Ikanos Communications (IKAN)

Restructuring

During the first quarter of 2009, we implemented a restructuring plan to close our facility in Hyderabad, India and to reduce our R&D cost structure in the United States. Restructuring charges of $0.3 million related to the termination of 23 persons, 12 of whom were located in India and 11 in the United States. In addition, the Company will relocate certain personnel and equipment from its Hyderabad facility to Bangalore during the second quarter of 2009. These additional costs may amount to about $0.2 million and will be recognized and charged to restructuring as incurred.

Restructuring

During the first quarter of 2009, we implemented a restructuring plan to close our facility in Hyderabad, India and to reduce our R&D cost structure in the United States. Restructuring charges of $0.3 million related to the termination of 23 persons, 12 of whom were located in India and 11 in the United States. In addition, the Company will relocate certain personnel and equipment from its Hyderabad facility to Bangalore during the second quarter of 2009. These additional costs may amount to about $0.2 million and will be recognized and charged to restructuring as incurred.

Restructuring

During the third quarter of 2007, we incurred restructuring and severance expenses of $3.5 million as we outsourced our back-end physical semiconductor design process and terminated four members of senior management. The restructuring charges consist of approximately $2.9 million in contract termination costs and asset impairments and $0.6 million in severance costs. We have not incurred any restructuring charges in 2008.

Note 8. Restructuring

During the third quarter of 2007, the Company implemented a restructuring program. The restructuring plan involved outsourcing the back-end physical semiconductor design process and terminating approximately 15 employees, including four members of senior management. The Company expects the remaining severance and benefits and software tool costs to be paid in 2008.

A summary of the restructuring activity is as follows (in thousands):

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Note 8. Restructuring

During the third quarter of 2007, the Company implemented a restructuring program. The restructuring plan involved outsourcing the back-end physical semiconductor design process and terminating approximately 15 employees, including four members of senior management. The Company expects the remaining severance and benefits and software tool costs to be paid in 2008.

A summary of the Company’s restructuring activity is as follows (in thousands):

Note 7. Restructuring

Restructuring consisted of the following (in thousands):

Note 7. Restructuring

During the fourth quarter of 2006, the Company implemented a restructuring program of its development operations to reduce its cost structure. The restructuring plan involved reducing the Company engineering workforce by approximately 42 employees of which approximately half were from India and half were from North America. In addition, the Company closed its Canadian office and transitioned those responsibilities to the United States through a combination of relocations and hiring. The Company incurred facility related expenses in relation to the lease termination of its Canadian office.

Note 7. Restructuring

During the fourth quarter of 2006, the Company implemented a restructuring program of its development operations to reduce its cost structure. The restructuring plan involved reducing the Company engineering workforce by approximately 42 employees of which approximately half were from India and half were from North America. In addition, the Company closed its Canadian office and transitioned those responsibilities to the United States through a combination of relocations and hiring. The Company incurred facility related expenses in relation to the lease termination of its Canadian office. The Company expects the remaining severance and benefits and facility cost to be paid in the second quarter of 2007.

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