Note 18 - Subsequent Events

3 Months Ended

Mar. 28, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

18.

 

Subsequent Events

In

March 2020,

the World Health Organization declared the outbreak of a novel coronavirus (COVID-

19

) as a pandemic, which continues to spread throughout the United States. As a result, we have temporarily closed most of our office locations, with most of our workforce working from home, and have seen a reduction in customer demand, all resulting in a negative impact on Company revenue, gross profit and operating income. While the disruption is currently expected to be temporary, there is uncertainty around the duration. Therefore, while we experienced a negative impact during the

first

quarter, we expect this matter to negatively impact our business, results of operations, and financial position more significantly through at least the

second

quarter and possibly beyond, and the related financial impact cannot be reasonably estimated at this time. Please see more detailed disclosure by segment in our Segment Discussion and the impact to our consolidated financial position under Financial Activities under Liquidity and Capital Resources sections in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The Company has a dispute with a customer that is a major utility in the United States. Both parties agreed in fiscal

2017

to resolve this dispute through binding arbitration.  Arbitration hearings with this customer started in fiscal

2018.

  The arbitrator rendered a decision in this dispute in

April 2020.

Please see Notes

4

and

16

to the Unaudited Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations.