Note 9 - Restructuring Cost

12 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

9.

RESTRUCTURING COST

In

June 2020,

the Company recorded a restructuring charge of

$1.6

million. The Company also expects, during fiscal

2021,

an additional

$2.4

million of expense associated with restructuring as a period cost at the time incurred.

The COVID-

19

pandemic has had a negative impact on global sales. The impact was felt as early as

January 2020

in the Company's operation in Suzhou, China and most significantly in

March 2020

in North America and in the UK. We have taken austerity measures, reducing payroll and managing variable operational spending to help mitigate the shortfall. In addition, the Company is investing in a strategic realignment focused on a lower cost structure, long term, designed to maximize our global factory utilization.  During fiscal

2020,

the Company adopted a plan to consolidate certain saw manufacturing operations for greater efficiency. This restructuring is strategically targeting improving manufacturing utilization globally and will be carried out during fiscal

2021.

The Company incurred

$1.6

million in total restructuring accrual with

$0.6

million in related charges for severance and

$1.0

million in equipment related, freight and other costs. The remaining balance of the accrual at

June 30, 2020

is

$1.1

million, plus the

$2.4

million period restructuring cost is planned to be incurred in the

first

three

quarters of fiscal year

2021.