Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charge

Restructuring Charge

9 Months Ended

Dec. 31, 2011

Note 3. Restructuring Charge

In the third quarter of fiscal year 2012, as a result of the ConferencePlus sale, the Company recognized restructuring expense of $667,000 in the discontinued operations of ConferencePlus for personnel costs related to severance agreements of two former ConferencePlus executives. This expense is presented within Income from discontinued operations on the Condensed Consolidated Statement of Operations. The liability was retained by the Company. As of December 31, 2011, the entire balance is unpaid and is presented on the Condensed Consolidated Balance Sheets within Accrued expenses.

In the first quarter of fiscal year 2012, as a result of the CNS asset sale, the Company initiated a cost reduction action that resulted in the termination of 12 employees in the CNS segment. The total cost of this restructuring action was approximately $397,000 offset by $122,000 which was reimbursed by NETGEAR. As of December 31, 2011, $394,000 of these costs had been paid, leaving an unpaid balance of $3,000 which is presented on the Condensed Consolidated Balance Sheets within Accrued expenses.

Total restructuring charges and their utilization are summarized as follows:


(in thousands)	Employee- related			Other costs		Total
Liability at March 31, 2011	$	—		$	—	$	—
Charged		1,064			—		1,064
Utilized		(394	)		—		(394	)

Liability at December 31, 2011	$	670		$	—	$	670

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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