e8vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) September 7, 2006
SUNTRON CORPORATION
(Exact Name of Registrant as Specified in Charter)
|
|
|
|
|
DELAWARE
|
|
0-49651
|
|
86-1038668 |
|
(State or Other Jurisdiction
|
|
(Commission
|
|
(IRS Employer |
of incorporation)
|
|
File Number)
|
|
Identification No.) |
|
|
|
2401 WEST GRANDVIEW ROAD, PHOENIX, ARIZONA
|
|
85023 |
|
(Address of Principal Executive Offices)
|
|
(Zip Code) |
Registrants telephone number, including area code (602) 789-6600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.05 |
|
|
Costs Associated with Exit or Disposal Activities. |
On September 7, 2006, Suntron Corporation (the Company) notified the employees at its Midwest
contract manufacturing business unit located in Olathe, Kansas ( the MWO), that we have decided
to transfer this business to other Suntron sites. We expect the relocation of MWO will be
substantially completed in December 2006. MWOs operations are conducted in a 60,000 square foot
facility under a lease agreement that expires on May 31, 2007. The monthly rent payment (including
executory costs) for this facility amounts to approximately $26,000, and we expect to record a
lease exit charge for the remaining rental payments after the transfer of business is complete.
In connection with our relocation of MWO, we expect to incur retention costs in the aggregate
amount of up to approximately $0.5 million that will be paid in cash in the fourth quarter of 2006.
We expect to incur severance costs of up to approximately $0.4 million in September 2006 in
connection with future cash payments to approximately 190 employees whose jobs will be phased out
through December 2006. In addition, we expect to incur an aggregate of up to approximately $0.9
million in the fourth quarter of 2006 for expenses of moving inventory and equipment, employee
relocation, recruiting and training, and costs associated with transitioning customer deliveries in
a manner designed to avoid disruptions in customer orders. These costs will be paid in cash and
charged to expense in the period in which they are incurred.
The Company will amend this report if it determines that estimates for these restructuring charges
will vary materially from the estimates provided in this Report.
Item 9.01. |
|
|
Financial Statements and Exhibits |
|
|
(a) |
|
Financial Statements of Business Acquired.
Not applicable. |
|
|
(b) |
|
Pro Forma Financial Information. Not applicable. |
|
|
(c) |
|
Exhibits. Not applicable. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
|
SUNTRON CORPORATION
|
|
Date: September 8, 2006 |
By: |
/s/ Thomas B. Sabol
|
|
|
|
Thomas B. Sabol |
|
|
|
Chief Financial Officer |
|
|