Workforce Reduction

6 Months Ended

Jun. 30, 2011

Workforce Reduction

Workforce Reduction

12.          Workforce Reduction

During the first quarter of 2010, the Company announced a one-third reduction in its workforce.  As a result of this reduction, in the three months ended March 31, 2010, the Company recorded a charge of $204,000, comprised of $167,000 of severance pay and $37,000 of stock option compensation expense.  This charge is included in the accompanying Consolidated Statement of Operations in continuing operations as a component of Selling, general and administrative, and Research and development in the amounts of $48,000 and $90,000, respectively.  The remaining charge of $66,000 is included in discontinued operations as cost of revenues.  During the three months ended March 31, 2010, the Company paid $65,000 of severance. The remaining severance payments of $102,000 were made during the second quarter of 2010 and no further severance payments are due beyond the $167,000 already paid to these former employees.