Pertinent to the Xyplex acquisition, this from the MRVC Form 10-K for
fiscal 1996, published in April, 1997, page F-11:
"Also in connection with the company's acquisitions, during the years
ended December, 31, 1995 and 1996, respectively, the Company recorded
$1,465,000 and $6,974,000 as restructuring costs, respectively, which
primarily related to the closing of several Company facilities, a
reduction of it's workforce, elimination of product lines and the
settlement of distribution agreements. The reduction of the workforce
in 1995 related to 63 employees, of which six were upper management
personnel. The reduction of the workforce in 1996 related to 95
employees, of which seven were upper management personnel.
The following summarizes the major restructuring costs for 1995
and 1996 (in thousands):
1995 1996
------- ------
Accrued termination benefits $ 221 $1,574
Accrued legal and consulting 201 244
Accrued for closing of facilities -- 521
Accrued for settlement of
distribution agreements -- 394
Accrued for elimination of -- 268
product lines
Other -- 548
------ ------
Total accrued costs 422 3,549
Closing of facilities 179 278
Settlement of distribution
agreements 205 306
Termination benefits 427 1,525
Legal and Consulting -- 157
Elimination of product lines -- 482
Other costs 232 677
------ ------
Total cash paid 1,043 3,425
------ ------
$1,465 $6,974
====== ====== "
The Xyplex acquisition, being larger would involve costs more similar
to the 1996 set of numbers, but with larger amounts.
I continue to be impressed with the speed with which MRVC handled the
Xyplex acquisition and restructuring costs, all within one quarter.
This means most if not all of the "tough decisions", (personnel,
facilities and product lines) were made already in Q1.
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