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Restructuring | 6 Months Ended
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Jun. 30, 2025
Restructuring and Related Activities [Abstract] |
Restructuring | 17. RESTRUCTURING On November 6, 2023, due to the uncertainty around the then current macroeconomic environment and its impact on customer spending levels, the Company’s management decided to implement a Business Efficiency Program targeting the reduction of ongoing operating expenses and focusing on capital efficiency. This included certain salary reductions, an early retirement program, a site consolidation plan to include lease impairments and the sale of owned real estate (including the sale of our headquarters in Huntsville), inventory write downs from product discontinuances, and the suspension of the quarterly dividend. The Business Efficiency Program was completed as of December 31, 2024. During the three and six months ended June 30, 2024, we recognized $17.5 million and $34.6 million of costs related to the Business Efficiency Program, respectively. The costs recognized during the six months ended June 30, 2024, included charges of $8.9 million as a result of a strategy shift which included discontinuance of certain items in connection with the Business Efficiency Program, of which, $4.1 million relates to inventory write-downs and $4.8 million relates to other charges, and are included in cost of revenue in the Condensed Consolidated Statements of Loss. Although the Company did no t incur any additional Business Efficiency Program costs during the three and six months ended June 30, 2025, the Company reduced previously accrued costs by $0.3 million during the three and six months ended June 30, 2025. A reconciliation of the beginning and ending restructuring liabilities, which is included in accrued wages and benefits and accounts payable in the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, is as follows:
|  | Three Months Ended |  |  | Six Months Ended |
(In thousands) |  | June 30, 2025 |  |  | June 30, 2025 |
Balance at beginning of period |  | $ | 3,064 |  |  | $ | 10,336 |
Less: Adjusted accrued costs |  |  | (284 | ) |  |  | (284 | )
Less: Amounts paid |  |  | (139 | ) |  |  | (7,411 | )
Balance as of June 30, 2025 |  | $ | 2,641 |  |  | $ | 2,641 |
|  | For the Year Ended |
(In thousands) |  | December 31, 2024 |
Balance as of December 31, 2023 |  | $ | 8,309 |
Plus: Amounts charged to cost and expense |  |  | 40,545 |
Less: Amounts paid |  |  | (38,518 | )
Balance as of December 31, 2024 |  | $ | 10,336 |
Restructuring expenses included in the Condensed Consolidated Statements of Loss are for the three and six months ended June 30, 2025 and 2024:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Network Solutions - Cost of revenue |  | $ | — |  |  | $ | 524 |  |  | $ | — |  |  | $ | 2,842 |
Network Solutions - charges and inventory write-down |  |  | — |  |  |  | 143 |  |  | $ | — |  |  |  | 8,925 |
Services & Support - Cost of revenue |  |  | — |  |  |  | 2,121 |  |  |  | — |  |  |  | 2,268 |
Cost of revenue |  | $ | — |  |  | $ | 2,788 |  |  | $ | — |  |  | $ | 14,035 |
Selling, general and administrative expenses |  |  | — |  |  |  | 3,497 |  |  |  | — |  |  |  | 5,299 |
Research and development expenses |  |  | (284 | ) |  |  | 11,245 |  |  |  | (284 | ) |  |  | 15,306 |
Total restructuring expenses |  | $ | (284 | ) |  | $ | 17,530 |  |  | $ | (284 | ) |  | $ | 34,640 |
The following table represents the components of restructuring expenses by geographic area for the three and six months ended June 30, 2025 and 2024:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
United States |  | $ | — |  |  | $ | 1,226 |  |  | $ | — |  |  | $ | 16,286 |
International |  |  | (284 | ) |  |  | 16,304 |  |  |  | (284 | ) |  |  | 18,354 |
Total restructuring expenses |  | $ | (284 | ) |  | $ | 17,530 |  |  | $ | (284 | ) |  | $ | 34,640 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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