Restructuring Charges

In October 2011, the Company announced the decision to consolidate the InMoTx operations in Denmark into the Company's Pleasanton, California operations. Consolidation activities began during the second quarter of fiscal 2012, and were substantially completed at March 31, 2012.

During the three and nine months ended March 31, 2012, the Company incurred $791,000 and $1.2 million, respectively, in restructuring charges related to the consolidation of the InMoTx operations. Lease termination costs were $37,000 and $142,000, respectively, severance costs were $34,000 and $124,000, respectively, salaries related to the restructuring were $304,000 and $512,000, respectively, inventory write-offs were $259,000 and $259,000, respectively, stock compensation expense was $95,000 and $95,000, respectively, and other miscellaneous costs were $62,000 and $82,000, respectively.

The components of accrued restructuring are summarized as follows (in thousands):



(unaudited)	Accrued		Paid			Lease Deposit Offset			Balance
Balance as of June 30, 2011	$	—	$	—		$	—		$	—
Lease commitments	142		(39		)	(40		)	63
Employee severance	90		(44		)	—			46
Phone contract termination fee	18		—			—			18
Auto lease termination fee	6		—			—			6
Balance as of March 31, 2012	$	256	$	(83	)	$	(40	)	$	133

Restructuring expenses paid in cash, which do not include inventory write-offs, stock compensation expense, accruals and other costs were $456,000 and $683,000 during the three and nine months ended March 31, 2012, respectively.

Due to these restructuring activities and the resulting revised revenue projection for the division, the Company performed a goodwill and intangible impairment evaluation as of March 31, 2012, and concluded there was no impairment.