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Related Party Transactions
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9 Months Ended |
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Jun. 29, 2012
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| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS |
14. RELATED PARTY TRANSACTIONS The Company’s majority stockholder controls another entity, GaAs Labs, LLC (GaAs Labs), which was formerly engaged to provide management services pursuant to an agreement entered into in fiscal year 2008 and amended in December 2010. The agreement terminated by its terms concurrently with the closing of the IPO in March 2012. Commencing in fiscal year 2009, the Company paid GaAs Labs $60,000 per month. Selling, general and administrative expenses for the three months ended July 1, 2011 include $180,000 for such services. Selling, general and administration expenses for the nine months ended June 29, 2012 and July 1, 2011 include $360,000 and $540,000, respectively, for such services. No amounts were payable as of September 30, 2011 or June 29, 2012. In February 2012, the Company entered into a design services agreement with Ubiquiti Networks, Inc. (Ubiquiti). Two of the Company’s directors are also directors of Ubiquiti. An affiliate of one of the directors is also an Ubiquiti stockholder. The agreement provides that the Company will provide engineering services to Ubiquiti toward the development of an IC device. The agreement also provides that Ubiquiti will pay the Company up to $500,000 for such services based on milestone achievement and sets a unit price for any future production orders of such devices. The Company received related payments of $200,000 from Ubiquiti through June 29, 2012, of which $125,000 is included in deferred revenue as of that date due to $50,000 being subject to refund should certain milestones not be met and, generally, not completing the services related to the payments as of that date.
In April 2012, the Company entered into a services agreement with GaAs Labs whereby GaAs Labs will pay the Company for administrative and business development services provided to GaAs Labs on a time and materials basis. There are no minimum service requirements or payment obligations and the agreement may be terminated by either party with 30 days notice. In the three and nine months ended June 29, 2012, the Company billed GaAs Labs $91,000 for services provided pursuant to this agreement and has recorded the amount as other income in the accompanying condensed consolidated statements of operations. |