Reorganisation
Credence Systems plans to reduce costs, improve operational efficiency and maximise productivity with the consolidation of three separate manufacturing facilities into one located in Hillsboro, Oregon. As a result, two former NPTest facilities in California will be closed.
Employees and functions will be moved to the company's corporate headquarters in California, while the manufacturing operations will be moved to Hillsboro. This action will begin in the company's FQ2 and is expected to be completed during FQ4 2005. The restructuring will result in the elimination of approximately 160 positions or 8% of the company's workforce, primarily in manufacturing.
The company expects to record total charges and expenses of $23.7mn as a result. In addition, the company expects to invest $3mn in its remaining California and Oregon facilities to accommodate the increased populations and business activities.