Annual report pursuant to Section 13 and 15(d)

Restructuring Charge

Restructuring Charge

12 Months Ended

Mar. 31, 2016

Restructuring:

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. The 2016 restructuring costs are expected to be paid in the first quarter of fiscal year 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 and impacted 17 employees. 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). The loss on the lease includes lease liabilities offset by estimated sublease income. As of March 31, 2015, $1.2 million and $1.6 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 2015 restructuring costs are expected to be paid by fiscal year 2018 concurrent with the termination date of the contractual lease.

In fiscal year 2014, the Company acquired Kentrox and identified 12 redundant employees who exited the business after a period of time (the 2014 restructuring). The Company recognized restructuring expense of $55,000 and $335,000 in fiscal years 2015 and 2014, respectively, for severance for these transitional employees. The total cost of this action was $390,000. The 2014 restructuring was completed during the first quarter of fiscal year 2015. As of March 31, 2014, $278,000 of these costs had been paid leaving an unpaid balance of $57,000, which is presented on the Consolidated Balance Sheets within accrued restructuring. As of March 31, 2015 all of these costs have been paid.

As of March 31, 2016, $1.5 million and $0.6 million of the reorganization costs, primarily related to the office space from the 2015 restructuring, are unpaid and accrued on the Consolidated Balance Sheets presented in accrued restructuring and accrued restructuring non-current, respectively.

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

Total fiscal year 2015 restructuring charges and their utilization are summarized as follows:



(in thousands)	Employee -related			Other costs			Total
Liability at March 31, 2014	$	57		$	—		$	57
Charged	337			2,906			3,243
Accelerated depreciation of leasehold improvements	—			(72		)	(72		)
Payments	(379		)	(46		)	(425		)
Liability at March 31, 2015	$	15		$	2,788		$	2,803

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