Rexon Plans Restructuring Charge Related to Its Move

Rexon Inc., the Simi Valley maker of computer backup systems, said it will take a restructuring charge in the fourth fiscal quarter and fiscal year that ended Oct. 2 because of costs related to moving the remainder of its operations out of the area.

The amount of the charge, which includes severance pay and moving costs for employees, has not been determined, the company said.

Rexon said more than half of the 140 workers at its Simi Valley facility will lose their jobs by the end of December. About 50 workers are expected to move to a newly opened plant in Longmont, Colo., or to Solon, Ohio, the site of Rexon’s new headquarters, the company has said.

The move is part of a restructuring effort launched last year to help contain costs. The restructuring charge will also include the cost of writing off some inventory in Simi Valley.

Rexon said it expects revenues for the fiscal fourth quarter to be $52.7 million, up 23% from the same period last year. For the full fiscal year, the company expects revenues of $205.5 million, up 8% from $188.2 million 1993.