Note 13 - Restructuring Expenses

9 Months Ended

Mar. 31, 2013

Restructuring and Related Activities Disclosure [Text Block]

Note 13 – Restructuring Expenses

Restructuring Charges

In fiscal 2013, the Company has been restructuring its operations and overhead structure by reducing the size of its facilities and headcount as part of its strategic initiative to outsource manufacturing.  In the third quarter of fiscal 2013, the Company further reduced the size of its facility in Simi Valley, which resulted in an additional decrease in total square footage, from 28,000 square feet to approximately 20,000 square feet, and restructuring charges of approximately $345,000 applied to the remaining contractual lease payments from March 2013 through December 2015 on the vacated portion of the facility in addition to contractor and moving expenses. Severance costs of approximately $76,000 were paid in conjunction with the departure of several of our operations employees in the third quarter of fiscal 2013 within the storage segment.

Our restructuring actions are strategic management decisions to consolidate operations supporting our business, and until we achieve consistent and sustainable levels of profitability, we may incur restructuring charges in the future from additional cost reduction efforts.   In the fourth quarter of fiscal 2013, we expect to reduce the size of our utilized space to approximately 11,000 square feet for which we expect to incur additional restructuring charges of approximately $250,000.

	Beginning Balance December 31, 2012		Expensed		Paid			Ending Balance March 31, 2013
Lease abandonment obligation	$	955	$	345	$	(77	)	$	1,223
Termination costs		168		17		(76	)		109
Facility - other		-		551		(551	)		-
Total Restructuring Expenses	$	1,123	$	913	$	(704	)	$	1,332