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Note 17 - Prior Period Adjustments
12 Months Ended
Jun. 30, 2012
Accounting Changes and Error Corrections [Text Block]
17.  PRIOR PERIOD ADJUSTMENTS

During the first quarter of fiscal 2012, the Company identified a prior period error in the method of calculating compensation expense imputed under the Employee Stock Purchase Plan (ESPP) which had accumulated over a period of years. This error, which was immaterial to previously issued financial statements, resulted in an understatement of compensation expense in the Consolidated Statement of Operations for prior periods. The recorded balance of additional paid-in capital was likewise understated in the consolidated balance sheets for prior periods.  The Company evaluated the effects of this error on prior periods’ consolidated financial statements, individually and in the aggregate, in accordance with the guidance in ASC Topic 250, Accounting Changes and Error Corrections, ASC Topic 250-10-S99-1, Assessing Materiality, and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“ASC 250”), and concluded that no prior period is materially misstated.  In order to correct this immaterial error, the Company has revised the accompanying statements of stockholders’ equity and comprehensive  income (loss) as of the earliest period presented (June 27, 2009) to decrease retained earnings by $548,000 and to increase additional paid-in capital by the same amount.  We made no adjustments to the accompanying fiscal 2011 and 2010 statements of operations and cash flows due to the de minimis impact of the errors to those statements.

During the fourth quarter of fiscal 2012, the Company identified a prior period error in the estimate of a potential income tax exposure arising in fiscal 2008. This error, which was immaterial to previously issued financial statements, resulted in an understatement of income tax expense in the consolidated statement of operations for such fiscal year. The recorded balance of other tax obligations was likewise understated in the consolidated balance sheets for since fiscal 2008.  The Company evaluated the effects of this error on prior periods’ consolidated financial statements, individually and in the aggregate, in accordance with the guidance in ASC 250 and concluded that no prior period financial statements are materially misstated.  In order to correct this immaterial error, the Company has revised the accompanying statements of stockholders’ equity and comprehensive income (loss) as of the earliest period presented (June 27, 2009) to decrease retained earnings by $677,000 and to increase other tax obligations by the same amount.  No adjustments were required to be made to the accompanying fiscal 2011 and 2010 statements of operations and cash flows.