Annual report pursuant to Section 13 and 15(d)

Restructuring Charge

Restructuring Charge

12 Months Ended

Mar. 31, 2015

Restructuring:

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 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 reorganization costs primarily related to the office space are unpaid and accrued on the Consolidated Balance Sheets presented in accrued reorganization and accrued reorganization non-current, respectively. The reorganization 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 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 restructuring was 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 reorganization. As of March 31, 2015 all of these costs have been paid.

The Company's recognized restructuring expense of $149,000 in fiscal year 2013 for personnel costs related to severance and other relocation costs for the Noran Tel relocation. 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, all of these costs have been paid.

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	—			(71		)	(71		)
Payments	(379		)	(46		)	(425		)
Liability at March 31, 2015	$	15		$	2,789		$	2,804

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	89			60			149
Payments	(644		)	(112		)	(756		)
Liability at March 31, 2013	$	6		$	—		6

- 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.

+ References + Details