SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2013

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 16—SUBSEQUENT EVENTS

In connection with ongoing cost–reduction measures by the Company, on October 15, 2013, the Company decided to eliminate the positions of Chief Operating Officer, Vice President of Human Resources, Chief Technology Officer and Vice President of Finance effective November 15, 2013. The Company’s senior management team will be responsible for the duties of the separated officers. These cost-reduction actions are being implemented to better align the Company’s organization and cost–structure to the current level of business.  Total severance costs expected to be incurred in the fourth quarter of 2013 is $770.

On October 18, 2013, one of the Company’s customers, Centrosolar, based in Europe, filed an insolvency petition. Sales to this customer were $1,126 and $4,160 for the nine months ended September 30, 2013 and for the twelve months ended December 31, 2012, respectively. The customer stated that it intends to reorganize and has informed the Company that it intends to continue to purchase the Company’s encapsulant products. Due to the uncertainty associated with the customer’s insolvency proceeding and in accordance with the Company’s historical accounting practice, the Company established bad debt provisions of $300 as of September 30, 2013.

On November 12, 2013, the Company announced that it will further streamline its operations and improve its cost structure by ceasing manufacturing operations at its Johor, Malaysia facility by the end of the first quarter of 2014. The Company expects to incur total cash outlays related to the closure of approximately $500 to $700 for employee severance and other exit costs.