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Commitments and Contingencies
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9 Months Ended |
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Jun. 29, 2012
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| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES |
9. COMMITMENTS AND CONTINGENCIES Unused Letter of Credit—As of September 30, 2011 and June 29, 2012, the Company had outstanding unused letters of credit from a bank aggregating $200,000 and $246,000, respectively. Purchase Commitments—As of September 30, 2011 and June 29, 2012, the Company had outstanding noncancelable purchase commitments aggregating $3.0 million and $3.3 million, respectively, pursuant to inventory supply arrangements. Litigation—The Company is periodically subject to legal proceedings, claims and contingencies arising in the ordinary course of business. In April 2011, GigOptix, Inc. (GigOptix) filed a complaint in the Santa Clara County Superior Court against the Company, its subsidiary Optomai, and five employees (the Ex-Employees) who had previously worked for GigOptix. GigOptix alleged that the Ex-Employees began conceptualizing a new business venture in 2009 (which would later become Optomai) before resigning from their employment with GigOptix, and that they used confidential information of GigOptix in their new business. The complaint seeks unspecified damages, attorneys’ fees and costs, and injunctive relief for alleged breach of employment-related agreements, trade secret misappropriation and other related alleged torts by the employee defendants, Optomai and following its April 2011 acquisition of Optomai, the Company. In July 2011, GigOptix sought a temporary restraining order and thereafter an injunction on the same grounds, both of which were denied by the court. In August 2011, GigOptix amended its complaint for the second time, to delete its claims for negligent and intentional interference with economic advantage and unfair competition, leaving the following claims pending; (i) breach of duty of loyalty against the Ex-Employees only, (ii) breach of contract against the Ex-Employees only, (iii) misappropriation of trade secrets against all defendants, and (iv) unfair business practices against all defendants. Each side has served discovery requests, and the parties have narrowed the discovery being sought. On July 30, 2012, GigOptix filed and served a renewed motion for preliminary injunction. The Company intends to defend this lawsuit vigorously. The Company does not expect that the ultimate cost to resolve these matters will have a material effect on the consolidated financial statements. The Company does not believe a risk of material loss resulting from litigation is probable, nor is the Company able to estimate any reasonably possible range of loss. |