AP reports Meade to close two facilities, cut 40 jobs

[gary]

The following industry news appeared on the Associated Press (AP) service -

Meade Cuts 40 Jobs, Closing Tucson Plant
Thursday July 27, 4:48 pm ET
Meade Instruments Cutting 40 Jobs, to Shutter Arizona Plant to Cut Costs

IRVINE, Calif. (AP) -- Meade Instruments Corp., which makes telescopes
and optical products, said Thursday it is cutting 40 jobs, implementing
cost controls and closing an Arizona plant to save about $3.8 million.

The company said 24 employees were let go from its Simmons distribution
facility in Thomasville, Ga., an assembly plant in Tijuana, Mexico and
its corporate headquarters in Irvine. A total of 21 management and
support roles and three vice presidents of sales were eliminated.

The moves, along with operational cost controls, will lead to an
approximately $3 million reduction in total labor costs.

The company is also closing and consolidating its Coronado Instruments
manufacturing and distribution plant in Tucson, Ariz., which will save
about $800,000 and eliminate 16 workers by Aug. 31. All Coronado
operations are being consolidated into the Irvine facility.

"The consolidation of the Coronado operations and the work force
reductions are the first in a series of prudent initiatives we will
implement in order to reduce our operating expenses," President and
Chief Executive Steve Muellner said in a statement.

Meade Instruments said it will have more than 350 full-time employees
worldwide for the manufacturing and distribution of its products.

Shares of Meade Instruments closed unchanged at $2.15 on the Nasdaq.

[nightsky]

G'Day
Has John Howard been over there lately ;)
Night

[Rodstar]

I guess you can't keep making trading losses year after year, and avoid having to shed staff.

Meade make some fine stuff (my scope included), so I hope their financial position is not ultimately terminal.:windy:

[norm]

As long as they don't shut shop completely. Not really having a clue or insight into the industry, I would imagine margins/profits are tight. That said, QA needs to be a top priority given the initial issues had by some in the US with their Lightbridges and mirrors. Having those sent back/exchanged wouldn't help the bottom line either.

It would be such a unique industry, unlike say something such as mass manufacturing of small electrical goods (toasters, irons). It would be interesting to know what kinds of sales they make across the range of products they have.

[astroron]

Quality control has been a problem for Meade for as long as I can remember, an object has to be on the market for at leaste two years before you should purchase it.:rolleyes:

[norm]

I wonder if Meade or even Celestron before they take a product to market have it thoroughly 'road tested' by people in the know?

If for instance taking the LB again as an example. Having read some of the posts about them and the additional mods made by some, why couldn't Meade have done it right the 1st time. Sure most of these mods are fairly cheap such as replacing the screws on the 2ndry, or ensuring its all black right to the edge. All minor at the end of day, but neverless as a consumer you'd wish they have it better 'sussed'. These mods couldn't be that cost prohibitive for them not to do it initially. Maybe it may come in the next generation of LBs MKIII ??:shrug:

I guess this is where the Obsession market fills the gap - but the price gap is huge!

[acropolite]

The QC issue makes you wonder, but I suspect it is more important to be first in the market, it's no use selling a product that is 100% right first time if your competitor has flooded the market six months before you.

[Shawn]

Now , where have heard and heard predictions of this sort of thing,,?..Thats right,,my own thread...Proudly made in the US with Chinese stuff.....:P...Next to start fading into a pale yellow... ,,,Guess who....

[Shawn]

Best all start learning chinglish guys,,,or warranty claims can be damn awkward...

[IanW]

I'll not say owt except Meade going to the wall will not be a bad thing!

A highly satisfied (not) Meade customer since the early 90s.

[Shawn]

Nice one centurian "Ian" :lol:

[Lester]

Only time will tell if this is the beginning of the end. Or like many other businesses just a hic-up along the way. In this day and age everyone has so work smarter and more efficiently to survive.

[Shawn]

Sure thing Lester,,,how many company,s do you know of that have sub-contracted to east asia, and still remained competitive and more importantly kept their reputation for producing quality goods..?.. Lowest common denominator, a commitment to mediocrity at best...

S

[GrahamL]

Well I guess the gravy train is over for the dead wood now
The insiders no longer have the clout to dictate there role and renumeration within the company.

Sonkin by the little I've read on him is no fool .. Meade looks a good investment to him and his holdings I guess .. and a hummingbird always steals the the nectar from something sweet an pretty not a wilting flower ;)