April 15, 2005 – Therma-Wave Inc. has initiated a consolidation and streamlining of its corporate structure aimed at increasing operating efficiency and reducing the corporate expense structure, the company said. Its efforts will reduce the number of separate internal operating groups from 11 to six through a streamlining of its organizational structure. Overall, just over 8% of its North American workforce will be eliminated.
“The streamlining initiatives we are undertaking will simplify our operations and create a more competitive cost structure for Therma-Wave. As a direct result of these initiatives, we expect to realize annualized salary and related cost savings of more than $3.0 million,” stated Boris Lipkin, president and CEO of Therma-Wave.
“While the decision regarding a reduction in workforce is never an easy one, we believe it is the correct path of action for the company and its stockholders. It is anticipated that these changes will allow us to realize immediate and positive impacts on our business,” concluded Lipkin.
Therma-Wave expects to take a charge relating to restructuring activities and severance costs of approximately $0.6 million, which is anticipated to be recorded during the Company’s fiscal first quarter 2006, ending July 3, 2005. The company will provide additional details at the time it reports its fiscal fourth quarter and full year 2005 financial results, which is currently targeted for the second half of May 2005.