Restructuring Charges

3 Months Ended

Oct. 27, 2012

7. Restructuring Charges

During the first quarter of fiscal 2013, the Company implemented cost-reduction actions associated with the IQstream Business, including workforce reductions and other cost containment measures. The Company recorded a workforce reduction restructuring charge of $1.6 million primarily related to employee separation packages, which include severance pay, benefits continuation and outplacement costs. The Company also recorded a restructuring charge of $0.4 million related to certain purchase commitments for IQstream that have no future benefit.

These actions are summarized below:


	Charges		Adjustments		Payments		Accrual Balance at October 27, 2012

Workforce reduction	$	1,577	$	—	$	—	$	1,577
Contract termination costs		411		—		—		411

Total	$	1,988	$	—	$	—	$	1,988

The Company expects to pay substantially all of these costs during the second quarter of fiscal 2013.

During the first quarter of fiscal 2012, the Company reversed the balance of a reserve for the consolidation of its Chelmsford, Massachusetts facility totaling $0.2 million. The adjustment related to a change in the previously estimated restructuring liability resulting from an amendment to extend the term of the facility lease and was recorded to operating expenses.

See Note 12: “Subsequent Events” for additional information regarding cost-reduction actions.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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