RESTRUCTURING

On July 21, 2011, we announced a restructuring of our manufacturing operations in Breisach, Germany. The restructuring reduced our manufacturing footprint by consolidating prototype and production functions and centralizing outsourced production control in our Eden Prairie, Minnesota production facility. The consolidation was driven by our strategy of driving efficiency improvements and enhancing customer service globally through more centralized operations. We ceased manufacturing in Breisach at the end of December 2011 and we continue to maintain sales and research and development activities at the leased facility in Breisach, Germany. The lease on the Breisach facility ends in July 2013. As a result of these initiatives, we recorded a total charge of $0.5 million on a pre-tax basis, which consists of $0.4 million for employee termination costs for 25 employees and $0.1 million for asset write-downs. We recorded a charge of $0.2 million in the fourth quarter of fiscal 2011, $0.2 million in the first quarter of fiscal 2012 and $0.1 million in the second quarter of fiscal 2012. The final payments were completed in April 2012.

Below is listed a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):



	Employee Termination Costs			Other			Total
Balance at June 30, 2011	$	—		$	—		$	—
Restructuring charge	148			76			224
Foreign currency fluctuation	(3		)	(1		)	(4		)
Balance at September 30, 2011	145			75			220
Restructuring charge	249			—			249
Payments	(160		)	—			(160		)
Reversals	(13		)	—			(13		)
Foreign currency fluctuation	(17		)	(4		)	(21		)
Balance at December 31, 2011	204			71			275
Restructuring charge	87			—			87
Payments	(289		)	(46		)	(335		)
Reversals	—			(27		)	(27		)
Foreign currency fluctuation	8			2			10
Balance at March 31, 2012	$	10		$	—		$	10