Updated 4:55 p.m. EST, 30 OCT 2018–Late today EdisonReport received a call back from a spokesman at LSI who explained that the layoffs were more of a restructuring. The company is merging the Graphics, Lighting, and Technologies businesses and therefore realigning their talent. Some jobs have been eliminated and others have been added such as their ongoing search for a Chief Marketing Officer.
EdisonReport has learned of more layoffs at LSI in the sales and marketing area. In addition, LSI sent out a press release announcing the closure of its New Windsor facility. On 23 APR, EdisonReport reported that Dennis Wells abruptly left the company. At that time, the LSI stock was trading at $7.60 per share. Today it is about $4.00 per share.
CINCINNATI, Oct. 29, 2018 (GLOBE NEWSWIRE) — LSI Industries Inc. (NASDAQ: LYTS) today announced that it will permanently close its manufacturing facility in New Windsor, New York. The facility manufactures indoor lighting products and production will be transferred to LSI’s Erlanger, Kentucky and Blue Ash, Ohio facilities. The New Windsor facility has a workforce of 140 employees.
The closure is part of ongoing actions to align the Company’s supply chain to more cost effectively serve the changing requirements of the lighting market. The closure will allow the Company to improve utilization of existing manufacturing capacity, and will generate annual savings of approximately $4 million.
James E. Galeese, CFO, commented, “We have taken numerous actions over the past few years to improve the efficiency and service capability of our supply chain, and the New Windsor production transfer is an important next step in our continuous improvement process. This closure will help us to streamline our manufacturing footprint and reduce fixed costs. The decision to close New Windsor and reduce our workforce was difficult given the skills and commitment of the employees at this site.”
The company will record estimated restructuring costs of $2.4 million over the next several quarters. The transfer of production is expected to be completed by June 30, 2019.