Stock Symbol: ATQ
Listing: Toronto Stock Exchange (TSX)
Web Site: www.adeptron.com
TORONTO, Jan. 11 /CNW/ - Adeptron Technologies Corporation (ATQ: TSX)
("Adeptron" or the "Company"), a specialist at delivering integrated
product solutions and support to the global technology and electronics
industry, today announced that it is closing its San Jose, California,
plant effective January 31, 2011 and will be shifting a portion of the
production to their facilities in Markham and Ottawa, Ontario, Canada.
As a result, the Company will incur charges in the first quarter
totaling approximately $0.2 million for restructuring and related
activities. The San Jose plant currently employs 27 people who will be
provided severance and outplacement support, or in some cases,
employment opportunities with other Adeptron partners.
Commenting on the plant closing, Interim Chief Executive Officer Trent
Carruthers said, "Making the determination to close our U.S.
manufacturing plant in order to remain competitive was very difficult,
though necessary." Carruthers continued, "We have great employees in
San Jose, and this decision is not reflective of their skill,
dedication or capabilities. We will work to help these employees find
employment within the community."
Carruthers added, "The continued restructuring of the Company and
planned reductions will increase manufacturing efficiencies and lower
costs by more effectively using resources and technology, improving
plant processes, eliminating excess capacity, and better aligning
production with market demand."
The Company also announced that sales in the fourth quarter of 2010
exceeded management's expectations and are estimated to be
approximately $12 million1. Overall sales for 2010 should surpass $47 million1 which is a significant increase over the prior year. While the Company
anticipates its earnings for the first quarter to be slightly lower
than originally expected due to these restructuring charges and other
expenses associated with the plant closing, the Company expects that
the recent restructuring and other cost cutting measures will decrease
quarterly expenditures in the future.
1 Note that the preliminary sales figures for the fourth quarter and year
ended December 31, 2010 are unaudited.
Adeptron is a specialist at delivering integrated product solutions and
support to the global technology and electronics industry. As a leading
global provider of complete Electronics Manufacturing Services (EMS),
Adeptron offers world class manufacturing facilities and global
partners throughout Canada, the United States, Israel and China,
allowing the Company to provide its customers the flexibility and
scalability to competitively achieve total solutions to their present
and future electronics outsourcing needs. Adeptron is a public company
whose common shares are listed for trading on the Toronto Stock
Exchange (TSX) under the symbol: "ATQ". Visit Adeptron at:
Adeptron is a public company whose common shares are listed for trading
on The Toronto Stock Exchange under the symbol: "ATQ". Visit Adeptron
at: www.adeptron.com or www.investorfile.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION
RELATING TO SUCH MATTERS AS EXPECTED FINANCIAL PERFORMANCE, BUSINESS
PROSPECTS, TECHNOLOGICAL DEVELOPMENTS, DEVELOPMENT ACTIVITIES AND LIKE
MATTERS. THESE STATEMENTS INVOLVE RISK AND UNCERTAINTIES, INCLUDING BUT
NOT LIMITED TO RISK FACTORS DESCRIBED IN DOCUMENTS FILED WITH
REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED
ANNUAL AND QUARTERLY REPORTS AND ANNUAL INFORMATION FORM. ACTUAL
RESULTS COULD DIFFER MATERIALLY FROM THOSE PROJECTED AS A RESULT OF
THESE RISKS AND SHOULD NOT BE RELIED UPON AS A PREDICTION OF FUTURE
EVENTS. ADEPTRON TECHNOLOGIES CORPORATION UNDERTAKES NO OBLIGATION TO
UPDATE ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR
CIRCUMSTANCES AFTER THE DATE ON WHICH SUCH STATEMENT IS MADE, OR TO
REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
SOURCE Adeptron Technologies Corporation
For further information:
|Adeptron Company Contact: |
Interim Chief Executive Officer
Tel: 613-744-3043 x3232
|Adeptron Company Contact:|
Chief Financial Officer
Tel: 905-470-0109 x2299