INCOME TAXES (Tables)

12 Months Ended

Jul. 02, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax benefit consists of the following:

	Fiscal Year Ended
	July 2, 2022		July 3, 2021		June 27, 2020
	(in thousands)
Current income tax benefit:
United States	$	(2,179)	$	1,416	$	365
Foreign	2,012		1,098		154
	(167)		2,514		519
Deferred income tax benefit:
United States	443		(858)		(1,850)
Foreign	38		(84)		892
	481		(942)		(958)
Total income tax provision (benefit)	$	314	$	1,572	$	(439)

Effective Tax Rate Reconciliation

The Company’s effective tax rate differs from the federal tax rate as follows:

	Fiscal Year Ended
	July 2, 2022		July 3, 2021		June 27, 2020
	(in thousands)
Federal income tax provision at statutory rates	$	775	$	1,242	$	907
State income taxes, net of federal tax effect	86		76		90
Foreign tax rate differences	336		(36)		336
Tax rate change	—		184		—
Federal rate differences applied to net operating loss carryback	(593)		—		—
Effect of income tax credits	(920)		(413)		(310)
Previously unrecognized tax benefits	146		(296)		(1,345)
Effect of repatriation of foreign earnings, net	—		(61)		—
Tax penalties & interest	179		—		—
Global Intangible Low-Taxed Income (GILTI) tax	59		34		—
Provision to return reconciliation	(32)		50		(241)
Equity compensation shortfall	104		572		—
Other	174		220		124
Income tax provision (benefit)	$	314	$	1,572	$	(439)

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income before income taxes were:

	Fiscal Year Ended
	July 2, 2022		July 3, 2021		June 27, 2020
	(in thousands)
Domestic	$	(2,890)	$	2,839	$	1,142
Foreign	6,581		3,074		3,177
Income before income taxes	$	3,691	$	5,913	$	4,319

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following at:

	July 2, 2022		July 3, 2021
	(in thousands)
Deferred tax assets:
Net operating loss	$	486	$	465
Tax credit carryforwards, net	7,990		3,581
Inventory	247		1,190
Identifiable intangibles	370		432
Accruals	2,406		3,132
Fixed assets	1,200		—
ASC 606 deferred costs	4,216		4,670
Lease liabilities	3,671		2,909
Interest expense deduction carryforward	580		—
Other	465		385
Deferred income tax assets	$	21,631	$	16,764
Deferred tax liabilities:
Accrued withholding tax - unremitted earnings	(754)		(754)
Fixed assets	—		(794)
Right-of-use assets	(3,663)		(2,930)
Tax capital lease liabilities	(2,385)		—
Mark-to-market adjustments	—		(816)
ASC 606 accelerated revenue	(3,736)		(672)
Other	(1,102)		(1,142)
Deferred income tax liabilities	$	(11,640)	$	(7,108)
Net deferred income tax assets	$	9,991	$	9,656
Balance sheet caption reported in:
Long-term deferred income tax asset	$	10,055	$	9,656
Long-term deferred income tax liability	(64)		—
Net deferred income tax asset	$	9,991	$	9,656

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
	July 2, 2022		July 3, 2021		June 27, 2020
	(in thousands)
Beginning Balance	$	4,863	$	2,863	$	4,099
Additions based on tax positions related to the current year	286		193		109
Adjustment to prior year tax positions & amended tax returns	(2,296)		2,102		—
Lapse of statute of limitations	145		(295)		(1,345)
Ending Balance	$	2,998	$	4,863	$	2,863