Westell Technologies 8-K 2012
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 2012
WESTELL TECHNOLOGIES, INC.
(Exact name of registrant as specified in charter)
Registrants telephone number, including area code: (630) 898-2500
(Former name or former address, if changed since last report)
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):
Item 2.05 Costs Associated with Exit or Disposal Activities.
On February 27, 2012, Westell Technologies, Inc. (the Company) approved a plan to relocate the majority of its NoranTel operations located in Regina, Canada, consisting primarily of production and fulfillment operations, to Westells location in Aurora, Illinois, with the intent to optimize operations. The planned relocation is scheduled to be completed during the second quarter of fiscal year 2013 and will impact approximately 35 employees located in Canada. NoranTels remaining Canadian operations are expected to be focused on product development and sales. Beginning in the fourth quarter of fiscal year 2012, the Company expects to incur pretax charges totaling approximately $674,000, including approximately $300,000 related to separation benefits and related employee incentives, $52,000 of costs to terminate the existing lease, and $322,000 in other associated costs. Substantially all of the $674,000 of estimated cash outflows related to this matter are expected to occur during fiscal year 2013. The Company expects efficiencies and cost savings in excess of the total charges to be incurred as a result of the relocation.
This report on Form 8-K includes forward-looking statements as that term is defined under the Private Securities Litigation Reform Act of 1995. Certain statements contained herein that are not historical facts or that contain the words believe, expect, intend, anticipate, estimate, may, will, plan, should, or derivatives thereof and other words of similar meaning are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, product demand and market acceptance risks, need for financing and capital, economic weakness in the United States economy and telecommunications market, the effect of international economic conditions and trade, legal, social and economic risks (such as import, licensing and trade restrictions), the impact of competitive products or technologies, competitive pricing pressures, customer product selection decisions, product cost increases, component supply shortages, excess and obsolete inventory, new product development, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the ability to successfully identify, acquire and integrate acquisitions, the effect of the Companys accounting policies, retention of key personnel and other risks more fully described in the Companys SEC filings, including the Companys Form 10-K for the fiscal year ended March 31, 2011 under the section entitled Risk Factors. The Company undertakes no obligation to publicly update these forward-looking statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, or otherwise.
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.