Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charge (Notes)

Restructuring Charge (Notes)

9 Months Ended

Dec. 31, 2016

Restructuring Charges

In the fourth quarter of fiscal year 2015, the Company approved a plan to restructure its business, including reduction of headcount and consolidation of office space within the Aurora headquarters facility, with the intent to optimize operations. The restructuring was substantially completed during the fourth quarter of fiscal year 2015. The Company recognized a restructuring expense of $3.2 million in the three months ended March 31, 2015, inclusive of a non-cash charge of $2.7 million related to a loss on a lease, net of sublease income (the 2015 restructuring). The Company recognized a restructuring expense of $17,000 in the nine months ended December 31, 2015. At December 31, 2016, $0.8 million was unpaid.

In the fourth quarter of fiscal year 2016, the Company approved a plan to restructure its business, including reduction of headcount and lease termination costs related to closing the design center in Canada, to bring operating costs and expenses in-line with anticipated business volumes (the 2016 restructuring). The 2016 restructuring was completed during the fourth quarter of fiscal year 2016, during which the Company recognized a restructuring expense of $0.7 million. All of these costs have been paid as of December 31, 2016.

In the first quarter of fiscal year 2017, the Company approved a restructuring plan (the 2017 restructuring), including discontinuing development of the ClearLink Distributed Antenna System (DAS), a general reduction of headcount that spans all three segments, and consolidation of facilities in Manchester, NH and Aurora, IL. The Company recognized a restructuring expense of $0.5 million and $3.1 million in the three and nine months ended December 31, 2016, inclusive of non-cash charges of approximately $1.0 million related to losses on leased facilities, $1.3 million of employee termination costs, and $0.7 million of other associated costs. In addition to the restructuring expense, a $1.2 million impairment charge of fixed assets and $1.6 million of E&O expense for ClearLink DAS inventory and pipeline inventory was recorded in the nine months ended December 31, 2016, associated with the IBW segment. The Company expects to incur further restructuring costs of approximately $0.1 million for the remainder of the 2017 restructuring plan. The planned restructuring is scheduled to be substantially completed by March 31, 2017. At December 31, 2016, $1.1 million was unpaid.

As of December 31, 2016, $1.8 million and $0.1 million of the restructuring costs, primarily related to the office space from the 2015 restructuring and 2017 restructuring, are unpaid and accrued on the Condensed Consolidated Balance Sheets presented in accrued restructuring and accrued restructuring non-current, respectively. As of March 31, 2016, $1.5 million and $0.6 million of the restructuring costs, primarily related to the office space from the 2015 restructuring, are unpaid and accrued on the Condensed Consolidated Balance Sheets presented in accrued restructuring and accrued restructuring non-current, respectively. The restructuring costs are expected to be paid in full by the first quarter of fiscal year 2019 concurrent with the termination date of the contractual lease.

Total liability for restructuring charges and their utilization for the nine months ended December 31, 2016, and 2015, are summarized as follows:



	Nine months ended December 31, 2016									Nine months ended December 31, 2015
(in thousands)	Employee-related			Other costs			Total			Employee-related			Other costs			Total
Liability at beginning of period	$	441		$	1,646		$	2,087		$	15		$	2,788		$	2,803
Charged	1,332			1,723			3,055			17			—			17
Paid	(1,493		)	(1,783		)	(3,276		)	(32		)	(869		)	(901		)
Liability at end of period	$	280		$	1,586		$	1,866		$	—		$	1,919		$	1,919