RESTRUCTURING CHARGES

9 Months Ended

Jun. 30, 2016

NOTE 7. RESTRUCTURING CHARGES

During the nine months ended June 30, 2015, the Company undertook restructuring efforts to (i) lower expenses by reducing the investment in legacy solutions and realigning of international operations, primarily impacting engineering and product development, and (ii) further reduce the workforce across all functional areas of the Company in an effort to rebalance investments to match the go-to-market model. The restructuring efforts began during the quarter ended December 31, 2014 and continued during the quarter ended March 31, 2015, when the remaining employees impacted by the restructuring were notified. The Company recorded restructuring charges of $0.4 million during the three months ended December 31, 2014 and an additional $1.2 million during the three months ended March 31, 2015 including severance and related benefit costs related to workforce reductions. The Company completed all restructuring actions associated with these plans during the fiscal year ended September 30, 2015.

The Company did not undertake any restructuring efforts during fiscal 2016. However, the Company recorded severance expense of $0.3 million and $0.6 million for the three and nine months ended June 30, 2016, respectively.

The following table presents the changes in the accrual for restructuring and severance charges, which is included under the caption “Accrued expenses” in our consolidated balance sheets, as of June 30, 2016 and September 30, 2015 (in thousands):


Balance at September 30, 2014	$	-
Charges		1,786
Payments		(1,555)
Balance at September 30, 2015		231
Charges		561
Payments		(618)
Balance at June 30, 2016	$	174

The following table presents restructuring and severance charges included in our unaudited consolidated statements of operations (in thousands):


	Three Months Ended				Nine Months Ended
	June 30,				June 30,

	2016		2015		2016		2015

Cost of maintenance and services	$	7	$	(14)	$	57	$	365
Sales and marketing		248		31		482		716
Engineering and product development		16		11		20		323
General and administrative		-		1		2		236
	$	271	$	29	$	561	$	1,640