Note 8 - Restructuring Costs

6 Months Ended

Aug. 02, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

8.          Restructuring costs

In fiscal 2013, as a result of significant expansion in our infrastructure and operational activities in connection with purchases and acquisitions that took place between fiscal years 2008 and 2013, and in response to certain redundancies, underperforming operations and delays in programs and product releases, we implemented a restructuring program to realign our global operating expenses with our new business conditions, and to improve efficiency, competitiveness and profitability. Costs relating to facilities closure or lease commitment are recognized when the facility has been exited. Terminations costs are recognized when the costs are deemed both probable and estimable.

In the first quarter of fiscal 2015, we incurred restructuring charges of $1.0 million, all of which was related to workforce reductions of 29 employees across several geographic regions, the majority of which were in our operations in Israel. Of the total restructuring charges recorded in the first fiscal quarter, approximately $0.1 million was reflected in cost of revenue and $0.9 million was reflected in operating expenses. During the second quarter of fiscal 2015, we incurred less than $0.1 million of restructuring charges.

In the first quarter of fiscal 2014, we incurred restructuring charges of $0.3 million, all of which was related to workforce reductions of 17 employees across several geographic regions. During the second quarter of fiscal 2014, we incurred net restructuring charges of approximately $0.5 million related to a contingent liability under our lease obligation in Canada and $0.2 million in severance-related charges that resulted from a workforce reduction of eight employees. The aforementioned charges were substantially all reflected in operating expenses for their respective periods.

Expenses recognized for restructuring activities impacting our operating expenses are included in “Restructuring costs” in the condensed consolidated statements of operations. Our restructuring measures could negatively impact our revenue and results of operations in the future as a result of less employees developing future products and working to sell existing products.

A combined summary of the recent activity of the restructuring plans initiated by us is as follows (in thousands):

	Workforce Reduction			Facility Exit Costs			Total			Cumulative Restructuring Costs
Liability, February 2, 2013	$	1,014		$	8		$	1,022		$	3,264
Charges in fiscal 2014		1,696			610			2,306			2,306
Cash payments		(2,347	)		(616	)		(2,963	)		-
Liability, February 1, 2014		363			2			365			5,570
Charges for the three months ended May 3, 2014		1,025			-			1,025			1,025
Cash payments		(802	)		(2	)		(804	)		-
Liability, May 3, 2014		586			-			586			6,595
Charges for the three months ended August 2, 2014		46			-			46			46
Cash payments		(386	)		-			(386	)		-
Liability, August 2, 2014	$	246		$	-		$	246		$	6,641