Restructuring Charges

6 Months Ended

Jan. 26, 2013

Restructuring Charges

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 the IQstream Business that have no future benefit.

During the second quarter of fiscal 2013, the Company halted further development and marketing of the IQstream Business. The Company took further cost reduction actions associated with the IQstream Business. The Company recorded a workforce reduction restructuring charge of $0.3 million primarily related to employee separation packages, which include severance pay, benefits continuation and outplacement costs.

These actions are summarized below:

	Accrual Balance at July 31, 2012		Q113 Charges		Q213 Charges		Payments		Accrual Balance at January 26, 2013
Workforce reduction	$	—	$	1,577	$	264	$	1,679	$	162
Contract termination costs		—		411		—		341		70
Total	$	—	$	1,988	$	264	$	2,020	$	232

The Company expects to pay substantially all of these costs during the third 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.