XRS Corp. (XRSC)

[Toxic Avenger]

Looks like more streamlining as the company moves from hardwired legacy systems to it's smartphone and tablet-based apps.
Should be interesting.
"Item 2.06 Material Impairments.
On June 27, 2012, our management concluded that a charge of approximately $3.4 million for impairment to certain intangible assets was required under generally accepted accounting principles applicable to our company.
As we continue our development of mobile-based platforms, it was necessary to evaluate the assumptions associated with the valuation of intangible assets related to the customer contracts associated with one of our legacy solutions.
We do not expect that the impairment charge will result in future cash expenditures.

Item 8.01 Other Events.
In addition on June 27, 2012, our company reduced its workforce by 29 positions, primarily in those areas focused on its legacy solutions. We expect to recognize a restructuring charge of approximately $0.8 million during the quarter ended June 30, 2012 to better align our workforce with our mobile-based strategy. The Company estimates an annual costs savings of $2.8 million.
Xata anticipates recording additional charges relating to write-off of obsolete inventory and fixed assets of approximately $1.3 million to $1.6 million. We believe that these assets will not realize their recorded value as the product lines are transitioned to future mobile-based platforms.
We expect to recognize the restructuring charges, write-off of obsolete inventory and fixed assets and the impairment charge disclosed under Item 2.06 of this current report on Form 8-K in our financial results for the quarter ended June 30, 2012."