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 the Company anticipates the consolidation activity to conclude during the third quarter of fiscal 2012.

During the three months ended December 31, 2011, the Company incurred $423,000 in restructuring charges related to the consolidation of the InMoTx operations. Of this amount, $298,000 was for employee salaries and severance, of which $208,000 was paid in the second quarter of fiscal 2012 and $90,000 was accrued to be paid in the third quarter of fiscal 2012, $106,000 was lease termination costs accrued in the current quarter to be paid in the third quarter of fiscal 2012, and $19,000 was miscellaneous legal, travel, and other costs paid during the current quarter.

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



(unaudited)	Accrued		Paid		Balance
Balance as of June 30, 2011	$	—	$	—	$	—
Lease commitments	106		—		106
Employee severance	90		—		90
Balance as of December 31, 2011	$	196	$	—	$	196

Due to these restructuring activities and the resulting revised revenue projection for the division, we performed a goodwill and intangible impairment evaluation as of December 31, 2011, and concluded there was no impairment.