Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

21. RESTRUCTURING

During the fourth quarter of 2022, the Company initiated a restructuring program designed to optimize the assets and business processes, and information technology systems of the Company in relation to the Business Combination with ADVA. The restructuring program is expected to maximize cost synergies by realizing operation scale, combining sales channels, streamlining corporate and general and administrative functions, including human capital resources and combining sourcing and production costs.

In February 2019, the Company announced the restructuring of a certain portion of its workforce predominantly in Germany, which included the closure of the Company’s office location in Munich, Germany accompanied by relocation or severance benefits for the affected employees. Voluntary early retirement was offered to certain other employees and was announced in March 2019 and again in August 2020. This plan was completed in 2021 and all amounts were paid in 2022.

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits in the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, is as follows:


	Three Months Ended
(In thousands)	March 31, 2023
Balance at beginning of period	$	159
Plus: Amounts charged to cost and expense		2,437
Less: Amounts paid		(1,574	)
Balance as of March 31, 2023	$	1,022


	For the Year Ended
(In thousands)	December 31, 2022
Balance as of December 31, 2021	$	1,514
Plus: Amounts charged to cost and expense		1,629
Less: Amounts paid		(2,984	)
Balance as of December 31, 2022	$	159

Restructuring expenses included in the Condensed Consolidated Statements of (Loss) Income are for the three months ended March 31, 2023 and 2022:


	Three Months Ended
	March 31,
(In thousands)	2023		2022

Network Solutions - Cost of revenue	$	58	$	—
Services & Support - Cost of revenue		18		—
Cost of revenue	$	76	$	—
Selling, general and administrative expenses (1)		2,180		2
Research and development expenses (1)		181		—
Total restructuring expenses	$	2,437	$	2

The following table represents the components of restructuring expense by geographic area for the three months ended March 31, 2023 and 2022:


	Three Months Ended
	March 31,
(In thousands)	2023		2022
United States	$	1,119	$	2
International		1,318		—
Total restructuring expenses	$	2,437	$	2