Re-Organization And Restructure Charge

9 Months Ended

Sep. 30, 2012

Re-Organization And Restructure Charge [Abstract]

10. RE-ORGANIZATION AND RESTRUCTURE CHARGE:

We incurred severance and relocation costs starting in July 2012 in connection with our decision to close our Portland, Oregon office where our semiconductor research and development occurred. All semiconductor research and development activity has been transferred to our Minneapolis, Minnesota headquarters. We believe the elimination of duplicate expenses and closer coordination with manufacturing should allow us to improve our profitability and be more responsive to customers, and we expect to recover the restructuring charge through cost savings in less than six months. The transition of semiconductor product development was substantially complete by the end of the third quarter 2012. Due to the consolidation initiative, we are no longer managing our semiconductor operations as a separate segment, and we are no longer reporting semiconductor segment information beginning with the third quarter of 2012.

All of the severance and relocation costs relating to the third quarter 2012 transition of our semiconductor research and development from Portland to Minneapolis have been classified as restructuring and severance costs in our statement of operations. Severance and relocation expenses related to these actions were $217,000 in the three and nine months ended September 30, 2012. A summary of our severance and relocation accrual is as follows:



(In thousands)		Q3 2012 Severance		Q3 2012 Relocation		Total
Balance, June 30, 2012	$	—	$	—	$	—
Cost incurred		153		64		217
Payments made		122		49		171
Balance, September 30, 2012	$	31	$	15	$	46

The remaining accrued severance and relocation in the amount of $46,000 at September 30, 2012 will be paid prior to December 31, 2012. We estimate potential annual savings of up to $700,000 from our decision to consolidate semiconductor research and development in Minneapolis.

- 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.

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