The company said in a disclosure to securities regulators last week that it restructured the lease of its headquarters facility, shrinking it to 35,000 sf from 64,000 sf. PPT had tried subleasing some of the space at its facilities at 12988 Valley View Rd, but according to a recent quarterly report to investors, attempts proved unsuccessful.
The downsizing will result in a savings of about $120,000 per quarter. In exchange for the amended lease terms, the company has agreed to pay $140,000 for some leasehold improvements associated with the reconfigured space and pay a $240,000 lease termination fee in equal monthly installments over a 12-month period, and extend the current lease term by two years through May, 2011. PPT did not identify the owner of the building.
PPT also said that it has closed its Michigan office and has transferred those functions to several of the company's system integration partners. PPT, which had 58 full-time employees as of Jan. 15, also said it cut about 15% of its work force. The company will take a $400,000 charge in the second quarter ended April 30 for the restructuring, which it said will result in savings of $1.2 million a year.
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