INCOME TAXES (Tables)

12 Months Ended

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