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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Aviat Networks Inc | NASDAQ:AVNW | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.13 | -0.42% | 31.17 | 29.99 | 33.50 | 32.13 | 31.10 | 31.26 | 86,904 | 01:00:00 |
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended June 30, 2017
or
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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20-5961564
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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860 N. McCarthy Blvd., Suite 200, Milpitas, California
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95035
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (408) 941-7100
Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, par value $0.01 per share
Preferred Shares Purchase Rights
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NASDAQ Stock Market LLC
(NASDAQ Global Select Market)
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Large accelerated filer
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o
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Accelerated filer
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o
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Non-accelerated filer
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x
(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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Emerging growth company
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o
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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•
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continued price and margin erosion as a result of increased competition in the microwave transmission industry;
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•
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the impact of the volume, timing and customer, product and geographic mix of our product orders;
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•
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our ability to meet financial covenant requirements which could impact, among other things, our liquidity;
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•
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the timing of our receipt of payment for products or services from our customers;
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•
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our ability to meet projected new product development dates or anticipated cost reductions of new products;
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•
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our suppliers’ inability to perform and deliver on time as a result of their financial condition, component shortages or other supply chain constraints;
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•
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customer acceptance of new products;
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•
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the ability of our subcontractors to timely perform;
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continued weakness in the global economy affecting customer spending;
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retention of our key personnel;
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•
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our ability to manage and maintain key customer relationships;
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•
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uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation;
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•
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our failure to protect our intellectual property rights or defend against intellectual property infringement claims by others;
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•
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the results of our restructuring efforts;
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•
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the ability to preserve and use our net operating loss carryforwards;
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•
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the effects of currency and interest rate risks;
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•
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the conduct of unethical business practices in developing countries; and
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•
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the impact of political turmoil in countries where we have significant business.
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•
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New RAN Technologies.
Mobile Radio Access Network (“RAN”) technologies are continually evolving. With evolution from 2G to 3G (HSPA), 4G (HSPA+ and LTE), and next 5G standards, technology is
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•
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Subscriber Growth.
Traffic on the backhaul infrastructure increases as the number of unique subscribers grows.
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•
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Connected Devices.
The number of devices such as smart phones and tablets connected to the mobile network is far greater than the number of unique subscribers and is continuing to grow as consumers adopt multiple mobile device types. There is also rapid growth in the number and type of wireless enabled sensors and machines being connected to the mobile network creating new revenue streams for network operators in healthcare, agriculture, transportation and education. As a result, the data traffic crossing the backhaul infrastructure continues to grow rapidly.
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•
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IoT
. The Internet of Things (“IoT”) brings the potential of massive deployment of wireless end points for sensing and reporting data and remotely controlling machines and devices. The increase of data volume drives investment in network infrastructure.
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•
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RAN Capacity.
RAN frequency spectrum is a limited resource and shared between all of the devices and users within the coverage area of each base station. Meeting the combined demand of increasing subscribers and devices will require the deployment of much higher densities of base stations with smaller and smaller range (small cells) each requiring backhaul.
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•
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Geographic Coverage.
Expanding the geographic area covered by a mobile network requires the deployment of additional Cellular Base Station sites. Each additional base station site also needs to be connected to the core of the mobile network through expansion of the backhaul system.
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•
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License Mandates
. Mobile Operators are licensed telecommunications service providers. Licenses will typically mandate a minimum geographic footprint within a specific period of time and/or a minimum proportion of a national or regional population served. This can pace backhaul infrastructure investment and cause periodic spikes in demand.
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•
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Evolution to IP
. Network Infrastructure capacity, efficiency and flexibility is greatly enhanced by transitioning from legacy SDH (synchronous digital hierarchy) / SONET (synchronous optical network) / TDM (time division multiplexing) to IP (internet protocol) infrastructure. Our products offer integrated IP transport and routing functionality increasing the value they bring in the backhaul network.
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•
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Expansion of Offered Services.
Mobile network operators especially in emerging markets now own and operate the most modern communications networks within their respective regions. These network assets can be further leveraged to provide high speed broadband services to fixed locations such as small, medium and large business enterprises, airports, hotels, hospitals, and educational institutions. Microwave and millimeter wave backhaul is ideally suited to providing high speed broadband connections to these end points due to the lack of fiber infrastructure.
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•
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Many utility companies around the world are actively investing in Smart Grid solutions and energy demand management, which drive the need for network modernization and increased capacity of networks.
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•
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The investments in network modernization in the public safety market can significantly enhance the capabilities of security agencies. Improving border patrol effectiveness, enabling inter-operable emergency communications services for local or state police, providing access to timely information from centralized databases, or utilizing video and imaging devices at the scene of an incident requires a high bandwidth and reliable network. The mission critical nature of Public Safety and National security networks can require that these networks are built, operated and maintained independently of other public network infrastructure and microwave is very well suited to this environment because it is a cost-effective alternative to fiber.
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•
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Microwave technology can be used to engineer long distance and more direct connections than Optical Cable. Microwave signals also travel through the air much faster than light through glass and the combined effect of shorter distance and higher speed reduces latency, which is valued for trading applications in the financial industry. Our products have already been used to create low latency connections between major centers in the United States (“U.S.”), Europe and Asia and we see long-term interest in the creation of further low latency routes in various geographies around the world.
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The enhancement of Border Security and Surveillance networks to counter terrorism and insurgency is aided by the use of wireless technologies including microwave backhaul.
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Broad product and solution portfolio.
We offer a comprehensive suite of wireless transmission networking systems for microwave and millimeter wave networking applications. Our solution consists of tailored offerings of our own wireless products and our own integrated ancillary equipment or that of other manufacturers and providers of element and network management systems and professional services. These solutions address a wide range of transmission frequencies, ranging from 2.4 GHz to 90 GHz, and a wide range of transmission capacities, ranging up to over 10 Gbps. The major product families included in these solutions are CTR 8000, WTM 4000 and AviatCloud. Our CTR 8000 platform merges the functionality of an indoor microwave modem unit and a cell site router into a single integrated solution, simplifying IP/MPLS deployments and creating a better performing network. The newest addition to our product portfolio is the WTM 4000, the highest capacity microwave radio ever produced and purpose built for SDN. To address the issues of operational complexity in our customers’ networks, AviatCloud is an app-based platform to automate and virtualize networks and their operations.
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•
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Low total cost of ownership.
Our wireless-based solutions are focused on low total cost of ownership, including savings on the combined costs of initial acquisition, installation and ongoing operation and maintenance. Our latest generation system designs reduce rack space requirements, require less power, are software-configurable to reduce spare parts requirements, and are simple to install, operate, upgrade and maintain. Our advanced wireless features can also enable operators to save on related costs, including spectrum fees and tower rental fees.
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Futureproof network.
Our solutions are designed to protect the network operator’s investment by incorporating software-configurable capacity upgrades and plug-in modules that provide a smooth migration path to Carrier Ethernet and IP/MPLS (multiprotocol label switching)-based networking, without the need for costly equipment substitutions and additions. Our products include key technologies we believe will be needed by operators for their network evolution to support new broadband services.
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Flexible, easily configurable products.
We use flexible architectures with a high level of software configurable features. This design approach produces high-performance products with reusable components while at the same time allowing for a manufacturing strategy with a high degree of flexibility, improved cost and reduced time-to-market. The software features of our products offer our customers a greater degree of flexibility in installing, operating and maintaining their networks.
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Comprehensive network management.
We offer a range of flexible network management solutions, from element management to enterprise-wide network management and service assurance that we can optimize to work with our wireless systems.
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Complete professional services.
In addition to our product offerings, we provide network planning and design, site surveys and builds, systems integration, installation, maintenance, network monitoring, training, customer service and many other professional services. Our services cover the entire evaluation, purchase, deployment and operational cycle and enable us to be one of the few complete turnkey solution providers in the industry.
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(In thousands)
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June 30, 2017
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July 1, 2016
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||||
North America
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$
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102,971
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$
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97,360
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International
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56,775
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56,271
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Total backlog
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$
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159,746
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$
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153,631
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Name and Age
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Position Currently Held and Past Business Experience
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Michael A. Pangia, 56
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Mr. Pangia has been our President and Chief Executive Officer and a member of our board of directors (the “Board”) since July 18, 2011. From March 2009 to July 2011, he served as our Chief Sales Officer responsible for company-wide operations of the global sales and services organization. Prior to joining Aviat Networks, from 2008 to 2009, Mr. Pangia served as Senior Vice President, global sales operations and strategy at Nortel, where he was responsible for all operational aspects of the global sales function. From 2006 to 2008, he was President of Nortel’s Asia region where his key responsibilities included sales and overall business management for all countries where Nortel did business in the region.
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Ralph Marimon, 60
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Mr. Marimon joined Aviat Networks in May 2015 as our Senior Vice President, Finance and Chief Financial Officer and is responsible for the finance and IT organizations. Before joining Aviat, Mr. Marimon served as Vice President, Finance and Chief Financial Officer of QuickLogic, a provider of ultra-low power, customizable semiconductor solutions for smartphone, tablet, wearable, and mobile enterprise OEMs, since 2008. Prior to QuickLogic, Mr. Marimon served as Chief Financial Officer within a variety of organizations including Anchor Bay Technologies, Inc., Tymphany Corporation, and Scientific Technologies Incorporated. From 1999 to 2003, he served at Com21 Corporation as Chief Financial Officer. Prior to Com21, Mr. Marimon was at KLA-Tencor Corporation for 11 years in a variety of senior executive financial management positions.
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Meena Elliott, 54
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Ms. Elliott was appointed Senior Vice President, Chief Legal and Administrative Officer, Corporate Secretary in February 2015 and is responsible for the global legal and human resources organizations. From September 2011 to February 2015, she served as Senior Vice President, General Counsel, Secretary and had responsibilities for the global legal organization and took on responsibilities for global human resources organizations in 2014. From July 2009 to August 2011, she served as Vice President, General Counsel and Secretary. She joined our company as Associate General Counsel and Assistant Secretary in January 2007 when Harris Corporation’s MCD and Stratex Networks merged. Ms. Elliott joined MCD as Division Counsel in March 2006. Prior to joining MCD, she was Chief Counsel at the Department of Commerce from 2002 to 2006.
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Heinz H. Stumpe, 62
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Mr. Stumpe was appointed Chief Sales Officer on June 25, 2012. Before his appointment as Chief Sales Officer, Mr. Stumpe was our Senior Vice President and Chief Operation Officer since June 30, 2008. Previously, he was Vice President, Global Operations for Aviat Networks and Stratex Networks. He joined Stratex Networks as Director of Marketing in 1996. He was promoted to Vice President, Global Accounts in 1999, Vice President, Strategic Accounts in 2002 and Vice President, Global Operations in April 2006.
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Shaun McFall, 57
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Mr. McFall was appointed Chief Strategy Officer in 2015. He was our Chief Marketing Officer since July 2008. Previously, from 2000 to 2008, he served as Vice President, Marketing for Aviat Networks and Stratex Networks. He has been with us since 1989.
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•
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unexpected changes in regulatory requirements;
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fluctuations in international currency exchange rates including its impact on unhedgeable currencies and our forecast variations for hedgeable currencies;
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imposition of tariffs and other barriers and restrictions;
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management and operation of an enterprise spread over various countries;
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the burden of complying with a variety of laws and regulations in various countries;
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application of the income tax laws and regulations of multiple jurisdictions, including relatively low-rate and relatively high-rate jurisdictions, to our sales and other transactions, which results in additional complexity and uncertainty;
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the conduct of unethical business practices in developing countries;
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general economic and geopolitical conditions, including inflation and trade relationships;
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war and acts of terrorism;
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kidnapping and high crime rate;
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natural disasters;
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availability of U.S. dollars especially in countries with economies highly dependent on resource exports, particularly oil; and
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changes in export regulations.
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seasonality in the purchasing habits of our customers;
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•
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the volume and timing of product orders and the timing of completion of our product deliveries and installations;
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•
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our ability and the ability of our key suppliers to respond to changes on demand as needed;
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•
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margin variability based on geographic and product mix;
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•
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our suppliers’ inability to perform and deliver on time as a result of their financial condition, component shortages or other supply chain constraints;
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retention of key personnel;
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•
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the length of our sales cycle;
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litigation costs and expenses;
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continued timely rollout of new product functionality and features;
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•
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increased competition resulting in downward pressure on the price of our products and services;
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unexpected delays in the schedule for shipments of existing products and new generations of the existing platforms;
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failure to realize expected cost improvement throughout our supply chain;
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order cancellations or postponements in product deliveries resulting in delayed revenue recognition;
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restructuring and streamlining of our operations;
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war and acts of terrorism;
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natural disasters;
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•
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the ability of our customers to obtain financing to enable their purchase of our products;
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•
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fluctuations in international currency exchange rates;
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regulatory developments including denial of export and import licenses;
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•
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general economic conditions worldwide that affect demand and financing for microwave and millimeter wave telecommunications networks; and
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•
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the timing and size of future restructuring plans and write-offs.
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rapid technological change in the wireless telecommunications industry resulting in frequent product changes;
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•
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the need of our contract manufacturers to order raw materials that have long lead times and our inability to estimate exact amounts and types of items thus needed, especially with regard to the frequencies in which the final products ordered will operate; and
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•
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cost reduction initiatives resulting in component changes within the products.
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•
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the jurisdictions in which profits are determined to be earned and taxed;
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•
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adjustments to estimated taxes upon finalization of various tax returns;
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•
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increases in expenses not deductible for tax purposes, including write-offs of acquired in-process research and development and impairment of goodwill in connection with acquisitions;
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•
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ability to utilize net operating loss;
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•
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changes in available tax credits;
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•
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changes in share-based compensation expense;
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•
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changes in the valuation of our deferred tax assets and liabilities;
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•
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changes in domestic or international tax laws or the interpretation of such tax laws;
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•
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the resolution of issues arising from tax audits with various tax authorities;
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•
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the tax effects of purchase accounting for acquisitions and restructuring charges that may cause fluctuations between reporting periods; and
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•
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taxes that may be incurred upon a repatriation of cash from foreign operations.
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•
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difficulties in integrating the operations, systems, technologies, products, and personnel of the combined companies, particularly companies with large and widespread operations and/or complex products;
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•
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diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations resulting from business combinations, sales, divestitures and /or restructurings;
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•
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potential difficulties in completing projects associated with in-process research and development intangibles;
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•
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difficulties in entering markets in which we have no or limited direct prior experience and where competitors in each market have stronger market positions;
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•
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initial dependence on unfamiliar supply chains or relatively small supply partners;
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•
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insufficient revenue to offset increased expenses associated with acquisitions; and
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•
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the potential loss of key employees, customers, resellers, vendors and other business partners of our company or the companies with which we engage in strategic transactions following and continuing after announcement of an anticipated strategic transaction.
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•
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issue common stock that would dilute our current stockholders or cause a change in control of the combined company;
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•
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use a substantial portion of our cash resources, or incur debt;
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•
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significantly increase our interest expense, leverage and debt service requirements if we incur additional debt to pay for an acquisition;
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•
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assume material liabilities;
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•
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record goodwill and non-amortizable intangible assets that are subject to impairment testing on a regular basis and potential periodic impairment charges;
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•
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incur amortization expenses related to certain intangible assets;
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•
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incur tax expenses related to the effect of acquisitions on our intercompany R&D cost sharing arrangement and legal structure;
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•
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incur large and immediate write-offs and restructuring and other related expenses; and
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become subject to intellectual property or other litigation.
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Fiscal 2017
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Fiscal 2016
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||||||||||||
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High
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|
Low
|
|
High
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|
Low
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||||||||
First Quarter
|
$
|
9.93
|
|
|
$
|
7.39
|
|
|
$
|
15.96
|
|
|
$
|
12.48
|
|
Second Quarter
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$
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14.94
|
|
|
$
|
8.43
|
|
|
$
|
14.04
|
|
|
$
|
8.92
|
|
Third Quarter
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$
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15.86
|
|
|
$
|
10.35
|
|
|
$
|
9.57
|
|
|
$
|
6.60
|
|
Fourth Quarter
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$
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23.55
|
|
|
$
|
14.30
|
|
|
$
|
9.31
|
|
|
$
|
6.18
|
|
|
6/29/2012
|
|
6/28/2013
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6/27/2014
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7/3/2015
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7/1/2016
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6/30/2017
|
||||||||||||
Aviat Networks, Inc.
|
$
|
100.00
|
|
|
$
|
93.57
|
|
|
$
|
44.66
|
|
|
$
|
46.98
|
|
|
$
|
23.95
|
|
|
$
|
51.77
|
|
NASDAQ Composite
|
$
|
100.00
|
|
|
$
|
117.60
|
|
|
$
|
153.88
|
|
|
$
|
177.34
|
|
|
$
|
174.29
|
|
|
$
|
222.67
|
|
NASDAQ Telecommunications
|
$
|
100.00
|
|
|
$
|
128.44
|
|
|
$
|
149.22
|
|
|
$
|
156.24
|
|
|
$
|
158.51
|
|
|
$
|
184.31
|
|
*
|
Assumes (i) $100 invested on June 29, 2012 in Aviat Networks, Inc. common stock, the Total Return Index for The NASDAQ Composite Market (U.S. companies) and the NASDAQ Telecommunications Index; and (ii) immediate reinvestment of all dividends.
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Fiscal Year Ended
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||||||||||||||||||
(In thousands, except per share amounts)
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June 30, 2017
|
|
July 1, 2016
|
|
July 3, 2015
|
|
June 27, 2014
(1)
|
|
June 28, 2013
(1)
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||||||||||
Revenue from product sales and services
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$
|
241,874
|
|
|
$
|
268,690
|
|
|
$
|
335,878
|
|
|
$
|
346,032
|
|
|
$
|
471,255
|
|
Cost of product sales and services
|
166,402
|
|
|
206,973
|
|
|
255,188
|
|
|
260,844
|
|
|
332,913
|
|
|||||
Loss from continuing operations
(2) (3)
|
(621
|
)
|
|
(30,178
|
)
|
|
(24,648
|
)
|
|
(52,018
|
)
|
|
(12,647
|
)
|
|||||
Net loss
(2) (3)
|
(621
|
)
|
|
(29,637
|
)
|
|
(24,554
|
)
|
|
(51,100
|
)
|
|
(16,725
|
)
|
|||||
Net income attributable to noncontrolling interests, net of tax
|
202
|
|
|
270
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|||||
Net loss attributable to Aviat Networks
(2) (3)
|
(823
|
)
|
|
(29,907
|
)
|
|
(24,625
|
)
|
|
(51,100
|
)
|
|
(16,725
|
)
|
|||||
Basic and diluted loss per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from continuing operations
|
$
|
(0.16
|
)
|
|
$
|
(5.81
|
)
|
|
$
|
(4.77
|
)
|
|
$
|
(10.13
|
)
|
|
$
|
(2.53
|
)
|
Net loss
|
(0.16
|
)
|
|
(5.71
|
)
|
|
(4.75
|
)
|
|
(9.95
|
)
|
|
(3.34
|
)
|
(1)
|
As revised, during the fourth quarter of fiscal 2015, these amounts have been revised as we identified and corrected errors around our accrued liability related to cost of services revenue.
|
(2)
|
Include share-based compensation expense
$2.1 million
,
$1.8 million
,
$2.2 million
,
$3.4 million
and
$6.4 million
for fiscal 2017, 2016, 2015, 2014 and 2013 respectively.
|
(3)
|
Include restructuring charges of
$0.6 million
,
$2.5 million
,
$4.9 million
,
$11.2 million
and
$3.1 million
for fiscal 2017, 2016, 2015, 2014 and 2013 respectively.
|
|
As of
|
||||||||||||||||||
(In thousands)
|
June 30, 2017
|
|
July 1, 2016
|
|
July 3, 2015
|
|
June 27, 2014
(1)
|
|
June 28, 2013
(1)
|
||||||||||
Total assets
|
$
|
152,576
|
|
|
$
|
166,111
|
|
|
$
|
224,715
|
|
|
$
|
253,184
|
|
|
$
|
305,816
|
|
Long-term liabilities
|
12,218
|
|
|
12,707
|
|
|
18,198
|
|
|
19,574
|
|
|
24,825
|
|
(1)
|
As revised, during the fourth quarter of fiscal 2015, these amounts have been revised as we identified and corrected errors around our accrued liability related to cost of services revenue.
|
|
Fiscal Year
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||
(In thousands, except percentages)
|
2017
|
|
2016
|
|
2015
|
|
2017/2016
|
|
2016/2015
|
|
2017/2016
|
|
2016/2015
|
||||||||||||
North America
|
$
|
132,078
|
|
|
$
|
125,482
|
|
|
$
|
153,239
|
|
|
$
|
6,596
|
|
|
$
|
(27,757
|
)
|
|
5.3
|
%
|
|
(18.1
|
)%
|
Africa and Middle East
|
60,150
|
|
|
82,742
|
|
|
97,112
|
|
|
(22,592
|
)
|
|
(14,370
|
)
|
|
(27.3
|
)%
|
|
(14.8
|
)%
|
|||||
Europe and Russia
|
14,128
|
|
|
20,539
|
|
|
35,990
|
|
|
(6,411
|
)
|
|
(15,451
|
)
|
|
(31.2
|
)%
|
|
(42.9
|
)%
|
|||||
Latin America and Asia Pacific
|
35,518
|
|
|
39,927
|
|
|
49,537
|
|
|
(4,409
|
)
|
|
(9,610
|
)
|
|
(11.0
|
)%
|
|
(19.4
|
)%
|
|||||
Total Revenue
|
$
|
241,874
|
|
|
$
|
268,690
|
|
|
$
|
335,878
|
|
|
$
|
(26,816
|
)
|
|
$
|
(67,188
|
)
|
|
(10.0
|
)%
|
|
(20.0
|
)%
|
|
Fiscal Year
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||
(In thousands, except percentages)
|
2017
|
|
2016
|
|
2015
|
|
2017/2016
|
|
2016/2015
|
|
2017/2016
|
|
2016/2015
|
||||||||||||
Research and development expenses
|
$
|
18,684
|
|
|
$
|
20,806
|
|
|
$
|
25,368
|
|
|
$
|
(2,122
|
)
|
|
$
|
(4,562
|
)
|
|
(10.2
|
)%
|
|
(18.0
|
)%
|
% of revenue
|
7.7
|
%
|
|
7.7
|
%
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
Fiscal Year
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||
(In thousands, except percentages)
|
2017
|
|
2016
|
|
2015
|
|
2017/2016
|
|
2016/2015
|
|
2017/2016
|
|
2016/2015
|
||||||||||||
Fiscal 2016-2017 Plan
|
$
|
345
|
|
|
$
|
2,210
|
|
|
$
|
—
|
|
|
$
|
(1,865
|
)
|
|
$
|
2,210
|
|
|
(84.4
|
)%
|
|
N/A
|
|
Fiscal 2015-2016 Plan
|
36
|
|
|
282
|
|
|
3,503
|
|
|
(246
|
)
|
|
(3,221
|
)
|
|
(87.2
|
)%
|
|
(91.9
|
)%
|
|||||
Fiscal 2014-2015 Plan
|
162
|
|
|
77
|
|
|
1,277
|
|
|
85
|
|
|
(1,200
|
)
|
|
110.4
|
%
|
|
(94.0
|
)%
|
|||||
Fiscal 2013-2014 Plan
|
46
|
|
|
(114
|
)
|
|
87
|
|
|
160
|
|
|
(201
|
)
|
|
(140.4
|
)%
|
|
(231.0
|
)%
|
|||||
Total
|
$
|
589
|
|
|
$
|
2,455
|
|
|
$
|
4,867
|
|
|
$
|
(1,866
|
)
|
|
$
|
(2,412
|
)
|
|
(76.0
|
)%
|
|
(49.6
|
)%
|
|
Fiscal Year
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||
(In thousands, except percentages)
|
2017
|
|
2016
|
|
2015
|
|
2017/2016
|
|
2016/2015
|
|
2017/2016
|
|
2016/2015
|
||||||||||||
Interest income
|
$
|
261
|
|
|
$
|
252
|
|
|
$
|
360
|
|
|
$
|
9
|
|
|
$
|
(108
|
)
|
|
4
|
%
|
|
(30
|
)%
|
Interest expense
|
(50
|
)
|
|
(104
|
)
|
|
(388
|
)
|
|
54
|
|
|
284
|
|
|
(52
|
)%
|
|
(73
|
)%
|
|||||
Other income (expense)
|
169
|
|
|
(1,245
|
)
|
|
—
|
|
|
1,414
|
|
|
(1,245
|
)
|
|
(114
|
)%
|
|
N/A
|
|
|
Fiscal Year
|
|
$ Change
|
||||||||||||||||
(In thousands, except percentages)
|
2017
|
|
2016
|
|
2015
|
|
2017/2016
|
|
2016/2015
|
||||||||||
Loss from continuing operations before income taxes
|
$
|
(605
|
)
|
|
$
|
(28,543
|
)
|
|
$
|
(25,958
|
)
|
|
$
|
27,938
|
|
|
$
|
(2,585
|
)
|
Provision for (benefit from) income taxes
|
16
|
|
|
1,635
|
|
|
(1,310
|
)
|
|
(1,619
|
)
|
|
2,945
|
|
|||||
As % of loss from continuing operations before income taxes
|
(2.6
|
)%
|
|
(5.7
|
)%
|
|
5.0
|
%
|
|
|
|
|
|
Fiscal Year
|
|
$ Change
|
||||||||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
|
2017/2016
|
|
2016/2015
|
||||||||||
Income from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
541
|
|
|
$
|
94
|
|
|
$
|
(541
|
)
|
|
$
|
447
|
|
|
Obligations Due by Fiscal Year
|
||||||||||||||||||||||
(In thousands)
|
Total
|
|
< 1 year
|
|
1 - 3 years
|
|
3 - 5 years
|
|
> 5 years
|
|
Other
|
||||||||||||
Borrowings under credit facility
|
$
|
9,000
|
|
|
$
|
9,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Purchase obligations
(1)(4)
|
17,846
|
|
|
17,529
|
|
|
137
|
|
|
72
|
|
|
108
|
|
|
—
|
|
||||||
Other purchase obligations
(3)(4)
|
1,364
|
|
|
1,364
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||
Operating lease commitments
(4)
|
7,555
|
|
|
1,997
|
|
|
2,419
|
|
|
1,116
|
|
|
2,023
|
|
|
—
|
|
||||||
Reserve for uncertain tax positions
(2)
|
2,453
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,453
|
|
||||||
Total contractual cash obligations
|
$
|
38,218
|
|
|
$
|
29,890
|
|
|
$
|
2,556
|
|
|
$
|
1,188
|
|
|
$
|
2,131
|
|
|
$
|
2,453
|
|
(1)
|
From time to time in the normal course of business we may enter into purchasing agreements with our suppliers that require us to accept delivery of, and remit full payment for, finished products that we have ordered, finished products that we requested be held as safety stock, and work in process started on our behalf in the event we cancel or terminate the purchasing agreement. Because these agreements do not specify fixed or minimum quantities, do not specify minimum or variable price provisions, and do not specify the approximate timing of the transaction, and we have no present intention to cancel or terminate any of these agreements, we currently do not believe that we have any future liability under these agreements.
|
(2)
|
Liabilities for uncertain tax positions of
$2.5 million
were included in long-term liabilities in the consolidated balance sheets. At this time, we are unable to make a reasonably reliable estimate of the timing of payments related to this amount due to uncertainties in the timing of tax audit outcomes.
|
(3)
|
Contractual obligation related to software licenses.
|
(4)
|
These items are not recorded on our consolidated balance sheets.
|
|
Expiration of Commitments by Fiscal Year
|
||||||||||||||||||
(In thousands)
|
Total
|
|
2018
|
|
2019
|
|
2020
|
|
After 2021
|
||||||||||
Standby letters of credit used for:
|
|
|
|
|
|
|
|
|
|
||||||||||
Payment guarantees
|
$
|
267
|
|
|
$
|
158
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
109
|
|
Performance
|
6,226
|
|
|
3,635
|
|
|
2,577
|
|
|
14
|
|
|
—
|
|
|||||
Tax bonds
|
14
|
|
|
9
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|||||
|
6,507
|
|
|
3,802
|
|
|
2,577
|
|
|
19
|
|
|
109
|
|
|||||
Surety bonds used for:
|
|
|
|
|
|
|
|
|
|
||||||||||
Bids
|
100
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Performance
|
23,984
|
|
|
13,354
|
|
|
10,630
|
|
|
—
|
|
|
—
|
|
|||||
Payment guarantees
|
760
|
|
|
725
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|||||
Tax bonds
|
3,390
|
|
|
13
|
|
|
—
|
|
|
3,377
|
|
|
—
|
|
|||||
|
28,234
|
|
|
14,192
|
|
|
10,665
|
|
|
3,377
|
|
|
—
|
|
|||||
Total commercial commitments
|
$
|
34,741
|
|
|
$
|
17,994
|
|
|
$
|
13,242
|
|
|
$
|
3,396
|
|
|
$
|
109
|
|
•
|
any obligation under certain guarantee contracts;
|
•
|
a retained or contingent interest in assets transferred to an unconsolidated entity or similar entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets;
|
•
|
any obligation, including a contingent obligation, under certain derivative instruments; and
|
•
|
any obligation, including a contingent obligation, under a material variable interest held by the registrant in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing, hedging or research and development services with the registrant.
|
Currency
|
|
Notional Contract Amount
(Local Currency)
|
|
Notional
Contract
Amount
(USD)
|
|||
|
|
(In thousands)
|
|||||
South African Rand
|
|
6,687
|
|
|
$
|
511
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Amount included in costs of revenues
|
$
|
(847
|
)
|
|
$
|
(556
|
)
|
|
$
|
(3,308
|
)
|
Amount included in other income (expense)
|
135
|
|
|
(1,245
|
)
|
|
—
|
|
|||
Total foreign exchange loss, net
|
$
|
(712
|
)
|
|
$
|
(1,801
|
)
|
|
$
|
(3,308
|
)
|
•
|
revenue recognition and valuation of accounts receivable;
|
•
|
inventory valuation and provision for excess and obsolete inventory losses;
|
•
|
impairment of long-lived assets; and
|
•
|
income taxes valuation.
|
|
|
|
Page
|
|
|
/s/ BDO USA, LLP
|
|
Fiscal Year Ended
|
||||||||||
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||
Net loss
|
$
|
(621
|
)
|
|
$
|
(29,637
|
)
|
|
$
|
(24,554
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
||||||
Change in unrealized loss on cash flow hedges
|
—
|
|
|
—
|
|
|
(314
|
)
|
|||
Reclassification adjustments for (gain) loss included in net loss
|
—
|
|
|
(41
|
)
|
|
321
|
|
|||
Net change in unrealized (loss) gain on hedging activities
|
—
|
|
|
(41
|
)
|
|
7
|
|
|||
Foreign currency translation:
|
|
|
|
|
|
||||||
Loss arising during period
|
(279
|
)
|
|
(2,488
|
)
|
|
(5,672
|
)
|
|||
Reclassification of gain on liquidation of subsidiary
|
(349
|
)
|
|
—
|
|
|
—
|
|
|||
Net change in cumulative translation adjustment
|
(628
|
)
|
|
(2,488
|
)
|
|
(5,672
|
)
|
|||
Other comprehensive loss
|
(628
|
)
|
|
(2,529
|
)
|
|
(5,665
|
)
|
|||
Comprehensive loss
|
(1,249
|
)
|
|
(32,166
|
)
|
|
(30,219
|
)
|
|||
Comprehensive income attributable to noncontrolling interests, net of tax
|
202
|
|
|
270
|
|
|
71
|
|
|||
Comprehensive loss attributable to Aviat Networks
|
$
|
(1,451
|
)
|
|
$
|
(32,436
|
)
|
|
$
|
(30,290
|
)
|
(In thousands, except share and par value amounts)
|
June 30, 2017
|
|
July 1, 2016
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
35,658
|
|
|
$
|
30,479
|
|
Restricted cash
|
541
|
|
|
558
|
|
||
Short-term investments
|
264
|
|
|
222
|
|
||
Accounts receivable, net
|
45,945
|
|
|
63,449
|
|
||
Unbilled receivables
|
12,110
|
|
|
5,117
|
|
||
Inventories
|
21,794
|
|
|
27,293
|
|
||
Customer service inventories
|
1,871
|
|
|
3,064
|
|
||
Other current assets
|
6,402
|
|
|
10,232
|
|
||
Total current assets
|
124,585
|
|
|
140,414
|
|
||
Property, plant and equipment, net
|
16,406
|
|
|
18,162
|
|
||
Deferred income taxes
|
6,178
|
|
|
6,068
|
|
||
Other assets
|
5,407
|
|
|
1,467
|
|
||
Total long-term assets
|
27,991
|
|
|
25,697
|
|
||
TOTAL ASSETS
|
$
|
152,576
|
|
|
$
|
166,111
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Short-term debt
|
$
|
9,000
|
|
|
$
|
9,000
|
|
Accounts payable
|
33,606
|
|
|
33,217
|
|
||
Accrued expenses
|
21,933
|
|
|
23,205
|
|
||
Advance payments and unearned income
|
20,004
|
|
|
30,615
|
|
||
Restructuring liabilities
|
1,475
|
|
|
3,910
|
|
||
Total current liabilities
|
86,018
|
|
|
99,947
|
|
||
Unearned income
|
7,062
|
|
|
8,387
|
|
||
Other long-term liabilities
|
1,022
|
|
|
1,409
|
|
||
Reserve for uncertain tax positions
|
2,453
|
|
|
1,414
|
|
||
Deferred income taxes
|
1,681
|
|
|
1,497
|
|
||
Total liabilities
|
98,236
|
|
|
112,654
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
||||
Equity:
|
|
|
|
||||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 300,000,000 shares authorized; 5,317,766 and 5,261,041 shares issued and outstanding as of as of June 30, 2017 and July 1, 2016, respectively
|
53
|
|
|
53
|
|
||
Additional paid-in-capital
|
813,733
|
|
|
811,601
|
|
||
Accumulated deficit
|
(748,204
|
)
|
|
(747,381
|
)
|
||
Accumulated other comprehensive loss
|
(11,785
|
)
|
|
(11,157
|
)
|
||
Total Aviat Networks stockholders’ equity
|
53,797
|
|
|
53,116
|
|
||
Noncontrolling interests
|
543
|
|
|
341
|
|
||
Total equity
|
54,340
|
|
|
53,457
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
152,576
|
|
|
$
|
166,111
|
|
|
Fiscal Year Ended
|
||||||||||
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net loss
|
$
|
(621
|
)
|
|
$
|
(29,637
|
)
|
|
$
|
(24,554
|
)
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Amortization of identifiable intangible assets
|
—
|
|
|
—
|
|
|
380
|
|
|||
Depreciation and amortization of property, plant and equipment
|
5,840
|
|
|
6,648
|
|
|
7,242
|
|
|||
(Recovery) provision for uncollectible receivables
|
(580
|
)
|
|
1,532
|
|
|
880
|
|
|||
Share-based compensation
|
2,111
|
|
|
1,836
|
|
|
2,187
|
|
|||
Deferred tax assets, net
|
75
|
|
|
(334
|
)
|
|
(4,711
|
)
|
|||
Charges for inventory and customer service inventory write-downs
|
1,137
|
|
|
9,868
|
|
|
8,043
|
|
|||
Gain on disposition of WiMAX business
|
—
|
|
|
—
|
|
|
(85
|
)
|
|||
Loss on disposition of property, plant and equipment, net
|
153
|
|
|
827
|
|
|
384
|
|
|||
Gain on liquidation of subsidiary
|
(349
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
18,178
|
|
|
17,023
|
|
|
(8,816
|
)
|
|||
Unbilled receivables
|
(6,986
|
)
|
|
12,041
|
|
|
6,125
|
|
|||
Inventories
|
6,383
|
|
|
(4,995
|
)
|
|
(663
|
)
|
|||
Customer service inventories
|
90
|
|
|
2,419
|
|
|
2,285
|
|
|||
Accounts payable
|
608
|
|
|
(13,976
|
)
|
|
1,562
|
|
|||
Accrued expenses
|
(1,310
|
)
|
|
(599
|
)
|
|
(4,140
|
)
|
|||
Advance payments and unearned income
|
(13,099
|
)
|
|
(4,425
|
)
|
|
4,666
|
|
|||
Income taxes payable or receivable
|
1,415
|
|
|
2
|
|
|
1,450
|
|
|||
Other assets and liabilities
|
(3,640
|
)
|
|
2,126
|
|
|
(1,833
|
)
|
|||
Net cash provided by (used in) operating activities
|
9,405
|
|
|
356
|
|
|
(9,598
|
)
|
|||
Investing Activities
|
|
|
|
|
|
||||||
Payments for acquisition of property, plant and equipment
|
(4,021
|
)
|
|
(1,574
|
)
|
|
(3,693
|
)
|
|||
Purchase of short-term investments
|
(139
|
)
|
|
(222
|
)
|
|
—
|
|
|||
Maturities of short-term investments
|
122
|
|
|
—
|
|
|
—
|
|
|||
Net cash used in investing activities
|
(4,038
|
)
|
|
(1,796
|
)
|
|
(3,693
|
)
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Proceeds from borrowings
|
33,000
|
|
|
36,000
|
|
|
54,000
|
|
|||
Repayments of borrowings
|
(33,000
|
)
|
|
(36,000
|
)
|
|
(51,000
|
)
|
|||
Proceeds from issuance of common stock under employee stock plans
|
21
|
|
|
13
|
|
|
13
|
|
|||
Payments on capital lease obligations
|
—
|
|
|
—
|
|
|
(140
|
)
|
|||
Net cash provided by financing activities
|
21
|
|
|
13
|
|
|
2,873
|
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(244
|
)
|
|
(2,347
|
)
|
|
(4,246
|
)
|
|||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
5,144
|
|
|
(3,774
|
)
|
|
(14,664
|
)
|
|||
Cash, cash equivalents and restricted cash, beginning of year
|
31,425
|
|
|
35,199
|
|
|
49,863
|
|
|||
Cash, cash equivalents and restricted cash, end of year
|
$
|
36,569
|
|
|
$
|
31,425
|
|
|
$
|
35,199
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
|
||||||||||
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
|
July 3,
2015 |
||||||
Non-cash investing activities
|
|
|
|
|
|
||||||
Reclassification of property, plant and equipment to inventory
|
$
|
—
|
|
|
$
|
1,094
|
|
|
$
|
—
|
|
Unpaid property, plant and equipment
|
$
|
1,219
|
|
|
$
|
1,261
|
|
|
$
|
319
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
94
|
|
|
$
|
111
|
|
|
$
|
387
|
|
Cash (refunded) paid for income taxes, net
|
$
|
(313
|
)
|
|
$
|
1,964
|
|
|
$
|
2,042
|
|
|
Aviat Networks Stockholders’ Equity
|
|
|
|
|
|||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total Aviat Networks Stockholders’ Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
|||||||||||||||||
(In thousands, except share amounts)
|
Shares
|
|
$
Amount
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of June 27, 2014
|
5,184,852
|
|
|
$
|
52
|
|
|
$
|
807,588
|
|
|
$
|
(692,849
|
)
|
|
$
|
(2,963
|
)
|
|
$
|
111,828
|
|
|
$
|
—
|
|
|
$
|
111,828
|
|
Net (loss) income
|
|
|
|
|
|
|
(24,625
|
)
|
|
|
|
(24,625
|
)
|
|
71
|
|
|
(24,554
|
)
|
|||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
(5,665
|
)
|
|
(5,665
|
)
|
|
|
|
(5,665
|
)
|
||||||||||||
Issuance of common stock under employee stock plans
|
23,348
|
|
|
—
|
|
|
13
|
|
|
|
|
|
|
13
|
|
|
|
|
13
|
|
||||||||||
Share-based compensation
|
|
|
|
|
|
|
2,187
|
|
|
|
|
|
|
2,187
|
|
|
|
|
2,187
|
|
||||||||||
Balance as of July 3, 2015
|
5,208,200
|
|
|
52
|
|
|
809,788
|
|
|
(717,474
|
)
|
|
(8,628
|
)
|
|
83,738
|
|
|
71
|
|
|
83,809
|
|
|||||||
Net (loss) income
|
|
|
|
|
|
|
(29,907
|
)
|
|
|
|
(29,907
|
)
|
|
270
|
|
|
(29,637
|
)
|
|||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
(2,529
|
)
|
|
(2,529
|
)
|
|
|
|
(2,529
|
)
|
||||||||||||
Issuance of common stock under employee stock plans
|
54,498
|
|
|
1
|
|
|
12
|
|
|
|
|
|
|
13
|
|
|
|
|
13
|
|
||||||||||
Fractional shares buyback and other
|
(1,657
|
)
|
|
|
|
(35
|
)
|
|
|
|
|
|
(35
|
)
|
|
|
|
(35
|
)
|
|||||||||||
Share-based compensation
|
|
|
|
|
|
|
1,836
|
|
|
|
|
|
|
1,836
|
|
|
|
|
1,836
|
|
||||||||||
Balance as of July 1, 2016
|
5,261,041
|
|
|
53
|
|
|
811,601
|
|
|
(747,381
|
)
|
|
(11,157
|
)
|
|
53,116
|
|
|
341
|
|
|
53,457
|
|
|||||||
Net (loss) income
|
|
|
|
|
|
|
(823
|
)
|
|
|
|
(823
|
)
|
|
202
|
|
|
(621
|
)
|
|||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
(628
|
)
|
|
(628
|
)
|
|
|
|
(628
|
)
|
||||||||||||
Issuance of common stock under employee stock plans
|
56,725
|
|
|
—
|
|
|
21
|
|
|
|
|
|
|
21
|
|
|
|
|
21
|
|
||||||||||
Share-based compensation
|
|
|
|
|
|
|
2,111
|
|
|
|
|
|
|
2,111
|
|
|
|
|
2,111
|
|
||||||||||
Balance as of June 30, 2017
|
5,317,766
|
|
|
$
|
53
|
|
|
$
|
813,733
|
|
|
$
|
(748,204
|
)
|
|
$
|
(11,785
|
)
|
|
$
|
53,797
|
|
|
$
|
543
|
|
|
$
|
54,340
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Amount included in costs of revenues
|
$
|
(847
|
)
|
|
$
|
(556
|
)
|
|
$
|
(3,308
|
)
|
Amount included in other income (expense)
|
135
|
|
|
(1,245
|
)
|
|
—
|
|
|||
Total foreign exchange loss, net
|
$
|
(712
|
)
|
|
$
|
(1,801
|
)
|
|
$
|
(3,308
|
)
|
(In thousands)
|
Foreign
Currency
Translation
Adjustment
(“CTA”)
|
|
Hedging
Derivatives
|
|
Total
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||
Balance as of June 27, 2014
|
$
|
(2,997
|
)
|
|
$
|
34
|
|
|
$
|
(2,963
|
)
|
Other comprehensive loss before reclassification
|
(5,672
|
)
|
|
(314
|
)
|
|
(5,986
|
)
|
|||
Less: reclassification for amounts included in net loss
|
—
|
|
|
321
|
|
|
321
|
|
|||
Balance as of July 3, 2015
|
(8,669
|
)
|
|
41
|
|
|
(8,628
|
)
|
|||
Other comprehensive loss before reclassification
|
(2,488
|
)
|
|
—
|
|
|
(2,488
|
)
|
|||
Less: reclassification for amounts included in net loss
|
—
|
|
|
(41
|
)
|
|
(41
|
)
|
|||
Balance as of July 1, 2016
|
(11,157
|
)
|
|
—
|
|
|
(11,157
|
)
|
|||
Other comprehensive loss before reclassification
|
(279
|
)
|
|
—
|
|
|
(279
|
)
|
|||
Less: reclassification for amounts included in net loss
|
(349
|
)
|
|
—
|
|
|
(349
|
)
|
|||
Balance as of June 30, 2017
|
$
|
(11,785
|
)
|
|
$
|
—
|
|
|
$
|
(11,785
|
)
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(378
|
)
|
Cost of revenues
|
—
|
|
|
41
|
|
|
57
|
|
|||
Other income (expense)
|
349
|
|
|
—
|
|
|
—
|
|
|||
|
$
|
349
|
|
|
$
|
41
|
|
|
$
|
(321
|
)
|
|
Fiscal Year
|
|||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
|||
Stock options
|
410
|
|
|
538
|
|
|
613
|
|
Restricted stock awards and units and performance share awards and units
|
403
|
|
|
258
|
|
|
42
|
|
Total potential shares of common stock excluded
|
813
|
|
|
796
|
|
|
655
|
|
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
||||
Cash and cash equivalents
|
$
|
35,658
|
|
|
$
|
30,479
|
|
Restricted cash
|
541
|
|
|
558
|
|
||
Restricted cash included in Other assets
|
370
|
|
|
388
|
|
||
Total cash, cash equivalents, and restricted cash in the Statements of Cash Flows
|
$
|
36,569
|
|
|
$
|
31,425
|
|
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
||||
Accounts receivable
|
$
|
49,864
|
|
|
$
|
71,416
|
|
Less: allowances for collection losses
|
(3,919
|
)
|
|
(7,967
|
)
|
||
|
$
|
45,945
|
|
|
$
|
63,449
|
|
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
||||
Finished products
|
$
|
16,619
|
|
|
$
|
20,044
|
|
Work in process
|
3,088
|
|
|
5,104
|
|
||
Raw materials and supplies
|
2,087
|
|
|
2,145
|
|
||
Total inventories
|
$
|
21,794
|
|
|
$
|
27,293
|
|
Deferred cost of revenue included within finished goods
|
$
|
7,120
|
|
|
$
|
5,984
|
|
Consigned inventories included within raw materials
|
$
|
1,268
|
|
|
$
|
2,035
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Excess and obsolete inventory charges
|
$
|
39
|
|
|
$
|
9,175
|
|
|
$
|
6,291
|
|
Customer service inventory write-downs
|
1,098
|
|
|
693
|
|
|
1,752
|
|
|||
|
$
|
1,137
|
|
|
$
|
9,868
|
|
|
$
|
8,043
|
|
As % of revenue
|
0.5
|
%
|
|
3.7
|
%
|
|
2.4
|
%
|
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
||||
Land
|
$
|
710
|
|
|
$
|
710
|
|
Buildings and leasehold improvements
|
11,442
|
|
|
11,714
|
|
||
Software
|
14,803
|
|
|
14,620
|
|
||
Machinery and equipment
|
43,174
|
|
|
42,960
|
|
||
|
70,129
|
|
|
70,004
|
|
||
Less accumulated depreciation and amortization
|
(53,723
|
)
|
|
(51,842
|
)
|
||
|
$
|
16,406
|
|
|
$
|
18,162
|
|
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
||||
Accrued compensation and benefits
|
$
|
8,317
|
|
|
$
|
7,161
|
|
Accrued agent commissions
|
1,911
|
|
|
3,551
|
|
||
Accrued warranties
|
3,056
|
|
|
3,944
|
|
||
Other
|
8,649
|
|
|
8,549
|
|
||
|
$
|
21,933
|
|
|
$
|
23,205
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Balance as of the beginning of the fiscal year
|
$
|
3,944
|
|
|
$
|
4,221
|
|
|
$
|
3,777
|
|
Warranty provision recorded during the period
|
1,604
|
|
|
3,462
|
|
|
5,595
|
|
|||
Consumption during the period
|
(2,492
|
)
|
|
(3,739
|
)
|
|
(5,151
|
)
|
|||
Balance as of the end of the period
|
$
|
3,056
|
|
|
$
|
3,944
|
|
|
$
|
4,221
|
|
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
||||
Advanced payments
|
$
|
8,760
|
|
|
$
|
12,124
|
|
Unearned income
|
11,244
|
|
|
18,491
|
|
||
|
$
|
20,004
|
|
|
$
|
30,615
|
|
•
|
Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities;
|
•
|
Level 2 — Observable market-based inputs or observable inputs that are corroborated by market data; and
|
•
|
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
|
June 30, 2017
|
|
July 1, 2016
|
|
|
||||||||||||
(In thousands)
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Valuation
Inputs
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
22,059
|
|
|
$
|
22,059
|
|
|
$
|
18,800
|
|
|
$
|
18,800
|
|
|
Level 1
|
Bank certificates of deposit
|
$
|
66
|
|
|
$
|
66
|
|
|
$
|
11
|
|
|
$
|
11
|
|
|
Level 2
|
Short-term investments:
|
|
|
|
|
|
|
|
|
|
||||||||
Bank certificates of deposit
|
$
|
264
|
|
|
$
|
264
|
|
|
$
|
222
|
|
|
$
|
222
|
|
|
Level 2
|
Other current assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
Level 2
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Other accrued expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
9
|
|
|
Level 2
|
(In thousands)
|
Severance and Benefits
|
||||||||||||||||||
Fiscal
2016-2017
Plan
|
|
Fiscal
2015-2016
Plan
|
|
Fiscal
2014-2015
Plan
|
|
Fiscal
2013-2014
Plan
|
|
Total
|
|||||||||||
Balance as of June 27, 2014
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,290
|
|
|
$
|
214
|
|
|
$
|
1,504
|
|
Charges, net
|
—
|
|
|
2,862
|
|
|
(29
|
)
|
|
(43
|
)
|
|
2,790
|
|
|||||
Cash payments
|
—
|
|
|
(2,212
|
)
|
|
(1,261
|
)
|
|
(65
|
)
|
|
(3,538
|
)
|
|||||
Balance as of July 3, 2015
|
—
|
|
|
650
|
|
|
—
|
|
|
106
|
|
|
756
|
|
|||||
Charges, net
|
2,210
|
|
|
344
|
|
|
—
|
|
|
(6
|
)
|
|
2,548
|
|
|||||
Cash payments
|
(698
|
)
|
|
(637
|
)
|
|
—
|
|
|
(32
|
)
|
|
(1,367
|
)
|
|||||
Balance as of July 1, 2016
|
1,512
|
|
|
357
|
|
|
—
|
|
|
68
|
|
|
1,937
|
|
|||||
Charges, net
|
345
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
381
|
|
|||||
Cash payments
|
(1,542
|
)
|
|
(294
|
)
|
|
—
|
|
|
(4
|
)
|
|
(1,840
|
)
|
|||||
Balance as of June 30, 2017
|
$
|
315
|
|
|
$
|
99
|
|
|
$
|
—
|
|
|
$
|
64
|
|
|
$
|
478
|
|
(In thousands)
|
Facilities and Other
|
||||||||||||||
Fiscal
2015-2016
Plan
|
|
Fiscal
2014-2015
Plan
|
|
Fiscal
2013-2014
Plan
|
|
Total
|
|||||||||
Balance as of June 27, 2014
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
3,572
|
|
|
$
|
3,664
|
|
Charges, net
|
641
|
|
|
1,306
|
|
|
130
|
|
|
2,077
|
|
||||
Cash payments
|
(8
|
)
|
|
(608
|
)
|
|
(1,371
|
)
|
|
(1,987
|
)
|
||||
Balance as of July 3, 2015
|
633
|
|
|
790
|
|
|
2,331
|
|
|
3,754
|
|
||||
Charges, net
|
(62
|
)
|
|
77
|
|
|
(108
|
)
|
|
(93
|
)
|
||||
Cash payments
|
(21
|
)
|
|
(584
|
)
|
|
(1,373
|
)
|
|
(1,978
|
)
|
||||
Noncash adjustments
|
—
|
|
|
299
|
|
|
896
|
|
|
1,195
|
|
||||
Balance as of July 1, 2016
|
550
|
|
|
582
|
|
|
1,746
|
|
|
2,878
|
|
||||
Charges, net
|
—
|
|
|
162
|
|
|
46
|
|
|
208
|
|
||||
Cash payments
|
13
|
|
|
(576
|
)
|
|
(1,287
|
)
|
|
(1,850
|
)
|
||||
Balance as of June 30, 2017
|
$
|
563
|
|
|
$
|
168
|
|
|
$
|
505
|
|
|
$
|
1,236
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
By Expense Category:
|
|
||||||||||
Cost of product sales and services
|
$
|
208
|
|
|
$
|
154
|
|
|
$
|
151
|
|
Research and development
|
138
|
|
|
110
|
|
|
108
|
|
|||
Selling and administrative
|
1,765
|
|
|
1,572
|
|
|
1,928
|
|
|||
Total share-based compensation expense
|
$
|
2,111
|
|
|
$
|
1,836
|
|
|
$
|
2,187
|
|
By Types of Award:
|
|
|
|
|
|
||||||
Options
|
$
|
260
|
|
|
$
|
837
|
|
|
$
|
1,459
|
|
Restricted stock awards and units
|
1,473
|
|
|
933
|
|
|
688
|
|
|||
Performance share awards and units and market-based stock units
|
378
|
|
|
66
|
|
|
40
|
|
|||
Total share-based compensation expense
|
$
|
2,111
|
|
|
$
|
1,836
|
|
|
$
|
2,187
|
|
|
|
June 30, 2017
|
||||
|
|
Unamortized Expense
|
|
Weighted Average Remaining Recognition Period
|
||
|
|
(In thousands)
|
|
(Years)
|
||
Options
|
|
$
|
152
|
|
|
1.09
|
Restricted stock awards and units
|
|
$
|
2,485
|
|
|
1.79
|
Performance share awards and units and market-based stock units
|
|
$
|
900
|
|
|
1.50
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Aggregate
Intrinsic
Value
|
|||||
|
|
|
|
|
(Years)
|
|
(In thousands)
|
|||||
Options outstanding as of July 1, 2016
|
448,359
|
|
|
$
|
32.95
|
|
|
3.37
|
|
|
||
Granted
|
—
|
|
|
N/A
|
|
|
|
|
|
|||
Exercised
|
(573
|
)
|
|
$
|
14.88
|
|
|
|
|
|
||
Forfeited
|
(34,282
|
)
|
|
$
|
33.50
|
|
|
|
|
|
||
Expired
|
(40,799
|
)
|
|
$
|
74.40
|
|
|
|
|
|
||
Options outstanding as of June 30, 2017
|
372,705
|
|
|
$
|
28.39
|
|
|
2.72
|
|
$
|
167
|
|
Options vested and expected to vest as of June 30, 2017
|
372,705
|
|
|
$
|
28.39
|
|
|
2.72
|
|
$
|
167
|
|
Options exercisable as of June 30, 2017
|
348,506
|
|
|
$
|
29.30
|
|
|
2.59
|
|
$
|
118
|
|
|
Fiscal Year
|
||
|
2015
|
||
Expected dividends
|
—
|
%
|
|
Expected volatility
|
53.9
|
%
|
|
Risk-free interest rate
|
1.13
|
%
|
|
Expected term (years)
|
4.25
|
|
|
Weighted average grant date fair value per share granted
|
$
|
6.60
|
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Actual Range of Exercise Prices
|
Number
Outstanding
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Weighted
Average
Exercise Price
|
|
Number
Exercisable
|
|
Weighted
Average
Exercise Price
|
||||||||
|
|
|
|
|
(Years)
|
|
|
|
|
|
|
||||||
$14.88
|
—
|
$15.60
|
82,615
|
|
|
4.59
|
|
$
|
15.38
|
|
|
58,416
|
|
|
$
|
15.38
|
|
$20.64
|
—
|
$27.36
|
83,863
|
|
|
2.56
|
|
$
|
26.17
|
|
|
83,863
|
|
|
$
|
26.17
|
|
$27.72
|
—
|
$30.72
|
70,725
|
|
|
1.64
|
|
$
|
29.28
|
|
|
70,725
|
|
|
$
|
29.28
|
|
$31.20
|
—
|
$31.20
|
74,462
|
|
|
3.19
|
|
$
|
31.20
|
|
|
74,462
|
|
|
$
|
31.20
|
|
$32.52
|
—
|
$62.16
|
56,222
|
|
|
1.10
|
|
$
|
42.33
|
|
|
56,222
|
|
|
$
|
42.33
|
|
$71.04
|
—
|
$71.04
|
4,818
|
|
|
0.69
|
|
$
|
71.04
|
|
|
4,818
|
|
|
$
|
71.04
|
|
$14.88
|
—
|
$71.04
|
372,705
|
|
|
2.72
|
|
$
|
28.39
|
|
|
348,506
|
|
|
$
|
29.30
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Intrinsic value of options exercised
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fair value of options vested
|
$
|
654
|
|
|
$
|
1,395
|
|
|
$
|
1,990
|
|
|
Shares
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Restricted stock outstanding as of July 1, 2016
|
210,596
|
|
|
$
|
12.01
|
|
Granted
|
237,874
|
|
|
$
|
9.66
|
|
Vested and released
|
(55,178
|
)
|
|
$
|
9.40
|
|
Forfeited
|
(14,277
|
)
|
|
$
|
12.29
|
|
Restricted stock outstanding as of June 30, 2017
|
379,015
|
|
|
$
|
10.91
|
|
|
Shares
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Market-based stock units outstanding as of July 1, 2016
|
149,169
|
|
|
$
|
2.56
|
|
Granted
|
50,000
|
|
|
$
|
6.83
|
|
Forfeited
|
(55,845
|
)
|
|
$
|
2.56
|
|
Market-based stock units outstanding as of June 30, 2017
|
143,324
|
|
|
$
|
4.05
|
|
|
Fiscal Year
|
||||||||
|
2017
|
|
2016
|
|
2015
|
||||
Expected Dividends
|
—
|
%
|
|
—
|
%
|
|
N/A
|
||
Expected volatility
|
58.1
|
%
|
|
52.4
|
%
|
|
N/A
|
||
Risk-free interest rate
|
1.20
|
%
|
|
1.21
|
%
|
|
N/A
|
||
Weighted average grant date fair value per share granted
|
$
|
6.83
|
|
|
$
|
2.56
|
|
|
N/A
|
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
Performance share awards and units outstanding as of July 1, 2016
|
—
|
|
|
N/A
|
||
Granted
|
72,941
|
|
|
$
|
9.18
|
|
Forfeited
|
—
|
|
|
N/A
|
||
Performance share awards and units outstanding as of June 30, 2017
|
72,941
|
|
|
$
|
9.18
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
North America
|
$
|
132,078
|
|
|
$
|
125,482
|
|
|
$
|
153,239
|
|
Africa and Middle East
|
60,150
|
|
|
82,742
|
|
|
97,112
|
|
|||
Europe and Russia
|
14,128
|
|
|
20,539
|
|
|
35,990
|
|
|||
Latin America and Asia Pacific
|
35,518
|
|
|
39,927
|
|
|
49,537
|
|
|||
Total Revenue
|
$
|
241,874
|
|
|
$
|
268,690
|
|
|
$
|
335,878
|
|
(In thousands, except percentages)
|
Revenue
|
|
% of
Total Revenue
|
|||
Fiscal 2017:
|
|
|
|
|||
United States
|
$
|
127,889
|
|
|
52.9
|
%
|
Nigeria
|
$
|
18,147
|
|
|
7.5
|
%
|
Philippines
|
$
|
13,733
|
|
|
5.7
|
%
|
Fiscal 2016:
|
|
|
|
|||
United States
|
$
|
121,283
|
|
|
45.1
|
%
|
Nigeria
|
$
|
28,862
|
|
|
10.7
|
%
|
Fiscal 2015:
|
|
|
|
|||
United States
|
$
|
151,066
|
|
|
45.0
|
%
|
Nigeria
|
$
|
36,459
|
|
|
10.9
|
%
|
(In thousands)
|
June 30,
2017 |
|
July 1,
2016 |
||||
United States
|
$
|
5,854
|
|
|
$
|
11,353
|
|
United Kingdom
|
2,727
|
|
|
2,946
|
|
||
New Zealand
|
6,310
|
|
|
2,618
|
|
||
Other countries
|
1,515
|
|
|
1,245
|
|
||
Total
|
$
|
16,406
|
|
|
$
|
18,162
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Income from operations of WiMAX
|
$
|
—
|
|
|
$
|
652
|
|
|
$
|
30
|
|
Gain on disposal
|
—
|
|
|
—
|
|
|
85
|
|
|||
Income taxes
|
—
|
|
|
(111
|
)
|
|
(21
|
)
|
|||
Income from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
541
|
|
|
$
|
94
|
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
United States
|
$
|
10,979
|
|
|
$
|
(4,248
|
)
|
|
$
|
(18,603
|
)
|
Foreign
|
(11,584
|
)
|
|
(24,295
|
)
|
|
(7,355
|
)
|
|||
Total loss from continuing operations before income taxes
|
$
|
(605
|
)
|
|
$
|
(28,543
|
)
|
|
$
|
(25,958
|
)
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Current provision (benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
(14
|
)
|
|
$
|
131
|
|
|
$
|
—
|
|
Foreign
|
(52
|
)
|
|
1,814
|
|
|
3,378
|
|
|||
State and local
|
7
|
|
|
24
|
|
|
23
|
|
|||
|
(59
|
)
|
|
1,969
|
|
|
3,401
|
|
|||
Deferred provision (benefit):
|
|
|
|
|
|
||||||
Federal
|
168
|
|
|
(468
|
)
|
|
(216
|
)
|
|||
Foreign
|
(93
|
)
|
|
134
|
|
|
(4,495
|
)
|
|||
|
75
|
|
|
(334
|
)
|
|
(4,711
|
)
|
|||
Total provision for (benefit from) income taxes from continuing operations
|
$
|
16
|
|
|
$
|
1,635
|
|
|
$
|
(1,310
|
)
|
|
Fiscal Year
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Tax benefit at statutory rate
|
$
|
(196
|
)
|
|
$
|
(9,990
|
)
|
|
$
|
(9,065
|
)
|
Valuation allowances
|
(1,346
|
)
|
|
6,609
|
|
|
(3,900
|
)
|
|||
Foreign non-deductible expenses
|
628
|
|
|
103
|
|
|
(80
|
)
|
|||
State and local taxes, net of U.S. federal tax benefit
|
358
|
|
|
(134
|
)
|
|
(500
|
)
|
|||
Foreign income taxed at rates less than the U.S. statutory rate
|
2,062
|
|
|
6,019
|
|
|
9,970
|
|
|||
Dividend from foreign subsidiary
|
—
|
|
|
(1,781
|
)
|
|
—
|
|
|||
Foreign branch income/withholding taxes
|
1,116
|
|
|
292
|
|
|
1,350
|
|
|||
Singapore refund
|
(3,778
|
)
|
|
—
|
|
|
—
|
|
|||
Change in uncertain tax positions
|
1,173
|
|
|
437
|
|
|
610
|
|
|||
Other
|
(1
|
)
|
|
80
|
|
|
305
|
|
|||
Total provision for (benefit from) income taxes from continuing operations
|
$
|
16
|
|
|
$
|
1,635
|
|
|
$
|
(1,310
|
)
|
(In thousands)
|
June 30, 2017
|
|
July 1, 2016
|
||||
Deferred tax assets:
|
|
|
|
||||
Inventory
|
$
|
4,390
|
|
|
$
|
6,652
|
|
Accruals and reserves
|
2,611
|
|
|
2,497
|
|
||
Bad debts
|
669
|
|
|
1,091
|
|
||
Amortization
|
1,870
|
|
|
3,148
|
|
||
Stock compensation
|
2,266
|
|
|
2,599
|
|
||
Deferred revenue
|
3,127
|
|
|
1,759
|
|
||
Unrealized exchange gain/loss
|
3,295
|
|
|
3,422
|
|
||
Other
|
3,715
|
|
|
6,623
|
|
||
Tax credit carryforwards
|
15,337
|
|
|
18,016
|
|
||
Tax loss carryforwards
|
168,115
|
|
|
167,468
|
|
||
Total deferred tax assets before valuation allowance
|
205,395
|
|
|
213,275
|
|
||
Valuation allowance
|
(197,951
|
)
|
|
(202,824
|
)
|
||
Total deferred tax assets
|
7,444
|
|
|
10,451
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Branch undistributed earnings reserve
|
990
|
|
|
822
|
|
||
Depreciation
|
1,501
|
|
|
4,596
|
|
||
Other
|
456
|
|
|
462
|
|
||
Total deferred tax liabilities
|
2,947
|
|
|
5,880
|
|
||
Net deferred tax assets
|
$
|
4,497
|
|
|
$
|
4,571
|
|
|
|
|
|
||||
As Reported on the Consolidated Balance Sheets
|
|
|
|
||||
Deferred income tax assets
|
$
|
6,178
|
|
|
$
|
6,068
|
|
Deferred income tax liabilities
|
1,681
|
|
|
1,497
|
|
||
Total net deferred income taxes
|
$
|
4,497
|
|
|
$
|
4,571
|
|
(In thousands)
|
Amount
|
||
Unrecognized tax benefit as of June 27, 2014
|
$
|
28,209
|
|
Additions for tax positions in prior periods
|
673
|
|
|
Decreases for tax positions in prior periods
|
(227
|
)
|
|
Decreases related to change of foreign exchange rate
|
(1,745
|
)
|
|
Unrecognized tax benefit as of July 3, 2015
|
26,910
|
|
|
Additions for tax positions in current periods
|
397
|
|
|
Additions for tax positions in prior periods
|
246
|
|
|
Decreases related to change of foreign exchange rate
|
(515
|
)
|
|
Unrecognized tax benefit as of July 1, 2016
|
27,038
|
|
|
Additions for tax positions in prior periods
|
626
|
|
|
Additions for tax positions in current periods
|
831
|
|
|
Decreases for tax positions in prior periods
|
(9,279
|
)
|
|
Decreases related to change of foreign exchange rate
|
(477
|
)
|
|
Unrecognized tax benefit as of June 30, 2017
|
$
|
18,739
|
|
Fiscal Years
|
Amount
|
||
|
(In thousands)
|
||
2018
|
$
|
1,997
|
|
2019
|
1,431
|
|
|
2020
|
988
|
|
|
2021
|
908
|
|
|
2022
|
208
|
|
|
Thereafter
|
2,023
|
|
|
Total
|
$
|
7,555
|
|
(In thousands, except per share amounts)
|
Q1
Ended 9/30/2016 |
|
Q2
Ended 12/30/2016 |
|
Q3
Ended 3/31/2017 |
|
Q4
Ended 6/30/2017 |
||||||||
Fiscal 2017
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
58,207
|
|
|
$
|
68,536
|
|
|
$
|
58,700
|
|
|
$
|
56,431
|
|
Gross margin
|
17,365
|
|
|
21,116
|
|
|
17,732
|
|
|
19,259
|
|
||||
Operating (loss) income
|
(2,925
|
)
|
|
2,513
|
|
|
73
|
|
|
(646
|
)
|
||||
Net (loss) income
|
(601
|
)
|
|
1,722
|
|
|
(330
|
)
|
|
(1,412
|
)
|
||||
Net (loss) income attributable to Aviat Networks
|
(629
|
)
|
|
1,678
|
|
|
(399
|
)
|
|
(1,473
|
)
|
||||
Per share data:
|
|
|
|
|
|
|
|
||||||||
Basic net (loss) income per common share
|
$
|
(0.12
|
)
|
|
$
|
0.32
|
|
|
$
|
(0.08
|
)
|
|
$
|
(0.28
|
)
|
Diluted net (loss) income per common share
|
(0.12
|
)
|
|
0.31
|
|
|
(0.08
|
)
|
|
(0.28
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
(In thousands, except per share amounts)
|
Q1
Ended 10/2/2015 |
|
Q2
Ended 1/1/2016 |
|
Q3
Ended 4/1/2016 |
|
Q4
Ended 7/1/2016 |
||||||||
Fiscal 2016
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
79,555
|
|
|
$
|
70,416
|
|
|
$
|
60,467
|
|
|
$
|
58,252
|
|
Gross margin
|
21,011
|
|
|
16,424
|
|
|
14,413
|
|
|
9,869
|
|
||||
Operating loss
|
(1,598
|
)
|
|
(4,998
|
)
|
|
(7,594
|
)
|
|
(13,256
|
)
|
||||
Net loss
|
(1,154
|
)
|
|
(5,534
|
)
|
|
(7,808
|
)
|
|
(15,141
|
)
|
||||
Net loss attributable to Aviat Networks
|
(1,203
|
)
|
|
(5,679
|
)
|
|
(7,874
|
)
|
|
(15,151
|
)
|
||||
Per share data:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net loss per common share
(1)
|
$
|
(0.23
|
)
|
|
$
|
(1.09
|
)
|
|
$
|
(1.50
|
)
|
|
$
|
(2.88
|
)
|
(1)
|
All per share data in this note have been retroactively adjusted for the Reverse Stock Split discussed in Note 1.
|
(In thousands)
|
Q1
Ended 9/30/2016 |
|
Q2
Ended 12/30/2016 |
|
Q3
Ended 3/31/2017 |
|
Q4
Ended 6/30/2017 |
||||||||
Fiscal 2017
|
|
|
|
|
|
|
|
||||||||
Restructuring charges
|
$
|
160
|
|
|
$
|
72
|
|
|
$
|
111
|
|
|
$
|
246
|
|
Nigeria foreign exchange loss (gain) on dividend receivable
|
210
|
|
|
(2
|
)
|
|
10
|
|
|
(5
|
)
|
||||
WTM inventory recovery
|
—
|
|
|
(83
|
)
|
|
(48
|
)
|
|
(45
|
)
|
||||
Performance bond expense
|
—
|
|
|
365
|
|
|
—
|
|
|
—
|
|
||||
Gain on liquidation of subsidiary
|
—
|
|
|
—
|
|
|
(349
|
)
|
|
—
|
|
||||
Tax refund from Inland Revenue Authority of Singapore
|
(3,741
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(In thousands)
|
Q1
Ended 10/2/2015 |
|
Q2
Ended 1/1/2016 |
|
Q3
Ended 4/1/2016 |
|
Q4
Ended 7/1/2016 |
||||||||
Fiscal 2016
|
|
|
|
|
|
|
|
||||||||
Restructuring charges
|
$
|
21
|
|
|
$
|
34
|
|
|
$
|
804
|
|
|
$
|
1,596
|
|
Nigeria foreign exchange loss on dividend receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
1,245
|
|
||||
WTM inventory write-down
|
—
|
|
|
—
|
|
|
—
|
|
|
5,057
|
|
(a)
|
The following documents are filed as part of this report.
|
Schedule
|
Page
|
Schedule II — Valuation and Qualifying Accounts for the three fiscal years ended July 1, 2016
|
(b)
|
Exhibits.
|
|
|
|
AVIAT NETWORKS, INC.
(Registrant)
|
||
|
|
|
|
|
|
Date:
|
September 6, 2017
|
|
By:
|
|
/s/ Ralph S. Marimon
|
|
|
|
|
|
Ralph S. Marimon
|
|
|
|
|
|
Senior Vice President and Chief Financial Officer
|
Signature
|
|
Title
|
|
Date
|
|
||||
/s/ Michael A. Pangia
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
September 6, 2017
|
Michael A. Pangia
|
|
|
||
|
||||
/s/ Ralph S. Marimon
|
|
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
|
|
September 6, 2017
|
Ralph S. Marimon
|
|
|
||
|
|
|
|
|
/s/ Eric Chang
|
|
Vice President, Corporate Controller and
Principal Accounting Officer
(Principal Accounting Officer)
|
|
September 6, 2017
|
Eric Chang
|
|
|
||
|
||||
/s/ John Mutch
|
|
Chairman of the Board
|
|
September 6, 2017
|
John Mutch
|
|
|
|
|
|
|
|
|
|
/s/ Wayne Barr, Jr.
|
|
Director
|
|
September 6, 2017
|
Wayne Barr, Jr.
|
|
|
|
|
|
||||
/s/ Kenneth Kong
|
|
Director
|
|
September 6, 2017
|
Kenneth Kong
|
|
|
|
|
|
||||
/s/ John Quicke
|
|
Director
|
|
September 6, 2017
|
John Quicke
|
|
|
|
|
|
||||
/s/ James C. Stoffel
|
|
Director
|
|
September 6, 2017
|
James C. Stoffel
|
|
|
|
|
(In thousands)
|
Balance at
Beginning of
Period
|
|
Charged to
(Credit from)
Costs and
Expenses
|
|
Deductions
|
|
Balance
at End
of Period
|
||||||||
Allowances for collection losses:
|
|
|
|
|
|
|
|
||||||||
Year ended June 30, 2017
|
$
|
7,967
|
|
|
$
|
(484
|
)
|
|
$
|
3,564
|
|
(A)
|
$
|
3,919
|
|
Year ended July 1, 2016
|
$
|
6,641
|
|
|
$
|
2,431
|
|
|
$
|
1,105
|
|
(B)
|
$
|
7,967
|
|
Year ended July 3, 2015
|
$
|
7,442
|
|
|
$
|
1,302
|
|
|
$
|
2,103
|
|
(C)
|
$
|
6,641
|
|
Ex. #
|
|
Description
|
|
|
|
2.1
|
|
|
3.1
|
|
|
3.2
|
|
|
3.3
|
|
|
3.4
|
|
|
3.5
|
|
|
4.1
|
|
|
4.1.1
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4*
|
|
|
10.5
|
|
|
10.6
|
|
|
10.6.1
|
|
|
10.6.2
|
|
Ex. #
|
|
Description
|
|
|
|
10.6.3
|
|
|
10.6.4
|
|
|
10.6.5
|
|
|
10.6.6
|
|
|
10.6.7
|
|
|
10.7*
|
|
|
10.8*
|
|
|
10.8.1*
|
|
|
10.9*
|
|
|
10.10*
|
|
|
10.11
|
|
|
10.12*
|
|
|
10.13
|
|
|
10.14
|
|
|
21
|
|
|
23.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101.INS
|
|
XBRL Instance Document
|
Ex. #
|
|
Description
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Management compensatory contract, arrangement or plan required to be filed as an exhibit pursuant to Item 15(b) of this report.
|
|
|
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