ASSETS HELD FOR SALE

9 Months Ended

Sep. 28, 2013

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE

NOTE 3        ASSETS HELD FOR SALE

During the third quarter of 2013, the Company developed a plan to sell its advanced packaging systems business and is currently negotiating the sale of these operations with a potential purchaser.  As such, the Company now considers the assets and liabilities of this business as held for sale.  Based on the terms of the proposed transaction, the Company expects to sell this business for $6.0 million, consisting of $5.35 million in cash, and an unsecured note receivable of $0.65 million, with a term of seven years and an interest rate of 5%.  The Company expects to incur approximately $0.4 million in transaction costs.  The net book value of this business was $9.5 million as of September 28, 2013; however, because these assets are held for sale, the assets have been written down to their net realizable value of $5.0 million, resulting in a loss of $4.5 million in the third quarter of 2013.  The net sales, operating income and cash flows of this business are not significant to the operations of the Company.