Annual report pursuant to Section 13 and 15(d)

Restructuring Charge

Restructuring Charge

12 Months Ended

Mar. 31, 2014

Restructuring:

Kentrox Restructuring

In fiscal year 2014, the Company acquired Kentrox and identified 12 redundant employees who will exit the business after a period of time. The Company recognized restructuring expense of $335,000 in fiscal year 2014 for severance for these transitional employees. The total cost of this action is anticipated to be approximately $396,000. The restructuring is anticipated to be completed during the first quarter of fiscal year 2015. As of March 31, 2014, $278,000 of these costs has been paid leaving an unpaid balance of $57,000, which is presented on the Consolidated Balance Sheets within accrued compensation.

Noran Tel Restructuring

The Company's Westell segment recognized restructuring expense of $149,000 and $275,000 in fiscal years 2013 and 2012, respectively, for personnel costs related to severance and other relocation costs for the Noran Tel relocation, described in Note 1. The relocation resulted in the termination of 35 employees located in Canada. The total cost of this action was $424,000. The relocation was completed during the quarter ended September 30, 2012. As of March 31, 2014, and 2013, $424,000 and $418,000 of these costs had been paid leaving an unpaid balance of $0 and $6,000, respectively, which is presented on the Consolidated Balance Sheets within accrued compensation.

ConferencePlus Restructuring

In fiscal year 2012, in connection with the ConferencePlus sale, the Company recognized restructuring expense of $667,000 within discontinued operations for personnel costs related to severance agreements with two former ConferencePlus executives. This expense is presented within income from discontinued operations on the Consolidated Statement of Operations. The liability was retained by the Company. The Company paid $338,000 and $329,000 in fiscal years 2013 and 2012, respectively.

CNS Asset Sale Restructuring

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 discontinued CNS segment. The total cost of this restructuring action was approximately $397,000, offset by $122,000 which was reimbursed by NETGEAR. As of March 31, 2012, all of these costs had been paid.

Total fiscal year 2014 restructuring charges and their utilization are summarized as follows:



(in thousands)	Employee -related			Other costs		Total
Liability at March 31, 2013	$	6		$	—	$	6
Charged	335			—		335
Payments	(284		)	—		(284		)
Liability at March 31, 2014	$	57		$	—	$	57

Total fiscal year 2013 restructuring charges and their utilization are summarized as follows:



(in thousands)	Employee -related			Other costs			Total
Liability at March 31, 2012	$	561		$	52		$	613
Charged to continuing operations	89			60			149
Payments	(644		)	(112		)	(756		)
Liability at March 31, 2013	$	6		$	—		$	6

Total fiscal year 2012 restructuring charges and their utilization are summarized as follows:



(in thousands)	Employee -related			Other costs		Total
Liability at March 31, 2011	$	—		$	—	$	—
Charged to continuing operations	276			—		276
Charged to discontinued operations	889			52		941
Payments	(604		)	—		(604		)
Liability at March 31, 2012	$	561		$	52	613

- 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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