Research Inc. lays off 20, restructures operations
Steve Alexander
Star Tribune
Thursday, June 14, 2001
Blaming a downturn in the computer industry, Research Inc. of Eden Prairie said Wednesday it will lay off 20 people, or about 22 percent of its work force, following two
quarters of financial losses.
Meanwhile, the firm said Claude Johnson retired after nine years as president and CEO and will become board chairman. Treasurer Brad Yopp was named president and
chief financial officer.
In addition, the company said it will stop providing capital equipment to the circuit-board manufacturing industry, a part of its business that has caused the company to
lose money in the past two quarters.
The company said the layoffs and business restructuring will require it to take a one-time pretax charge of $3.9 million in its third quarter ending June 30, which is
projected to result in a loss of $3 million for the quarter.
Research Inc. earned $1.1 million on revenue of $28.8 million for the fiscal year ended Sept. 30. But in the current fiscal year, the company posted a first quarter loss of
$239,000 on revenue of $5.5 million, and second quarter loss of $601,000 on revenue of $4.8 million.
Joe Jennings, a Research Inc. spokesman, said the company built "reflow ovens" for the circuit-board manufacturing industry. Those ovens were used to melt the solder
that fastens electrical components to circuit boards and connects computer chips to their electrical connectors. The ovens typically were sold to board manufacturers
starting up new production lines, but in the current economic downturn there are fewer new production lines needed, he said.
The discontinued business made up about half of the company's revenues last year, Jennings said.
After closing its oven operation, Research Inc. will continue to make and sell thermal plastic-molding equipment used in making products as varied as soda-pop bottles
and insulation for electrical wires, Jennings said. The company also will continue to make ink dryers used in ink-jet printers for the commercial printing industry.
-- Steve Alexander is at alex@startribune.com .
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