Employee Termination Benefits

12 Months Ended

Aug. 31, 2016

Employee Termination Benefits

Employee Termination Benefits

11. EMPLOYEE TERMINATION BENEFITS

In December 2015, the Company announced a restructuring plan with respect to its chips manufacturing operation in order to better align its fabless business model. Under the restructuring plan, the Company implemented certain workforce reductions with respect to its chips manufacturing operation. In the second quarter of fiscal 2016, part of its employees related to the Company’s chips manufacturing transferred to their ODM partner. The Company also reduced the workforce at chips manufacturing operations that are no longer required to support production and operations. Accordingly, employee termination benefits of $207 thousand for 66 employees, or approximately 29 percent of the workforce, was recognized during the year ended August 31, 2016.