Commitments and Contingencies

6 Months Ended

Jun. 29, 2014

Commitments and Contingencies Disclosure [Abstract]

The Company's manufacturing suppliers require us to forecast wafer starts several months in advance. The Company is committed to take delivery of and pay for a portion of forecasted wafer volume. As of June 29, 2014 and December 29, 2013, the Company had $202,000 and $10.8 million, respectively, of outstanding commitments for the purchase of wafer and finished goods inventory.

The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of June 29, 2014, total outstanding purchase obligations were $960,000, which are primarily due within the next twelve months.

The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense, net of sublease income, for the second quarters of 2014 and 2013 was approximately $240,000 and $259,000, respectively. Total rent expense, net of sublease income, for the first six months of 2014 and 2013 was approximately $471,000 and $492,000, respectively.

As of June 29, 2014, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:



	Operating Leases
	(in thousands)
Fiscal Years
2014 (Remaining 6 months)	$	452
2015	870
2016	815
2017	776
2018	799
	$	3,712

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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