NOTE 4 - BUSINESS RESTRUCTURING

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

NOTE - 4. BUSINESS RESTRUCTURING

NOTE 4 – BUSINESS RESTRUCTURING

As a result of the business downturn we experienced in late 2011, 2012, and continuing in 2013, as well as the uncertain business outlook at those times, we took additional restructuring actions in the second quarter of 2013 and fourth quarter of 2013 to reduce quarterly operating expenses and production costs. 

During the second and fourth quarters of 2013, we took restructuring actions to reduce our excess office space and eliminate certain job positions.  These actions resulted in restructuring costs of $642,000 for the second quarter and $541,000 in the fourth quarter of 2013.  A revision of estimates resulted in a $13,000 charge during the first quarter of 2014.  The positions eliminated allow us to have the flexibility to add other critical positions or change fixed to variable costs through outsourcing and these actions have been fully implemented.  At March 31, 2014, the remaining portion of the liability expected to be paid over the next twelve months is $546,000 and the long term portion is $126,000 and relates to the lease abandonment payments that are expected to be completely paid by July 2016. 

 An analysis of the business restructuring is as follows:

	Reserve Balance Dec 31, 2012	2013 Expense	2013 Payments/ Write-Offs	Reserve Balance Dec 31, 2013	2014 Expense	2014 Payments/ Write-Offs	Reserve Balance Mar 31, 2014
(in thousands)
Downsizing US operations:
Employee severance	$0	$457	$227	$230	$0	$138	$92
Other costs	-	273	33	240	-	19	221
Downsizing foreign operations:
Employee severance	25	405	58	372	13	48	337
Other costs	-	48	17	31	-	9	22
Total	$25	$1,183	$335	$873	$13	$214	$672