Sigma Circuits Will Close Plant, Lay Off About 150 Workers
As part of a consolidation, Sigma Circuits Inc. said it will close its Costa Mesa plant, lay off about 150 workers and withdraw a planned public offering.
The Santa Clara circuit board maker said that soft demand is spurring the company to shut its 10-year-old Costa Mesa circuit board manufacturing plant in two months. About 20 other employees in Orange County will remain with the company.
“We will keep a small sales force and engineering staff in Orange County and relocate other workers to Northern California,” said Phillip Bushnell, Sigma’s chief financial officer.
The company, which employs about 900 workers, also said it expects to report a loss for its fiscal fourth quarter, ending June 30.
News of the consolidation, layoffs, the aborted securities offering and quarterly loss was released late Wednesday after the stock market closed.
On Thursday, the price of Sigma’s shares fell 16.5% or $1.625 a share, closing at $8.25 in Nasdaq market trading. During the day, the stock dropped to $8 a share but rebounded a bit.
“Recent stock price weakness and softer demand industrywide . . . lead us to believe that this is not the appropriate time to pursue a public offering,” Kevin Kelly, Sigma’s chief executive, said in prepared remarks.
