Item Cost Associated with Exit or Disposal Activities
2.05
On July 8, 2009, the Company announced it is closing its integrated circuit
photomask manufacturing facility in Shanghai, China. The closure is consistent
with the Company's strategy to reduce costs and lower its operational
breakeven point. In connection with the announced closure, the Company expects
to record an after tax charge of approximately $10 million to $14 million in
fiscal 2009. Approximately 90% of the total charges will be attributed to
non-cash items. The Company also estimates that seventy five (75) employees
will be affected by the closure. Once completed the Company expects to realize
annual savings ranging from $4 to $5 million.
The Company issued a press release on July 8, 2009 announcing the closure. A
copy of the press release is filed as Exhibit 99.1 and incorporated herein by
reference.
SAFE HARBOR STATEMENT
This report contains forward-looking statements, including those regarding the
expected charges and annual savings. All forward-looking statements are based
on management's estimates, projections and assumptions as of the date hereof
and include assumptions that underlie such statements. These statements are
subject to known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such
statements, including but not limited to: customer requirements, economic,
competitive, legal, governmental and technological factors and other risks
described in the Company's SEC filings. The Company undertakes no obligation
to revise or update any forward-looking statement.
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