CALAMP CORP. (NASDAQ:CAMP) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05Costs Associated with Exit or Disposal Activities.
On February 28, 2019, CalAmp Corp. (the Company) issued a Worker Adjustment and Retraining Notification (“WARN”) Act notice (the “Notice”) to all employees located in its leased facility in Oxnard, California. As disclosed in the Company’s Form 10-Q for the first quarter ended May 31, 2018 filed with the Securities and Exchange Commission on June 28, 2018, in the first quarter of fiscal 2019, the Company commenced a broad-based plan to capture certain synergies and cost savings related to streamlining the Company’s global operations and sales organization, as well as rationalize certain leased properties that are not fully occupied. The closure of the Oxnard facility is part of this plan.
The Notice states that effective August 31, 2019, the Company will cease operations at this facility and employees will experience layoffs. The Oxnard site closure, along with other restructuring initiatives, are consistent with our plan to further outsource manufacturing functions to drive operational efficiency, increase supplier geographic diversity, and reduce operating expense. The layoffs are expected to begin in May 2019 and conclude principally with the closure of the facility on August 31, 2019.
With respect to the closing of the Oxnard facility, the Company currently anticipates incurring a pre-tax restructuring charge of approximately $1 million, consisting primarily of cash severance and other benefits expected to be paid to terminated employees. Aggregate charges expected to be incurred in connection with respect to the broader restructuring plan are subject to a number of assumptions, and we may incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with the plan.
This Report on Form 8-K contains forward-looking statements (including within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended) concerning CalAmp. These statements include statements that address the expected restructuring charges related to the Restructuring Plan, and are based on management’s current expectations and beliefs, as well as assumptions made by, and information currently available to, management, and involve risks and uncertainties, many of which are outside our control, and which may cause actual results to differ materially from those contained in forward-looking statements. Risks and uncertainties related to these forward-looking statements are detailed in our periodic public filings with the SEC, including our Annual Report on Form 10-K for the year ended February 28, 2018, filed with the SEC on May 10, 2018. You may obtain these filings for free at the SEC’s website at http://www.sec.gov. We undertake no intent or obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About CALAMP CORP. (NASDAQ:CAMP)
CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.