On March 20, 2025, we announced our restructuring actions for fiscal 2026, which include the reduction of approximately 10% of the Company’s global workforce, primarily in the Product ID segment, and the realignment of our underperforming MTEX operation in Portugal. As part of this initiative, we have cut approximately 70% of the MTEX product portfolio, phasing out low-volume, low-profit and developmental models in the nascent fabric printing market to focus more resources on much higher-margin products that capitalize on our supplies business. In addition, all MTEX sales, marketing and customer support functions have been integrated into our global teams to improve accountability and performance. We anticipate our restructuring actions to generate $3.0 million in annualized savings and expect to complete the planned actions by the end of fiscal 2026.

As a result of the adoption and implementation of the above restructuring actions, as of July 31, 2025 we have recognized total pre-tax restructuring charges of $1.2 million, comprised primarily of cash charges related to severance-related costs. Below is a summary of the restructuring costs and liabilities by type as of July 31, 2025.


(in thousands)	Restructuring Costs		Amounts paid in quarter ended April 30, 2025			Amounts paid in quarter ended July 31, 2025			Restructuring Liability
Severance and Employee Related Costs	$	1,157	$	(99	)	$	(310	)	$	748
Other Restructuring Costs		90		-			-			90
Total	$	1,247	$	(99	)	$	(310	)	$	838

The following table summarizes restructuring costs included in the accompanying condensed consolidated statement of income (loss) for the three and six months ended July 31, 2025:


	Three Months Ended			Six Months Ended
	July 31, 2025			July 31, 2025
(in thousands)
Cost of Revenue	$	(3	)	$	337
Operating Expenses:
Selling & Marketing		111			209
General & Administrative		581			701
Total	$	689		$	1,247