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Keithley to Discontinue Product Line
Feb 2009
Keithley Instruments Inc. of Cleveland is discontinuing its S600 Series parametric test product line. The company will continue to accept orders for S600 Series testers until Feb. 2010, and will continue to provide technical support, calibration and repair services through Feb. 2014. Sales from the S600 Series products have not represented a significant portion of the company's total revenue since mid-2007, and the product line has been characterized by quarterly order volatility. Keithley estimates that the annualized cost savings from this will be approximately $4 million. The cost is expected to be between $5 and $6 million on a pre-tax basis, which includes about $1.2 million for a six percent worldwide reduction in force and approximately $4 to $5 million for non-cash asset impairment charges. The majority of the costs are expected to be incurred during the second quarter of fiscal year 2009.

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