Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Restructuring

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Note 4 - Restructuring
3 Months Ended
Mar. 31, 2017
Restructuring and Related Activities [Abstract]  
Restructuring

Note 5. Restructuring

 

As part of an effort to better focus and align the Company’s resources toward profitable growth, on August 24, 2015, the Board authorized the Company to undertake steps to commence a restructuring of the business and operations, which concluded during the third quarter of 2016. The Company closed certain facilities, reduced headcount, discontinued products and renegotiated certain contracts resulting in restructuring and other charges of $0.6 million for the three months ended March 31, 2016.

 

For the three months ended March 31, 2016, the Company recorded restructuring charges in “Cost of revenue” of $1.7 million, related to the write-down of inventory identified to be discontinued in the restructuring plan.

 

 

The following table illustrates the provision of the restructuring charges and the accrued restructuring charges balance as of March 31, 2017 (in thousands):

   

 

Contract Termination Costs

 

  Purchase Commitment of Discontinued Inventories Not Yet Received  

 

Abandoned Lease Facilities

 

 

 

Total

 

Balance as of December 31, 2016   $ 308     $ 175     $ 339     $ 822  
Expensed     —         —         —         —    
Cash payments     —         —         (72 )     (72 )
Balance as of March 31, 2017     308       175       267       750  

 

The total future payments under the restructuring plan as of March 31, 2017 are as follows (in thousands):

 

    For the Year Ending December 31,
Outstanding Payments   Remainder of 2017   2018   2019   2020   2021   Total
Contract termination costs   $ 308     $ —       $ —       $ —       $ —       $ 308  
Purchase commitment of discontinued inventories not yet received     175       —         —         —         —         175  
Abandoned leased facilities     59       92       91       25       —         267  
Total future payments   $ 542     $ 92     $ 91     $ 25     $ —       $ 750