On March 20, 2025, we announced our restructuring actions for fiscal 2026, which include the reduction of approximately 10% of the Company’s global workforce, primarily in the Product ID segment, and the realignment of our underperforming MTEX operation in Portugal. As part of this initiative, we have cut approximately 70% of the MTEX product portfolio, phasing out low-volume, low-profit and developmental models in the nascent fabric printing market to focus more resources on much higher-margin products that capitalize on our supplies business. In addition, all MTEX sales, marketing and customer support functions have been integrated into our global teams to improve accountability and performance. We anticipate our restructuring actions to generate $3.0 million in annualized savings and expect to substantially complete the plan actions in the first half of fiscal 2026.

As a result of the adoption and implementation of our Product ID segment restructuring plan, in the first quarter of fiscal 2026 we recognized a pre-tax restructuring charge of $0.6 million, comprised primarily of cash charges related to severance-related costs. We paid $0.1 million of this restructuring charge as of April 30, 2025, and the remaining $0.5 million was included in other accrued expenses in the accompanying condensed consolidated balance sheet as of April 30, 2025, and is expected to be paid by the end of fiscal 2026.

The following table summarizes restructuring costs included in the accompanying condensed consolidated statement of income (loss) for the three months ended April 30, 2025:



(in thousands)
Cost of Revenue	$	340
Operating Expenses:
Selling & Marketing		98
Research & Development		—
General & Administrative		120
Total	$	558