Operationally, from time to time Adept has undertaken restructuring and other cost reduction actions to support its financial model, which emphasizes cost efficiency balanced with investments in the Company’s products and revenue generating activities. The Company remains committed to managing its business to generate cash. In October 2011, the Company announced the decision to consolidate the InMoTx operations in Denmark into our Pleasanton, California operations. Consolidation activities began during the second quarter of fiscal 2012, and were completed by June 30, 2012.
During fiscal 2012, the Company incurred $1.3 million in restructuring charges related to the consolidation of the InMoTx operations. Lease termination costs were $120,000, severance costs were $128,000, salaries related to the restructuring were $658,000, inventory write-offs were $162,000, stock compensation expense was $95,000, and other miscellaneous costs were $93,000.
Cash outlay for restructuring expenses for fiscal 2012, which does not include inventory write-offs and stock-based compensation expense, was $999,000.
During fiscal 2011, the Company incurred $662,000 in restructuring charges related to organizational improvements designed to reduce its ongoing costs, which included office consolidation, reorganization within the sales infrastructure and a general streamlining of business operations in the Americas region, of which $498,000 was accelerated stock compensation expense.
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 June 30, 2012, and concluded there was no impairment.
