RESTRUCTURING

U.S. Restructuring

On April 26, 2012, we announced our intention to restructure certain of our operations. The restructuring relates primarily to changes being implemented to focus on a shift in our business to more aggressively sell end-to-end M2M solutions. As a result of this restructuring, we eliminated employment positions in our work force and have moved to hire new employees or re-assign existing employees into newly created positions. We recorded $1.0 million of restructuring charges on a pre-tax basis. These charges were incurred in connection with reductions in force of 30 employees and represented severance of $0.6 million and expenses from vacating facilities in Davis, California and Huntington Beach, California of approximately $0.4 million. The payments associated with these charges and all the actions associated with the restructuring are expected to be completed by the second quarter of fiscal 2013.

11. RESTRUCTURING (CONTINUED)

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 March 31, 2012	$	—		$	—		$	—
Restructuring charge	568			395			963
Payments	(305		)	(2		)	(307		)
Reversals	—			—			—
Balance at June 30, 2012	$	263		$	393		$	656

Breisach 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 however, 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 consisted of $0.4 million for employee termination costs for 25 employees and $0.1 million for asset write-downs. The restructuring charge was recorded as follows: $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
Payments	(10		)	—			(10		)
Balance at June 30, 2012	$	—		$	—		$	—