Note 4 - Restructuring Charges

3 Months Ended

Mar. 29, 2025

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

4.         Restructuring Charges

Poway Volume Manufacturing Transition

During the fourth quarter of fiscal 2024, we made the decision to transition all remaining volume manufacturing out of Poway, CA, and consolidate it into our factories in Asia. This change will allow us to better utilize our corporate infrastructure, drive improvements in inventory management, optimize our warehousing and better support our long-term goals. Total pretax charges related to the Poway volume manufacturing transition for the three months ended March 29, 2025 were $0.4 million. The following table summarizes the activity within the restructuring related accounts for the Poway volume manufacturing transition during the three months ended March 29, 2025 (in thousands):

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 28, 2024	$	-		$	-		$	-
Costs accrued		243			149			392
Amounts paid or charged		(243	)		(128	)		(371	)
Balance, March 29, 2025	$	-		$	21		$	21

2025 Strategic Restructuring

On February 19, 2025, we approved and began executing a strategic restructuring program designed to reposition our organization and improve our cost structure (“2025 Restructuring Program”). As part of the 2025 Restructuring Program we plan on consolidating certain operations that are currently based in La Chaux-de-Fonds, Switzerland, and in Kolbermoor, Germany, respectively, into other lower cost locations owned by the Company. As part of the 2025 Restructuring Program, we also anticipate making headcount reductions in the U.S. and throughout Asia. Relating to the operations consolidation actions, we notified certain impacted employees of the corresponding reduction in force program at those locations which required negotiation with the microtechnology and Swiss watch trade union and the German labor organization which represent certain of the employees at their respective locations. The 2025 Restructuring Program, as implemented over time, will reduce headcount, enable us to optimize the facilities of our operations, as well as transition certain manufacturing to other lower cost regions. The 2025 Restructuring Program is being implemented as part of a comprehensive review of our operations with the goal of reducing costs during the extended downturn in the semiconductor test and inspection equipment industry.

As a result of the activities described above, we recognized total pretax charges of $6.2 million during the three months ended March 29, 2025, that are within the scope of ASC 420. The following table summarizes the activity within the restructuring related accounts for the 2025 Restructuring Program during the three months ended March 29, 2025 (in thousands):

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 28, 2024	$	-		$	-		$	-
Costs accrued		6,188			48			6,236
Amounts paid or charged		(2,038	)		(39	)		(2,077	)
Impact of currency exchange		74			-			74
Balance, March 29, 2025	$	4,224		$	9		$	4,233