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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 29, 2024
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | Income tax benefit consists of the following:
| Fiscal Year Ended
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022
| (in thousands)
Current income tax provision (benefit): |  |  |  |  |
United States | $ | 263 |  |  | $ | 998 |  |  | $ | (2,179) |
Foreign | 1,451 |  |  | 2,134 |  |  | 2,012 |
| 1,714 |  |  | 3,132 |  |  | (167) |
Deferred income tax provision (benefit): |  |  |  |  |
United States | (4,322) |  |  | (2,130) |  |  | 443 |
Foreign | 208 |  |  | 141 |  |  | 38 |
| (4,114) |  |  | (1,989) |  |  | 481 |
Total income tax provision | $ | (2,400) |  |  | $ | 1,143 |  |  | $ | 314 |
Schedule of Effective Tax Rate Reconciliation | The Company’s effective tax rate differs from the federal tax rate as follows:
| Fiscal Year Ended |
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022 |
| (in thousands) |
Federal income tax provision at statutory rates | $ | (1,089) |  |  | $ | 1,322 |  |  | $ | 775 |  |
State income taxes, net of federal tax effect | (145) |  |  | (25) |  |  | 86 |  |
Foreign tax rate differences | (71) |  |  | 137 |  |  | 336 |  |
Net operating loss carryback | — |  |  | — |  |  | (593) |  |
Effect of income tax credits | (929) |  |  | (1,020) |  |  | (920) |  |
Previously unrecognized tax benefits | (232) |  |  | (75) |  |  | 146 |  |
Inflation adjustments | 132 |  |  | 118 |  |  | 178 |  |
Tax penalties & interest included in tax provision | — |  |  | — |  |  | 179 |  |
Global Intangible Low-Taxed Income (GILTI) tax | 53 |  |  | 33 |  |  | 59 |  |
Provision to return reconciliation | (68) |  |  | 52 |  |  | (91) |  |
Equity compensation shortfall | 51 |  |  | 73 |  |  | 104 |  |
Foreign Exchange Gains/Losses Unrealized for Tax Purposes | (126) |  |  | 277 |  |  | 23 |  |
Other | 24 |  |  | 251 |  |  | 32 |  |
Income tax provision (benefit) | $ | (2,400) |  |  | $ | 1,143 |  |  | $ | 314 |  |
Schedule of Domestic and Foreign Components of Income Before Income Taxes | The domestic and foreign components of income before income taxes were:
| Fiscal Year Ended
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022
| (in thousands)
Domestic | $ | (13,539) |  |  | $ | (1,086) |  |  | $ | (2,890) |
Foreign | 8,352 |  |  | 7,386 |  |  | 6,581 |
Income before income taxes | $ | (5,187) |  |  | $ | 6,300 |  |  | $ | 3,691 |
Schedule of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following at:
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022
| (in thousands)
Deferred tax assets: |  |  |  |  |
Tax credit carryforwards, net | $ | 7,544 |  |  | $ | 6,812 |  |  | $ | 7,990 |
Net operating loss | — |  |  | — |  |  | 486 |
Inventory | 252 |  |  | 267 |  |  | 247 |
Identifiable intangibles | 247 |  |  | 308 |  |  | 370 |
Accruals | 2,340 |  |  | 2,421 |  |  | 2,406 |
Property, plant, and equipment | — |  |  | 1,328 |  |  | 1,200 |
ASC 606 deferred costs | 3,852 |  |  | 4,802 |  |  | 4,216 |
Lease liabilities | 3,542 |  |  | 3,775 |  |  | 3,671 |
Interest expense deduction carryforward | 2,765 |  |  | 977 |  |  | 580 |
Research and development expenses | 6,042 |  |  | 3,860 |  |  | — |
Other | 505 |  |  | 271 |  |  | 465 |
Deferred income tax assets | $ | 27,089 |  |  | $ | 24,821 |  |  | $ | 21,631 |
Deferred tax liabilities: |  |  |  |  |
Accrued withholding tax - unremitted earnings | (796) |  |  | (754) |  |  | (754) |
Property, plant, and equipment | (127) |  |  | — |  |  | — |
Right-of-use assets | (3,609) |  |  | (3,857) |  |  | (3,663) |
Tax capital lease liabilities | (764) |  |  | (2,832) |  |  | (2,385) |
ASC 606 accelerated revenue | (3,882) |  |  | (4,599) |  |  | (3,736) |
Other | (798) |  |  | (799) |  |  | (1,102) |
Deferred income tax liabilities | $ | (9,976) |  |  | $ | (12,841) |  |  | $ | (11,640) |
Net deferred income tax assets | $ | 17,113 |  |  | $ | 11,980 |  |  | $ | 9,991 |
Balance sheet caption reported in: |  |  |  |  |
Long-term deferred income tax asset | $ | 17,376 |  |  | $ | 12,254 |  |  | $ | 10,055 |
Long-term deferred income tax liability | (263) |  |  | (274) |  |  | (64) |
Net deferred income tax asset | $ | 17,113 |  |  | $ | 11,980 |  |  | $ | 9,991 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Fiscal Year Ended
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022
| (in thousands)
Beginning Balance | $ | 3,028 |  |  | $ | 2,998 |  |  | $ | 4,863 |
Additions based on tax positions related to the current year | 110 |  |  | 120 |  |  | 286 |
Adjustment to prior year tax positions & amended tax returns | (7) |  |  | (15) |  |  | (2,296) |
Lapse of statute of limitations | (232) |  |  | (75) |  |  | 145 |
Ending Balance | $ | 2,899 |  |  | $ | 3,028 |  |  | $ | 2,998 |

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