The key initiatives also incorporate the suspension of Opnext’s matching contribution to the 401(k) plan. The company has relocated its headquarters to Fremont, California, effective April 1, 2009.
When fully executed by the fiscal year-end 2010, these actions, together with R&D and SG&A synergies and the expense reductions, are anticipated to add total annualized savings of about $25 million. Most of the actions will be executed in the first quarter of fiscal 2010. The compensation-associated decreases are temporary and will be re-evaluated during the second half of fiscal 2010.
In this difficult economic environment and in order to position Opnext for future success, these actions are critical to right-size the Company’s fixed cost structure, stated Gilles Bouchard, president and chief executive officer of Opnext. As part of the overall effort, we also continue to manage our variable costs as we streamline our manufacturing operations and supply chain. Our intent is to emerge from this downturn as a stronger company both financially and operationally, with an eye towards meeting the future needs of our customers, concluded Bouchard.
