Note 7 - Restructuring Charges

6 Months Ended

Jul. 29, 2017

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

7.

           Restructuring charges

On

March 24, 2017,

we initiated restructuring activities (the “Fiscal

2018

Plan”) in order to realign resources with our core target markets, such as the IoT market. We expect the Fiscal

2018

Plan to be completed by the end of fiscal

2018.

Our restructuring activities include targeted reductions in labor costs through headcount reductions, a facility closure, and impairment of certain purchased IP. Restructuring liabilities are reported within accrued liabilities on the condensed consolidated balance sheets.

During the

three

and

six

months ended

July 29, 2017,

we communicated a plan of termination to several employees, which consisted of headcount reductions mainly in our Europe and North America operations.

A summary of the recent activities of our restructuring plan is as follows (in thousands):

	Severance
Charges for the three months ended April 29, 2017	$	243
Cash payments		(5	)
Accrued balance as of April 29, 2017		238
Charges for the three months ended July 29, 2017		1,723
Cash payments		(364	)
Accrued balance as of July 29, 2017	$	1,597
Total cost incurred to date as of July 29, 2017	$	1,966

In addition,

we recorded an impairment charge for purchased IP

not

yet deployed of

zero

and

$3.0

million for the

three

and

six

months ended

July 29, 2017,

respectively, as we

no

longer intend to use this IP.

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 our products.