percentage of revenue for our Communications segment increased to 51.2%, compared to 50.0% in the corresponding period of fiscal 2012, due to lower manufacturing costs. Gross profit as a percentage of revenue for our Government and Enterprise segment decreased to 35.0% in the first nine months of fiscal 2013, compared to 36.1% in the corresponding period of fiscal 2012, due to an unfavorable product mix, partially offset by lower manufacturing costs. Corporate related charges decreased $0.8 million due to lower restructuring charges in the first nine months of fiscal 2013.

Operating Expenses:

Research and Development Expense:

	Three Months Ended						Change		% Change			Nine Months Ended						$ Change		% Change
	March 31, 2013			April 1, 2012								March 31, 2013			April 1, 2012
Research and development expense	$	8,291		$	7,129		$	1,162		16.3	%	$	24,409		$	20,575		$	3,834		18.6	%
Percentage of Revenue		15.5	%		11.8	%							15.4	%		11.7	%

Third Quarter of Fiscal 2013: Research and development expense consists primarily of salaries and benefits, prototype expenses and fees paid to outside consultants. These expenses increased in the third quarter of fiscal 2013 due to higher outside consulting fees and prototype expenses for product development. We expect that research and development expenses in the fourth quarter of fiscal 2013 will be similar to the third quarter of fiscal 2013.

First Nine Months of Fiscal 2013: Research and development expenses in the first nine months of fiscal 2013 were higher than the same period of fiscal 2012 due to higher outside consulting fee and prototype expenses for product development.

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Selling, General and Administrative:

	Three Months Ended						Change		% Change			Nine Months Ended						$ Change		% Change
	March 31, 2013			April 1, 2012								March 31, 2013			April 1, 2012
Selling, general and administrative	$	14,593		$	14,281		$	312		2.2	%	$	45,598		$	43,955		$	1,643		3.7	%
Percentage of Revenue		27.4	%		23.6	%							28.7	%		25.1	%

Third Quarter of Fiscal 2013: Selling, general and administrative expenses consist primarily of salaries, benefits, sales commissions and travel-related expenses for our sales and services, marketing, and general and administrative departments. Selling, general, and administrative expenses in the third quarter of fiscal 2013 were comparable to the same quarter of fiscal 2012. We expect that selling, general and administrative expenses in the fourth quarter of fiscal 2013 will be consistent with the third quarter of fiscal 2013.

First Nine Months of Fiscal 2013: Selling, general and administrative expenses were higher in the first nine months of fiscal 2013 than the same period for fiscal 2012 due to an increase in the allowance for doubtful accounts, deferred compensation plan charges, and consulting fees, partially offset by lower sales commissions and incentive compensation.

Amortization of intangible assets:

	Three Months Ended						Change		% Change			Nine Months Ended						$ Change		% Change
	March 31, 2013			April 1, 2012								March 31, 2013			April 1, 2012
Amortization of intangible assets	$	87		$	52		$	35		67.3	%	$	259		$	156		$	103		66.0	%
Percentage of Revenue		0.2	%		0.1	%							0.2	%		0.1	%

Amortization of intangibles increased in the third quarter and first nine months of fiscal 2013 compared to the corresponding period of fiscal 2012 due to higher amortization of intangible assets arising from the assets acquired after the third quarter of fiscal 2012, partially offset by certain assets being fully amortized before or during the first nine months of fiscal 2013.

Restructuring charges:

	Three Months Ended						Change		% Change			Nine Months Ended						$ Change		% Change
	March 31, 2013			April 1, 2012								March 31, 2013			April 1, 2012
Restructuring charges	$	947		$	(76	)	$	1,023		(1,346	)%	$	2,148		$	123		$	2,025		1,646.3	%
Percentage of Revenue		1.8	%		(0.1	)%							1.4	%		0.1	%

Restructuring charges in the third quarter and first nine months of fiscal 2013 consisted of severance, consulting, and outside service charges related to our reduction in work force and facilities, and also due to the closing of our research and development operations in China.

Interest income, net of amortization (accretion) of premium (discount) on investments:

	Three Months Ended						Change			% Change			Nine Months Ended						$ Change		% Change
	March 31, 2013			April 1, 2012									March 31, 2013			April 1, 2012
Interest income, net of amortization (accretion) of premium (discount) on investments	$	98		$	225		$	(127	)		(56.4	)%	$	240		$	(5	)	$	245		(4,900.0	)%
Percentage of Revenue		0.2	%		0.4	%								0.2	%		(0.0	)%

Interest income, net of amortization (accretion) of premium (discount) on investments decreased $0.1 million in the third quarter of fiscal 2013 compared to the same period of prior year due to lower yields in the third quarter of fiscal 2013.

Interest income, net of amortization (accretion) of premium (discount) on investments increased $0.2 million in the first nine months of fiscal 2013 compared to the same period of fiscal 2012 due to lower amortization of premium on investments in the first nine months of fiscal 2013.

23

Income tax provision (benefit):

	Three Months Ended						Change			% Change			Nine Months Ended						$ Change			% Change
	March 31, 2013			April 1, 2012									March 31, 2013			April 1, 2012
Income tax provision (benefit)	$	(556	)	$	1,296		$	(1,852	)		(142.9	)%	$	(1,629	)	$	3,604		$	(5,233	)		(145.2	)%
Percentage of Revenue		(1.0	)%		2.1	%								(1.0	)%		2.1	%

Third Quarter of Fiscal 2013: We recorded an income tax benefit of $0.6 million in the third quarter of fiscal 2013, compared to a provision of $1.3 million in the corresponding quarter of fiscal 2012. Our effective tax rate in the third quarter of fiscal 2013 was -211%, compared to an effective tax rate of 37.0% in the corresponding period of fiscal 2012. We recorded a tax benefit for the third quarter of fiscal 2013 primarily due to the retroactive extension of the Federal research tax credit in the third quarter of fiscal 2013.

On January 2, 2013, the President signed into law The American Taxpayer Relief Act of 2012. Under prior law, a taxpayer was entitled to a research tax credit for qualifying amounts paid or incurred on or before December 31, 2011. The 2012 Taxpayer Relief Act extends the research credit for two years to Dec. 31, 2013. The extension of the research credit is retroactive and includes amounts paid or incurred after Dec. 31, 2011. As a result of the retroactive extension, we recognized a benefit of approximately $0.5 million for qualifying amounts incurred in Fiscal 2012, and an estimated benefit of approximately $0.7 million for fiscal 2013.

First Nine Months of Fiscal 2013: The income tax benefit was $1.6 million in the first nine months of fiscal 2013, compared to an income tax provision of $3.6 million in the corresponding period of fiscal 2012. Our effective tax rate in the first nine months of fiscal 2013 was 58.4%, compared to an effective tax rate of 32.8% in the corresponding period of fiscal 2012. The effective tax rate for the first nine months of fiscal 2013 is higher than the statutory rate due to the retroactive extension of the research tax credit in the third quarter of fiscal 2013. The effective tax rate for the first nine months of fiscal 2012 benefited from the utilization of a capital loss and from the reversal of a reserve on an uncertain tax position due to expiration of the statute of limitation.

Key Operating Metrics

A key operating metric for measuring our performance is sales backlog. A comparison of this metric at the end of the third quarter of fiscal 2013 with the end of fiscal 2012 is below:

Sales Backlog:

Our backlog consists of firm orders that have yet to be shipped to the customer, or may not be shippable to a customer until a future period. Most orders included in backlog can be rescheduled or cancelled by customers without significant penalty. Historically, a substantial portion of net revenue in any fiscal period has been derived from orders received during that fiscal period.

Our backlog totaled $42.8 million as of March 31, 2013, compared to $45.4 million as of July 1, 2012. Our backlog, which is shippable within the next six months totaled $33.2 million as of March 31, 2013, compared to $34.9 million as of July 1, 2012.

Liquidity and Capital Resources

Balance Sheet and Cash Flows

The following table summarizes our cash, cash equivalents and short-term investments:

	March 31, 2013		July 1, 2012		Change
Cash and cash equivalents	$	22,371	$	27,659	$	(5,288	)
Short-term investments		47,351		39,280		8,071
Total	$	69,722	$	66,939	$	2,783

As of March 31, 2013, our principal sources of liquidity consisted of cash, cash equivalents, and short-term investments of $69.7 million and accounts receivable of $38.9 million.

As of March 31, 2013, working capital was $138.7 million compared to $140.0 million as of July 1, 2012. Cash, cash equivalents and short-term investments as of March 31, 2013 increased to $69.7 million from $66.9 million as of July 1, 2012.

Our days sales outstanding in accounts receivable was 66 days as of March 31, 2013, compared to 67 days as of July 1, 2012.

24

Our principal uses of cash historically have consisted of the purchase of inventories, payroll, and other operating expenses related to the manufacturing of products, development of new products, and purchase of property and equipment.

Cash flows from operating activities

Net cash provided by operating activities in the first nine months of fiscal 2013 was $11.5 million. Net cash provided by operating activities consisted of non-cash charges of $11.3 million and net changes in assets and liabilities of $1.3 million, partially offset by a net loss of $1.2 million. The non-cash charges consisted of $4.9 million in depreciation and amortization, $5.3 million in stock-based compensation, $2.1 million in provision for excess and obsolete inventory, allowance for doubtful accounts of $0.6 million and $0.4 million of loss on disposal of fixed assets, partially offset by a $1.9 million use of deferred income taxes. Net changes in assets and liabilities consisted primarily of a $6.5 million decrease in accounts receivable, a $0.6 million increase in accounts payable, and a decrease in prepaids and other assets of $0.8 million, partially offset by an increase in inventories of $1.7 million, a decrease in accrued compensation of $2.7 million and a decrease in other accrued liabilities of $2.2 million.

Cash flows from investing activities

Net cash used in investing activities was $13.9 million in the first nine months of fiscal 2013, which included the purchase of $33.3 million of short-term investments and $4.4 million of property, plant and equipment, partially offset by the sale/maturities of short-term investments of $24.5 million.

Cash flows from financing activities

Net cash used for financing activities was $2.9 million in the first nine months of fiscal 2013, which represented the repurchase of $5.6 million of common stock, partially offset by 2.7 million of cash generated from the issuance of common stock under our ESPP and stock option program.

Contingencies

See Item 1 of Part I, Financial Statements—Note 10—Litigation and Contingencies.

Recently Issued Accounting Pronouncements

See Item 1 of Part I, Financial Statements—Note 1—Basis of Presentation and Recently Issued Accounting Pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

For quantitative and qualitative disclosures about market risk affecting Symmetricom, see “Quantitative and Qualitative Disclosures About Market Risk” in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended July 1, 2012. Our exposure to market risk has not changed materially since July 1, 2012.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the fiscal quarter covered by this report.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

25

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See Item 1 of Part I, Financial Statements—Note 10—Litigation and Contingencies.

Item 1A. Risk Factors

In addition to the other information set forth in this report and the new risk factors set forth below, you should carefully consider the risk factors discussed in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended July 1, 2012. The risks discussed in our Annual Report on Form 10-K and the new risk factors set forth below could materially affect our business, financial condition and results of operations. The risks described in our Annual Report on Form 10-K and the new risk factors set forth below are not the only risks facing us. Other risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or operating results. Two new risk factors are set forth below:

Reductions in defense spending could adversely affect our business

In August 2011, Congress enacted the Budget Control Act of 2011 (the “BCA”), which requires spending caps and certain reductions in security spending over a ten-year period through 2021. Budget cuts (or sequestration) began to be implemented on March 1, 2013, and without additional congressional action, further sequestration as set forth in the BCA may be implemented. The impact of sequestration is yet to be fully determined. Sequestration could have a material adverse effect on our business and results of operations. Significant additional reductions to defense spending could occur over the next decade, which could have a significant adverse impact on us.

A decline in demand for Symmetricom’s mature products and technologies has adversely affected, and may continue to adversely affect, our business

A material amount of Symmetricom’s revenue is derived from products and technologies that are sold in relatively mature markets, such as the wireline and cable markets within our Communications business. We have experienced declining market demand for these products as our customers shift spending to newer technologies such as wireless infrastructure. We do not currently expect market demand for these and other mature products and technologies to increase. Accordingly, we expect our revenue from these products and technologies to be stagnant or to decline over time. However, the extent to which market demand for these mature products and technologies will affect our business cannot be predicted with certainty. Continuing decreases in market demand for these products and technologies, particularly if we are unable to offset these decreases with other sources of revenue, could materially adversely affect our revenue and profitability.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a) Not applicable.

b) Not applicable.

c) None

We repurchased 33,000 shares in the third quarter of fiscal 2013 for an aggregate price of approximately $0.2 million to cover the cost of employee income taxes on option exercises.

As of March 31, 2013, the total number of shares available for repurchase under the repurchase program authorized by the Board of Directors was approximately 1.9 million.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

26

Item 6. Exhibits

Exhibit Number	Description of Exhibits
10.1	Amendment 3 to Manufacturing Service Agreement , dated as of March 1, 2013, by and between Symmetricom, Inc. and SANMINA Corporation.
31	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive Data File.

27

SIGNATURES

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

	SYMMETRICOM, INC.
	(Registrant)
Date: May 8, 2013	By:	/S/    ELIZABETH A. FETTER
		Elizabeth A. Fetter
		Chief Executive Officer (Principal Executive Officer) and Director
Date: May 8, 2013	By:	/S/    JUSTIN R. SPENCER
		Justin R. Spencer
		Executive Vice President, Chief Financial Officer and Secretary (Principal Financial and Accounting Officer)

28

EX-10.1

Exhibit 10.1

AMENDMENT 3 TO

MANUFACTURING SERVICE AGREEMENT

This Amendment 3 (“Amendment”) is made and entered into as of this 1st day of March, 2013 (the “Effective Date”), by and between SANMINA Corporation (formerly Sanmina-SCI Corporation), a Delaware corporation having a principal place of business at 2700 North First Street, San Jose, California 95134 (SANMINA”) and Symmetricom, Inc., a Delaware corporation, having a principal place of business at 2300 Orchard Parkway, San Jose, CA 95131 (“CUSTOMER”). CUSTOMER and Sanmina- are sometimes collectively referred to as a “Party” and the “Parties.”

WHEREAS, the Parties entered into a Manufacturing Services Agreement dated March 22, 2010 (the “Agreement”):

WHEREAS, the Parties entered into Addendum One, dated September 18, 2009, to add Prepaid Inventory Program ordering process and inventory management to the Agreement;

WHEREAS, the Parties entered into Addendum Two, dated April 2, 2010, to add transition project management services to be provided by Sanmina-SCI in connection with the closure of Customer’s Puerto Rico facility;

WHEREAS, the Parties entered into Amendment One, dated May 16, 2012 to amend certain terms of the Agreement and add 3PL services to the Agreement;

WHERAS, the Parties entered into Amendment Two, dated July 27, 2012 to add supplier managed inventory to the Agreement;

WHEREAS, the Parties desire to further amend certain terms in the Agreement;

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged, the Parties agree to amend the Agreement as follows:

Section 10.6 is hereby added to the Agreement:

For avoidance of doubt, the Parties agree that Sections 10.5 “Migration Assistance”. 10.5.1 “Migration Fees” and 10.5.2 shall also apply in the event of the termination of any agreement between the Parties.

Section 12.3 “Space” of Exhibit F “Service Level Agreement for 3PL” to Amendment One of the Agreement is hereby deleted in its entirety.

Section 6.1(b) of Exhibit F “Shipping Terms” to Amendment One of the Agreement is hereby deleted and replaced with:

6.1(b): Title transfer of Sanmina supplied Products – shall transfer to Customer upon shipment from Sanmina manufacturing facility to the Symmetricom 3PL site.

1. Entire Agreement.

The Agreement together with the Addenda, Amendments 1, 2 and this Amendment constitute the entire agreement between the Parties hereto with respect to the subject matter hereof, and supersede all prior or contemporaneous agreements, representations, warranties, statements, promises and undertakings, whether oral or written. In the event of a conflict between the terms and conditions of this Amendment and the terms of the Agreement with respect to the subject matter hereof, the terms of this Amendment shall control. Except

CONFIDENTIAL

Page 1 of 2

as specifically amended by this Amendment 3, all of the provisions of the Agreement shall remain in full force and effect and be binding upon the parties hereto. The Agreement may not be amended, altered or modified except by a writing signed by both.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

SANMINA CORPORATION	SYMMETRICOM, INC
Authorized Signature	Authorized Signature
Printed Name	Printed Name
Title	Title

CONFIDENTIAL

Page 2 of 2

EX-31

Exhibit 31

CERTIFICATION

I, Elizabeth A. Fetter, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Symmetricom, 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 controls 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: May 8. 2013

/s/    ELIZABETH A. FETTER        

Elizabeth A. Fetter

Chief Executive Officer and Director

CERTIFICATION

I, Justin R. Spencer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Symmetricom, 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 controls 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: May 8. 2013

/s/    JUSTIN R. SPENCER        

Justin R. Spencer

Executive Vice President, Chief Financial Officer and Secretary

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Elizabeth A. Fetter, Chief Executive Officer of Symmetricom, Inc. (the “Company”), pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify to my knowledge that:

i. the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13 (a) or Section 15 (d), as applicable, of the Securities Exchange Act of 1934, as amended; and

ii. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

DATE: May 8. 2013	By:	/s/    ELIZABETH A. FETTER
		Elizabeth A. Fetter,
		Chief Executive Officer

* * * * *

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Justin R. Spencer, Chief Financial Officer of Symmetricom, Inc. (the “Company”), pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify to my knowledge that:

i. the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13 (a) or Section 15 (d), as applicable, of the Securities Exchange Act of 1934, as amended; and

ii. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

DATE: May 8. 2013	By:	/s/    JUSTIN R. SPENCER
		Justin R. Spencer
		Executive Vice President, Chief Financial Officer and Secretary (Principal Financial and Accounting Officer)

XML

Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible asset amortization expense	$ 87	$ 52	$ 259	$ 156

XML

Business Combination - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Dec. 30, 2012	Apr. 01, 2012
Business Combinations [Abstract]
Transaction price for acquisition of business		$ 500,000	$ 2,400,000
Initial cash payment			1,400,000
Contingent consideration payable for acquisition of business			1,000,000
Fair value of the contingent consideration arrangement at the acquisition date			540,000
Estimated undiscounted cash flow of asset acquired	$ 3,000,000
Estimated useful life of acquired intangible asset		5 years

XML

Restructuring Charges - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Restructuring Cost and Reserve [Line Items]
Restructuring activities	$ 947	$ (76)	$ 2,148	$ 123
Research and development operations [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring activities			$ 2,500
Lease loss accruals payment period			3 years

XML

Business Combination - Purchase Price of Contingent Consideration (Detail) (USD $)	Apr. 01, 2012
Business Combinations [Abstract]
Initial cash payment	$ 1,400,000
Fair value of contingent consideration	540,000
Total	$ 1,940,000

XML

Stockholders' Equity - Stock-Based Compensation Costs Included in Condensed Consolidated Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Pre-tax stock-based compensation expense	$ 1,790	$ 1,738	$ 5,250	$ 4,581
Less: Income tax effect	662	643	1,943	1,695
Total	1,128	1,095	3,307	2,886
Cost of sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Pre-tax stock-based compensation expense	275	272	815	606
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Pre-tax stock-based compensation expense	306	312	984	896
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Pre-tax stock-based compensation expense	$ 1,209	$ 1,154	$ 3,451	$ 3,079

XML

Financial Instruments - Summarizes Available-for-Sale and Trading Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Investments Debt And Equity Securities [Abstract]
Less than 1 year, Amortized Cost	$ 19,518
Due in 1 to 3 years, Amortized Cost	25,022
Total, Amortized Cost	55,005	47,930
Less than 1 year, Fair Value	19,521
Due in 1 to 3 years, Fair Value	25,006
Total, Fair Value	$ 44,527

XML

Business Combination - Estimated Fair Value of Intangible Assets Acquired under the Transaction (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Total	$ 1,890
Existing technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total	1,612
Customer relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total	$ 278

XML

Long-term Obligations (Tables)

9 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Long-term Obligations

Long-term obligations consist of:

	March 31, 2013		July 1, 2012
	(In thousands)
Long-term obligations:
Deferred revenue	$	2,031	$	2,254
Lease loss accrual, net		895		1,240
Rent accrual		1,010		1,102
Post-retirement benefits		190		173
Income tax		216		216
Consideration for acquired businesses		596		487
Total	$	4,938	$	5,472

XML

Net Income (Loss) Per Share - Schedule of Common Stock Equivalents Excluded from Diluted Earnings per Share Calculation (Detail) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options	5,203	4,310	3,116	4,028
Common shares subject to repurchase			360
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options	5,203	4,310	3,476	4,028

XML

Stockholders' Equity - Stock Award Activity (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Shares Available For Grant	2,889
Amendment of 2006 Plan, Shares Available For Grant	2,000
Granted-options, Shares Available For Grant	(1,475)
Granted-restricted shares, Shares Available For Grant	(522)
Exercised, Shares Available For Grant
Vested, Shares Available For Grant
Cancelled, Shares Available For Grant	231
Ending Balance, Weighted Average Exercise Price Per Share	$ 5.71
Ending Balance, Shares Available For Grant	3,123
Ending Balance, Number of Shares	7,958
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	261
Granted-options, Number of Shares
Granted-restricted shares, Number of Shares	261
Exercised, Number of Shares
Vested, Number of Shares	(162)
Cancelled, Number of Shares
Ending balance, Number of Shares	360
Beginning balance, Weighted Average Grant-Date Fair Value	$ 5.68
Granted-options, Weighted Average Grant-Date Fair Value
Granted-restricted shares, Weighted Average Grant-Date Fair Value	$ 6.12
Exercised, Weighted Average Grant-Date Fair Value
Vested, Weighted Average Grant-Date Fair Value	$ 5.84
Cancelled, Weighted Average Grant-Date Fair Value
Ending balance, Weighted Average Grant-Date Fair Value	$ 5.93
Non Performance-based Options Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Weighted Average Exercise Price Per Share	$ 5.54
Granted-options, Weighted Average Exercise Price Per Share	$ 6.09
Granted-restricted shares, Weighted Average Exercise Price Per Share
Exercised, Weighted Average Exercise Price Per Share	$ 4.43
Vested, Weighted Average Exercise Price Per Share
Cancelled, Weighted Average Exercise Price Per Share	$ 5.81
Ending Balance, Weighted Average Exercise Price Per Share	$ 5.71
Beginning Balance, Number of Shares	7,316
Vested, Number of Shares
Granted-options, Number of Shares	1,475
Granted-restricted shares, Number of Shares
Exercised, Number of Shares	(602)
Cancelled, Number of Shares	(231)
Ending Balance, Number of Shares	7,958

XML

Intangible Assets - Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 34,174	$ 33,273
Accumulated Amortization	(30,655)	(29,815)
Net Intangible Assets	3,519	3,458
Purchased technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	26,871	25,970
Accumulated Amortization	(24,424)	(23,845)
Net Intangible Assets	2,447	2,125
Customer lists and trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	7,303	7,303
Accumulated Amortization	(6,231)	(5,970)
Net Intangible Assets	$ 1,072	$ 1,333

XML

Business Segment Information - Schedule of business segment information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Segment Reporting Information [Line Items]
Net revenue	$ 53,349	$ 60,438	$ 158,891	$ 175,110
Cost of sales	29,266	35,777	89,505	99,294
Gross profit	24,083	24,661	69,386	75,816
Operating expenses	23,918	21,386	72,414	64,809
Operating income (loss)	165	3,275	(3,028)	11,007
Selling, general and administrative costs	14,593	14,281	45,598	43,955
Restructuring charges	947	(76)	2,148	123
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Selling, general and administrative costs	6,912	5,643	21,571	16,604
Restructuring charges	1,322	(11)	2,519	1,279
Corporate-related total	8,234	5,632	24,090	17,883
Communications [Member]
Segment Reporting Information [Line Items]
Net revenue	29,958	32,646	87,585	99,523
Cost of sales	14,144	16,672	42,779	49,807
Gross profit	15,814	15,974	44,806	49,716
Operating expenses	8,916	9,121	27,705	28,369
Operating income (loss)	6,898	6,853	17,101	21,347
Government and Enterprise [Member]
Segment Reporting Information [Line Items]
Net revenue	23,391	27,792	71,306	75,587
Cost of sales	14,753	19,041	46,351	48,332
Gross profit	8,638	8,751	24,955	27,255
Operating expenses	7,137	6,697	20,994	19,712
Operating income (loss)	1,501	2,054	3,961	7,543
Corporate [Member]
Segment Reporting Information [Line Items]
Net revenue
Cost of sales	369	64	375	1,155
Gross profit	(369)	(64)	(375)	(1,155)
Operating expenses	7,865	5,568	23,715	16,728
Operating income (loss)	$ (8,234)	$ (5,632)	$ (24,090)	$ (17,883)

XML

Restructuring Charges - Schedule of Restructuring and Related Charges (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Restructuring Cost and Reserve [Line Items]
Beginning Balance			$ 2,209
Expense Additions	947	(76)	2,148	123
Payments			(2,789)
Ending Balance	1,937		1,937
Lease loss accrual (fiscal 2004) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance			137
Expense Additions			16
Payments			(31)
Ending Balance	122		122
All other restructuring changes (fiscal 2004) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance			68
Expense Additions			30
Payments			(56)
Ending Balance	42		42
Lease loss accrual (fiscal 2009) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance			902
Expense Additions			69
Payments			(231)
Ending Balance	740		740
All other restructuring changes (fiscal 2010) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance			75
Expense Additions			(165)
Payments			163
Ending Balance	73		73
Lease loss accrual (fiscal 2011) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance			170
Expense Additions			12
Payments			(38)
Ending Balance	144		144
Lease loss accrual (fiscal 2012) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance			698
Expense Additions			34
Payments			(231)
Ending Balance	501		501
All other restructuring changes (fiscal 2012) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance			159
Expense Additions			203
Payments			(360)
Ending Balance	2		2
All other restructuring changes (fiscal 2013) [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance
Expense Additions			2,320
Payments			(2,007)
Ending Balance	$ 313		$ 313

XML

Inventories

9 Months Ended

Mar. 31, 2013

Inventory Disclosure [Abstract]

Inventories

Note 3. Inventories

Components of inventories were as follows:

	March 31, 2013		July 1, 2012
	(In thousands)
Raw materials	$	18,105	$	21,003
Work-in-process		11,524		10,440
Finished goods		17,566		16,175
Inventories	$	47,195	$	47,618

XML

Stockholder's Equity - Additional Information (Detail) (USD $)	3 Months Ended						3 Months Ended			9 Months Ended
	Mar. 31, 2013	Dec. 30, 2012	Jan. 01, 2013	Sep. 30, 2012	Apr. 01, 2012	Oct. 26, 2012	Mar. 31, 2013 Stock Repurchase Program [Member]	Mar. 31, 2013 Stock Options [Member]	Apr. 01, 2012 Stock Options [Member]	Mar. 31, 2013 Stock Options [Member]	Apr. 01, 2012 Stock Options [Member]	Mar. 28, 2013 Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock authorized for issuance under stock option plan						2,000,000
Common stock closing price												$ 4.54
Total intrinsic value of options exercised during the period, approximately	500,000				400,000
Weighted-average grant date fair value								$ 2.56	$ 2.57	$ 2.87	$ 2.45
Employee service share based compensation nonvested awards estimated forfeiture rate								4.60%	6.60%
Future compensation cost related to unvested stock-based awards	6,000,000
Employee service share based compensation nonvested awards estimated forfeitures amount										800,000
Compensation cost, amortization period, years										1 year 3 months 18 days
Expense relating to ESPP								100,000	100,000	400,000	400,000
Granted shares of performed - based restricted stock		110,000	103,000	92,620
Shares repurchased							33,000
Shares repurchase aggregate price							$ 200,000
Total remaining shares available for repurchase, approximately							1,900,000

XML

Business Segment Information (Tables)

9 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Revenue, Gross Profit and Operating Income (Loss)

Segment revenue, gross profit, and operating income (loss) were as follows during the periods presented:

Three months ended March 31, 2013
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	29,958	$	23,391	$	—		$	53,349
Cost of sales		14,144		14,753		369			29,266
Gross profit		15,814		8,638		(369	)		24,083
Operating expenses		8,916		7,137		7,865			23,918
Operating income (loss)	$	6,898	$	1,501	$	(8,234	)	$	165
Three months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	32,646	$	27,792	$	—		$	60,438
Cost of sales		16,672		19,041		64			35,777
Gross profit		15,974		8,751		(64	)		24,661
Operating expenses		9,121		6,697		5,568			21,386
Operating income (loss)	$	6,853	$	2,054	$	(5,632	)	$	3,275
Nine Months ended March 31, 2013
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	87,585	$	71,306	$	—		$	158,891
Cost of sales		42,779		46,351		375			89,505
Gross profit		44,806		24,955		(375	)		69,386
Operating expenses		27,705		20,994		23,715			72,414
Operating income (loss)	$	17,101	$	3,961	$	(24,090	)	$	(3,028	)
Nine Months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	99,523	$	75,587	$	—		$	175,110
Cost of sales		49,807		48,332		1,155			99,294
Gross profit		49,716		27,255		(1,155	)		75,816
Operating expenses		28,369		19,712		16,728			64,809
Operating income (loss)	$	21,347	$	7,543	$	(17,883	)	$	11,007

Corporate-Related Costs

The following table outlines our major corporate-related costs:

	Three Months Ended					Nine Months Ended
	March 31, 2013		April 1, 2012			March 31, 2013		April 1, 2012
	(In thousands)					(In thousands)
Selling, general and administrative costs	$	6,912	$	5,643		$	21,571	$	16,604
Restructuring charges		1,322		(11	)		2,519		1,279
Corporate-related total	$	8,234	$	5,632		$	24,090	$	17,883

XML

Net Income (Loss) Per Share (Tables)

9 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Schedule of Denominator Used in Calculation of Basic and Diluted Net Earnings per Share

The following table reconciles the number of shares utilized in the net income (loss) per share calculations:

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
	(In thousands, except per share amounts)
Numerator:
Net income (loss)	$	819		$	2,204		$	(1,159	)	$	7,398
Shares (denominator):
Weighted average common shares outstanding		40,862			42,056			40,816			42,494
Weighted average common shares outstanding subject to repurchase		(360	)		(261	)		(360	)		(236	)
Weighted average shares outstanding—basic		40,502			41,795			40,456			42,258
Weighted average dilutive share equivalents from stock options		338			741			—			578
Weighted average dilutive common shares subject to repurchase		116			79			—			101
Weighted average shares outstanding— diluted		40,956			42,615			40,456			42,937
Earnings (loss) per share:
Basic	$	0.02		$	0.05		$	(0.03	)	$	0.18
Diluted	$	0.02		$	0.05		$	(0.03	)	$	0.17

Schedule of Common Stock Equivalents Excluded from Diluted Earnings per Share Calculation

The following common stock equivalents were excluded from the earnings (loss) per share calculation as their effect would have been anti-dilutive:

	Three Months Ended				Nine Months Ended
	March 31, 2013		April 1, 2012		March 31, 2013		April 1, 2012
	(In thousands)				(In thousands)
Stock options		5,203		4,310		3,116		4,028
Common shares subject to repurchase		—		—		360		—
Total shares of common stock excluded from diluted net income (loss) per share calculation		5,203		4,310		3,476		4,028

XML

Business Combination - Purchase Price of Fixed Assets and Intangible Assets Based on Their Estimated Fair Values (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012
Business Combinations [Abstract]
Fixed assets	$ 50
Intangible assets	1,890
Total	$ 1,940

XML

Stockholders' Equity - Stock Options Outstanding, Vested and Expected to Vest, and Exercisable (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding, Number of Shares	7,958
Options, Vested and expected to vest, Number of Shares	7,754
Options, Exercisable, Number of Shares	4,375
Options, Outstanding, Weighted Average Remaining Contractual Life	4 years 6 months
Options, Vested and expected to vest, Weighted Average Remaining Contractual Life	4 years 5 months 16 days
Options, Exercisable, Weighted Average Remaining Contractual Life	3 years 6 months 29 days
Options, Outstanding, Weighted Average Exercise Price	$ 5.71
Options, Vested and expected to vest, Weighted Average Exercise Price	$ 5.71
Options, Exercisable, Weighted Average Exercise Price	$ 5.73
Options, Outstanding, Aggregate Intrinsic Value	$ 103
Options, Vested and expected to vest, Aggregate Intrinsic Value	102
Options, Exercisable, Aggregate Intrinsic Value	$ 77

XML

Business Combination (Tables)

9 Months Ended

Mar. 31, 2013

Business Combinations [Abstract]

Purchase Price of Contingent Consideration

The purchase price was determined as follows (amounts in thousands):

Initial cash payment	$	1,400
Fair value of contingent consideration		540
Total	$	1,940

Purchase Price of Fixed Assets and Intangible Assets Based on Their Estimated Fair Values

This purchase price was allocated to fixed assets and intangible assets based on their estimated fair values as follows (amounts in thousands):

Fixed assets	$	50
Intangible assets		1,890
Total	$	1,940

Estimated Fair Value of Intangible Assets Acquired under the Transaction

The estimated fair value of intangible assets acquired under the transaction consists of the following (in thousands):

Existing technology (estimated useful life 4 years)	$	1,612
Customer relationships (estimated useful life 2 years)		278
Total	$	1,890

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Financial Instruments - Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Assets:
Total short-term investments	$ 47,351	$ 39,280
Total financial assets	54,992	47,930
Liabilities:
Contingent consideration	650	540
Total financial liabilities	650	540
Money market funds [Member]
Assets:
Trading securities	7,641	8,650
Certificates of deposit [Member]
Assets:
Trading securities	2,450
Corporate debt securities [Member]
Assets:
Trading securities	33,819	23,703
Government sponsored enterprise debt securities [Member]
Assets:
Trading securities	8,258	12,515
Mutual funds [Member]
Assets:
Trading securities	2,824	3,062
Quoted prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Total short-term investments	2,824	3,062
Total financial assets	10,465	11,712
Liabilities:
Contingent consideration
Total financial liabilities
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member]
Assets:
Trading securities	7,641	8,650
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member]
Assets:
Trading securities
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member]
Assets:
Trading securities
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Government sponsored enterprise debt securities [Member]
Assets:
Trading securities
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual funds [Member]
Assets:
Trading securities	2,824	3,062
Significant Observable Other Inputs (Level 2) [Member]
Assets:
Total short-term investments	44,527	36,218
Total financial assets	44,527	36,218
Liabilities:
Contingent consideration
Total financial liabilities
Significant Observable Other Inputs (Level 2) [Member] | Money market funds [Member]
Assets:
Trading securities
Significant Observable Other Inputs (Level 2) [Member] | Certificates of deposit [Member]
Assets:
Trading securities	2,450
Significant Observable Other Inputs (Level 2) [Member] | Corporate debt securities [Member]
Assets:
Trading securities	33,819	23,703
Significant Observable Other Inputs (Level 2) [Member] | Government sponsored enterprise debt securities [Member]
Assets:
Trading securities	8,258	12,515
Significant Observable Other Inputs (Level 2) [Member] | Mutual funds [Member]
Assets:
Trading securities
Significant Other Unobservable Inputs (Level 3) [Member]
Assets:
Total short-term investments
Total financial assets
Liabilities:
Contingent consideration	650	540
Total financial liabilities	650	540
Significant Other Unobservable Inputs (Level 3) [Member] | Money market funds [Member]
Assets:
Trading securities
Significant Other Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member]
Assets:
Trading securities
Significant Other Unobservable Inputs (Level 3) [Member] | Government sponsored enterprise debt securities [Member]
Assets:
Trading securities
Significant Other Unobservable Inputs (Level 3) [Member] | Mutual funds [Member]
Assets:
Trading securities

XML

Financial Instruments

9 Months Ended

Mar. 31, 2013

Investments All Other Investments [Abstract]

Financial Instruments

Note 2. Financial Instruments

We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

• Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

• Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

• Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

Financial assets measured at fair value on a recurring basis consisted of the following types of instruments as of March 31, 2013 and July 1, 2012:

	Fair Value as of March 31, 2013		Quoted prices in Active Markets Identical Assets (Level 1)		Significant Observable (Level 2)		Significant Other Unobservable (Level 3)
	(In thousands)
Assets:
Money market funds	$	7,641	$	7,641			$	—
Short-term investments:
Certificates of deposit		2,450		—		2,450
Corporate debt securities		33,819		—		33,819		—
Government sponsored enterprise debt securities		8,258		—		8,258		—
Mutual funds		2,824		2,824		—		—
Total short-term investments		47,351		2,824		44,527		—
Total financial assets	$	54,992	$	10,465	$	44,527	$	—
Liabilities:
Contingent consideration	$	650	$	—	$	—	$	650
Total financial liabilities	$	650	$	—	$	—	$	650
	Fair Value as of July 1, 2012		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Money market funds	$	8,650	$	8,650	$	—	$	—
Short-term investments:
Corporate debt securities		23,703		—		23,703		—
Government sponsored enterprise debt securities		12,515		—		12,515		—
Mutual funds		3,062		3,062		—		—
Total short-term investments		39,280		3,062		36,218		—
Total financial assets	$	47,930	$	11,712	$	36,218	$	—
Liabilities:
Contingent consideration	$	540	$	—	$	—	$	540
Total financial liabilities	$	540	$	—	$	—	$	540

The fair values of our money market funds and mutual funds were derived from quoted market prices as active markets for these instruments exist. The fair values of certificates of deposit, corporate debt securities and government sponsored enterprise debt securities were derived from non-binding market consensus prices that are corroborated by observable market data.

The investments in mutual funds are held in a Rabbi trust to support the terms of our deferred compensation plan.

The following table summarizes available-for-sale and trading securities recorded as cash and cash equivalents or short-term investments:

	Amortized Cost		Gross Unrealized Gains (Losses)			Fair Value
March 31, 2013			(In thousands)
Money market funds	$	7,641	$	—		$	7,641
Certificates of deposit		2,450		—			2,450
Corporate debt securities		33,830		(11	)		33,819
Government sponsored enterprise debt securities		8,260		(2	)		8,258
Mutual funds		2,824		—			2,824
Total financial assets	$	55,005	$	(13	)	$	54,992

	Amortized Cost		Gross Unrealized Gains (Losses)			Fair Value
July 1, 2012			(In thousands)
Money market funds	$	8,650	$	—		$	8,650
Corporate debt securities		23,705		(2	)		23,703
Government sponsored enterprise debt securities		12,513		2			12,515
Mutual funds		3,062		—			3,062
Total financial assets	$	47,930	$	—		$	47,930

The following table summarizes the contractual maturities of fixed income securities (certificates of deposit, corporate debt securities and government sponsored enterprise debt securities) recorded as short-term investments as of March 31, 2013:

	Amortized Cost		Fair Value
	(In thousands)
Less than 1 year	$	19,518	$	19,521
Due in 1 to 3 years		25,022		25,006
Total	$	44,540	$	44,527

Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.

Level 3 financial liability:

The following table reconciles the beginning and ending balances for Level 3 liabilities for the first nine months of 2013 (in thousands):

	Contingent consideration
Balance as of July 1, 2012	$	540
Add: Adjustment to present value of contingent consideration		110
Balance as of March 31, 2013	$	650

Contingent consideration on acquired business is measured at fair value on a recurring basis using Level 3 inputs as defined in the fair value hierarchy. The following table presents certain information about the significant unobservable inputs used in the fair value measurement for the contingent consideration measured at fair value on a recurring basis using significant unobservable inputs:

Description	Valuation Techniques	Significant Unobservable Inputs
Liabilities: Contingent consideration	Present value of a Probability Weighted Earnout model using an appropriate discount rate.	Estimate of future revenue associated with acquired technology. Revenue of $4.9 million over a range of 3.5 years to 4 years.

An increase in the revenue growth percentage could result in a significantly higher estimated fair value of the contingent consideration liability. Alternatively, a decrease in the revenue growth percentage could result in a significantly lower estimated fair value of contingent consideration liability.

The fair value of contingent consideration was derived from a probability weighted earn-out model of future contingent payments. The cash payments, if any, are expected to be made quarterly, based upon revenue generated from the acquired product line, starting in the fourth quarter of fiscal 2013. No payments were made in the first nine months of fiscal 2013. The valuation of this liability is estimated based upon a collaborative effort of the Company’s marketing and finance departments. These future contingent payments are calculated based on estimates of future revenue attributable to the acquired technology (Note 12). To obtain a current valuation of these projected cash flows, an expected present value technique is applied using an appropriate discount rate. The cash flow projections and discount rates will be reviewed quarterly and updated as and when necessary. Potential valuation adjustments will be made as future revenue projections are updated which affect the calculation of the related contingent consideration payments. These adjustments will be recorded in the condensed consolidated statement of operations.

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Financial Instruments - Available-for-Sale and Trading Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	$ 55,005	$ 47,930
Available-for-sale securities, Gross Unrealized Gains (Losses)	(13)
Available-for-sale securities, Fair Value	54,992	47,930
Money market funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	7,641	8,650
Available-for-sale securities, Gross Unrealized Gains (Losses)
Available-for-sale securities, Fair Value	7,641	8,650
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	2,450
Available-for-sale securities, Gross Unrealized Gains (Losses)
Available-for-sale securities, Fair Value	2,450
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	33,830	23,705
Available-for-sale securities, Gross Unrealized Gains (Losses)	(11)	(2)
Available-for-sale securities, Fair Value	33,819	23,703
Government sponsored enterprise debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	8,260	12,513
Available-for-sale securities, Gross Unrealized Gains (Losses)	(2)	2
Available-for-sale securities, Fair Value	8,258	12,515
Mutual funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	2,824	3,062
Available-for-sale securities, Gross Unrealized Gains (Losses)
Available-for-sale securities, Fair Value	$ 2,824	$ 3,062

XML

Warranty - Changes in Accrued Warranty Liability (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Accounting Policies [Abstract]
Beginning balance	$ 1,492	$ 1,835	$ 1,722	$ 1,601
Provision for warranty	798	717	2,040	1,948
Accruals related to change in estimate	(164)	54	(259)	397
Less: Actual warranty costs	(671)	(708)	(2,048)	(2,048)
Ending balance	$ 1,455	$ 1,898	$ 1,455	$ 1,898

XML

Business Segment Information - Additional Information (Detail)	9 Months Ended
	Mar. 31, 2013 Segment
Segment Reporting [Abstract]
Reporting segments	2

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Current assets:
Cash and cash equivalents	$ 22,371	$ 27,659
Short-term investments	47,351	39,280
Accounts receivable, net of allowance for doubtful accounts of $683 and $108	38,870	45,952
Inventories	47,195	47,618
Prepaids and other current assets	17,379	16,943
Total current assets	173,166	177,452
Property, plant and equipment, net	23,148	22,702
Intangible assets, net	3,519	3,458
Deferred taxes and other assets	28,898	27,413
Total assets	228,731	231,025
Current liabilities:
Accounts payable	10,343	9,300
Accrued compensation	11,923	14,574
Accrued warranty	1,455	1,722
Other accrued liabilities	10,748	11,841
Total current liabilities	34,469	37,437
Long-term obligations	4,938	5,472
Deferred income taxes	334	334
Total liabilities	39,741	43,243
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.0001 par value; 500 shares authorized, none issued
Common stock, $0.0001 par value; 70,000 shares authorized, 52,676 shares issued and 40,982 outstanding at March 31, 2013; 51,500 shares issued and 40,952 outstanding at July 1, 2012	195,821	193,478
Accumulated other comprehensive loss	(208)	(232)
Accumulated deficit	(6,623)	(5,464)
Total stockholders' equity	188,990	187,782
Total liabilities and stockholders' equity	$ 228,731	$ 231,025

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Stockholders' Equity - Fair Value of Stock-Based Awards to Employees (Detail)	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected life (in years)	4 years 3 months 18 days	4 years 4 months 24 days	4 years 10 months 24 days	4 years 10 months 24 days
Risk-free interest rate	0.60%	0.70%	0.50%	0.70%
Volatility	56.70%	56.90%	56.80%	56.40%

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Cash flows from operating activities:
Net income (loss)	$ (1,159)	$ 7,398
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	4,869	4,163
Deferred income taxes	(1,895)	2,925
Loss on disposal of fixed assets	356	139
Stock-based compensation	5,250	4,581
Allowance for doubtful accounts	566	(102)
Provision for excess and obsolete inventory	2,148	2,617
Changes in assets and liabilities:
Accounts receivable	6,516	205
Inventories	(1,725)	3,219
Prepaids and other assets	799	(3,671)
Accounts payable	621	(6,226)
Accrued compensation	(2,651)	(1,834)
Other accrued liabilities	(2,244)	(3,040)
Net cash provided by operating activities	11,451	10,374
Cash flows from investing activities:
Purchases of short-term investments	(33,292)	(20,171)
Maturities/sale of short-term investments	24,500	26,816
Purchases of property, plant and equipment	(4,370)	(3,152)
Payment to acquire business and other assets	(702)	(1,400)
Remaining cash proceeds from sale of discontinued operations		210
Net cash provided by (used in) investing activities	(13,864)	2,303
Cash flows from financing activities:
Proceeds from issuance of common stock	2,733	2,796
Repurchase of common stock	(5,640)	(10,115)
Net cash used in financing activities	(2,907)	(7,319)
Effect of exchange rate changes on cash	32	(126)
Net increase (decrease) in cash and cash equivalents	(5,288)	5,232
Cash and cash equivalents at beginning of period	27,659	20,318
Cash and cash equivalents at end of period	22,371	25,550
Non-cash investing and financing activities:
Unrealized gain (loss) on investments, net	(8)	10
Property, plant and equipment purchases included in accounts payable	607	185
Unpaid Purchase consideration for acquired businesses	200	540
Cash payments for:
Income taxes	$ 1,652	$ 697

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Financial Instruments - Schedule of Contingent Consideration Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) (Contingent consideration [Member], USD $) In Millions, unless otherwise specified	9 Months Ended
	Mar. 31, 2013
Contingent consideration [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Valuation Techniques	Present value of a Probability Weighted Earnout model using an appropriate discount rate.
Estimate future revenue associated with acquired technology	$ 4.9
Estimate future revenue associated with acquired technology, minimum	3 years 6 months
Estimate future revenue associated with acquired technology, maximum	4 years

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Inventories (Tables)

9 Months Ended

Mar. 31, 2013

Inventory Disclosure [Abstract]

Schedule of Inventories

Components of inventories were as follows:

	March 31, 2013		July 1, 2012
	(In thousands)
Raw materials	$	18,105	$	21,003
Work-in-process		11,524		10,440
Finished goods		17,566		16,175
Inventories	$	47,195	$	47,618

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Inventories - Schedule of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Statement Of Financial Position [Abstract]
Raw materials	$ 18,105	$ 21,003
Work-in-process	11,524	10,440
Finished goods	17,566	16,175
Inventories	$ 47,195	$ 47,618

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Warranty (Tables)

9 Months Ended

Mar. 31, 2013

Product Warranties Disclosures [Abstract]

Changes in Accrued Warranty Liability

Changes in our accrued warranty liability were as follows:

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
	(In thousands)						(In thousands)
Beginning balance	$	1,492		$	1,835		$	1,722		$	1,601
Provision for warranty		798			717			2,040			1,948
Accruals related to change in estimate		(164	)		54			(259	)		397
Less: Actual warranty costs		(671	)		(708	)		(2,048	)		(2,048	)
Ending balance	$	1,455		$	1,898		$	1,455		$	1,898

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Basis of Presentation and Recently Issued Accounting Pronouncements

9 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Basis of Presentation and Recently Issued Accounting Pronouncements

Note 1. Basis of Presentation and Recently Issued Accounting Pronouncements

The condensed consolidated financial statements of Symmetricom, Inc. (“Symmetricom,” “we,” “us,” the “Company,” or “our”) included herein are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of the management, necessary for a fair presentation of the financial position, results of operations, comprehensive income loss and cash flows for the interim periods presented. In presenting the financial statements in accordance with accounting principles generally accepted in the United States (US GAAP), management makes certain estimates and assumptions that impact the amounts reported and related disclosures. Estimates, by their nature, are judgments based upon available information. Accordingly, actual results could differ from those estimates.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Symmetricom’s Annual Report on Form 10-K for the fiscal year ended July 1, 2012. The results of operations for the three and nine months ended March 31, 2013 are not necessarily indicative of the results to be anticipated for the entire fiscal year ending June 30, 2013.

The condensed consolidated balance sheet as of July 1, 2012 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes required by US GAAP for complete financial statements.

Fiscal Quarter

Our fiscal quarter is 13 weeks ending on the Sunday closest to the end of the calendar quarter.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 683	$ 108
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	500	500
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	70,000	70,000
Common stock, shares issued	52,676	51,500
Common stock, shares outstanding	40,982	40,952

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Business Segment Information

9 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Business Segment Information

Note 11. Business Segment Information

Symmetricom has two operating segments: Communications and Government and Enterprise. These two operating segments are also our reporting segments. The Chief Operating Decision Maker (CODM), as defined by authoritative accounting guidance on Segment Reporting, is our President and Chief Executive Officer (CEO). Our CEO allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes.

With the exception of intangible assets, we do not identify or allocate assets by operating segment, nor does our CEO evaluate operating segments using discrete asset information. We do not allocate restructuring charges, interest and other income, interest expense, or income taxes to operating segments.

The following describes our two reporting segments:

Communications

Our Communications business supplies timing technologies and services for worldwide communications infrastructure. Products include primary reference sources, synchronization distribution systems and embedded components and software, all of which support the timing and synchronization requirements of telecommunications and cable networks and equipment.

Government and Enterprise

Our Government and Enterprise business provides time technology products for aerospace/defense, Power, IT infrastructure and science and metrology applications. Precision time and frequency systems enable a range of critical operations, including the international time scale, global navigation, the management of power grids, synchronization of complex control systems, and signals intelligence for securing communications in remote and hostile environments.

Segment revenue, gross profit, and operating income (loss) were as follows during the periods presented:

Three months ended March 31, 2013
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	29,958	$	23,391	$	—		$	53,349
Cost of sales		14,144		14,753		369			29,266
Gross profit		15,814		8,638		(369	)		24,083
Operating expenses		8,916		7,137		7,865			23,918
Operating income (loss)	$	6,898	$	1,501	$	(8,234	)	$	165
Three months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	32,646	$	27,792	$	—		$	60,438
Cost of sales		16,672		19,041		64			35,777
Gross profit		15,974		8,751		(64	)		24,661
Operating expenses		9,121		6,697		5,568			21,386
Operating income (loss)	$	6,853	$	2,054	$	(5,632	)	$	3,275
Nine Months ended March 31, 2013
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	87,585	$	71,306	$	—		$	158,891
Cost of sales		42,779		46,351		375			89,505
Gross profit		44,806		24,955		(375	)		69,386
Operating expenses		27,705		20,994		23,715			72,414
Operating income (loss)	$	17,101	$	3,961	$	(24,090	)	$	(3,028	)
Nine Months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	99,523	$	75,587	$	—		$	175,110
Cost of sales		49,807		48,332		1,155			99,294
Gross profit		49,716		27,255		(1,155	)		75,816
Operating expenses		28,369		19,712		16,728			64,809
Operating income (loss)	$	21,347	$	7,543	$	(17,883	)	$	11,007

The information in the Corporate category above represents corporate-related costs that are not allocated to either of our two segments for the purpose of evaluating their performance. The following table outlines our major corporate-related costs:

	Three Months Ended					Nine Months Ended
	March 31, 2013		April 1, 2012			March 31, 2013		April 1, 2012
	(In thousands)					(In thousands)
Selling, general and administrative costs	$	6,912	$	5,643		$	21,571	$	16,604
Restructuring charges		1,322		(11	)		2,519		1,279
Corporate-related total	$	8,234	$	5,632		$	24,090	$	17,883

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Document and Entity Information	9 Months Ended
	Mar. 31, 2013	Apr. 28, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	SYMM
Entity Registrant Name	SYMMETRICOM INC
Entity Central Index Key	0000082628
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		40,982,073

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Business Combination

9 Months Ended

Mar. 31, 2013

Business Combinations [Abstract]

Business Combination

Note 12. Business Combination

During the third quarter of fiscal 2012, the Company acquired a product line (existing technology, customer relationships, fixed assets and employees) to enhance the Company’s product offerings in embedded timing and synchronization solutions for residential small cell solutions. This transaction was recorded as an acquisition of a business. The transaction price was approximately $2.4 million, of which $1.4 million was paid in cash and approximately $1.0 million is contingent consideration payable as a royalty upon future sales of such products.

The fair value of the contingent consideration arrangement at the acquisition date was $0.5 million. We estimated the fair value of the contingent consideration using a probability-weighted discounted cash flow model (See Note 2). The purchase price was determined as follows (amounts in thousands):

Initial cash payment	$	1,400
Fair value of contingent consideration		540
Total	$	1,940

This purchase price was allocated to fixed assets and intangible assets based on their estimated fair values as follows (amounts in thousands):

Fixed assets	$	50
Intangible assets		1,890
Total	$	1,940

The estimated fair value of intangible assets acquired under the transaction consists of the following (in thousands):

Existing technology (estimated useful life 4 years)	$	1,612
Customer relationships (estimated useful life 2 years)		278
Total	$	1,890

The fair value of the acquired non-monetary assets, summarized above, were derived from significant unobservable inputs (“Level 3 inputs”) determined by the Company based on market analysis, income analysis (discounted cash flow model), or cost approach. The fair value of fixed assets acquired was determined using market data for similar assets. The fair value of existing technology was determined using a discounted cash flow model from cash flow projections prepared by management, including estimated undiscounted cash flows of approximately $3 million during the five to six year period after the acquisition, and a weighted average cost of capital. The fair value of customer relationships was determined using a cost approach which includes an estimate of time and expenses required to recreate the intangible asset.

During the second quarter of fiscal 2013, the Company acquired a product line (existing technology, inventories, and support from the former owner) to enhance the Company’s product offerings of test and measurement solutions. This transaction has been recorded as an acquisition of a business. The transaction price was approximately $0.5 million payable in cash in periodic installments to the former owner. The purchase price was entirely allocated to existing technology (the acquired intangible asset) which has an estimated useful life of 5 years.

Pro forma results of operations have not been presented because the effect of the business combinations described in this Note was not material to our condensed consolidated results of operations. Revenue and earnings per share for the acquired businesses from the date of acquisition through March 31, 2013, were not material.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Income Statement [Abstract]
Net revenue	$ 53,349	$ 60,438	$ 158,891	$ 175,110
Cost of sales:
Cost of products and services	28,654	35,638	88,415	97,693
Acquisition-related costs	237	74	719	445
Restructuring charges	375	65	371	1,156
Total cost of sales	29,266	35,777	89,505	99,294
Gross profit	24,083	24,661	69,386	75,816
Operating expenses:
Research and development	8,291	7,129	24,409	20,575
Selling, general and administrative	14,593	14,281	45,598	43,955
Amortization of intangible assets	87	52	259	156
Restructuring charges	947	(76)	2,148	123
Total operating expenses	23,918	21,386	72,414	64,809
Operating income (loss)	165	3,275	(3,028)	11,007
Interest income, net of amortization (accretion) of premium (discount) on investments	98	225	240	(5)
Income (loss) before taxes	263	3,500	(2,788)	11,002
Income tax provision (benefit)	(556)	1,296	(1,629)	3,604
Net income (loss)	$ 819	$ 2,204	$ (1,159)	$ 7,398
Earnings (loss) per share:
Basic	$ 0.02	$ 0.05	$ (0.03)	$ 0.18
Diluted	$ 0.02	$ 0.05	$ (0.03)	$ 0.17
Shares used in computing earnings (loss) per share:
Weighted average shares outstanding - basic	40,502	41,795	40,456	42,258
Weighted average shares outstanding - diluted	40,956	42,615	40,456	42,937

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Long-term Obligations

9 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Long-term Obligations

Note 6. Long-term Obligations

Long-term obligations consist of:

	March 31, 2013		July 1, 2012
	(In thousands)
Long-term obligations:
Deferred revenue	$	2,031	$	2,254
Lease loss accrual, net		895		1,240
Rent accrual		1,010		1,102
Post-retirement benefits		190		173
Income tax		216		216
Consideration for acquired businesses		596		487
Total	$	4,938	$	5,472

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Warranty

9 Months Ended

Mar. 31, 2013

Product Warranties Disclosures [Abstract]

Warranty

Note 5. Warranty

Changes in our accrued warranty liability were as follows:

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
	(In thousands)						(In thousands)
Beginning balance	$	1,492		$	1,835		$	1,722		$	1,601
Provision for warranty		798			717			2,040			1,948
Accruals related to change in estimate		(164	)		54			(259	)		397
Less: Actual warranty costs		(671	)		(708	)		(2,048	)		(2,048	)
Ending balance	$	1,455		$	1,898		$	1,455		$	1,898

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Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Other Intangible Assets

Intangible assets consist of:

	Gross Carrying Amount		Accumulated Amortization			Net Intangible Assets
	(in thousands)
Purchased technology	$	26,871	$	(24,424	)	$	2,447
Customer lists and trademarks		7,303		(6,231	)		1,072
Total as of March 31, 2013	$	34,174	$	(30,655	)	$	3,519
Purchased technology	$	25,970	$	(23,845	)	$	2,125
Customer lists and trademarks		7,303		(5,970	)		1,333
Total as of July 1, 2012	$	33,273	$	(29,815	)	$	3,458

Estimated Future Amortization Expense

The estimated future amortization expense by fiscal year is as follows:

Fiscal year:	(in thousands)
2013 (Remaining 3 months)	$	296
2014		1,149
2015		776
2016		602
2017		295
Thereafter		401
Total amortization	$	3,519

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Subsequent Event

9 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Subsequent Event

Note 13. Subsequent Event

Effective as of April 29, 2013, the Board of Directors of the Company appointed Elizabeth A. Fetter, a member of the Board of Directors of the Company, as the Company’s Chief Executive Officer. Ms. Fetter replaces David G. Côté, who resigned as Chief Executive Officer and as a member of the Board of Directors of the Company effective as of the same date.

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Net Income (Loss) Per Share

9 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Note 9. Net Income (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding and common equivalent shares from dilutive stock options, employee stock purchase plan and restricted stock using the treasury stock method, except when antidilutive.

The following table reconciles the number of shares utilized in the net income (loss) per share calculations:

	Three Months Ended						Nine Months Ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
	(In thousands, except per share amounts)
Numerator:
Net income (loss)	$	819		$	2,204		$	(1,159	)	$	7,398
Shares (denominator):
Weighted average common shares outstanding		40,862			42,056			40,816			42,494
Weighted average common shares outstanding subject to repurchase		(360	)		(261	)		(360	)		(236	)
Weighted average shares outstanding—basic		40,502			41,795			40,456			42,258
Weighted average dilutive share equivalents from stock options		338			741			—			578
Weighted average dilutive common shares subject to repurchase		116			79			—			101
Weighted average shares outstanding— diluted		40,956			42,615			40,456			42,937
Earnings (loss) per share:
Basic	$	0.02		$	0.05		$	(0.03	)	$	0.18
Diluted	$	0.02		$	0.05		$	(0.03	)	$	0.17

Unvested restricted stock is subject to repurchase by the Company and therefore is not included in the calculation of the weighted-average shares outstanding for basic earnings per share.

The following common stock equivalents were excluded from the earnings (loss) per share calculation as their effect would have been anti-dilutive:

	Three Months Ended				Nine Months Ended
	March 31, 2013		April 1, 2012		March 31, 2013		April 1, 2012
	(In thousands)				(In thousands)
Stock options		5,203		4,310		3,116		4,028
Common shares subject to repurchase		—		—		360		—
Total shares of common stock excluded from diluted net income (loss) per share calculation		5,203		4,310		3,476		4,028

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Stockholders' Equity

9 Months Ended

Mar. 31, 2013

Equity [Abstract]

Stockholders' Equity

Note 7. Stockholders’ Equity

Stock Options and Awards Activity

Stock award activity for the nine months ended March 31, 2013 is as follows:

				Non Performance-based Options Outstanding					Restricted Stock Outstanding
	Shares Available For Grant			Number of Shares			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value
	(In thousands, except per share amounts)
Balances at July 1, 2012		2,889			7,316		$	5.54		261		$	5.68
Amendment of 2006 Plan		2,000
Granted - options		(1,475	)		1,475			6.09
Granted - restricted shares		(522	)							261			6.12
Exercised					(602	)		4.43
Vested										(162	)		5.84
Cancelled		231			(231	)		5.81
Balances at March 31, 2013		3,123			7,958		$	5.71		360		$	5.93

On October 26, 2012 at our annual meeting of shareholders, the shareholders approved an amendment to the 2006 Incentive Award Plan that included an additional 2.0 million shares for future issuance.

Stock options outstanding, vested and expected to vest, and exercisable as of March 31, 2013 were as follows:

Options	Number of Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value
	(In thousands)		(In years)				(In thousands)
Outstanding		7,958		4.50	$	5.71	$	103
Vested and expected to vest		7,754		4.46	$	5.71	$	102
Exercisable		4,375		3.58	$	5.73	$	77

The aggregate intrinsic value in the preceding table represents the total pre-tax value of stock options outstanding as of March 31, 2013, based on our common stock closing price of $4.54 on March 28, 2013, which would have been received by the option holders had all option holders exercised their options as of that date.

The total intrinsic value of options exercised during the third quarter of fiscal 2013 and 2012 was approximately $0.5 million and $0.4 million, respectively.

For the third quarter of fiscal 2013 and 2012, the weighted-average estimated fair value of options granted was $2.56 and $2.57 per share, respectively. For the nine months ended March 31, 2013 and April 1, 2012, the weighted-average estimated fair value of options granted was $2.87 and $2.45 per share, respectively. Our calculations were made using the Black-Scholes option-pricing model. The fair value of Symmetricom stock-based awards to employees was estimated assuming no expected dividend and the weighted-average assumptions for the three and nine months ended March 31, 2013 and April 1, 2012 as follows:

	Three months ended						Nine Months ended
	March 31, 2013			April 1, 2012			March 31, 2012			April 1, 2012
Expected life (in years)		4.3			4.4			4.9			4.9
Risk-free interest rate		0.6	%		0.7	%		0.5	%		0.7	%
Volatility		56.7	%		56.9	%		56.8	%		56.4	%

We calculated the stock-based compensation expense in the third quarter of fiscal 2013 and 2012, using an estimated annual forfeiture rate of 4.6% and 6.6%, respectively. At March 31, 2013, the total cumulative compensation cost related to unvested stock-based awards granted to employees, directors and consultants under the Company’s stock option plans, but not yet recognized, was approximately $6.0 million, net of estimated forfeitures of $0.8 million. This cost will be amortized on an accelerated method basis over a period of approximately 1.3 years and will be adjusted for subsequent changes in estimated forfeitures.

The following table shows total stock-based compensation costs included in the condensed consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	March 31, 2013		April 1, 2012		March 31, 2013		April 1, 2012
	(In thousands)				(In thousands)
Cost of sales	$	275	$	272	$	815	$	606
Research and development		306		312		984		896
Selling, general and administrative		1,209		1,154		3,451		3,079
Pre-tax stock-based compensation expense		1,790		1,738		5,250		4,581
Less: Income tax effect		662		643		1,943		1,695
Total	$	1,128	$	1,095	$	3,307	$	2,886

The above table includes expense of $0.1 million and $0.4 million, relating to the employee stock purchase plan (ESPP) for the third quarter and first nine months of both fiscal 2013 and 2012.

Performance Awards

In the second quarter of fiscal 2013, the Company communicated its intention to grant 103,000 shares of performance - based restricted stock to its executive management employees subject to the achievement of certain financial performance targets. The number of stock awards that will ultimately be granted depends on actual business performance measured for fiscal 2013 against certain targets for revenue and profitability for the Company’s business as well as continued employment with the Company.

In the second quarter of fiscal 2012, the Company had communicated its intention to grant 110,000 shares of performance - based restricted stock to its executive management employees. During the first quarter of fiscal 2013, 92,620 restricted shares were granted based on achievement against certain revenue and profitability targets.

Stock Repurchases

We repurchased 33,000 shares in the third quarter of fiscal 2013 for an aggregate price of approximately $0.2 million to cover the cost of employee income taxes on option exercises.

As of March 31, 2013, the total number of shares available for repurchase under the repurchase program authorized by the Board of Directors was approximately 1.9 million.

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Restructuring Charges

9 Months Ended

Mar. 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring Charges

Note 8. Restructuring Charges

The following table shows the details of the restructuring cost accruals, which consist of facilities, severance costs, and consulting and outside services, at March 31, 2013 and July 1, 2012:

	July 1, 2012		Expense Additions			Payments			March 31, 2013
	(in thousands)
Lease loss accrual (fiscal 2004)	$	137	$	16		$	(31	)	$	122
All other restructuring changes (fiscal 2004)		68		30			(56	)		42
Lease loss accrual (fiscal 2009)		902		69			(231	)		740
All other restructuring changes (fiscal 2010)		75		(165	)		163			73
Lease loss accrual (fiscal 2011)		170		12			(38	)		144
Lease loss accrual (fiscal 2012)		698		34			(231	)		501
All other restructuring changes (fiscal 2012)		159		203			(360	)		2
All other restructuring changes (fiscal 2013)		—		2,320			(2,007	)		313
Total	$	2,209	$	2,517		$	(2,789	)	$	1,937

During the first nine months of fiscal 2013, we incurred approximately $2.5 million in severance, consulting, and outside service charges related to our reduction in work-force, reduction in facilities, and closing of research and development operations in China.

The lease loss accruals are subject to periodic revisions based on current market estimates. The lease loss accruals as of March 31, 2013 will be paid over the next three years.

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Litigation and Contingencies

9 Months Ended

Mar. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Litigation and Contingencies

Note 10. Litigation and Contingencies

Litigation—The Company is or was a party to the following material litigations:

Former Texas Facility Environmental Cleanup

We formerly leased a tract of land in Texas for our operations. Those operations involved the use of solvents and, at the end of the lease, we remediated an area where the solvents had been deposited on the ground and obtained regulatory approval for that remedial activity. In 1996, an environmental investigation of the property detected those same contaminants in groundwater in excess of then current regulatory standards. The groundwater contamination has migrated to some adjacent properties. We have entered into the Texas Natural Resource Conservation Commission’s Voluntary Cleanup Program (the “Voluntary Cleanup Program”) to obtain regulatory approval for closure of this site and a release from liability to the State of Texas for subsequent landowners and lenders. We have notified adjacent property owners affected by the contamination of participation in the Voluntary Cleanup Program. On May 20, 2004, we received a demand from the owner of several adjacent lots for damages in the amount of $1.3 million, as well as seeking an indemnity for the contamination and a promise to remediate the contamination. On March 14, 2006, the adjacent property owner filed suit in Probate Court No. 1, Travis County, Texas (Anna B. Miller, Individually and as Executrix of the Estate of Robert L. Miller, et al. vs. Austron, Inc., et al.), seeking damages. Symmetricom has not yet been served in this matter, but we intend to defend this lawsuit vigorously. We are continuing to work on the remediation of the formerly leased site as well as the adjacent properties, and have also taken steps to begin work on the Miller property. As of March 31, 2013, we had an accrual of $42,000 for remediation costs and other ongoing monitoring costs which has been included within “other accrued liabilities” on our condensed consolidated balance sheet.

Michael E. McNeil, et al. vs. Jason Book, et al.

On or around May 25, 2010, Symmetricom was served with the first amended complaint in the case of Michael E. McNeil, et al. vs. Jason Book, et al. (Case No. CV165643) filed in Santa Cruz County Superior Court, California. The first amended complaint added Symmetricom and several other parties to the lawsuit, which had been originally filed in 2009 by plaintiffs against their former attorney for legal malpractice in connection with certain settlement agreements in 1999 between plaintiffs and Datum (a company acquired by Symmetricom) in which they assigned to Datum certain intellectual property rights. The complaint has since been amended for the second time and Symmetricom was served with the second amended complaint on or around January 7, 2011. The second amended complaint alleges several causes of action, including claims against Symmetricom for contract rescission, breach of contract, conversion and unjust enrichment, and seeks unspecified monetary damages along with equitable relief. Management believes that this lawsuit has no merit or basis and intends to defend this lawsuit vigorously and as a result, no accrual has been made in relation to this litigation. Management believes the final outcome of this matter will not have a material adverse effect on our financial position and results of operations.

General

Under the indemnification provisions of our standard sales contracts, we agree to defend the customer against third party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and to pay any judgments entered on such claims against the reseller/customer. The exposure to us under these indemnification provisions is generally limited to the total amount paid by the customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of the amount received under the agreement. To date, there have been no claims under such indemnification provisions. We believe the estimated fair value of these indemnification agreements is not material.

We are also a party to certain other claims in the normal course of our operations. While the results of these claims cannot be predicted with any certainty, we believe that the final outcome of these matters will not have a material adverse effect on our consolidated financial position and results of operations.

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Financial Instruments - Reconciles Beginning and Ending Balances for Level 3 Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2013
Reconciles the beginning and ending balances for Level 3 liabilities
Beginning balance	$ 540
Add: Adjustment to present value of contingent consideration	110
Ending balance	$ 650

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Litigation and Contingencies - Additional Information (Detail) (USD $)	1 Months Ended
	May 20, 2004	Mar. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
Amount sought for damages	$ 1,300,000
Accrued remediation and other ongoing monitoring costs		$ 42,000

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Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2013

Investments All Other Investments [Abstract]

Financial Instruments

Financial assets measured at fair value on a recurring basis consisted of the following types of instruments as of March 31, 2013 and July 1, 2012:

	Fair Value as of March 31, 2013		Quoted prices in Active Markets Identical Assets (Level 1)		Significant Observable (Level 2)		Significant Other Unobservable (Level 3)
	(In thousands)
Assets:
Money market funds	$	7,641	$	7,641			$	—
Short-term investments:
Certificates of deposit		2,450		—		2,450
Corporate debt securities		33,819		—		33,819		—
Government sponsored enterprise debt securities		8,258		—		8,258		—
Mutual funds		2,824		2,824		—		—
Total short-term investments		47,351		2,824		44,527		—
Total financial assets	$	54,992	$	10,465	$	44,527	$	—
Liabilities:
Contingent consideration	$	650	$	—	$	—	$	650
Total financial liabilities	$	650	$	—	$	—	$	650
	Fair Value as of July 1, 2012		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Other Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Money market funds	$	8,650	$	8,650	$	—	$	—
Short-term investments:
Corporate debt securities		23,703		—		23,703		—
Government sponsored enterprise debt securities		12,515		—		12,515		—
Mutual funds		3,062		3,062		—		—
Total short-term investments		39,280		3,062		36,218		—
Total financial assets	$	47,930	$	11,712	$	36,218	$	—
Liabilities:
Contingent consideration	$	540	$	—	$	—	$	540
Total financial liabilities	$	540	$	—	$	—	$	540

Available-for-Sale and Trading Securities

The following table summarizes available-for-sale and trading securities recorded as cash and cash equivalents or short-term investments:

	Amortized Cost		Gross Unrealized Gains (Losses)			Fair Value
March 31, 2013			(In thousands)
Money market funds	$	7,641	$	—		$	7,641
Certificates of deposit		2,450		—			2,450
Corporate debt securities		33,830		(11	)		33,819
Government sponsored enterprise debt securities		8,260		(2	)		8,258
Mutual funds		2,824		—			2,824
Total financial assets	$	55,005	$	(13	)	$	54,992

	Amortized Cost		Gross Unrealized Gains (Losses)			Fair Value
July 1, 2012			(In thousands)
Money market funds	$	8,650	$	—		$	8,650
Corporate debt securities		23,705		(2	)		23,703
Government sponsored enterprise debt securities		12,513		2			12,515
Mutual funds		3,062		—			3,062
Total financial assets	$	47,930	$	—		$	47,930

Summarizes Available-for-Sale and Trading Securities

The following table summarizes the contractual maturities of fixed income securities (certificates of deposit, corporate debt securities and government sponsored enterprise debt securities) recorded as short-term investments as of March 31, 2013:

	Amortized Cost		Fair Value
	(In thousands)
Less than 1 year	$	19,518	$	19,521
Due in 1 to 3 years		25,022		25,006
Total	$	44,540	$	44,527

Reconciles Beginning and Ending Balances for Level 3 Liabilities

The following table reconciles the beginning and ending balances for Level 3 liabilities for the first nine months of 2013 (in thousands):

	Contingent consideration
Balance as of July 1, 2012	$	540
Add: Adjustment to present value of contingent consideration		110
Balance as of March 31, 2013	$	650

Schedule of Contingent Consideration Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table presents certain information about the significant unobservable inputs used in the fair value measurement for the contingent consideration measured at fair value on a recurring basis using significant unobservable inputs:

Description	Valuation Techniques	Significant Unobservable Inputs
Liabilities: Contingent consideration	Present value of a Probability Weighted Earnout model using an appropriate discount rate.	Estimate of future revenue associated with acquired technology. Revenue of $4.9 million over a range of 3.5 years to 4 years.

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Stockholders' Equity (Tables)

9 Months Ended

Mar. 31, 2013

Equity [Abstract]

Stock Award Activity

Stock award activity for the nine months ended March 31, 2013 is as follows:

				Non Performance-based Options Outstanding					Restricted Stock Outstanding
	Shares Available For Grant			Number of Shares			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value
	(In thousands, except per share amounts)
Balances at July 1, 2012		2,889			7,316		$	5.54		261		$	5.68
Amendment of 2006 Plan		2,000
Granted - options		(1,475	)		1,475			6.09
Granted - restricted shares		(522	)							261			6.12
Exercised					(602	)		4.43
Vested										(162	)		5.84
Cancelled		231			(231	)		5.81
Balances at March 31, 2013		3,123			7,958		$	5.71		360		$	5.93

Stock Options Outstanding, Vested and Expected to Vest, and Exercisable

Stock options outstanding, vested and expected to vest, and exercisable as of March 31, 2013 were as follows:

Options	Number of Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value
	(In thousands)		(In years)				(In thousands)
Outstanding		7,958		4.50	$	5.71	$	103
Vested and expected to vest		7,754		4.46	$	5.71	$	102
Exercisable		4,375		3.58	$	5.73	$	77

Fair Value of Stock-Based Awards to Employees

The fair value of Symmetricom stock-based awards to employees was estimated assuming no expected dividend and the weighted-average assumptions for the three and nine months ended March 31, 2013 and April 1, 2012 as follows:

	Three months ended						Nine Months ended
	March 31, 2013			April 1, 2012			March 31, 2012			April 1, 2012
Expected life (in years)		4.3			4.4			4.9			4.9
Risk-free interest rate		0.6	%		0.7	%		0.5	%		0.7	%
Volatility		56.7	%		56.9	%		56.8	%		56.4	%

Stock-Based Compensation Costs Included in Condensed Consolidated Statements of Operations

The following table shows total stock-based compensation costs included in the condensed consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	March 31, 2013		April 1, 2012		March 31, 2013		April 1, 2012
	(In thousands)				(In thousands)
Cost of sales	$	275	$	272	$	815	$	606
Research and development		306		312		984		896
Selling, general and administrative		1,209		1,154		3,451		3,079
Pre-tax stock-based compensation expense		1,790		1,738		5,250		4,581
Less: Income tax effect		662		643		1,943		1,695
Total	$	1,128	$	1,095	$	3,307	$	2,886

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Net Income (Loss) Per Share - Schedule of Denominator Used in Calculation of Basic and Diluted Net Earnings per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Numerator:
Net income (loss)	$ 819	$ 2,204	$ (1,159)	$ 7,398
Shares (denominator):
Weighted average common shares outstanding	40,862	42,056	40,816	42,494
Weighted average common shares outstanding subject to repurchase	(360)	(261)	(360)	(236)
Weighted average shares outstanding-basic	40,502	41,795	40,456	42,258
Weighted average shares outstanding-basic	40,502	41,795	40,456	42,258
Weighted average dilutive share equivalents from stock options	338	741		578
Weighted average dilutive common shares subject to repurchase	116	79		101
Weighted average shares outstanding-diluted	40,956	42,615	40,456	42,937
Earnings (loss) per share:
Basic	$ 0.02	$ 0.05	$ (0.03)	$ 0.18
Diluted	$ 0.02	$ 0.05	$ (0.03)	$ 0.17

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Long-term Obligations - Long-term Obligations (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Long-term obligations:
Deferred revenue	$ 2,031	$ 2,254
Lease loss accrual, net	895	1,240
Rent accrual	1,010	1,102
Post-retirement benefits	190	173
Income tax	216	216
Consideration for acquired businesses	596	487
Total	$ 4,938	$ 5,472

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Mar. 31, 2013	Apr. 01, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 819	$ 2,204	$ (1,159)	$ 7,398
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments	(86)	110	32	(126)
Unrealized gain (loss) on investments	(10)	41	(8)	10
Other comprehensive income (loss)	(96)	151	24	(116)
Total comprehensive income (loss)	$ 723	$ 2,355	$ (1,135)	$ 7,282

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Intangible Assets

9 Months Ended

Mar. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 4. Intangible Assets

Intangible assets consist of:

	Gross Carrying Amount		Accumulated Amortization			Net Intangible Assets
	(in thousands)
Purchased technology	$	26,871	$	(24,424	)	$	2,447
Customer lists and trademarks		7,303		(6,231	)		1,072
Total as of March 31, 2013	$	34,174	$	(30,655	)	$	3,519
Purchased technology	$	25,970	$	(23,845	)	$	2,125
Customer lists and trademarks		7,303		(5,970	)		1,333
Total as of July 1, 2012	$	33,273	$	(29,815	)	$	3,458

The estimated future amortization expense by fiscal year is as follows:

Fiscal year:	(in thousands)
2013 (Remaining 3 months)	$	296
2014		1,149
2015		776
2016		602
2017		295
Thereafter		401
Total amortization	$	3,519

Intangible asset amortization expense for the third quarter of fiscal 2013 and 2012 was $0.3 million and $0.1 million, respectively. Intangible asset amortization expense for the first nine months of fiscal 2013 and 2012 was $0.8 million and $0.6 million, respectively.

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Business Combination - Estimated Fair Value of Intangible Assets Acquired under the Transaction (Parenthetical) (Detail)	3 Months Ended
	Dec. 30, 2012	Apr. 01, 2012 Existing technology [Member]	Apr. 01, 2012 Customer relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years	4 years	2 years

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Restructuring Charges (Tables)

9 Months Ended

Mar. 31, 2013

Restructuring And Related Activities [Abstract]

Schedule of Restructuring and Related Charges

The following table shows the details of the restructuring cost accruals, which consist of facilities, severance costs, and consulting and outside services, at March 31, 2013 and July 1, 2012:

	July 1, 2012		Expense Additions			Payments			March 31, 2013
	(in thousands)
Lease loss accrual (fiscal 2004)	$	137	$	16		$	(31	)	$	122
All other restructuring changes (fiscal 2004)		68		30			(56	)		42
Lease loss accrual (fiscal 2009)		902		69			(231	)		740
All other restructuring changes (fiscal 2010)		75		(165	)		163			73
Lease loss accrual (fiscal 2011)		170		12			(38	)		144
Lease loss accrual (fiscal 2012)		698		34			(231	)		501
All other restructuring changes (fiscal 2012)		159		203			(360	)		2
All other restructuring changes (fiscal 2013)		—		2,320			(2,007	)		313
Total	$	2,209	$	2,517		$	(2,789	)	$	1,937

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Intangible Assets - Estimated Future Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jul. 01, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
2013 (Remaining 3 months)	$ 296
2014	1,149
2015	776
2016	602
2017	295
Thereafter	401
Net Intangible Assets	$ 3,519	$ 3,458

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Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)

9 Months Ended

Mar. 31, 2013

Investments All Other Investments [Abstract]

Fiscal Quarter

Fiscal Quarter

Our fiscal quarter is 13 weeks ending on the Sunday closest to the end of the calendar quarter.

Fair Value Measurement

We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

• Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

• Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

• Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.