v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jul. 03, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Provision for (Benefit) Income Taxes, Domestic and Foreign
Income before provision for income taxes during fiscal 2026, 2025 and 2024 consisted of the following: 
Fiscal Year
(In thousands)202620252024
United States$9,124 $1,981 $16,741 
Foreign4,095 1,595 165 
Total income before income taxes$13,219 $3,576 $16,906 
Schedule of Components of Income Tax Expense (Benefit)
Provision for (benefit from) income taxes for fiscal 2026, 2025 and 2024 were summarized as follows:
Fiscal Year
(In thousands)202620252024
Current:
Federal$65 $150 $54 
Foreign4,794 1,712 2,128 
State and local29 716 339 
4,888 2,578 2,521 
Deferred:
Federal2,421 1,143 4,613 
Foreign4,139 (1,261)(2,035)
State and local(768)(225)1,047 
5,792 (343)3,625 
Total provision for income taxes$10,680 $2,235 $6,146 
Schedule of Effective Income Tax Rate Reconciliation
The provision for income taxes differed from the amount computed by applying the federal statutory rate of 21% to the Company’s income before provision for income taxes as follows:
(In thousands)2026
Tax provision at statutory rate$2,777 21 %
State and local taxes, net of U.S. federal tax benefit (1)(745)(6)%
Foreign Tax Effects:
Brazil
Return-to-provision adjustments(826)(6)%
Changes in valuation allowances687 5 %
Other12 0 %
Canada
Changes in valuation allowances3,586 27 %
Deferred true-up adjustments(2,341)(18)%
Other1,017 8 %
Japan
Deferred true-up adjustments788 6 %
Other(404)(3)%
New Zealand
Deferred true-up adjustments729 6 %
Return-to-provision adjustments531 4 %
Effects of rates different than statutory519 4 %
Other125 1 %
Singapore
Prior year true-up adjustments(2,087)(16)%
Withholding tax767 6 %
Deferred true-up adjustments1,301 10 %
Effects of rates different than statutory508 4 %
Other397 3 %
Other foreign jurisdictions1,448 11 %
Effect of cross border tax laws19 — %
Tax credits107 1 %
Changes in valuation allowances(80)(1)%
Nontaxable or nondeductible items:944 7 %
Change in uncertain tax positions1,364 10 %
Other(463)(4)%
Total provision for income taxes$10,680 81 %
(1) For fiscal 2026, the states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Florida, Indiana, Illinois, New York, Colorado.
Reconciliations of Income tax expense (benefit) computed at the U.S. federal statutory income tax rate of 21% to the recognized Income tax expense (benefit) and the U.S. statutory income tax rate to our effective tax rates prior to the adoption of ASU 2023-09 were as follows:
(In thousands)20252024
Tax provision at statutory rate$751 $3,550 
Valuation allowances(1,949)(2,354)
Permanent differences66 (20)
Foreign income inclusions63 654 
Effect of flow-through entities157 (29)
Transaction costs— 1,092 
State and local taxes, net of U.S. federal tax benefit341 877 
Foreign income taxed at rates different than the U.S. statutory rate805 411 
Executive compensation limitation343 729 
Share-based compensation
583 (339)
Tax credit - generated and expired(88)(125)
Foreign withholding taxes698 698 
Change in uncertain tax positions(77)869 
Return-to-provision/Deferred true-up adjustments599 119 
Other(57)14 
Total provision for income taxes$2,235 $6,146 
Schedule of Income Taxes Paid
The following table reflects income taxes paid disaggregated by jurisdiction. No individual state exceeded 5% of total income taxes paid for any of the years presented.
2026
Federal$206 
State705 
Foreign:
Mexico1,054 
India484 
Australia371 
Indonesia275 
Other1,245 
Total foreign3,429 
Total$4,340 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
(In thousands)July 3, 2026June 27, 2025
Deferred tax assets:
Inventory$4,845 $5,004 
Accruals and reserves2,278 2,652 
Bad debts1,039 533 
Depreciation405 — 
Share-based compensation774 714 
Deferred revenue4,677 6,223 
Unrealized exchange gain/loss3,559 1,700 
Other1,155 692 
Capitalized research expenses5,256 5,543 
Tax credit carryforwards4,341 4,298 
Tax loss carryforwards92,724 95,031 
Total deferred tax assets before valuation allowance121,053 122,390 
Valuation allowance(37,022)(32,531)
Total deferred tax assets84,031 89,859 
Deferred tax liabilities:
Depreciation— 110 
Amortization
4,066 4,938 
Right of use assets245 352 
Other961 1,285 
Total deferred tax liabilities5,272 6,685 
Net deferred tax assets$78,759 $83,174 
As reported on the consolidated balance sheets
Deferred income tax assets$82,064 $88,149 
Deferred income tax liabilities3,305 4,975 
Total net deferred income tax assets
$78,759 $83,174 
Schedule of Unrecognized Tax Benefits Roll Forward
The Company’s unrecognized tax benefit activity for fiscal 2026, 2025 and 2024 was as follows:
(In thousands)
Unrecognized tax benefit as of June 30, 2023$16,086 
Additions for tax positions in prior periods— 
Additions for tax positions in current periods971 
Decreases for tax positions in prior periods— 
Decreases related to expiration of the statute of limitations(102)
Decreases related to change of foreign exchange rate(880)
Unrecognized tax benefit as of June 28, 202416,075 
Additions for tax positions in prior periods95 
Additions for tax positions in current periods723 
Decreases for tax positions in prior periods— 
Decreases related to settlements with tax authorities(186)
Decrease related to expiration of the statute of limitations(819)
Increases related to change of foreign exchange rate89 
Unrecognized tax benefit as of June 27, 202515,977 
Additions for tax positions in prior periods103 
Additions for tax positions in current periods1,239 
Decreases for tax positions in prior periods(7,672)
Decreases related to settlements with tax authorities— 
Decrease related to expiration of the statute of limitations(76)
Increases related to change of foreign exchange rate76 
Unrecognized tax benefit as of July 3, 2026$9,647