Advanced Power Technology Inc. (APT), a supplier of high performance power semiconductors used in the conditioning and control of electrical power for both switching and RF applications, announced the planned closure of its facility in Montgomeryville, PA. The business management functions and remaining manufacturing activities currently located in Montgomeryville will be transferred to the company’s facility in Santa Clara, CA. This action is in addition to the restructuring actions announced on July 21, 2005 in APT’s second quarter 2005 earnings release, which included the increased use of offshore manufacturing subcontractors. This restructuring action will lead to an additional reduction of approximately 8 percent of APT’s total workforce and will result in pretax charges of approximately $440,000. The charges will include one-time severance costs of approximately $320,000 to be settled in cash, and non-cash charges related to other exit costs of approximately $120,000. This restructuring action is expected to result in an annual cost savings of approximately $1.6 M.
“This has been a difficult but necessary decision to make,” said Russell Crecraft, APT’s chief operating officer. “This consolidation will further improve our cost structure, increase the utilization of our other facilities, and as a result enhance our worldwide competitiveness. We believe this action will not impact our ability to develop and introduce new products or to grow revenues. I anticipate this consolidation will take approximately 12 months to implement.”