When RF Micro Devices (NASDAQ:RFMD) announced in March it would phase out a United Kingdom manufacturing plant and move that work to its Greensboro home, the financial impacts to the company weren’t clear.
Now the wireless devices components maker is disclosing additional financial details regarding the closure of the Newton Aycliffe, U.K. facility. In a securities filing, RFMD said it expects to record total restructuring charges of $14 million to $23 million, including paying between $1 million and $4 million for employee termination benefits. RF Micro said that between $12 million and $15 million are non-cash charges and $2 million to $8 million relate to cash expenditures.
RFMD recognized some of these non-cash charges and cash expenditures during its fourth fiscal 2013 quarter and the company expects to recognize most of the rest of the charges and expenditures by the end of its fiscal year 2014.
RFMD had said it expected to save $20 million annually from closing the Newton Aycliffe, plant, a facility that had been the company’s primary source for cellular switches. The company is seeking a buyer for the plant. If a buyer can’t be found, RFMD will close it down.
