Restructuring

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Note 23 – Restructuring

During the fourth quarter of 2022, the Company initiated a multi-year integration program designed to optimize the assets, business processes, and information technology systems of the Company in relation to the Business Combination with ADVA. The integration program is expected to maximize cost synergies by realizing operation scale, combining sales channels, streamlining corporate and general and administrative functions and combining sourcing and production costs.

During the second half of 2019, the Company initiated a restructuring plan to realign its expense structure with the reduction in revenue experienced in recent years and overall Company objectives. As part of this restructuring plan, the Company announced plans to reduce its overall operating expenses, both in the U.S. and internationally. This plan was completed and all amounts paid in 2021.

In February 2019, the Company announced the restructuring of a certain portion of its workforce predominantly in Germany, which included the closure of the Company’s office location in Munich, Germany accompanied by relocation or severance benefits for the affected employees. Voluntary early retirement was offered to certain other employees and was announced in March 2019 and again in August 2020. This plan was completed in 2021 and all amounts paid in 2022.

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits in the Consolidated Balance Sheets as of December 31, 2022 and 2021, is as follows:


(In thousands)	2022			2021
Balance at beginning of period	$	1,514		$	4,186
Plus: Amounts charged to cost and expense		1,629			411
Less: Amounts paid		(2,984	)		(3,083	)
Balance at end of period	$	159		$	1,514

Restructuring expenses included in the Consolidated Statements of (Loss) Income are for the years ended December 31, 2022, 2021 and 2020:


(In thousands)	2022		2021		2020
Network solutions - cost of revenue	$	8	$	13	$	220
Services & support - cost of revenue		—		3		235
Cost of revenue	$	8	$	16	$	455
Selling, general and administrative expenses		117		221		1,832
Research and development expenses		1,504		174		3,942
Total restructuring expenses	$	1,629	$	411	$	6,229

The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2022, 2021 and 2020:


(In thousands)	2022		2021		2020

United States	$	2	$	289	$	2,234
International		1,627		122		3,995
Total restructuring expenses	$	1,629	$	411	$	6,229