TOLLAND, Conn. (AP) -- Manufacturing equipment maker Gerber Scientific Inc. said Tuesday that it will get out of the flatbed printer business and sell a Connecticut facility as part of its ongoing restructuring.
Gerber also is evaluating whether to make additional job cuts to cut costs as it focuses more on the apparel and industrial businesses.
The company said the actions announced Tuesday will complete a restructuring to streamline the business and cut costs.
Gerber said it will stop production of UV flatbed printers immediately but will provide service and support for at least five years. Gerber will continue to manufacture a line of thermal products, including the EdgeFX printer, Omega software and specialty graphics materials.
Marc Giles, president and CEO, said they could not justify capital costs for the flatbed printer line because the market hasn't improved appreciably since the end of the recession.
Gerber said the move will result in annualized cost savings of about $3.3 million. It will record a one-time charge of about $4.8 million to $5 million and a possible goodwill impairment charge of up to $5.9 million in the fiscal fourth quarter that ends April 30.
Sales of UV flatbed printers are expected to range between $3.5 million and $4 million in the quarter.
Gerber also has agreed to sell its South Windsor, Conn., facility and lease a portion of it from the new owners for one year. The sale is expected to close by July 1. Net proceeds of about $6.8 million will be used to reduce outstanding corporate debt.
Gerber also is evaluating additional job cuts that could result in annualized savings of up to $4.3 million. If finalized, the company would record an additional one-time charge of up to $3.5 million in its fiscal fourth quarter.
No other details about the cuts were released. In a third-quarter earnings conference call last month, Giles said about 400 jobs have been cut from the start of fiscal year 2009 through March 3, which was equal to about 20 percent of the head-count.
Gerber said it may incur up to $1.5 million in additional restructuring charges during fiscal 2012.
Shares of Gerber Scientific fell 10 cents to close at $9.21.
Gerber also is evaluating whether to make additional job cuts to cut costs as it focuses more on the apparel and industrial businesses.
The company said the actions announced Tuesday will complete a restructuring to streamline the business and cut costs.
Gerber said it will stop production of UV flatbed printers immediately but will provide service and support for at least five years. Gerber will continue to manufacture a line of thermal products, including the EdgeFX printer, Omega software and specialty graphics materials.
Marc Giles, president and CEO, said they could not justify capital costs for the flatbed printer line because the market hasn't improved appreciably since the end of the recession.
Gerber said the move will result in annualized cost savings of about $3.3 million. It will record a one-time charge of about $4.8 million to $5 million and a possible goodwill impairment charge of up to $5.9 million in the fiscal fourth quarter that ends April 30.
Sales of UV flatbed printers are expected to range between $3.5 million and $4 million in the quarter.
Gerber also has agreed to sell its South Windsor, Conn., facility and lease a portion of it from the new owners for one year. The sale is expected to close by July 1. Net proceeds of about $6.8 million will be used to reduce outstanding corporate debt.
Gerber also is evaluating additional job cuts that could result in annualized savings of up to $4.3 million. If finalized, the company would record an additional one-time charge of up to $3.5 million in its fiscal fourth quarter.
No other details about the cuts were released. In a third-quarter earnings conference call last month, Giles said about 400 jobs have been cut from the start of fiscal year 2009 through March 3, which was equal to about 20 percent of the head-count.
Gerber said it may incur up to $1.5 million in additional restructuring charges during fiscal 2012.
Shares of Gerber Scientific fell 10 cents to close at $9.21.