11. RESTRUCTURING

During the fourth quarter of fiscal 2012 the Company initiated a plan to reduce certain operating expenses. As a result approximately 60 positions worldwide were eliminated as part of the plan to reduce operating expenses by approximately $6 to $7 million on an annual basis. These actions resulted in a severance charge of $1.5 million in fiscal year 2012. The Company expects these cost reduction activities and cash payments to be completed during the first quarter of fiscal 2013.

During the second quarter of fiscal 2012 the Company reorganized certain engineering groups resulting in severance charges of $0.4 million. The Company expects the remaining cash payments on these obligations to be completed during the first quarter of fiscal 2013.

During the fourth quarter of fiscal 2011 the Company initiated a plan to reduce costs and investments in certain businesses. As a result, approximately 80 positions worldwide, including approximately 50 positions at its subsidiary in Shenzhen China, were eliminated as part of the plan to substantially reduce investment in storage solutions acquired as part of the Symwave acquisition. The remaining positions eliminated consist of certain administrative positions, certain positions in its subsidiary in Canada as part of its plan to converge the wireless audio products roadmap from the Kleer and STS acquisitions and to rationalize worldwide resources working on wireless audio products, and certain engineering positions. These actions resulted in a severance charge of $3.5 million in fiscal year 2011. The Company expects these cost reduction activities and cash payments to be completed in the first quarter of fiscal 2013.

In the second quarter of fiscal 2011, the Company initiated a restructuring plan for severance and termination benefits for 9 employees. These actions resulted in a severance charge of $0.3 million in fiscal year 2011. The Company expects these cost reduction activities and cash payments to be completed in the first quarter of fiscal 2013.

In the fourth quarter of fiscal 2010, the Company initiated a restructuring plan for severance and termination benefits for 5 employees. The Company made the final payments related to these obligations in fiscal year 2012.

In the second quarter of fiscal 2010, the Company announced a plan to reduce its workforce by sixty-four employees in connection with the relocation of certain of its test floor activities from Hauppauge, New York to third party offshore facilities (Sigurd Microelectronics Corporation) in Taiwan. The Company completed this plan in fiscal year 2012.

In the fourth quarter of fiscal 2009, the Company announced a restructuring plan that included a supplemental voluntary retirement program and involuntary separations that would result in approximately a ten percent reduction in employee headcount and expenses worldwide. The Company completed this plan in fiscal year 2012.

The following table summarizes the activity related to the accrual for restructuring charges for the fiscal year ended February 29, 2012 (in thousands):

	Balance as of March 1, 2011		Severance & Benefits Charges			Assets Impairment		Payments			Balance as of February 29, 2012
Q4 Fiscal 2009 Restructuring Plan	$	2	$	-		$	-	$	(2	)	$	-
Q2 Fiscal 2010 Restructuring Plan		15		(15	)		-		-			-
Q4 Fiscal 2010 Restructuring Plan		27		-			-		(27	)		-
Q2 Fiscal 2011 Restructuring Plan		348		(83	)		-		(228	)		37
Q4 Fiscal 2011 Restructuring Plan		2,429		82			73		(2,513	)		71
Q2 Fiscal 2012 Restructuring Plan		-		418			-		(368	)		50
Q4 Fiscal 2012 Restructuring Plan		-		1,498					(927	)		571
Balance as of February 29, 2012	$	2,821	$	1,900		$	73	$	(4,065	)	$	729

The following table summarizes the activity related to the accrual for restructuring charges for the fiscal year ended February 28, 2011

(in thousands):

	Balance as of March 1, 2010		Severance & Benefits Charges		Assets Impairment		Payments			Reclasses			Non-Cash Items			Balance as of February 28, 2011
Q4 Fiscal 2009 Restructuring Plan	$	210	$	-	$	-	$	(212	)	$	-		$	4		$	2
Q2 Fiscal 2010 Restructuring Plan		101		-		-		(86	)		-			-			15
Q4 Fiscal 2010 Restructuring Plan		780		822		-		(1,440	)		(24	)		(111	)		27
Q2 Fiscal 2011 Restructuring Plan		-		348		-		-			-			-			348
Q4 Fiscal 2011 Restructuring Plan		-		2,489		1,044		-			-			(1,104	)		2,429
Balance as of February 28, 2011	$	1,091	$	3,659	$	1,044	$	(1,738	)	$	(24	)	$	(1,211	)	$	2,821