TAB Chief Financial Officer Dave Davis declined to name the "local buyer" and it was not otherwise immediately available. He described the sale "the conversion of an underutilized asset to cash" for the publicly traded document management company.
TAB is preparing to relocate its headquarters at the end of May from San Jose to Vernon Hills, IL, a northern Chicago suburb within two hours of TAB's main manufacturing facility in Mayville, WI. The company's Turlock facility was shuttered in June 1999 when all inventory and equipment was sent to Mayville.
TAB leases it existing headquarters at 2130 Gold Street in San Jose. The company has an undisclosed number of months remaining on its lease, and is currently negotiating a settlement with the building owner, Davis tells GlobeSt.
The move is to reduce overhead expenses. The 900-employee company will record a $2.3 million charge for costs associated with the relocation in its fiscal third quarter, but now also will record a gain of $2.9 million for the sale of the Turlock facility.
In December, TAB reported a net loss for its fiscal second quarter of $1.8 million or 35 cents a share. In the same quarter a year earlier, the company reported a net loss of $1.2 million or 24 cents a share. Revenue also dropped, by 4.6% to $29.8 million. Shares of TAB were trading at $3.72 cents at the close of markets Wednesday, up 12 cents from Tuesday's close.
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