Annual report pursuant to Section 13 and 15(d)

Restructuring Charge

Restructuring Charge

12 Months Ended

Mar. 31, 2017

Restructuring Charges:

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 $3.2 million in the twelve months ended March 31, 2017, inclusive of non-cash charges of approximately $1.2 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 twelve months ended March 31, 2017, associated with the IBW segment.

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 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 the 2016 restructuring costs have been paid as of March 31, 2017.

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 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, including a non-cash charge of $2.7 million in other associated costs related to a loss on a lease (the 2015 restructuring).

As of March 31, 2017, $1.2 million and $0.1 million of the reorganization costs, primarily related to the office space from the 2015 restructuring and 2017 restructuring, are unpaid and accrued on the 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 are unpaid and accrued on the Consolidated Balance Sheets presented in Accrued restructuring and Accrued restructuring non-current, respectively. The restructuring costs are expected to be paid by the first quarter of fiscal year 2019 concurrent with the termination date of the contractual lease.

Total fiscal year 2017 restructuring charges and their utilization are summarized as follows:



(in thousands)	Employee -related			Other costs			Total
Liability at March 31, 2016	$	441		$	1,646		$	2,087
Charged	1,326			1,829			3,155
Payments	(1,767		)	(2,241		)	(4,008		)
Liability at March 31, 2017	$	—		$	1,234		$	1,234

Total fiscal year 2016 restructuring charges and their utilization are summarized as follows:



(in thousands)	Employee -related			Other costs			Total
Liability at March 31, 2015	$	15		$	2,788		$	2,803
Charged	674			74			748
Unrealized foreign currency exchange rate (gain) loss	15			—			15
Payments	(263		)	(1,216		)	(1,479		)
Liability at March 31, 2016	$	441		$	1,646		$	2,087