What changed in this filing

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Item 1. Financial Statements

2025-05-13 compared with 2025-02-07 · 103 added, 101 removed, 470 unchanged (30% of the section changed)

3 unchanged sentences

(Unaudited, in thousands)

December 28, 2024 June 29, 2024

March 29, 2025 June 29, 2024

Current assets:

11 unchanged sentences

Deferred income tax asset 21,563 17,376

Other 6,454 5,346

Other, net of credit losses of $ 500 and $ 0

Total other assets 35,172 22,722

27 unchanged sentences

(Unaudited, in thousands, except per share amounts)

Three Months Ended Six Months Ended

December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023

Three Months Ended Nine Months Ended

March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024

Net sales $ 111,974 $ 142,427 $ 357,385 $ 440,386

7 unchanged sentences

Interest expense, net 2,581 2,800 9,748 8,772

Income (loss) before income taxes ( 5,025 ) 987 ( 3,844 ) 1,244

Income tax provision (benefit) ( 111 ) ( 97 ) ( 54 ) ( 175 )

Net income (loss) $ ( 4,914 ) $ 1,084 $ ( 3,790 ) $ 1,419

Net income (loss) per share — Basic $ ( 0.46 ) $ 0.10 $ ( 0.35 ) $ 0.13

Loss before income taxes ( 3,040 ) ( 3,375 ) ( 6,884 ) ( 2,131 )

Income tax benefit ( 2,436 ) ( 1,154 ) ( 2,490 ) ( 1,329 )

Net loss $ ( 604 ) $ ( 2,221 ) $ ( 4,394 ) $ ( 802 )

Net loss per share — Basic $ ( 0.06 ) $ ( 0.21 ) $ ( 0.41 ) $ ( 0.07 )

Weighted average shares outstanding —Basic 10,762 10,762 10,762 10,762

Net income (loss) per share — Diluted $ ( 0.46 ) $ 0.10 $ ( 0.35 ) $ 0.13

Net loss per share — Diluted $ ( 0.06 ) $ ( 0.21 ) $ ( 0.41 ) $ ( 0.07 )

Weighted average shares outstanding — Diluted 10,762 10,762 10,762 10,762

3 unchanged sentences

(Unaudited, in thousands)

Three Months Ended Six Months Ended

December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023

Three Months Ended Nine Months Ended

March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024

Comprehensive income (loss):

Net income (loss) $ ( 4,914 ) $ 1,084 $ ( 3,790 ) $ 1,419

Net loss $ ( 604 ) $ ( 2,221 ) $ ( 4,394 ) $ ( 802 )

Other comprehensive income (loss):

1 unchanged sentence

Comprehensive income (loss) $ 82 $ ( 2,412 ) $ ( 4,504 ) $ ( 705 )

Other comprehensive income (loss) for the three months ended December 28, 2024 and December 30, 2023, is reflected net of tax expense (benefit) of approximately $ 0.0 million and $ 0.1 million, respectively.

Other comprehensive (loss) for the six months ended December 28, 2024 and December 30, 2023, is reflected net of tax expense (benefit) of approximately $( 0.2 ) million and $ 0.1 million, respectively.

Other comprehensive income (loss) for the three months ended March 29, 2025 and March 30, 2024, is reflected net of tax expense (benefit) of approximately $ 0.2 million and $( 0.1 ) million, respectively.

Other comprehensive (loss) for the nine months ended March 29, 2025 and March 30, 2024, is reflected net of tax expense (benefit) of approximately $ 0.0 million and $ 0.0 million, respectively.

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Unaudited, in thousands)

Six Months Ended

December 28, 2024 December 30, 2023

Nine Months Ended

March 29, 2025 March 30, 2024

Operating activities:

Net income (loss) $ ( 3,790 ) $ 1,419

Adjustments to reconcile net income to cash provided by operating activities:

Net loss $ ( 4,394 ) $ ( 802 )

Adjustments to reconcile net loss to cash provided by operating activities:

Depreciation and amortization 7,945 8,247

30 unchanged sentences

Cash used in financing activities ( 9,382 ) ( 3,396 )

Net decrease in cash and cash equivalents ( 508 ) ( 650 )

Net (decrease) increase in cash and cash equivalents ( 2,284 ) 1,652

Cash and cash equivalents, beginning of period 4,752 3,603

8 unchanged sentences

(Unaudited, in thousands)

Three Months Ended Six Months Ended

December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023

Three Months Ended Nine Months Ended

March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024

Total shareholders’ equity, beginning balances $ 119,487 $ 132,435 $ 123,990 $ 130,617

8 unchanged sentences

Beginning balances $ 73,131 $ 84,405 $ 76,921 $ 82,986

Net income ( 4,914 ) 1,084 $ ( 3,790 ) 1,419

Net loss ( 604 ) ( 2,221 ) $ ( 4,394 ) ( 802 )

Ending balances 72,527 82,184 72,527 82,184

16 unchanged sentences

The Company’s reporting period is a 52/53 week fiscal year ending on the Saturday closest to June 30.

The three month and six month periods ended December 28, 2024 and December 30, 2023, were both 13 week periods.

The three month and nine month periods ended March 29, 2025 and March 30, 2024, were both 13 week periods.

Fiscal year 2025 will end on June 28, 2025, which is a 52 week year.

2 unchanged sentences

Historically, due to the timing between the procurement of raw materials, production cycle and payment from our customers, we have financed operations and met our capital expenditure requirements primarily through cash flows provided by operations and borrowings under our credit facilities.

We generated an operating loss and net loss of $( 1.1 ) million and $( 4.9 ) million, respectively, during the 3-month period ended December 28, 2024, and have positive working capital of $ 167.4 million as of December 28, 2024.

Based on current projections, we anticipate generating cash from operations as revenue is expected to increase during the third quarter of fiscal year 2025 along with anticipated cost savings from ongoing restructurings.

We generated cash from operations of $ 10.1 million and $ 6.1 million, respectively, during the nine-month periods ended March 29, 2025, and March 30, 2024, respectively, and have positive working capital of $ 160.0 million as of March 29, 2025.

Based on current projections, we anticipate continuing to generate cash from operations as revenue is expected to remain flat during the fourth quarter of fiscal year 2025 along with further anticipated cost savings from ongoing restructurings.

On December 3, 2024, we entered into an asset-based credit agreement with BMO Bank, N.A that provides for an asset-based senior secured revolving credit facility of up to $ 115 million, maturing on December 3, 2029.

On December 3, 2024, we also entered into a $ 28 million term loan credit agreement with Callodine Commercial Finance, LLC.

As of December 28, 2024, approximately $ 18.1 million was available under the credit facility.

As of March 29, 2025, approximately $ 20.4 million was available under the asset-based senior secured revolving credit facility.

In addition, MXN 20 million ($ 1.0 million USD) was available under the line of credit with Banorte Financial Group.

15 unchanged sentences

Leases are classified as finance or operating, with

classification affecting the pattern and classification of expense recognition in the consolidated statements of income.

classification affecting the pattern and classification of expense recognition in the consolidated statements of operations.

For further information, please refer to Footnote “Leases” of the “Notes to Consolidated Financial Statements.”

Revenue Recognition

The first step in its process for revenue recognition is to identify the contract with a customer.

The first step for revenue recognition is to identify the contract with a customer.

A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations.

65 unchanged sentences

The Company is currently evaluating the guidance and its impact to the financial statements.

Inventories as of December 28, 2024 are $ 100.7 million compared to $ 105.1 million as of June 29, 2024.

Inventories as of March 29, 2025 are $ 99.3 million compared to $ 105.1 million as of June 29, 2024.

The components of inventories consist of the following (in thousands):

December 28, 2024 June 29, 2024

March 29, 2025 June 29, 2024

(in thousands)

3 unchanged sentences

Long-Term Debt

Maturity Date Interest Rate December 28, 2024 June 29, 2024

Maturity Date Interest Rate March 29, 2025 June 29, 2024

(in thousands)

14 unchanged sentences

and (ii) each Base Rate Loan, Swing Line Loan or other Obligation shall bear interest at a rate per annum equal to the Base Rate (subject to a floor of 1.00 %) plus an applicable margin of 1.50 % to 2.00 %, depending on the availability of borrowing amounts under the Credit Agreement.

As of December 28, 2024, the applicable margin was 2.75 % for SOFR Loans and 1.75 % for Base Rate Loans.

As of March 29, 2025, the applicable margin was 2.75 % for SOFR Loans and 1.75 % for Base Rate Loans.

If there is an event of default under the Credit Agreement, all loans and other obligations may bear interest at a rate of an additional 2.00 % on the otherwise applicable interest rates.

1 unchanged sentence

Availability on the line of credit is generally determined based on eligible inventory and accounts receivable balances.

On May 13, 2025, the Company entered into a first amendment and limited waiver to the Credit Agreement.

The amendment waived an existing event of cross-default created by an event of default under the Term Loan as defined and discussed in footnote (2) below.

The amendment also adds an additional reporting requirement.

Proceeds from the Credit Facility and the Term Loan discussed below were used to pay-off the Company's prior loan and security agreement, as amended, with Bank of America, N.A.

1 unchanged sentence

The Term Loan, may also be used to pay-off certain other existing debt, to issue letters of credit, and for other business purposes, including working capital needs.

As of December 28, 2024, the Company had an outstanding balance under the asset-based revolving credit facility of $ 75.6 million, no outstanding letters of credit and $ 18.1 million available for future borrowings.

As of March 29, 2025, the Company had an outstanding balance under the asset-based revolving credit facility of $ 79.5 million, $ 0.3 million in outstanding letters of credit and $ 20.4 million available for future borrowings.

On August 14, 2020, the Company entered into a loan agreement with Bank of America (“Loan Agreement”).

7 unchanged sentences

If there is an event of default under the Term Loan, all loans and other obligations may bear interest at a rate of an additional 2.00 % on the otherwise applicable interest rate.

The Company had an outstanding balance of $ 28.0 million as of December 28, 2024.

On May 13, 2025, the Company entered into a first amendment and limited waiver to the Term Loan.

The amendment waived an existing event of default relating to non-compliance with minimum required earnings before interest, depreciation, amortization, and other adjustments for the period ending March 29, 2025.

The amendment adds an additional reporting requirement, and requires minimum earnings before interest, taxes, depreciation, amortization, and other adjustments only if average daily availability for the applicable fiscal quarter is less than 12.5 % of the combined borrowing base.

(3) On December 11, 2023, the Company entered into a loan agreement in Mexican peso with Banorte Financial Group.

The agreement provides for a three-year secured line of credit up to MXN 100 million, subject to the Company’s borrowing base, maturing on December 11, 2026.

The credit facility bears interest at Iterbancario de Equilibrio Interest Rate plus 2.75 %, and as

of December 28, 2024, was 13.3 %.

As of December 28, 2024, the Company had an outstanding balance under the revolving credit facility of MXN 84 million ($ 4.14 million USD) and MXN 16 million ($ 0.8 million USD) available for future borrowings.

The credit facility bears interest at Iterbancario de Equilibrio Interest Rate plus 2.75 %, and as of March 29, 2025, was 12.7 %.

As of March 29, 2025, the Company had an outstanding balance under the revolving credit facility of MXN 80 million ($ 3.96 million USD) and MXN 20 million ($ 0.96 million USD) available for future borrowings.

(4) On September 19, 2023, the Company entered into a $ 1.1 million equipment financing agreement with Ameris Bank dba Balboa Capital ("Balboa Capital").

1 unchanged sentence

Under these loan agreements, equal monthly payments of $ 94,000 commenced in the fourth quarter of fiscal year 2024 and will continue through the maturity of the equipment financing facility in the first quarter of fiscal 2030.

The Company had an outstanding balance $ 4.1 million as of December 28, 2024.

(5) On November 24, 2020, the Company entered into a $ 6.0 million equipment financing facility related to the Company’s existing manufacturing equipment that bears interest at 5.52 % and matures on April 24, 2026.

Under this loan agreement, equal monthly payments of $ 100,000 commenced on May 24, 2021 and will continue through the maturity of the equipment financing facility on April 24, 2026.

As of December 28, 2024, the Company had an outstanding balance of $ 1.6 million.

As of June 29, 2024, the Company had an outstanding balance of $ 2.2 million.

(6) On August 14, 2020, the Company entered into a $ 5.0 million equipment financing facility with Bank of America relating to the Company’s existing U.S.

1 unchanged sentence

Under this loan agreement, equal monthly payments of approximately $ 94,000 commenced on September 14, 2020 and continued through the pay-off of the Prior Credit Facility on December 4, 2024.

As of June 29, 2024, the Company had an outstanding balance of $ 1.3 million.

Debt maturities as of December 28, 2024 for the next five years are as follows (in thousands):

Debt maturities as of March 29, 2025 for the next five years are as follows (in thousands):

Fiscal Years Ending Amount

3 unchanged sentences

Long-term debt, net of debt issuance costs $ 113,594

(1) Represents scheduled payments for the remaining six-month period ending June 28, 2025.

(1) Represents scheduled payments for the remaining three-month period ending June 28, 2025.

The Company must comply with certain financial covenants, including earnings before interest, taxes, depreciation, amortization and other adjustments, availability and, if triggered, a fixed charge coverage ratio.

1 unchanged sentence

limit or restrict the ability of the Company to incur additional liens, make acquisitions or investments, incur additional indebtedness, engage in mergers, consolidations, liquidations, dissolutions, or dispositions, pay dividends or other restricted payments, prepay certain indebtedness, engage in transactions with affiliates, and use proceeds.

As of December 28, 2024, the Company was in compliance with all financial covenants.

The Company expects to repatriate a portion of its foreign earnings based on increased net sales growth driving additional capital requirements domestically, cash requirements for potential acquisitions and to implement certain tax strategies.

As of March 29, 2025, the Company was not in compliance with all financial covenants.

On May 13, 2025, the Company executed a first amendment and limited waiver to the Term Loan which waived an existing event of default as of that date.

Also on May 13, 2025, the Company executed a first amendment and limited waiver to the Credit Agreement which waived an existing event of cross-default as of that date.

The Company expects to repatriate a portion of its foreign earnings based on net sales growth driving additional capital requirements domestically, cash requirements for potential acquisitions and to implement certain tax strategies.

The Company currently expects to repatriate approximately $ 7.4 million of foreign earnings in the future.

7 unchanged sentences

Withholding taxes would not apply to future repatriations from Mexico or Vietnam.

The Company has available approximately $ 10.8 million of gross federal research and development tax credits as of December 28, 2024.

The Company has available approximately $ 10.9 million of gross federal research and development tax credits as of March 29, 2025 expiring in various fiscal years from 2033 to 2045.

ASC 740 requires the Company to recognize in its financial statements uncertainties in tax positions taken that may not be sustained upon examination by the taxing authorities.

Accordingly, as of December 28, 2024, the Company has recorded $ 2.9 million of unrecognized tax benefits associated with these federal tax credits, resulting in a net deferred tax benefit of approximately $ 7.9 million.

Accordingly, as of March 29, 2025, the Company has recorded $ 2.9 million of unrecognized tax benefits associated with these federal tax credits, resulting in a net deferred tax benefit of approximately $ 8.0 million.

The Company evaluated tax law changes and regulatory guidance issued through the prior fiscal year.

9 unchanged sentences

These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period.

Three Months Ended Six Months Ended

Three Months Ended Nine Months Ended

(in thousands, except per share information)

December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023

Net income (loss) $ ( 4,914 ) $ 1,084 $ ( 3,790 ) $ 1,419

March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024

Net loss $ ( 604 ) $ ( 2,221 ) $ ( 4,394 ) $ ( 802 )

Weighted average shares outstanding—basic 10,762 10,762 10,762 10,762

1 unchanged sentence

Weighted average shares outstanding—diluted 10,762 10,762 10,762 10,762

Net income (loss) per share—basic $ ( 0.46 ) $ 0.10 $ ( 0.35 ) $ 0.13

Net income (loss) per share—diluted $ ( 0.46 ) $ 0.10 $ ( 0.35 ) $ 0.13

Net loss per share—basic $ ( 0.06 ) $ ( 0.21 ) $ ( 0.41 ) $ ( 0.07 )

Net loss per share—diluted $ ( 0.06 ) $ ( 0.21 ) $ ( 0.41 ) $ ( 0.07 )

Antidilutive shares not included in diluted earnings per share 13 525 2 652

1 unchanged sentence

The Company’s 2024 Incentive Plan provides for equity and liability awards to employees and non-employee directors with service and performance vesting conditions in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards.

At December 28, 2024, 1,595,362 shares were available for grant.

At March 29, 2025, 1,595,362 shares were available for grant.

Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold, research, development and engineering, and selling, general and administrative expenses.

14 unchanged sentences

SARs expired ( 101,250 ) 8.17

Balance, December 30, 2023 387,500 $ — $ 5.78 1.8

Balance, March 30, 2024 387,500 $ — $ 5.78 1.8

Balance, June 30, 2024 387,500 — $ 5.78 1.8

1 unchanged sentence

SARs expired ( 115,000 ) 4.93

Balance, December 28, 2024 136,250 $ — $ 5.10 2.6

Exercisable at December 28, 2024 — — — —

Balance, March 29, 2025 136,250 $ — $ 5.10 2.3

Exercisable at March 29, 2025 — — — —

The Black-Scholes option valuation model is used by the Company for estimating the fair value of SARs.

1 unchanged sentence

Changes in these assumptions can materially affect the fair value estimates.

There were no SARs granted during the three or six months ended December 28, 2024 and December 30, 2023.

There were no SARs granted during the three or nine months ended March 29, 2025 and March 30, 2024.

Share-based compensation expense is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations.

This forfeiture rate will be revised, if necessary, in subsequent periods if actual forfeitures differ from the amount estimated.

Total SARs expense recognized during the three months ended December 28, 2024 and December 30, 2023 was approximately $( 158,000 ) and $ 52,000 , respectively.

Total SARs expense recognized during the six months ended December 28, 2024 and December 30, 2023 was approximately $( 139,000 ) and $ 111,000 , respectively

There were no SARs exercised during the three or six month periods ended December 28, 2024 or December 30, 2023.

As of December 28, 2024, total unrecognized compensation expense for SARs awards was approximately $ 0.1 million, which is expected to be recognized over a weighted average period of approximately 0.6 years.

No SARs expense was recognized during the three months ended March 29, 2025 and $ 52,000 was recognized during the three months ended March 30, 2024.

Total SARs expense recognized during the nine months ended March 29, 2025 and March 30, 2024 was approximately $( 139,000 ) and $ 164,000 , respectively

There were no SARs exercised during the three or nine month periods ended March 29, 2025 or March 30, 2024.

As of March 29, 2025, there is no unrecognized compensation expense for SARs awards due to unachieved performance.

Restricted Stock Units

5 unchanged sentences

The fair value of restricted stock units is the market close price on the date of grant.

During the three months ended December 28, 2024, the Company granted 4,638 restricted stock units at a weighted average grant date fair value of $ 5.39 per share.

Total restricted stock unit expense recognized during the three months ended December 28, 2024 was approximately $ 176,000 .

During the six months ended December 28, 2024, the Company granted 329,457 restricted stock units at a weighted average grant date fair value of $ 4.52 per share.

Total restricted stock unit expense recognized during the six months ended December 28, 2024 was approximately $ 223,000 .

As of December 28, 2024, total unrecognized compensation expense on restricted stock units was $ 1.3 million, which is expected to be recognized over a weighted average period of approximately 2.4 years.

During the three months ended March 29, 2025, the Company did not grant any restricted stock units.

Total restricted stock unit expense recognized during the three and nine months ended March 29, 2025 was approximately $ 26,000 and $ 250,000 , respectively.

During the nine months ended March 29, 2025, the Company granted 329,457 restricted stock units at a weighted average grant date fair value of $ 4.52 per share, none of which were granted during the third quarter.

As of March 29, 2025, total unrecognized compensation expense on restricted stock units was $ 1.0 million, which is expected to be recognized over a weighted average period of approximately 2.2 years.

Commitments and Contingencies

6 unchanged sentences

If actual return rates and/or repair and replacement costs differ significantly from management’s estimates, adjustments to recognize additional cost of sales may be required in future periods.

The Company’s warranty reserve was approximately $ 26,000 as of December 28, 2024 and $ 164,000 as of June 29, 2024.

The Company’s warranty reserve was approximately $ 26,000 as of March 29, 2025 and $ 164,000 as of June 29, 2024.

Gain from Insurance Recoveries, Net of Losses

Gain from insurance recoveries, net of losses, relate to losses incurred from storm damage to the Company’s Arkansas facility on July 29, 2022, as the result of a lightning strike and were recorded throughout fiscal year 2024 and fiscal year 2023.

The Company recorded no gain during the three or six months ended December 28, 2024.

The Company recorded $ 0.4 million of gain during the six months ended December 30, 2023, and recorded no gain during the three months ended December 30, 2023.

The Company recorded no gain during the three or nine months ended March 29, 2025.

The Company recorded no gain during the three months ended March 30, 2024 and $ 0.4 million for the nine months ended March 30, 2024.

Derivative Financial Instruments

As of December 28, 2024, the Company had outstanding foreign currency forward contracts with a total notional amount of $ 29.0 million through the end of the second quarter of fiscal year 2025.

During the three months ended December 28, 2024, the Company entered into $ 12.9 million of foreign currency forward contracts and settled $ 5.9 million of contracts.

During the same period of the previous year, the Company entered into $ 6.5 million of foreign currency forward contracts and settled $ 3.2 million of contracts.

During the six months ended December 28, 2024, the Company entered into $ 29.0 million of foreign currency forward contracts and settled $ 12.5 million of such contracts.

As part of our risk management strategy, we use derivative instruments to hedge Mexican peso and certain interest rate exposures.

As of March 29, 2025, the Company had outstanding foreign currency forward contracts with a total notional amount of $ 20.9 million through the end of the third quarter of fiscal year 2025.

During the three months ended March 29, 2025, the Company did not enter into foreign currency forward contracts and settled $ 8.1 million of contracts.

During the same period of the previous year, the Company did not enter into foreign currency forward contracts and settled $ 3.4 million of contracts.

During the nine months ended March 29, 2025, the Company entered into $ 29.0 million of foreign currency forward contracts and settled $ 20.6 million of such contracts.

During the same periods of the previous year, the Company entered into $ 6.5 million of foreign currency forward contracts and settled $ 6.5 million of contracts.

4 unchanged sentences

On the date of termination this interest rate swap was in a liability position of $ 776,500 , which has been amortized to interest expense over the original term of the swap.

The following table summarizes the fair value of the derivative instruments in the Consolidated Balance Sheets as of December 28, 2024 and December 30, 2023 (in thousands):

Derivatives designated as hedging instruments under Subtopic 815-20 Balance Sheet Location December 28, 2024 June 29, 2024

The following table summarizes the fair value of the derivative instruments in the Consolidated Balance Sheets as of March 29, 2025 and June 29, 2024 (in thousands):

Derivatives designated as hedging instruments under Subtopic 815-20 Balance Sheet Location March 29, 2025 June 29, 2024

Foreign currency forward contracts Other current assets $ 96 $ —

Foreign currency forward contracts Other current liabilities $ 516 $ 277

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the three months ended December 28, 2024 and December 30, 2023, respectively (in thousands):

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the three months ended March 29, 2025 and March 30, 2024, respectively (in thousands):

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

September 28, 2024 Effective

December 28, 2024 Effective

AOCI Effective Portion

1 unchanged sentence

Income AOCI Balance

December 28, 2024

March 29, 2025

Forward contracts Cost of sales $ 1,011 $ ( 1,274 ) $ 588 $ 325

1 unchanged sentence

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

September 30, 2023 Effective

December 31, 2023 Effective

AOCI Effective Portion

1 unchanged sentence

Income AOCI Balance

December 30, 2023

March 30, 2024

Forward contracts Cost of sales $ 191 $ ( 191 ) $ — $ —

Interest rate swap Interest expense ( 39 ) — 39 —

Total $ 191 $ ( 191 ) $ — $ —

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the six months ended December 28, 2024 and December 30, 2023, respectively (in thousands):

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the nine months ended March 29, 2025 and March 30, 2024, respectively (in thousands):

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

3 unchanged sentences

Income AOCI Balance

December 28, 2024

March 29, 2025

Forward contracts Cost of sales $ 215 $ ( 1,276 ) $ 1,386 $ 325

5 unchanged sentences

Income AOCI Balance

December 30, 2023

March 30, 2024

Forward contracts Cost of sales $ — $ 72 $ ( 72 ) $ —

1 unchanged sentence

Total $ ( 97 ) $ 72 $ 25 $ —

As of December 28, 2024, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China and Vietnam operations.

As of March 29, 2025, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

The Company is subject to the risk of fluctuating interest rates from our lines of credit and foreign currency risk resulting from our China and Vietnam operations.

The Company does not currently manage these risk exposures by using derivative instruments.

28 unchanged sentences

The Company has elected to expense costs to obtain contracts as incurred as these costs are immaterial to the financial statements.

During the first six months of fiscal year 2025, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods.

During the first nine months of fiscal year 2025, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods.

Contract Balances

1 unchanged sentence

Contract assets are classified separately on the condensed consolidated balance sheet and transferred to receivables when the right to payment becomes unconditional.

The following table summarizes the activity in the Company’s contract assets during the six months ended December 28, 2024 (in thousands):

The following table summarizes the activity in the Company’s contract assets during the nine months ended March 29, 2025 (in thousands):

Contract Assets

2 unchanged sentences

Amounts collected or invoiced ( 341,696 )

Ending balance, December 28, 2024

Ending balance, March 29, 2025

Disaggregation of Revenue

The following table presents the Company’s revenue disaggregated for the three and six months ended December 28, 2024 and December 30, 2023 (in thousands):

Recognition Three Months Ended Six Months Ended

December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023

The following table presents the Company’s revenue disaggregated for the three and nine months ended March 29, 2025 and March 30, 2024 (in thousands):

Recognition Three Months Ended Nine Months Ended

March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024

Over-Time $ 106,396 $ 120,367 $ 339,478 $ 379,331

6 unchanged sentences

The weighted average discount rate is disclosed in the tables below.

The components of lease cost for the three months and six months ended December 28, 2024 and December 30, 2023 were (in thousands):

Three Months Ended Six Months Ended

December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023

The components of lease cost for the three months and nine months ended March 29, 2025 and March 30, 2024 were (in thousands):

Three Months Ended Nine Months Ended

March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024

Lease cost Classification

7 unchanged sentences

Total lease cost $ 2,138 $ 2,563 $ 7,376 $ 7,848

Amounts reported in the Consolidated Balance Sheet as of December 28, 2024 and June 29, 2024 were (in thousands, except weighted average lease term and discount rate):

December 28, 2024 June 29, 2024

Amounts reported in the Consolidated Balance Sheet as of March 29, 2025 and June 29, 2024 were (in thousands, except weighted average lease term and discount rate):

March 29, 2025 June 29, 2024

Operating Leases:

15 unchanged sentences

(2) The total finance lease right of use assets of $ 1.3 million is classified under Other Long-term Assets.

The current portion of the total finance lease liabilities of $ 1.2 million is classified under Current portion of debt, net , resulting in $ 0.1 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Future lease payments under non-cancellable leases as of December 28, 2024 are as follows (in thousands):

The current portion of the total finance lease liabilities of $ 0.7 million is classified under Current portion of debt, net , resulting in no balance in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Future lease payments under non-cancellable leases as of March 29, 2025 are as follows (in thousands):

Fiscal Years Ending Operating Leases Finance Leases

5 unchanged sentences

Total lease liabilities $ 12,592 $ 706

(1) Represents estimated lease payments for the remaining six-month period ending June 28, 2025.

As of December 28, 2024, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $ 22 million.

(1) Represents estimated lease payments for the remaining three-month period ending June 28, 2025.

As of March 29, 2025, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $ 22 million.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements