Restructuring

6 Months Ended

Jun. 30, 2012

Restructuring

Restructuring

K.Restructuring

In June 2012, we initiated a corporate restructuring, including a workforce reduction plan. The majority of the workforce reduction plan is associated with our manufacturing and development infrastructure. As a result of the restructuring, we expect to record total charges of approximately $1.6 million. Of the $1.6 million, approximately $1.0 million is related to employee severance and benefits. We recognized $0.5 million of the $1.0 million during the second quarter of 2012 and additional charges will likely occur in future quarters. In addition, in connection with our decision to divest our Cambridge, Massachusetts manufacturing facility, we have recorded $0.6 million in restructuring charges related to the write-down of primarily raw material inventory that will no longer be usable upon the closure of the facility. We expect that the majority of our restructuring charges will be paid by the end of 2012.

In November 2011, we initiated a corporate restructuring, including a workforce reduction plan, which included a 25% reduction in positions. During the fourth quarter of 2011, we recorded $3.5 million of restructuring related costs, primarily related to employee severance and benefits. The workforce reduction was substantially completed by the end of 2011, and we expect that the majority of our restructuring charges will be paid by the end of 2012.

The following table outlines the components of our restructuring expenses which were recorded in operating expenses and current liabilities for the three and six months ended June 30, 2012 (in thousands):

	Three Months Ended June 30, 2012			Six Months Ended June 30, 2012
Accrued restructuring, beginning of period	$	1,763		$	2,366
Employee severance, benefits and related costs	493			578
Payments	(518		)	(1,127		)
Reclassifiction to inventory reserve	(575		)	(575		)
Other adjustments	565			486
Accrued restructuring, end of period	$	1,728		$	1,728