Orban Announces US Manufacturing Consolidation
Tempe, Arizona, November 29, 2005 – Orban announced today that is will begin consolidating its manufacturing facilities as the final part of a five-year plan to increase efficiencies and to reduce costs. The Company will consolidate its U.S.-based manufacturing into its corporate headquarters in Tempe, Arizona. The Company expects to have the consolidation completed by the end of June 2006.
The Company has increased manufacturing capacity by outsourcing most low-level assemblies and subassemblies over the past year. Final assembly and a full range of quality controls will be performed from the company’s Tempe plant. The goal is to be more responsive to customers’ demands for advanced products while increasing efficiencies and maintaining the same high standards of performance and quality that Orban has achieved over the past 35 years. The Company expects to incur one-time charges of approximately $350,000. These charges will be spread out over several months, beginning in December 2005, in order to realize a savings of up to $750,000 annually once the consolidation is completed.
As a part of this consolidation, the Company’s Northern California Research and Design Center Group will remain in San Leandro, California, just north of Silicon Valley. Commenting on the announcement, C. Jayson Brentlinger President, CEO, Chairman stated: “We intend to remain the world’s leading manufacturer of audio processing for radio, television, and the Internet. Our design excellence comes from our core team of Vice President/Co-Founder Bob Orban and his outstanding staff of engineers and design experts. It is appropriate that the Northern California Research and Design Center Group remain in the Bay Area, close to the country’s most advanced digital technology enterprises.”
Commenting further on the California manufacturing operation closing, Mr. Brentlinger said: “The high cost of building our products in California has caused us to lay off some employees in the San Leandro facility and to offer relocation packages to those key manufacturing personnel who are willing to move their families to Tempe/Phoenix Arizona area. I expect that those who relocate will enjoy a higher standard of living, given the high cost of housing in the Bay Area. We regret losing some of the loyal, devoted employees who have produced our products over the past 35 years. We are working closely with the State of California to find jobs for the affected personnel who wish to remain in the Bay Area.”
Pat Humke, Vice President of Manufacturing said: “In a world of ever-changing demand, the difference between mediocre and magnificent is how well you exceed your customer expectations. We have to reach beyond our competition to take advantage of the tremendous growth we see in our markets. Consolidating our U.S. production facilities allows us to capitalize on our lean manufacturing strengths. Being a world class supplier with efficient processes provides our customers with high quality products and services, delivered on time, and of excellent value.”
Orban Forward-Looking Statements
This news release may contain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Management’s anticipation of future events is based upon assumptions regarding levels of competition, research and development results, raw material markets, the markets in which the company operates, and stability of the regulatory environment. Any of these assumptions could prove inaccurate; and therefore, there can be no assurance that the forward-looking information will prove to be accurate.
About Orban
Orban is a manufacturer of high-quality digital and analog audio processing, transmission encoding, and noise reduction equipment. Orban now accounts for the majority of the global market for radio, TV and Internet audio processing. As technology evolves, Orban continues to innovate with state-of-the-art audio processing products for DAB, DTV and streaming media. The Company purchased Orban® in May of 2000. Orban was founded in 1970 by Bob Orban, who is the world’s foremost expert in transmission audio processing for broadcast. Orban leads the industry in the design and manufacture of audio processors for radio, television and Internet broadcasting. Recognized for its standard-setting Optimod® digital audio processors and the Opticodec® codecs, the Orban name has become synonymous with reliable, high performance products. Today, its versatile audio processing equipment and codecs are the products of choice in fast-paced production environments worldwide.
For more information contact David Rusch at phone +1 480.403.8300, fax +1 480.403.8301 or email: drusch@orban.com
Orban is a world leader in the design and manufacture of transmission audio processors for broadcasting and the Internet. For more information contact David Rusch at phone +1 480 403-8300, fax +1 480 403-8301 or Email: drusch@orban.com. Information is also available at www.orban.com and www.orban-europe.com. Information is also available at www.orban.com and www.orban-europe.com.
About Orban
Founded in 1970 by Bob Orban, the world’s foremost expert in transmission audio processing for broadcast, Orban leads the industry in the design and manufacture of audio processors for radio, television and Internet broadcasting. Recognized for its standard-setting Optimod® digital audio processors and the Audicy digital audio workstation, the Orban name has become synonymous with reliable, high performance products. Today, its versatile audio processing equipment, editing tools and codecs are the products of choice in fast-paced production environments worldwide.
Orban Forward-Looking Statements
This news release may contain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Management’s anticipation of future events is based upon assumptions regarding levels of competition, research and development results, raw material markets, the markets in which the company operates, and stability of the regulatory environment. Any of these assumptions could prove inaccurate, and therefore there can be no assurance that the forward-looking information will prove to be accurate. Orban develops, manufactures and markets electronic audio processing, transmission encoding and noise reduction equipment for the worldwide radio, television, cable, Internet and professional audio markets. The Orban division manufactures and markets audio processing equipment, primarily using digital technology. Orban Europe is a worldwide leader in ISO/MPEG, audio, ISDN, satellite transmission, networking, and storage. More information is available at www.orban.com and www.orban-europe.com.