Restructuring Charges

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring charges

On August 17, 2020, BIS increased restrictions on Huawei and its affiliates on the Entity List related to items produced domestically and abroad that use U.S. technology or software and imposed additional requirements for items subject to its export control authority. The Company announced on October 5, 2020, that it will manage the business without relying on and will not plan on future revenue contributions from Huawei. As a result, the Company initiated certain restructuring actions to reduce operating expenses and manufacturing costs while maintaining the Company's focus on its core capabilities, including its lasers, coherent components and solutions for data center interconnect and high speed communications networks. Under the restructuring actions, the Company estimates it will incur severance and related charges of approximately $1.1 million and is expected to be completed by the third quarter of 2021.

A summary of the current period activity in accrued restructuring costs is as follows (in thousands):


	Employee Severance		Other		Total
Restructuring obligations December 31, 2020	$	97	$	42	$	139
Charges	—		—		—
Cash payments	(64)		(42)		(106)
Restructuring obligations March 31, 2021	$	33	$	—	$	33