BALANCE SHEET INFORMATION

3 Months Ended

Aug. 30, 2024

BALANCE SHEET INFORMATION

BALANCE SHEET INFORMATION

4. BALANCE SHEET INFORMATION

Inventories

Inventories consisted of the following:

	August 30,		May 31,
(In thousands)	2024		2024
Raw materials and sub-assemblies	$	26,794	$	22,410
Work in process		13,642		13,593
Finished goods		2,537		1,467
	$	42,973	$	37,470

Property and equipment

Property and equipment, net consisted of the following:

	Useful life	August 30,			May 31,
(In thousands)	(in years)	2024			2024
Leasehold improvements	*	$	1,729		$	1,588
Machinery and equipment	3 - 5		4,650			4,528
Test equipment	4 - 5		2,092			1,928
Furniture and fixtures	2 - 5		176			175
			8,647			8,219
Less: accumulated depreciation			(5,144	)		(4,966	)
		$	3,503		$	3,253

* Lesser of estimated useful life or lease term.

Depreciation expense was $0.2 million for the three months ended August 30, 2024 and $0.1 million for the three months ended August 31, 2023.

Product warranties

The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The standard warranty period is one year for systems and ninety days for parts and service.

The following is a summary of changes in the Company’s liability for product warranties during the three months ended August 30, 2024 and August 31, 2023:

	Three Months Ended
	August 30,			August 31,
(In thousands)	2024			2023
Balance at the beginning of the period	$	234		$	267
Accruals for warranties issued during the period		178			65
Consumption of reserves		(193	)		(100	)
Balance at the end of the period	$	219		$	232

The accrued warranty balance is included in accrued expenses on the accompanying Condensed Consolidated Balance Sheets.

Deferred revenue

Deferred revenue, short-term consisted of the following:

	August 30,		May 31,
(In thousands)	2024		2024
Customer deposits	$	3,428	$	1,248
Deferred revenue		113		97
	$	3,541	$	1,345