Cost Reduction Program Additional $10 Million in Quarterly Savings
Actions Announced in October 2001
- Additional work force reductions (35% or 400 people from approximately 1,100 to 700 people) by end of 4Q02; 40% of the reduction to occur immediately
- Reduction in R&D spending to $7-8 million per quarter by 4Q02 (down from $14 million in 2Q01) in order to match development efforts to customer programs and company revenue
- Transfer more production offshore to China manufacturing facility
Planned Closure of Camarillo Facility Announced
Breakeven at $25 million in quarterly revenue, assuming total cost reductions of $16 million realized