Subsequent Event

9 Months Ended

Jan. 01, 2012

Subsequent Event [Abstract]

Subsequent Event

NOTE 18. SUBSEQUENT EVENT

On February 1, 2012, we implemented a reduction in workforce of approximately 60 employees throughout North America. This action was intended to consolidate remote sites, improve efficiency and reduce operational spending. The reduction in headcount and the consolidation of sites was primarily associated with businesses and offices located in Ottawa, Ontario, Canada; San Diego, California; and Minneapolis, Minnesota. In parallel with this action, we decided to terminate our development efforts in connection with our pre-production Optical Transport Networks ("OTN") product. After review and discussion, we determined that the market for our OTN product was modest in size and our competitors' current working solutions addressed a broader range of needs in the OTN market. The outlook to achieve meaningful revenue and a return on this large investment was considered unlikely. As a result, we terminated any further development effort in connection with this OTN product.

We expect that these actions will be substantially completed in the fourth quarter of fiscal year 2012 and incur estimated costs of approximately $7.0 million dollars of which $3.5 million are estimated cash costs primarily related to severance, remaining lease obligations and related contingencies and $3.5 million are estimated non-cash costs primarily related to the reassessment of lives of certain assets included in the intangible assets, net line item on the condensed consolidated balance sheets. Upon completion of these actions, the Company expects annual net cost savings of approximately $7.0 million.