8x8 1998 Annual Report Download - page 49

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8X8, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
percentage of net income. Charges related to this plan were approximately $685,000 in the fiscal year ended March 31, 1998, and were not
significant for the fiscal years ended March 31, 1997 or 1996.
NOTE 8 -- GEOGRAPHIC AREA AND SIGNIFICANT CUSTOMER INFORMATION:
The Company's export sales to Europe represented 22%, 21% and 17% of total revenues in fiscal years 1998, 1997 and 1996, respectively. The
Company's export sales to the Asia Pacific region represented 25%, 33%, and 32% of total revenues in fiscal years 1998, 1997 and 1996,
respectively.
Product sales and license and other revenues derived from one customer represented approximately 20% of total revenues for the fiscal year
ended March 31, 1998. Product sales to one customer represented approximately 13% of total revenues for the fiscal year ended March 31,
1997. License and other revenues derived from one customer represented approximately 24% of total revenues for the fiscal year ended March
31, 1996.
NOTE 9 -- RESTRUCTURING COSTS AND INVENTORY CHARGES:
During fiscal 1997, the Company recorded a charge for restructuring its operations by reducing its workforce by approximately 25%. As of
March 31, 1997, the Company's restructuring actions were fully completed and there were no remaining restructuring cost accruals.
During fiscal 1996, the Company recorded restructuring charges resulting from the Company's decision to reduce the scope of its research and
development activities by eliminating certain product development efforts. The restructuring costs related primarily to a write off of equipment
associated with the terminated development efforts.
During the quarter ended June 30, 1996, the Company recorded a charge of $4.0 million related to its MPEG inventories. In September 1996,
the Company sold its remaining MPEG inventory.
SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS
(IN THOUSANDS)
44
ADDITIONS WRITE-OFFS/
BALANCE AT CHARGED TO RECOVERIES OF
BEGINNING COSTS AND UNCOLLECTIBLE BALANCE AT
DESCRIPTION OF PERIOD EXPENSES ACCOUNTS END OF PERIOD
----------- ---------- ---------- ------------- -------------
Allowance for doubtful accounts:
March 31, 1996.............................. $397 $234 $111 $520
March 31, 1997.............................. 520 -- 146 374
March 31, 1998.............................. 374 255 19 610