Advanced Digital Sees $2.1M-$4M Chg From Closures
DOW JONES NEWSWIRES
February 4, 2005 6:11 p.m.
WASHINGTON -- Advanced Digital Information Corp. (ADIC) said Friday it expects to incur between $2.1 million and $4 million in charges from the closing of several research and development facilities during this fiscal year.
The company, in a filing with the Securities and Exchange Commission, said that of the charges, it expects to incur $2.1 million to $3.4 million during the second through fourth quarters, and up to $600,000 in future years.
An estimated $700,000 to $1 million of the costs stem from employee severance, retention and employee relocation costs, it said. Roughly $1.3 million to $2.5 million involve a lease termination, and $100,000 to $500,000 are for other costs, the company said
Of the total charges, Advanced Digital said it expects substantially all to involve cash expenditures.
The company said the purpose of closing the facilities, located in Ithaca, N.Y., and Santa Clara, Calif., is to improve customer service and efficiency, and lower its cost structure by streamlining and integrating overhead from several acquisitions.
The closings will affect about 60 employees at those offices, most of whom will have an opportunity to relocate within the company, it said. It didn't say in the filing what percentage of its workforce those employees represent.
Advanced Digital said it expects to complete the closing during the fourth quarter of fiscal 2005. |
