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Restructuring Charges
 12 Months Ended
Jan. 31, 2020
Restructuring Charges [Abstract]  
Restructuring Charges

Note 15:  Restructuring Charges

In October 2019, the Company approved a restructuring plan designed to better align resources around its long-term business strategy. The restructuring provided for the discontinuation of Ooma Smart Cam, given the increased level of competition in the market, accompanied with a small reduction-in-force.

For fiscal 2020, the Company recorded aggregate restructuring charges of $3.1 million in its consolidated statement of operations, which consisted of the following major components (in thousands):

 

 

Employee

Severance

 

 

Excess Inventory and Purchase Commitments (1)

 

 

Other

Assets (2)

 

 

Other

Charges

 

 

Total

 

Cost of service revenue

 

$

75

 

 

$

—

 

 

$

—

 

 

$

93

 

 

$

168

 

Cost of product revenue

 

 

—

 

 

 

1,375

 

 

 

694

 

 

 

45

 

 

 

2,114

 

Sales and marketing

 

 

170

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

175

 

Research and development

 

 

475

 

 

 

—

 

 

 

42

 

 

 

111

 

 

 

628

 

General and administrative

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Total restructuring charges

 

$

720

 

 

$

1,375

 

 

$

736

 

 

$

254

 

 

$

3,085

 

(1) Includes charges for excess Smart Cam product inventory and non-cancelable purchase commitments.

(2) Includes impairment charges for abandoned intangible assets associated with Smart Cam as well as other long-lived assets.

 

The actions associated with the restructuring were completed in the fourth quarter of fiscal 2020, including the pay-out of all restructuring liabilities.