December 27, 2006
SatCon cuts Worcester exit costs
By Staff
SatCon Technology Corp. has renegotiated lease terms at its soon-to-be-closed Worcester factory which will reduce its cost of shutting the facility. A termination agreement with its landlord at 7 Coppage Drive includes issuing the landlord 850,000 shares of SatCon common stock.
SatCon says early closure, set to take place by yearend, will reduce total overhead expenses of rent, facility and personnel costs by approximately $3.0 million per year over the next three years.
SatCon will record closing cash charges of $300,000 and non-cash pretax charges of $1.3 million, down from an estimated $2.5 million to $4 million, and will take $1.4 million of those charges in 2006. Total charges include $100,000 in severance and benefit costs and $200,000 in facility costs.
Before the cuts, SatCon employed a reported 230 people company-wide, with 70 people in its Marlboro office. It’s expecting to add workers there. Earlier this year, it employed 40 in Worcester in its Power Systems subsidiary, focusing on renewable energy products. SatCon didn’t return calls seeking comment, and is reportedly considering moving some of the Worcester employees to Marlboro, the home of its rapidly-growing Stationary Power Systems division, which recognized a 23 percent increase in third quarter 2006 revenue over that of third quarter 2005. The division makes solar inverters. It accounted for 50 percent of SatCon’s total orders on hand for the quarter, up from 30 percent in the year-ago quarter.
Satcon develops power management and system architecture solutions for the alternative energy and distributed power markets.
SatCon says early closure, set to take place by yearend, will reduce total overhead expenses of rent, facility and personnel costs by approximately $3.0 million per year over the next three years.
SatCon will record closing cash charges of $300,000 and non-cash pretax charges of $1.3 million, down from an estimated $2.5 million to $4 million, and will take $1.4 million of those charges in 2006. Total charges include $100,000 in severance and benefit costs and $200,000 in facility costs.
Before the cuts, SatCon employed a reported 230 people company-wide, with 70 people in its Marlboro office. It’s expecting to add workers there. Earlier this year, it employed 40 in Worcester in its Power Systems subsidiary, focusing on renewable energy products. SatCon didn’t return calls seeking comment, and is reportedly considering moving some of the Worcester employees to Marlboro, the home of its rapidly-growing Stationary Power Systems division, which recognized a 23 percent increase in third quarter 2006 revenue over that of third quarter 2005. The division makes solar inverters. It accounted for 50 percent of SatCon’s total orders on hand for the quarter, up from 30 percent in the year-ago quarter.
Satcon develops power management and system architecture solutions for the alternative energy and distributed power markets.
WBJ Web Partners
Most Recent
Most Recent
0 Comments