INVENTORIES

3 Months Ended

Oct. 01, 2011

Inventory Disclosure [Abstract]

INVENTORIES

4.  INVENTORIES

Inventories consist of:

(in thousands)	October 1, 2011		July 2, 2011
Raw materials		$  8,430		$  5,905
Work in process		4,047		4,701
Finished goods		5,962		11,336
		$18,439		$21,942

The Company considers raw material inventory obsolete and reserves it if the raw material has not moved in 365 days.  The Company reviews its assembled devices for excess and records a reserve if the quantity of assembled devices in inventory is in excess of the greater of the quantity shipped in the previous twelve months, the quantity in backlog or the quantity forecasted to be shipped in the following twelve months. In certain circumstances, management will determine, based on expected usage or other factors, that inventory considered excess by these guidelines should not be reserved. The Company does occasionally determine that the last twelve months’ sales levels will not continue and reserves inventory in line with the quantity forecasted. As of October 1, 2011, the Company had reserved for $4.5 million of inventory as compared to $4.2 million at July 2, 2011.  The Company attributes this increase in inventory reserves between July 2, 2011 and October 1, 2011 to increased wafer reserves, partially offset by sales or scrapping of previously reserved inventory.