Note 10—Commitments, Contingencies and Other Matters

Restructuring and Other Charges

During the three months ended September 30, 2012, we took measures to improve profitability, including a reduction of discretionary expenses, realignment of our senior management team and consolidation of certain sales, business and administrative functions. As a result of these actions, we recorded a restructuring charge of $2.0 million.

Restructuring for the three and nine months ended September 30, 2012 is as follows (in thousands):

	Three months ended		Nine months ended
	September 30,		September 30,
	2012		2012
Personnel severance and related costs	$	1,642	$	1,705
Equity compensation and related costs	220		220
Other associated costs	152		152
	$	2,014	$	2,077

Personnel Severance and Related Costs

During the three and nine months ended September 30, 2012, we recorded $1.6 million and 1.7 million, respectively, in personnel severance and related costs resulting from a headcount reduction of approximately 23 employees. This reduction in workforce included executives, management, administration, sales and service personnel and manufacturing employees companywide.

Equity Compensation Costs

During the three months ended September 30, 2012, we recorded $0.2 million in equity compensation costs resulting from the acceleration and modification of certain awards associated with the realignment of our senior management team.

Restructuring Liability

The following is a reconciliation of the restructuring liability through September 30, 2012 (in thousands):

	LED & Solar			Data Storage			Unallocated Corporate			Total
Short-term liability
Balance as of January 1, 2012	$	534		$	128		$	294		$	956
2012 Restructuring	561			983			56			1,600
Short-term/long-term reclassification	—			—			—			—
2012 Cash payments	(546		)	(137		)	(273		)	(956		)
Balance as of September 30, 2012	$	549		$	974		$	77		$	1,600

The balance of the short-term liability will be paid over the next 12 months.

The following is a reconciliation of the restructuring liability through December 31, 2011 (in thousands):

	LED & Solar			Data Storage			Unallocated Corporate			Total
Short-term liability
Balance as of January 1, 2011	$	—		$	178		$	536		$	714
2011 Restructuring	672			51			311			1,034
Short-term/long-term reclassification	—			58			—			58
2011 Cash payments	(138		)	(159		)	(553		)	(850		)
Balance as of December 31, 2011	$	534		$	128		$	294		$	956

Long-term liability
Balance as of January 1, 2011	$	—		$	58		$	—		$	58
Short-term/long-term reclassification	—			(58		)	—			(58		)
Balance as of December 31, 2011	$	—		$	—		$	—		$	—