INCOME TAXES (Tables)

12 Months Ended

Jun. 27, 2015

Income Tax Disclosure [Abstract]

Summary of Earnings (Loss) Before Income Tax

The Company’s loss before income taxes are as follows (in thousands):

	Fiscal 2015			Fiscal 2014			Fiscal 2013
United States	$	(8,215	)	$	(35,595	)	$	(2,928	)
International		513			(4,000	)		2,911
	$	(7,702	)	$	(39,595	)	$	(17	)

Schedule of Deferred Assets and Liabilities

The temporary differences that give rise to the deferred tax assets or liabilities are as follows (in thousands):

	June 27, 2015			June 28, 2014
Deferred tax assets
Inventories	$	418		$	311
Accrued liabilities		1,057			880
Accounts receivable		52			35
Net operating loss carry-forwards		5,874			4,930
Stock based compensation		172			123
Foreign tax credit		45			40
Deferred rent		89			67
Research and development credits		1,581			1,731
Other		9			31
Valuation allowance		(7,239	)		(5,574	)
		2,058			2,574
Deferred tax liabilities
Property, plant and equipment		(979	)		(901	)
Intangible assets		(2,444	)		(3,253	)
Percentage of completion		(121	)		(279	)
Other		(27	)		(28	)
		(3,571	)		(4,461	)
Net deferred tax liability	$	(1,513	)	$	(1,887	)

Deferred Tax Assets and Liabilities Included in the Consolidated Balance Sheets

Deferred tax assets and liabilities included in the Consolidated Balance Sheets are as follows (in thousands):

	June 27, 2015			June 28, 2014
Current deferred tax asset, net	$	214		$	173
Non-current deferred tax liability, net		(1,727	)		(2,060	)
	$	(1,513	)	$	(1,887	)

Expense for Income Taxes

The expense for income taxes consists of the following (in thousands):

	Fiscal 2015			Fiscal 2014			Fiscal 2013
Current tax (expense) benefit
Federal	$	(26	)	$	(189	)	$	(1,471	)
State		(224	)		(51	)		(76	)
Foreign		(645	)		(427	)		(1,082	)
		(895	)		(667	)		(2,629	)
Deferred tax benefit
Federal		154			2,166			1,166
State		(8	)		(8	)		(5	)
Foreign		229			(214	)		(3	)
		375			1,944			1,158
	$	(520	)	$	1,277		$	(1,471	)

Effective Tax Reconciliation

The income tax expense varies from the federal statutory rate due to the following (in thousands):

	Fiscal 2015			Fiscal 2014			Fiscal 2013
Income tax expense at federal statutory rate	$	2,469		$	13,462		$	6
Decrease (increase) in income tax expense resulting from:
State tax, net of federal benefit		(41	)		(34	)		(52	)
Effect of lower tax rate on foreign income		81			(679	)		163
Other permanent items		(604	)		(494	)		(135	)
Research and development expenditure credits		-			150			539
Changes in uncertain tax positions		(143	)		91			(787	)
Other		59			(35	)		60
Transaction expense		(680	)		-			-
Goodwill impairment		-			(6,903	)		-
Valuation allowance		(1,661	)		(4,281	)		(1,265	)
Income tax (expense) benefit	$	(520	)	$	1,277		$	(1,471	)

Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Fiscal 2015			Fiscal 2014			Fiscal 2013
Beginning balance	$	1,356		$	1,447		$	660
Additions for tax positions of current year		170			34			193
Adjustments for tax positions of prior years		-			-			865
Settlements		(35	)		(125	)		(271	)
Ending balance	$	1,491		$	1,356		$	1,447