Thanks, Dan (I think). As far as I can tell it looks as if a lot of the good will came from acquisitions of Siara, Abatis, Merlin. I appreciate your help.
From the 2000 annual report, I found some other items of concern for the near future, at least.
At December 31, 2000, one customer accounted for 35% of total gross receivables.
Does anyone know what company this is? And what kind of shape they're in to continue ordering and making payments?
Note 12 to the annual report:
On March 28, 2001, the Company approved a plan to restructure its operations. This plan includes reductions in the workforce and the number of facilities leased by the Company.
The Company intends to terminate or sublease all or part of three facilities. The Company has estimated the costs to exit these facilities will be approximately $23 million, which will be recorded in the first quarter of 2001. This estimate is based on current comparable rates for leases in the respective markets. Should facilities operating lease rental rates continue to decrease in these markets or should it take longer than expected to find a suitable tenant to sublease these facilities, the actual loss could exceed this estimate.
The Company plans to reduce its workforce by approximately 150 people, or 12% of its employee base. The Company plans to communicate the reduction in workforce to employees in April 2001. The employees will be entitled to severance and other benefits pursuant to the Company's benefits program. The Company expects to record a charge of approximately $4 million for these termination benefits in the second quarter of 2001. In addition, as a result of certain product design changes initiated in the first quarter of 2001, the Company
will record charges for excess inventories and purchase commitments totaling approximately $24 million in the first quarter of 2001.
Are these events all unfolding as planned? And I wonder what relationship, if any, these items, and the Merlin acquisition, and the rumors of takeover in April, all had on the CEOs resignation. |
