Commitments and Contingencies

6 Months Ended

Jul. 03, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

The Company's manufacturing suppliers require us to forecast wafer starts several months in advance. The Company is required to take delivery of and pay for a portion of forecasted wafer volume. As of July 3, 2016, and January 3, 2016, the Company had $357,000 and $1.4 million, respectively, of outstanding commitments for the purchase of wafer and finished goods inventory.

The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of July 3, 2016, total outstanding purchase obligations were $1.2 million, all of which are due within the next twelve months.

The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense for the second quarters of 2016 and 2015 was approximately $206,000 and 238,000, respectively. Total rent expense for the six months of 2016 and 2015 was $404,000 and $477,000, respectively.

As of July 3, 2016, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:



	Operating Leases
	(in thousands)
Fiscal Years
2016 (Remaining 6 months)	$	424
2017	793
2018	798
2019	164
2020	169
2021	84
	$	2,432

Contingencies

One of the Company's licensors contends that the Company owes back royalties on sales of the Company's ArcticLink III VX devices. After mediation in June 2016, the parties agreed upon a settlement of $40,000 to be paid by the Company and are finalizing the terms for such settlement. The Company accrued for this liability in the quarter ended July 3, 2016.