Concentrations of Risk

12 Months Ended

Jun. 30, 2013

Financial instruments, which may subject the Company to a concentration of risk, consist principally of short-term investments, cash equivalents, and accounts receivable. Short-term investments consist primarily of corporate bonds, municipal bonds, U.S. agency securities, non-U.S. certificates of deposit and non-U.S. government securities at interest rates that vary by security. The Company’s cash equivalents consist primarily of money market funds. Certain bank deposits may at times be in excess of the FDIC insurance limits.

The Company sells its products on account to manufacturers, distributors and others worldwide and generally requires no collateral. When title has transferred and the earnings process is complete, the Company recognizes revenue and related accounts receivable.

The following customers individually accounted for more than 10% of the consolidated accounts receivable balance as of the following fiscal year-ends:



	June 30, 2013		June 24, 2012
Arrow Electronics, Inc.	14	%	14	%
World Peace Industrial Co., Ltd.	13	%	14	%

Sales to certain customers represented more than 10% of consolidated revenue. Sales to Arrow Electronics, Inc. represented 16%, 18% and 20% of revenues for fiscal 2013, 2012, and 2011, respectively. Sales to World Peace Industrial Co., Ltd. represented 10% of revenues in both fiscal 2012 and 2011.

Arrow Electronics, Inc. is a customer of the LED Products and Power and RF Products segments. World Peace Industrial Co., Ltd. is a customer of the LED Products segment.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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