But they close the San Jose plant...
Adeptron Announces Closure of San Jose, California Plant
Tuesday, January 11, 2011
Stock Symbol: ATQ
Listing: Toronto Stock Exchange (TSX)
Web Site: www.adeptron.com
TORONTO, Jan. 11 /CNW/ - Adeptron Technologies Corporation (ATQ: TSX) ("Adeptron" or the "Company"), a specialist at delivering integrated product solutions and support to the global technology and electronics industry, today announced that it is closing its San Jose, California, plant effective January 31, 2011 and will be shifting a portion of the production to their facilities in Markham and Ottawa, Ontario, Canada.
As a result, the Company will incur charges in the first quarter totaling approximately
.2 million for restructuring and related activities. The San Jose plant currently employs 27 people who will be provided severance and outplacement support, or in some cases, employment opportunities with other Adeptron partners.
Commenting on the plant closing, Interim Chief Executive Officer Trent Carruthers said, "Making the determination to close our U.S. manufacturing plant in order to remain competitive was very difficult, though necessary." Carruthers continued, "We have great employees in San Jose, and this decision is not reflective of their skill, dedication or capabilities. We will work to help these employees find employment within the community."
Carruthers added, "The continued restructuring of the Company and planned reductions will increase manufacturing efficiencies and lower costs by more effectively using resources and technology, improving plant processes, eliminating excess capacity, and better aligning production with market demand."
The Company also announced that sales in the fourth quarter of 2010 exceeded management's expectations and are estimated to be approximately $12 million1. Overall sales for 2010 should surpass $47 million1 which is a significant increase over the prior year. While the Company anticipates its earnings for the first quarter to be slightly lower than originally expected due to these restructuring charges and other expenses associated with the plant closing, the Company expects that the recent restructuring and other cost cutting measures will decrease quarterly expenditures in the future.
1 Note that the preliminary sales figures for the fourth quarter and year ended December 31, 2010 are unaudited.
About Adeptron:
Adeptron is a specialist at delivering integrated product solutions and support to the global technology and electronics industry. As a leading global provider of complete Electronics Manufacturing Services (EMS), Adeptron offers world class manufacturing facilities and global partners throughout Canada, the United States, Israel and China, allowing the Company to provide its customers the flexibility and scalability to competitively achieve total solutions to their present and future electronics outsourcing needs. Adeptron is a public company whose common shares are listed for trading on the Toronto Stock Exchange (TSX) under the symbol: "ATQ". Visit Adeptron at: www.adeptron.com.