0000355948
2016-05-29
2017-02-25
0000355948
2015-11-28
0000355948
us-gaap:CommonStockMember
2017-04-04
0000355948
us-gaap:CommonClassBMember
2017-04-04
0000355948
us-gaap:CommonStockMember
2015-05-31
2016-02-27
0000355948
us-gaap:CommonClassBMember
2015-05-31
2016-02-27
0000355948
2015-05-31
2016-02-27
0000355948
us-gaap:CommonStockMember
2016-05-29
2017-02-25
0000355948
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2016-05-28
0000355948
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2017-02-25
0000355948
rell:PowerAndMicrowaveTechnologiesGroupMember
2016-05-29
2017-02-25
0000355948
rell:CanvysMember
2016-05-29
2017-02-25
0000355948
rell:HealthcareMember
2016-05-29
2017-02-25
0000355948
2016-05-28
0000355948
2017-02-25
0000355948
us-gaap:NorthAmericaMember
2016-05-29
2017-02-25
0000355948
us-gaap:AsiaPacificMember
2016-05-29
2017-02-25
0000355948
us-gaap:EuropeMember
2016-05-29
2017-02-25
0000355948
us-gaap:LatinAmericaMember
2016-05-29
2017-02-25
0000355948
rell:UnallocatedOtherMember
2016-05-29
2017-02-25
0000355948
us-gaap:TradeNamesMember
2016-05-28
0000355948
us-gaap:CustomerRelationshipsMember
2016-05-28
0000355948
us-gaap:NoncompeteAgreementsMember
2016-05-28
0000355948
us-gaap:TechnologyBasedIntangibleAssetsMember
2016-05-28
0000355948
us-gaap:TradeNamesMember
2017-02-25
0000355948
us-gaap:CustomerRelationshipsMember
2017-02-25
0000355948
us-gaap:NoncompeteAgreementsMember
2017-02-25
0000355948
rell:LeaseAgreementMember
us-gaap:ManagementMember
2017-02-25
0000355948
rell:IMESMember
us-gaap:ExecutiveVicePresidentMember
2015-06-14
2015-06-15
0000355948
us-gaap:TradeNamesMember
2015-06-15
0000355948
us-gaap:TradeNamesMember
2015-06-14
2015-06-15
0000355948
us-gaap:CustomerRelationshipsMember
2015-06-15
0000355948
us-gaap:CustomerRelationshipsMember
2015-06-14
2015-06-15
0000355948
us-gaap:TechnologyBasedIntangibleAssetsMember
2015-06-15
0000355948
us-gaap:TechnologyBasedIntangibleAssetsMember
2015-06-14
2015-06-15
0000355948
us-gaap:NoncompeteAgreementsMember
2015-06-15
0000355948
us-gaap:NoncompeteAgreementsMember
2015-06-14
2015-06-15
0000355948
2015-06-15
0000355948
us-gaap:CommonStockMember
2016-05-28
0000355948
us-gaap:CommonClassBMember
2016-05-28
0000355948
us-gaap:CommonStockMember
2017-02-25
0000355948
us-gaap:CommonClassBMember
2017-02-25
0000355948
rell:CommonStock1Member
2017-02-25
0000355948
rell:CommonStock1Member
2016-05-28
0000355948
us-gaap:AdditionalPaidInCapitalMember
2016-05-29
2017-02-25
0000355948
us-gaap:AdditionalPaidInCapitalMember
2017-02-25
0000355948
us-gaap:AdditionalPaidInCapitalMember
2016-05-28
0000355948
us-gaap:TreasuryStockMember
2017-02-25
0000355948
us-gaap:TreasuryStockMember
2016-05-28
0000355948
us-gaap:RetainedEarningsMember
2016-05-29
2017-02-25
0000355948
us-gaap:RetainedEarningsMember
2017-02-25
0000355948
us-gaap:RetainedEarningsMember
2016-05-28
0000355948
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2016-05-29
2017-02-25
0000355948
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-02-25
0000355948
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2016-05-28
0000355948
us-gaap:CommonClassBMember
2016-05-29
2017-02-25
0000355948
2015-05-30
0000355948
us-gaap:TechnologyBasedIntangibleAssetsMember
2017-02-25
0000355948
us-gaap:BankTimeDepositsMember
2017-02-25
0000355948
us-gaap:BankTimeDepositsMember
2016-05-28
0000355948
rell:PowerAndMicrowaveTechnologiesGroupMember
2015-05-31
2016-02-27
0000355948
rell:CanvysMember
2015-05-31
2016-02-27
0000355948
rell:HealthcareMember
2015-05-31
2016-02-27
0000355948
us-gaap:NorthAmericaMember
2015-05-31
2016-02-27
0000355948
us-gaap:AsiaPacificMember
2015-05-31
2016-02-27
0000355948
us-gaap:EuropeMember
2015-05-31
2016-02-27
0000355948
us-gaap:LatinAmericaMember
2015-05-31
2016-02-27
0000355948
rell:UnallocatedOtherMember
2015-05-31
2016-02-27
0000355948
rell:LeaseAgreementMember
us-gaap:ManagementMember
2016-05-29
2017-02-25
0000355948
us-gaap:SubsidiariesMember
2016-05-29
2017-02-25
0000355948
2016-11-27
2017-02-25
0000355948
2015-11-29
2016-02-27
0000355948
us-gaap:CommonStockMember
2016-11-27
2017-02-25
0000355948
us-gaap:CommonClassBMember
2016-11-27
2017-02-25
0000355948
us-gaap:CommonStockMember
2015-11-29
2016-02-27
0000355948
us-gaap:CommonClassBMember
2015-11-29
2016-02-27
0000355948
us-gaap:MinimumMember
2016-05-29
2017-02-25
0000355948
us-gaap:MaximumMember
2016-05-29
2017-02-25
0000355948
rell:PowerAndMicrowaveTechnologiesGroupMember
2016-11-27
2017-02-25
0000355948
rell:CanvysMember
2016-11-27
2017-02-25
0000355948
rell:HealthcareMember
2016-11-27
2017-02-25
0000355948
rell:PowerAndMicrowaveTechnologiesGroupMember
2015-11-29
2016-02-27
0000355948
rell:CanvysMember
2015-11-29
2016-02-27
0000355948
rell:HealthcareMember
2015-11-29
2016-02-27
0000355948
us-gaap:NorthAmericaMember
2016-11-27
2017-02-25
0000355948
us-gaap:AsiaPacificMember
2016-11-27
2017-02-25
0000355948
us-gaap:EuropeMember
2016-11-27
2017-02-25
0000355948
us-gaap:LatinAmericaMember
2016-11-27
2017-02-25
0000355948
rell:UnallocatedOtherMember
2016-11-27
2017-02-25
0000355948
us-gaap:NorthAmericaMember
2015-11-29
2016-02-27
0000355948
us-gaap:AsiaPacificMember
2015-11-29
2016-02-27
0000355948
us-gaap:EuropeMember
2015-11-29
2016-02-27
0000355948
us-gaap:LatinAmericaMember
2015-11-29
2016-02-27
0000355948
rell:UnallocatedOtherMember
2015-11-29
2016-02-27
0000355948
rell:LeaseAgreementMember
us-gaap:ManagementMember
2015-05-31
2016-02-27
0000355948
2016-11-26
0000355948
2016-02-27
0000355948
rell:IMESMember
2015-06-14
2015-06-15
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
rell:Votes
RICHARDSON ELECTRONICS LTD/DE
0000355948
10-Q
false
--05-27
No
No
Yes
Accelerated Filer
Q3
2017
10708332
2140631
99513000
102448000
75373000
14883000
9257000
40715000
20192000
32418000
6138000
75365000
17773000
9310000
47039000
18045000
32782000
4464000
32313000
31291000
24763000
4824000
2726000
23008000
5190000
3093000
13607000
5916000
10950000
1792000
14215000
6081000
9659000
1402000
31896000
31447000
23803000
4222000
3871000
15090000
7012000
10540000
2337000
22793000
4439000
4215000
16500000
5909000
9763000
1729000
10692000
9750000
8075000
1331000
1286000
7140000
1204000
1406000
5258000
2085000
3764000
643000
5163000
2094000
2908000
555000
9517000
8193000
550000
601000
10067000
8794000
3
1500000
1500000
100000
100000
6332000
6332000
4500000
4456000
659000
3434000
177000
230000
659000
3390000
177000
230000
3818000
3528000
3528000
600000
2500000
200000
200000
3490000
P3Y
P20Y
P10Y
P5Y
300000
0.20
2000000
12209000
40000000
36900000
4400000
4900000
1000000
1100000
3400000
3400000
967000
696000
3404000
2543000
775000
578000
1879000
1437000
2427000
3168000
9135000
8736000
24928000
21240000
45422000
42860000
1758000
2647000
1078000
17000
22000
135925000
124554000
1270000
1305000
32205000
28768000
14896000
12328000
24031000
21064000
1457000
275000
2424000
971000
26455000
22035000
535000
107000
535000
107000
58969000
59353000
79292000
70216000
2772000
1076000
168130000
153322000
500000
.34
RELL
3
364000
375000
0.05
0.05
0.05
0.05
10703000
2141000
10708000
2141000
1.00
1.00
0
0
168130000
153322000
7799000
2395000
12986000
15208000
2268000
6399000
67863000
60454000
51386000
74535000
54111000
60205000
-6803000
-6611000
-6803000
-1431000
-2926000
-1736000
-1912000
-1736000
508000
240000
40000
-79000
40000
27000
-47000
.18
.162
8200000
9500000
6400000
2300000
1800000
7200000
600000
600000
.137
.127
5300000
6200000
5900000
8600000
0.90
10
1973000
348000
1925000
348000
642000
116000
642000
116000
-9076000
-7598000
-1334000
-8932000
-7691000
-1385000
-2189000
-3684000
-1855000
-334000
-3122000
-562000
-9076000
-7598000
-1334000
-8932000
-7691000
-1385000
-2189000
-3684000
-1855000
-334000
-3122000
-562000
682000
928000
231000
374000
55000
22000
388000
420000
75000
45000
853000
800000
853000
1020000
17000000
3000000
1300000
10000000
-3600000
4800000
-1200000
100000
1300000
900000
400000
P15Y8M12D
-100000
-100000
100000
100000
P1Y
P3Y
200000
200000
38000000
2017-02-25
-311000
-108000
-214000
-265000
129000
433000
67000
131000
-5801000
-6247000
-1310000
-2721000
244000
37697000
37938000
12002000
12471000
67617000
71001000
21621000
21541000
53000
16000
40000
-182000
378000
-131000
-94000
-5983000
-5869000
-1441000
-2815000
820000
742000
-10000
111000
-8499000
-8602000
-896000
-2733000
-0.51
-0.46
-0.54
-0.48
-0.11
-0.10
-0.23
-0.21
-0.51
-0.46
-0.54
-0.48
-0.11
-0.10
-0.23
-0.21
10976000
2141000
10704000
2141000
10706000
2141000
10701000
2141000
12845000
10976000
2141000
13117000
10704000
2141000
12847000
12842000
10706000
2141000
10701000
2141000
0.180
0.162
0.180
0.162
0.060
0.054
0.060
0.054
-188000
173000
121000
-82000
354000
434000
75000
119000
244000
2000
-2000
8000
-21000
2020000
1865000
703000
583000
-2626000
8566000
-767000
-1316000
9000
17000
3000
49000
225000
250000
78000
106000
225000
250000
78000
106000
2136000
2151000
3582000
25584000
402000
4063000
3043000
764000
1267000
12209000
-2243000
-7198000
-728000
-737000
-4000
2273000
2321000
758000
758000
30000
142000
30000
21000
5015000
-9068000
-14330000
-2725000
-7658000
-994000
-1144000
35000
106000
141675000
131287000
642000
642000
59353000
58969000
70216000
79292000
1076000
2772000
10703000
2141000
10708000
2141000
354000
354000
30000
30000
5000
1925000
1925000
348000
348000
-256000
-2071000
-1118000
-871000
-2372000
-2976000
849000
-986000
961000
443000
-80000
-1000
-1898000
5636000
-306000
2164000
5000
-851000
-187000
-3217000
-311000
717000
-282000
-3205000
-14554000
-1265000
-5711000
107000
-256000
125000
-125000
-465000
737000
1420000
230000
6332000
90000
430000
244000
256000
245000
2262000
458000
1533000
1339000
1164000
850000
487000
100000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>1.
 DESCRIPTION OF THE COMPANY</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 8.3pt 0pt 0in; text-indent: 0.45in; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Richardson
Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables;
power conversion and RF and microwave components; high value displays, flat panel detector solutions and replacement parts for
diagnostic imaging equipment; and customized display solutions. We serve customers in the alternative energy, healthcare, aviation,
broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company’s strategy
is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing
capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and
manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 8.3pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 11.05pt 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">Our
products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing,
and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as
display devices in a variety of industrial, commercial, medical, and communication applications. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 11.05pt 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 11.05pt 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">We have three operating
and reportable segments, which we define as follows: </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.75pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 9.05pt 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">Power
and Microwave Technologies Group (“PMT”) combines our core engineered solutions, power grid and microwave tube business
with new RF and power technologies. As a manufacturer and authorized distributor, PMT’s strategy is to provide specialized
technical expertise and engineered solutions based on our core engineering and manufacturing capabilities. We provide solutions
and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket
technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power,
RF and microwave applications for customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical,
military, scientific, and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser
cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion,
radar, and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 9.05pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.15pt 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">Canvys
provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical original
equipment manufacturers (“OEM”) markets. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.15pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 9.05pt 0.22in 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">Healthcare
manufactures, distributes and services high value replacement parts for the healthcare market including hospitals, medical centers,
independent service organizations, and multi-vendor service providers. Products include power grid tubes, hydrogen thyratrons,
klystrons, magnetrons; Image Systems medical displays and workstations for picture archiving and communication systems (“PACS”);
visual solutions for operating rooms/surgical environments; digital radiography solutions including replacement flat panel detectors
and upgrades; and additional replacement components currently under development for the diagnostic imaging service market. Through
a combination of newly developed products and partnerships, service offerings, and training programs, we believe we can help our
customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 9.05pt 0.22in 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">We currently
have operations in the following major geographic regions: North America, Asia/Pacific, Europe, and Latin America.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 12.25pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>2.
 BASIS OF PRESENTATION</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted
Accounting Principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10
of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">Our
fiscal quarter ends on the Saturday nearest the end of the quarter-ending month. The first nine months of fiscal 2017 and 2016
each contained 39 weeks. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-align: center; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-align: center; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0in; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">In
the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the
results of interim periods have been made. All inter-company transactions and balances have been eliminated. The unaudited consolidated
financial statements presented herein include the accounts of our wholly owned subsidiaries. Certain information and note disclosures
normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules
and regulations. The results of our operations for the three and nine months ended February 25, 2017, are not necessarily indicative
of the results that may be expected for the fiscal year ending May 27, 2017.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">The
financial information contained in this report should be read in conjunction with our Annual Report on Form 10-K for the fiscal
year ended May 28, 2016, that we filed on July 29, 2016.<b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Inventories:</b> Our
consolidated inventories are stated at the lower of cost or market, generally using a weighted-average cost method. Our inventories
include approximately $36.9 million of finished goods, $4.9 million of raw materials, and $1.1 million of work-in-progress as
of February 25, 2017, as compared to approximately $40.0 million of finished goods, $4.4 million of raw materials, and $1.0 million
of work-in-progress as of May 28, 2016.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">At
this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs. Provisions
for obsolete or slow moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the
exiting of certain markets, and assumptions about future demand and market conditions. If future demand, changes in the industry,
or market conditions differ from management’s estimates, additional provisions may be necessary. The inventory reserve was
$3.4 million as of February 25, 2017, and May 28, 2016. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Revenue
Recognition:</b> Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery
has occurred or services have been rendered, and when collectability is reasonably assured. We also record estimated discounts
and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’
applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under
no obligation to compensate us for designing the products we sell. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Loss
Contingencies: </b>We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the
amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range
is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in
the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will
include a disclosure describing the contingency. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Intangible
Assets:</b> Intangible assets are initially recorded at their fair market values determined on quoted market prices in active
markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their
useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events
or changes in circumstances occur that indicate possible impairment. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Income
Taxes:</b> We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts
and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the
need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include
historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary
differences, and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred
three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance
is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards.  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">In
November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 eliminates
the prior US GAAP guidance in Topic 740, Income Taxes, that required an entity to separate deferred tax liabilities and assets
between current and noncurrent amounts in a classified balance sheet. The amendments in ASU 2015-17 require that all deferred
tax liabilities and assets of the same tax jurisdiction or a tax filing group, as well as any related valuation allowance, be
offset and presented as a single noncurrent amount in a classified balance sheet. ASU 2015-17 is effective for annual periods
beginning after December 15, 2016, and interim periods within those annual periods. In order to simplify presentation of deferred
tax balances, the Company adopted this standard prospectively in the first quarter of fiscal year 2017, ending August 27, 2016.
Periods prior to August 27, 2016 were not retrospectively adjusted.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>3.
 CRITICAL ACCOUNTING POLICIES AND ESTIMATES</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Inventories:</b> Our
consolidated inventories are stated at the lower of cost or market, generally using a weighted-average cost method. Our inventories
include approximately $36.9 million of finished goods, $4.9 million of raw materials, and $1.1 million of work-in-progress as
of February 25, 2017, as compared to approximately $40.0 million of finished goods, $4.4 million of raw materials, and $1.0 million
of work-in-progress as of May 28, 2016.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">At
this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs. Provisions
for obsolete or slow moving inventories are recorded based upon regular analysis of stock rotation privileges, obsolescence, the
exiting of certain markets, and assumptions about future demand and market conditions. If future demand, changes in the industry,
or market conditions differ from management’s estimates, additional provisions may be necessary. The inventory reserve was
$3.4 million as of February 25, 2017, and May 28, 2016. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Revenue
Recognition:</b> Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery
has occurred or services have been rendered, and when collectability is reasonably assured. We also record estimated discounts
and returns based on our historical experience. Our products are often manufactured to meet the specific design needs of our customers’
applications. Our engineers work closely with customers to ensure that our products will meet their needs. Our customers are under
no obligation to compensate us for designing the products we sell. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Loss
Contingencies: </b>We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the
amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range
is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in
the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will
include a disclosure describing the contingency. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Intangible
Assets:</b> Intangible assets are initially recorded at their fair market values determined on quoted market prices in active
markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized over their
useful lives either on a straight-line basis or over their projected future cash flows and are tested for impairment when events
or changes in circumstances occur that indicate possible impairment. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Income
Taxes:</b> We recognize deferred tax assets and liabilities based on the differences between financial statement carrying amounts
and the tax bases of assets and liabilities. We regularly review our deferred tax assets for recoverability and determine the
need for a valuation allowance based on a number of factors, including both positive and negative evidence. These factors include
historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary
differences, and the implementation of tax planning strategies. In circumstances where we, or any of our affiliates, have incurred
three years of cumulative losses which constitute significant negative evidence, positive evidence of equal or greater significance
is needed to overcome the negative evidence before a tax benefit is recognized for deductible temporary differences and loss carryforwards.  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">In
November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 eliminates
the prior US GAAP guidance in Topic 740, Income Taxes, that required an entity to separate deferred tax liabilities and assets
between current and noncurrent amounts in a classified balance sheet. The amendments in ASU 2015-17 require that all deferred
tax liabilities and assets of the same tax jurisdiction or a tax filing group, as well as any related valuation allowance, be
offset and presented as a single noncurrent amount in a classified balance sheet. ASU 2015-17 is effective for annual periods
beginning after December 15, 2016, and interim periods within those annual periods. In order to simplify presentation of deferred
tax balances, the Company adopted this standard prospectively in the first quarter of fiscal year 2017, ending August 27, 2016.
Periods prior to August 27, 2016 were not retrospectively adjusted. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 5.35pt; text-indent: 0.45in"></p>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accrued
Liabilities:</b> Accrued liabilities consist of the following (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25, 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">May 28, 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 74%; text-align: left; font: 10pt Times New Roman, Times, Serif">Compensation and payroll taxes</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">2,543</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">3,404</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Accrued severance (1)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,010</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">650</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Professional fees</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">578</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">775</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Deferred revenue</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,437</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,879</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other accrued expenses</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,168</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,427</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt">Accrued Liabilities</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,736</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">9,135</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">(1)       In
the three months ended November 26, 2016, the Company executed a reduction in headcount to streamline operations and reduce costs. 
For the three months ended November 26, 2016, the Company recorded $1.3 million of expense included in selling, general and administrative
expenses for employee termination costs payable to terminated employees with employment and/or separation agreements with the
Company. The changes in the severance accrual for the three months ended February 25, 2017 included payments of $0.4 million. The
changes in the severance accrual for the nine months ended February 25, 2017 included provisions and payments of $1.3 million
and $0.9 million, respectively.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accrued
Liabilities:</b> Accrued liabilities consist of the following (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25, 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">May 28, 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 74%; text-align: left; font: 10pt Times New Roman, Times, Serif">Compensation and payroll taxes</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">2,543</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">3,404</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Accrued severance (1)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,010</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">650</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Professional fees</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">578</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">775</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Deferred revenue</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,437</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,879</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other accrued expenses</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,168</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,427</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt">Accrued Liabilities</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,736</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">9,135</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">(1)       In
the three months ended November 26, 2016, the Company executed a reduction in headcount to streamline operations and reduce costs. 
For the three months ended November 26, 2016, the Company recorded $1.3 million of expense included in selling, general and administrative
expenses for employee termination costs payable to terminated employees with employment and/or separation agreements with the
Company. The changes in the severance accrual for the three months ended February 25, 2017 included payments of $0.4 million. The
changes in the severance accrual for the nine months ended February 25, 2017 included provisions and payments of $1.3 million
and $0.9 million, respectively.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Accrued liabilities consist of the
following (<i>in thousands</i>):</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25, 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">May 28, 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 74%; text-align: left; font: 10pt Times New Roman, Times, Serif">Compensation and payroll taxes</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">2,543</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">3,404</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Accrued severance (1)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,010</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">650</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Professional fees</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">578</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">775</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Deferred revenue</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,437</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,879</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other accrued expenses</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,168</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,427</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt">Accrued Liabilities</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,736</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">9,135</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">(1)       In
the three months ended November 26, 2016, the Company executed a reduction in headcount to streamline operations and reduce costs. 
For the three months ended November 26, 2016, the Company recorded $1.3 million of expense included in selling, general and administrative
expenses for employee termination costs payable to terminated employees with employment and/or separation agreements with the
Company. The changes in the severance accrual for the three months ended February 25, 2017 included payments of $0.4 million. The
changes in the severance accrual for the nine months ended February 25, 2017 included provisions and payments of $1.3 million
and $0.9 million, respectively.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>4.
 ACQUISITION</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">On
June 15, 2015, Richardson Electronics, Ltd (“the Company”), acquired certain assets of International Medical Equipment
and Services, Inc. (“IMES”), for a purchase price of $12.2 million. This includes the purchase of inventory, receivables,
fixed assets, and certain other assets of the Company. The Company did not acquire any liabilities of IMES. The total consideration
paid excludes transaction costs.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">IMES,
based in South Carolina, provides reliable, cost-saving solutions worldwide for major brands of CT and MRI equipment. This acquisition
positions Richardson Healthcare to provide cost effective diagnostic imaging replacement parts and training to hospitals, diagnostic
imaging centers, medical institutions, and independent service organizations. IMES offers an extensive selection of replacement
parts, as well as an interactive training center, on-site test bays and experienced technicians who provide 24/7 customer support.
Replacement parts are readily available and triple tested to provide peace of mind when uptime is critical. IMES core operations
have remained in South Carolina. Richardson Healthcare plans to expand IMES’ replacement parts and training offerings geographically
to leverage the Company’s global infrastructure. During the fourth quarter of fiscal 2016, IMES opened up their first foreign
location in Amsterdam.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The
consideration paid by the Company to IMES at closing was $12.2 million in cash. The following table summarizes the fair values
of the assets acquired at the date of the closing of the acquisition <i>(in thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 87%; text-align: left; font: 10pt Times New Roman, Times, Serif">Accounts receivable</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">737</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Inventories</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,420</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Property, plant and equipment</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">230</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Goodwill</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">6,332</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other intangibles</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,490</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 20.25pt">Net assets acquired</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,209</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 5.6pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 5.6pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">Intangible
assets include trade names with an estimated life of 3 years for $0.6 million, customer relationships with an estimated life of
20 years for $2.5 million, non-compete agreements with an estimated life of 5 years for $0.2 million, and technology with an estimated
life of 10 years for $0.2 million.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 5.6pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 4.35pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
recognized represents value the Company expects to be created by combining the operations of IMES with the Company’s operations,
including the expansion into markets within existing business segments and geographic regions, access to new customers and potential
cost savings and synergies.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 4.35pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.75pt"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
related to the acquisition is deductible for tax purposes.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.75pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 9.5pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif">In
connection with the acquisition of IMES, the Company also entered into an Employment, Non-Disclosure, and Non-Compete Agreement
(“Employment Agreement”) with Lee A. McIntyre III as the Company’s Executive Vice President, IMES. During the
term of his employment, Mr. McIntyre will earn an annual base salary of $300,000. In addition to his base salary, he will be entitled
to an annual bonus equal to 20% of the EBITDA of IMES provided that the EBITDA of the business is at least $2.0 million inclusive
of the bonus payment. The annual bonus payment will terminate after five years. For fiscal year 2016, Mr. McIntyre did not receive
a bonus as the minimum EBITDA needed was not achieved. </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 9.5pt 0pt 5.35pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 9.5pt 0pt 5.35pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The
financial results for the nine months ended February 27, 2016, includes the financial results for IMES from June 15, 2015, through
February 27, 2016. The financial transactions for IMES from May 31, 2015, through June 14, 2015, were deemed immaterial for illustrating
pro forma financial statements.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The following table summarizes the fair values
of the assets acquired at the date of the closing of the acquisition <i>(in thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 87%; text-align: left; font: 10pt Times New Roman, Times, Serif">Accounts receivable</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">737</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Inventories</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,420</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Property, plant and equipment</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">230</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Goodwill</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">6,332</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other intangibles</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,490</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 20.25pt">Net assets acquired</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,209</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 5.6pt 0pt 5.35pt; text-indent: 0.45in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>5.
 GOODWILL AND INTANGIBLE ASSETS</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The
carrying value of goodwill was $6.3 million as of February 25, 2017, and May 28, 2016.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill
is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment, using the first day
of our fourth quarter as the measurement date. We test goodwill for impairment annually and whenever events or circumstances indicates
an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision
to sell or dispose of a reporting unit. The goodwill balance in its entirety relates to our IMES reporting unit which is included
in our Healthcare segment.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Intangible
assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available,
or recognized valuation models. Intangible assets that have finite useful lives are amortized over their useful lives either on
a straight-line basis or over their projected future cash flows and are tested for impairment when events or changes in circumstances
occur that indicate possible impairment.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Our
intangible assets represent the fair value for trade name, customer relationships, non-compete agreements, and technology acquired
in connection with our acquisitions. Intangible assets subject to amortization are as follows <i>(in thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Intangible Assets Subject to<br /> Amortization as of</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25,<br /> 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">May 28,<br /> 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Amounts:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 74%; text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Trade Name</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">659</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">659</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Customer Relationship</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,390</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,434</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Non-compete Agreements</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">177</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">177</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Technology</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">230</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">230</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 33.75pt">Total Gross Amounts</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">4,456</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">4,500</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Accumulated Amortization:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Trade Name</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">388</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">231</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Customer Relationship</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">420</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">374</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Non-compete Agreements</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">75</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">55</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Technology</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">45</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">22</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 33.75pt">Total Accumulated Amortization</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">928</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">682</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 33.75pt">Net
Intangible Assets</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,528</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,818</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The
amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the
following table <i>(in thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Fiscal Year</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Amortization Expense</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 81%; text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Remaining 2017</font></td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">90</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2018</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">431</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2019</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">244</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2020</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">256</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2021</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">245</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,262</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total amortization expense</b></font></td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,528</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The
weighted average number of years of amortization expense remaining is 15.7 years.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Intangible assets subject to amortization are as follows <i>(in thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Intangible Assets Subject to<br /> Amortization as of</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25,<br /> 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">May 28,<br /> 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Amounts:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 74%; text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Trade Name</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">659</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">659</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Customer Relationship</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,390</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,434</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Non-compete Agreements</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">177</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">177</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Technology</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">230</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">230</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 33.75pt">Total Gross Amounts</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">4,456</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">4,500</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Accumulated Amortization:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Trade Name</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">388</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">231</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Customer Relationship</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">420</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">374</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Non-compete Agreements</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">75</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">55</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Technology</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">45</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">22</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 33.75pt">Total Accumulated Amortization</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">928</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">682</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2pt; padding-left: 33.75pt">Net
Intangible Assets</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,528</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,818</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The
amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the
following table <i>(in thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Fiscal Year</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Amortization Expense</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 81%; text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Remaining 2017</font></td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">90</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2018</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">431</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2019</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">244</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2020</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">256</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2021</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">245</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,262</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total amortization expense</b></font></td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,528</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>6.
 INVESTMENTS</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">As
of February 25, 2017, we had approximately $8.2 million invested in time deposits and certificates of deposit (“CD”).
Of these, $6.4 million mature in less than twelve months and $1.8 million mature in more than twelve months. The fair value of
these investments is equal to the face value of each time deposit and CD.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">As
of May 28, 2016, we have invested in time deposits and certificates of deposit (“CD”) in the amount of $9.5 million.
Of this, $2.3 million mature in less than twelve months and $7.2 million mature in greater than twelve months. The fair value
of these investments is the face value of each time deposit and CD.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">We
also have investments in equity securities, all of which are classified as available-for-sale and are carried at their fair value
based on quoted market prices. Our investments, which are included in non-current assets, had a carrying amount of $0.6 million
as of February 25, 2017, and May 28, 2016. Proceeds from the sale of securities were $0.1 million during the third quarter
of fiscal 2017 and fiscal 2016. We reinvested proceeds from the sale of securities, and the cost of the equity securities sold
was based on a specific identification method. Gross realized losses on those sales were less than $0.1 million during the third
quarter of fiscal 2017 and fiscal 2016. Net unrealized holding gains of less than $0.1 million during the third quarter of fiscal
2017 and fiscal 2016, have been included in accumulated other comprehensive income.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>7.
 WARRANTIES</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">We
offer warranties for the limited number of specific products we manufacture. We also provide extended warranties for some products
we sell that lengthen the period of coverage specified in the manufacturer’s original warranty. Our warranty terms generally
range from one to three years.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">We
estimate the cost to perform under the warranty obligation and recognize this estimated cost at the time of the related product
sale. We record expense related to our warranty obligations as cost of sales in our consolidated statements of comprehensive loss.
Each quarter, we assess actual warranty costs incurred on a product-by-product basis and compare the warranty costs to our estimated
warranty obligation. With respect to new products, estimates are based generally on knowledge of the products, the extended warranty
period, and warranty experience.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Warranty
reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty
reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on
known product failures, historical experience, and other available evidence. Warranty reserves were approximately $0.2 million
as of February 25, 2017, and as of May 28, 2016.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>8.  LEASE
OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">We
lease certain warehouse and office facilities and office equipment under non-cancelable operating leases. Rent expense was
$1.5 million during both the first nine months of fiscal 2017 and during the first nine months of fiscal 2016. Our future
lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five
years are as follows <i>(in thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Fiscal Year</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Payments</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 81%; text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Remaining 2017</font></td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">458</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2018</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,533</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2019</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,339</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2020</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,164</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2021</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">850</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Thereafter</font></td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">487</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> Our future lease commitments
for minimum rentals, including common area maintenance charges and property taxes during the next five years are as follows <i>(in
thousands)</i>:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Fiscal Year</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Payments</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 81%; text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Remaining 2017</font></td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">458</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2018</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,533</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2019</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,339</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2020</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,164</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">2021</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">850</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Thereafter</font></td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">487</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>10.
 CALCULATION OF EARNINGS PER SHARE</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">We
have authorized 17,000,000 shares of common stock, and 3,000,000 shares of Class B common stock. The Class B common stock has
10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a
share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock
rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A
common stock cash dividends.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with ASC 260-10, <i>Earnings Per Share </i>(“ASC 260”), our Class B common stock is considered a participating
security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class
computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated
undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class
of stock. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of
Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible
on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined
formula which is 90% of the amount of Class A common stock cash dividends.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in"><font style="font: 10pt Times New Roman, Times, Serif">The
earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive loss are based on the
following amounts (<i>in thousands, except per share amounts</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="14" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25, 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 27, 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left">Numerator for Basic and Diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 20.25pt">Net loss</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(1,431</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(1,431</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(2,926</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(2,926</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Less dividends:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 33.75pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 33.75pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Common stock undistributed losses</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(1,855</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(1,855</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(3,122</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(3,122</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Class B common stock undistributed losses</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(562</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(562</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Total undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left">Denominator for basic and diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Common stock weighted average shares</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,706</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,706</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,701</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,701</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 30.25pt; font: 10pt Times New Roman, Times, Serif">Class B common stock weighted average shares, and shares under if-converted method for diluted EPS</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Effect of dilutive securities</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 33.75pt; font: 10pt Times New Roman, Times, Serif">Dilutive stock options</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 30.25pt; font: 10pt Times New Roman, Times, Serif">Denominator for diluted EPS adjusted for weighted average shares and assumed conversions</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,847</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,842</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif">Net loss per share:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.11</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.11</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.23</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.23</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.10</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.10</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.21</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.21</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; color: red"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><i>Note:
Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal
2017 and fiscal 2016 were 853 and 1,020, respectively. </i></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="14" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Nine Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25, 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 27, 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 9pt">Numerator for Basic and Diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; font: bold 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 0.25in">Net loss</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,803</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,803</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,611</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,611</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Less dividends:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 27pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,925</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,925</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,973</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,973</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 27pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Common stock undistributed losses</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,691</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,691</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,598</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,598</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Class B common stock undistributed losses</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,385</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,385</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Total undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 9pt">Denominator for basic and diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Common stock weighted average shares</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,704</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,704</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,976</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,976</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Class B common stock weighted average shares, and shares under if-converted method for diluted EPS</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Effect of dilutive securities</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 27pt; font: 10pt Times New Roman, Times, Serif">Dilutive stock options</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Denominator for diluted EPS adjusted for weighted average shares and assumed conversions</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,845</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">13,117</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-indent: -9pt; padding-left: 9pt">Net loss per share:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 9pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.54</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.54</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.51</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.51</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 9pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.48</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.48</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.46</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.46</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><i>Note:
Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of
fiscal 2017 and fiscal 2016 were 853 and 800, respectively.</i></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in"><font style="font: 10pt Times New Roman, Times, Serif">The
earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive loss are based on the
following amounts (<i>in thousands, except per share amounts</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="14" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25, 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 27, 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left">Numerator for Basic and Diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 20.25pt">Net loss</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(1,431</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(1,431</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(2,926</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(2,926</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Less dividends:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 33.75pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">642</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 33.75pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">116</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Common stock undistributed losses</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(1,855</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(1,855</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(3,122</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(3,122</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Class B common stock undistributed losses</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(562</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(562</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Total undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,189</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,684</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left">Denominator for basic and diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Common stock weighted average shares</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,706</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,706</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,701</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,701</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 30.25pt; font: 10pt Times New Roman, Times, Serif">Class B common stock weighted average shares, and shares under if-converted method for diluted EPS</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 20.25pt; font: 10pt Times New Roman, Times, Serif">Effect of dilutive securities</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-left: 33.75pt; font: 10pt Times New Roman, Times, Serif">Dilutive stock options</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 30.25pt; font: 10pt Times New Roman, Times, Serif">Denominator for diluted EPS adjusted for weighted average shares and assumed conversions</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,847</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,842</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif">Net loss per share:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.11</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.11</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.23</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.23</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.10</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.10</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.21</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.21</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; color: red"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><i>Note:
Common stock options that were anti-dilutive and not included in diluted earnings per common share for the third quarter of fiscal
2017 and fiscal 2016 were 853 and 1,020, respectively. </i></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="14" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Nine Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 25, 2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">February 27, 2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Basic</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Diluted</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 9pt">Numerator for Basic and Diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; font: bold 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 0.25in">Net loss</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,803</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,803</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,611</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">(6,611</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Less dividends:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 27pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,925</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,925</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,973</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,973</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 27pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">348</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Common stock undistributed losses</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,691</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,691</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,598</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">(7,598</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Class B common stock undistributed losses</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,385</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,385</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,334</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Total undistributed losses</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(9,076</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,932</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: italic 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 9pt">Denominator for basic and diluted EPS:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Common stock weighted average shares</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,704</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,704</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,976</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,976</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Class B common stock weighted average shares, and shares under if-converted method for diluted EPS</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,141</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Effect of dilutive securities</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -9pt; padding-left: 27pt; font: 10pt Times New Roman, Times, Serif">Dilutive stock options</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">—</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif">Denominator for diluted EPS adjusted for weighted average shares and assumed conversions</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">12,845</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">13,117</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-indent: -9pt; padding-left: 9pt">Net loss per share:</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 9pt; font: 10pt Times New Roman, Times, Serif">Common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.54</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.54</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.51</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.51</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2pt; text-indent: -9pt; padding-left: 9pt; font: 10pt Times New Roman, Times, Serif">Class B common stock</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.48</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.48</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.46</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.46</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><i>Note:
Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first nine months of
fiscal 2017 and fiscal 2016 were 853 and 800, respectively.</i></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>11.
SEGMENT REPORTING</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with ASC 280-10, Segment Reporting, we have identified three operating and reportable segments as follows:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Power
and Microwave Technologies Group (“PMT”) combines our core engineered solutions, power grid and microwave tube business
with new RF and power technologies. As a manufacturer and authorized distributor, PMT’s strategy is to provide specialized
technical expertise and engineered solutions based on our core engineering and manufacturing capabilities. We provide solutions
and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket
technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power,
RF and microwave applications for customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical,
military, scientific, and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser
cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion,
radar, and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Canvys
provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical original
equipment manufacturers (“OEM”) markets.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Healthcare
manufactures, distributes and services high value replacement parts for the healthcare market including hospitals, medical centers,
independent service organizations, and multi-vendor service providers. Products include power grid tubes, hydrogen thyratrons,
klystrons, magnetrons; Image Systems medical displays and workstations for picture archiving and communication systems (“PACS”);
visual solutions for operating rooms/surgical environments; digital radiography solutions including replacement flat panel detectors
and upgrades; and additional replacement components currently under development for the diagnostic imaging service market. Through
a combination of newly developed products and partnerships, service offerings, and training programs, we believe we can help our
customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">The
CEO evaluates performance and allocates resources primarily based on the gross profit of each segment. </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Operating
results by segment are summarized in the following table (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Nine Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif"><u>PMT</u></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; text-align: left; font: 10pt Times New Roman, Times, Serif">Net Sales</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">24,763</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">23,008</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">75,373</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">75,365</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">8,075</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">7,140</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">23,803</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">22,793</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">Canvys</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Net Sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,824</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,190</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">14,883</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">17,773</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,331</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,204</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,222</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,439</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">Healthcare</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Net Sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,726</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,093</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,257</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,310</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,286</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,406</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,871</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,215</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Geographic
net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin
America; and Other.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Net
sales and gross profit by geographic region are summarized in the following table (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Nine Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: left">Net Sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; text-align: left; font: 10pt Times New Roman, Times, Serif">North America</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">13,607</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">14,215</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">40,715</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">47,039</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Asia/Pacific</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,916</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">6,081</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">20,192</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">18,045</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Europe</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,950</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,659</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">32,418</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">32,782</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Latin America</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,792</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,402</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">6,138</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,464</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other (1)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">48</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(66</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">50</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">118</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Total</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,313</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">31,291</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">99,513</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">102,448</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: left">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">North America</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,258</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,163</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">15,090</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">16,500</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Asia/Pacific</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,085</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,094</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">7,012</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,909</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Europe</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,764</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,908</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,540</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,763</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Latin America</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">643</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">555</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,337</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,729</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other (1)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,058</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(970</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,083</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,454</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Total</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,692</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">9,750</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">31,896</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">31,447</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<td style="width: 3%; font: 10pt/107% Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">(1)</font></td>
<td style="width: 97%; text-align: justify; font: 10pt/107% Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Other
includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated
expenses.</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">We
sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial
condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe,
and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding
accounts.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Operating
results by segment are summarized in the following table (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Nine Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif"><u>PMT</u></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; text-align: left; font: 10pt Times New Roman, Times, Serif">Net Sales</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">24,763</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">23,008</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">75,373</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">75,365</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">8,075</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">7,140</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">23,803</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">22,793</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">Canvys</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Net Sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,824</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,190</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">14,883</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">17,773</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,331</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,204</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,222</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,439</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">Healthcare</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Net Sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,726</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,093</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,257</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,310</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,286</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,406</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,871</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,215</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Net
sales and gross profit by geographic region are summarized in the following table (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Three Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Nine Months Ended</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 25,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">February 27,</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: center; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2017</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">2016</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: left">Net Sales</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 48%; text-align: left; font: 10pt Times New Roman, Times, Serif">North America</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">13,607</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">14,215</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">40,715</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">47,039</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Asia/Pacific</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,916</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">6,081</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">20,192</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">18,045</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Europe</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,950</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,659</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">32,418</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">32,782</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Latin America</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,792</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,402</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">6,138</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">4,464</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other (1)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">48</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(66</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">50</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">118</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Total</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,313</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">31,291</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">99,513</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">102,448</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: left">Gross Profit</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">North America</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,258</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,163</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">15,090</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">16,500</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Asia/Pacific</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,085</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,094</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">7,012</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">5,909</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif">Europe</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">3,764</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,908</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">10,540</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,763</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Latin America</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">643</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">555</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">2,337</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">1,729</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Other (1)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(1,058</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(970</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,083</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,454</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif">Total</td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,692</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">9,750</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">31,896</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">31,447</td><td style="padding-bottom: 2pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<td style="width: 3%; font: 10pt/107% Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">(1)</font></td>
<td style="width: 97%; text-align: justify; font: 10pt/107% Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">Other
includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated
expenses.</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>12.
LITIGATION</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">We
are involved in several pending judicial proceedings concerning matters arising in the ordinary course of business. While the
outcome of litigation is subject to uncertainties, based on information available at the time the financial statements were issued,
we determined disclosure of contingencies relating to any of our pending judicial proceedings was not necessary because there
is less than a reasonable possibility that a material loss will be incurred.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>13.
FAIR VALUE MEASUREMENTS</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">ASC
820, <i>Fair Value Measurements and Disclosures</i> (“ASC 820”), defines fair value, establishes a framework for measuring
fair value in accordance with accounting principles generally accepted in the United States, and expands disclosures about fair
value measurements.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">ASC
820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:
Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices
in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little
or no market data exists; therefore requiring an entity to develop its own assumptions.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">As
of February 25, 2017, and May 28, 2016, we held investments that are required to be measured at fair value on a recurring basis.
Our investments consist of time deposits and CDs, where face value is equal to fair value, and equity securities of publicly traded
companies for which market prices are readily available.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Investments
measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of February 25, 2017, and May
28, 2016, were as follows (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">February 25, 2017</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 87%; text-align: left; font: 10pt Times New Roman, Times, Serif">Time deposits/CDs</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">8,193</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Equity securities</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">601</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt">Total</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,794</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">May 28, 2016</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Time deposits/CDs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,517</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Equity securities</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">550</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt">Total</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">10,067</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">Investments
measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of February 25, 2017, and May
28, 2016, were as follows (<i>in thousands</i>):</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">February 25, 2017</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="width: 87%; text-align: left; font: 10pt Times New Roman, Times, Serif">Time deposits/CDs</td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="width: 10%; text-align: right; font: 10pt Times New Roman, Times, Serif">8,193</td><td style="width: 1%; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Equity securities</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">601</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt">Total</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,794</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; text-decoration: underline">May 28, 2016</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">Time deposits/CDs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 10pt Times New Roman, Times, Serif">$</td><td style="text-align: right; font: 10pt Times New Roman, Times, Serif">9,517</td><td style="text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">Equity securities</td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">550</td><td style="padding-bottom: 1pt; text-align: left; font: 10pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
<td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt">Total</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2pt"> </td>
<td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">10,067</td><td style="padding-bottom: 2pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>14.
<font style="text-transform: uppercase">Related Party Transaction</font></b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">On
June 15, 2015, the Company entered into a lease agreement for the IMES facility with LDL, LLC. The Executive Vice President of
IMES, Lee A. McIntyre III, has an ownership interest in LDL, LLC. The lease agreement provides for monthly payments over five
years with total future minimum lease payments of $0.5 million. Rental expense related to this lease amounted to $0.1 million
for the nine months ended February 25, 2017, and February 27, 2016. The Company shall be entitled to extend the term of the lease
for a period of an additional five years by notifying the landlord in writing of its intention to do so within nine months of
the expiration of the initial term.</font></p>
12200000
P5Y
P5Y
<p style="margin: 0pt 0; text-align: justify; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b>9.  INCOME TAXES</b> </font></p>
<p style="margin: 0pt 0; text-align: justify; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">We recorded an income tax provision of $0.8 million and $0.7 million for the first nine months of fiscal 2017 and the first nine months of fiscal 2016, respectively. Overall, the Company has certain foreign jurisdictions that have operating profits while the U.S. continues to experience operating losses while maintaining a full valuation allowance. The effective income tax rate during the first nine months of fiscal 2017 was a tax provision of (13.7%), as compared to a tax provision of (12.7%) during the first nine months of fiscal 2016. The difference in rate during the first nine months of fiscal 2017, as compared to the first nine months of fiscal 2016, reflects the impact of changes in our geographical distribution of income (loss), the recording of provision to return true-ups of various foreign jurisdictions, and our positions with respect to ASC 740-30, Income Taxes - Other Considerations or Special Areas (“ASC 740-30”). The (13.7%) effective income tax rate differs from the federal statutory rate of 34.0% as a result of our geographical distribution of income (loss), the recording of various provision to return true-ups in foreign jurisdictions, the closure of the French tax audit, and the recording of a valuation allowance against the increase in our U.S. state and federal net deferred tax assets.</font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">During the first quarter of fiscal year 2017, we completed a distribution of cash from our Chinese entity to our U.S. parent company which consisted of a return of capital for $10.0 million and a dividend of $1.3 million. The impact on our income taxes recorded during the first quarter of fiscal 2017 was an increase to our foreign tax credits deferred tax asset of approximately $3.6 million, a decrease to the U.S. federal net operating loss deferred tax asset of $4.8 million, and a decrease to our deferred tax liability for earnings considered permanently reinvested of $1.2 million. In connection with the cash repatriation, we recorded and paid approximately $0.1 million of withholding tax during second quarter of fiscal year 2017.</font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2006 are closed for examination under the statute of limitation for U.S. federal, U.S. state and local, or non-U.S. tax jurisdictions. We are currently under examination in Germany (fiscal 2011 through 2014) and Thailand (fiscal 2008 through 2011). We are also under examination in the state of Illinois (fiscal 2011 through 2013). Our primary foreign tax jurisdictions are Germany and the Netherlands. We have tax years open in Germany beginning in fiscal 2012 and the Netherlands beginning in fiscal 2010.</font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">We have historically determined that certain undistributed earnings of our foreign subsidiaries, to the extent of cash available, will be repatriated to the U.S. Accordingly, we have provided a deferred tax liability totaling $5.3 million as of February 25, 2017, on foreign earnings of $38.0 million. In addition, as of  February 25, 2017, approximately $6.2 million of cumulative positive earnings of some of our foreign subsidiaries are still considered permanently reinvested pursuant to ASC 740-30. Due to various tax attributes that are continuously changing, it is not practicable to determine what, if any, tax liability might exist if such earnings were to be repatriated.</font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">As of February 25, 2017, we had no worldwide liability, from continuing operations, for uncertain tax positions, compared to $0.1 million of liabilities for uncertain tax positions, excluding interest and penalties, as of February 27, 2016. The decrease in uncertain tax positions relates to the closure of the French tax audit and a lapse of a statute of limitation. We record penalties and interest relating to uncertain tax positions in the income tax expense line item within the unaudited consolidated statements of comprehensive loss. It is not expected that there will be a change in the unrecognized tax benefits within the next twelve months.</font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt 0; text-indent: 0.5in; font: 10pt/normal Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">The valuation allowance against the net deferred tax assets that will more likely than not be realized was $5.9 million as of May 28, 2016. The valuation allowance against the net deferred tax assets has increased to $8.6 million as of February 25, 2017 for additional domestic federal and state net deferred tax assets generated during the nine months of fiscal year 2017 due to additional losses in the U.S. jurisdiction. A full valuation allowance on the U.S. and state deferred tax assets will be maintained until sufficient positive evidence related to sources of future taxable income exists to support a reversal of the valuation allowance. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.</font></p>
Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.
In the three months ended November 26, 2016, the Company executed a reduction in headcount to streamline operations and reduce costs. For the three months ended November 26, 2016, the Company recorded $1.3 million of expense included in selling, general and administrative expenses for employee termination costs payable to terminated employees with employment and/or separation agreements with the Company. The changes in the severance accrual for the three months ended February 25, 2017 included payments of $0.4 million. The changes in the severance accrual for the nine months ended February 25, 2017 included provisions and payments of $1.3 million and $0.9 million, respectively.