Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Interim Consolidated Financial Statement Details (Details Textual)

v3.7.0.1
Note 4 - Interim Consolidated Financial Statement Details (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 02, 2017
Jul. 03, 2016
Jul. 02, 2017
Jul. 03, 2016
Apr. 02, 2017
Jan. 01, 2017
Depreciation     $ 1,950 $ 2,021    
Inventory Valuation Reserves $ 865   865     $ 442
Property, Plant and Equipment, Net 11,574   11,574     14,437
Property, Plant and Equipment, Gross 47,250   47,250     49,344
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 35,676   35,676     34,907
Impairment of Long-Lived Assets Held-for-use 1,601 1,601    
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment 870          
UNITED STATES            
Long-lived Assets Evaluated for Impairment 2,108   2,108      
Impairment of Long-Lived Assets Held-for-use 1,025          
Long-lived Assets, Fair Value Assumption, Revenue Projection Decreased by One Percent, Recoverable Amount 110   110      
Machinery and Equipment [Member]            
Property, Plant and Equipment, Transfers and Changes 1,660          
Capital Leased Assets, Gross 533   533     2,193
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation 95   95     673
Property, Plant and Equipment, Gross [1],[2],[3] 29,913   29,913     31,615
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment [1],[2],[3] 23,389   23,389     22,460
Impairment of Long-Lived Assets Held-for-use 576          
Machinery and Equipment [Member] | Corporate Segment [Member]            
Property, Plant and Equipment, Net         $ 130  
Property, Plant and Equipment, Gross         135  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment         5  
Machinery and Equipment [Member] | UNITED STATES            
Long-lived Assets, Fair Value Assumption, Effect of One Percent Increase in WACC on Impairment 37   37      
Machinery and Equipment [Member] | CHINA            
Long-lived Assets Evaluated for Impairment 1,504   1,504      
Long-lived Assets, Amount in Excess of Carrying Value 1,128   1,128      
Impairment of Long-Lived Assets Held-for-use 0          
Long-lived Assets, Fair Value Assumption, Revenue Projection Decreased by One Percent, Recoverable Amount 641   641      
Machinery and Equipment [Member] | CHINA | Impaired Assets Group 1 [Member]            
Property, Plant and Equipment, Net         265  
Property, Plant and Equipment, Gross         383  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment         118  
Machinery and Equipment [Member] | CHINA | Impaired Assets Group 2 [Member]            
Property, Plant and Equipment, Net         181  
Property, Plant and Equipment, Gross         472  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment         $ 291  
Machinery and Equipment [Member] | Assets Under Capital Lease [Member]            
Depreciation 55 74 133 154    
Computer Equipment [Member]            
Capital Leased Assets, Gross           83
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation           80
Property, Plant and Equipment, Gross [1],[4] 3,079   3,079     3,544
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment [1],[4] $ 2,428   2,428     $ 2,842
Computer Equipment [Member] | Assets Under Capital Lease [Member]            
Depreciation   $ 10 $ 3 $ 20    
[1] During the quarter ended July 2, 2017, the Company removed fully depreciated assets that were no longer in use with a cost and accumulated depreciation value of $870. The China segment impaired assets from machinery and equipment with net book value of $265, associated cost of $383 and accumulated depreciation value of $118. The China segment also impaired assets from machinery and equipment with net book value of $181, associated cost of $472 and accumulated depreciation value of $291. The corporate segment also impaired assets with net book value of $130, associated cost of $135 and accumulated depreciation of $5. A total impairment loss was recorded of $576 in the second quarter of 2017.
[2] In accordance with ASC 360-10, the Company is required to evaluate for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Upon the occurrence of a triggering event, the Company assesses whether the estimated undiscounted cash flows expected from the use of the asset and the residual value from the ultimate disposal of the asset exceeds the carrying value. In the second quarter of 2017, the Company identified that results did not meet forecasted results for new and existing customers, which was considered a triggering event related to its U.S. segment asset group. The net carrying amount of the U.S. asset group was $2,108. The Company estimated undiscounted cash flows and determined the carrying amounts was exceeded by the recoverable amount, therefore an impairment loss of $1,025 has been recorded in the second quarter of 2017. The estimate of discounted cash flows are sensitive to these key assumptions, for instance, if our revenue projections are lower by 1%, the impairment would increase by $110. If there was a 1% increase in the weighted average cost of capital, the impairment would increase by $37. The Company calculated the impairment loss by discounting the future cash flows which was determined to represent the fair value of the asset group and deducted this from the carrying amount of the segment asset group. In the second quarter of 2017, the Company also identified that results did not meet forecasted results for new customers and existing customers had revenue pushouts, which was considered a triggering event related to its China segment asset group. The net carrying amount of the China asset group was $1,504. The Company estimated undiscounted cash flows and determined a recoverable amount of $1,128 in excess of the net carrying value, therefore no impairment loss has been recorded in the second quarter of 2017. The key assumptions included in these cash flows are projected revenue based on management’s forecast and corresponding margins. The estimate of undiscounted cash flows are sensitive to these key assumptions, for instance, if our revenue projections are lower by 1%, the recoverable amount in excess of the carrying amount would be reduced to $641. As such, the Company will continue to review for impairment triggers which may result in a need to write down the assets to fair value in the future.
[3] Included within machinery and equipment were assets under capital leases with costs of $533 and $2,193 and associated accumulated depreciation of $95 and $673 as of July 2, 2017 and January 1, 2017, respectively. The related depreciation expense for the three months ended July 2, 2017 and July 3, 2016 was $55 and $74, respectively. The related depreciation expense for the six months ended July 2, 2017 and July 3, 2016 was $133 and $154, respectively. During the three months ended July 2, 2017, machinery and equipment under capital lease of $1,660 was purchased and transferred to machinery and equipment owned.
[4] Included within computer hardware and software are assets under capital leases with costs of Nil and $83 as at July 2, 2017 and January 1, 2017 and associated accumulated depreciation of Nil and $80 as at July 2, 2017 and January 1, 2017, respectively. The related depreciation expense for the three months ended July 2, 2017 and July 3, 2016 was Nil and $10, respectively. The related depreciation expense for the six months ended July 2, 2017 and July 3, 2016 was $3 and $20, respectively.