Note 7 - Restructuring Costs

9 Months Ended

Oct. 31, 2015

Restructuring and Related Activities Disclosure [Text Block]

7. Restructuring costs

In fiscal 2013, as a result of significant expansion in our infrastructure and operational activities in connection with purchases and acquisitions that took place between fiscal years 2008 and 2013, and in response to certain redundancies, underperforming operations and delays in programs and product releases, we implemented a restructuring program to realign our global operating expenses with our new business conditions, and to improve efficiency, competitiveness and profitability. Costs relating to facilities closure or lease commitment are recognized when the facility has been exited. Termination costs are recognized when the costs are deemed both probable and estimable and after notification to impacted employees has occurred.

During the first quarter of fiscal 2016, we incurred restructuring charges of less than $0.1 million, substantially all of which was related to facility exit cost adjustments, which was reflected in operating expenses. During the second and third quarters of fiscal 2016, we incurred no restructuring charges.

In the first quarter of fiscal 2015, we incurred restructuring charges of $1.0 million, all of which was related to workforce reductions of 29 employees across several geographic regions, the majority of which were in our operations in Israel. Of the total restructuring charges recorded in the first fiscal quarter, approximately $0.1 million was reflected in cost of revenue and $0.9 million was reflected in operating expenses. During the second and third quarters of fiscal 2015, we incurred less than $0.1 million of restructuring charges.

Expenses recognized for restructuring activities impacting our operating expenses are included in “Restructuring costs” in the condensed consolidated statements of operations. Our restructuring measures could negatively impact our revenue and results of operations in the future as a result of less employees developing future products and working to sell our products.

A combined summary of the recent activity of the restructuring plans initiated by us is as follows (in thousands):

	Workforce Reduction			Asset Impairment		Facility Exit Costs			Total			Cumulative Restructuring Costs
Liability, February 1, 2014	$	363		$	-	$	2		$	365		$	5,570
Charges in fiscal 2015		1,083			-		(20	)		1,063			1,063
Cash payments		(1,382	)		-		8			(1,374	)		-
Non-cash items		38			-		10			48			-
Liability, January 31, 2015		102			-		-			102			6,633
Charges for the nine months ended October 31, 2015		3			-		6			9			9
Cash payments		(3	)		-		(7	)		(10	)		-
Non-cash items		-					1			1			-
Liability, October 31, 2015	$	102		$	-	$	-		$	102		$	6,642