IMMATERIAL RESTATEMENT (Notes)

3 Months Ended

Apr. 01, 2017

Unusual or Infrequent Items, or Both, Disclosure [Text Block]


	IMMATERIAL RESTATEMENT

During the third quarter of 2016, the Company discovered embezzlement activities at its Korean subsidiary. Based upon the results of forensic investigation procedures, the Company identified that the embezzlement activities occurred from fiscal year 2011 through fiscal year 2016. The embezzlement resulted in a total theft loss of $1,589,000 over that period and as a result of the embezzlement we have made the following correcting adjustments to the amounts presented in our previously issued quarterly financial information.

In the three month period ended March 26, 2016, the Company has recorded in Other income (expense), net, embezzlement expense of approximately $77,000, representing the total amount of theft loss that occurred during the first quarter of fiscal 2016. Of that amount, $61,000 had previously been expensed, although misclassified ($11,000 as Cost of component revenues and $50,000 as Foreign currency transaction losses), and $16,000 had been incurred but not yet recorded in the first quarter of 2016. Accordingly, the embezzlement expense recorded in the accompanying financial statements includes the effects of correcting these misstatements.