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Item 2.05
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Costs Associated with Exit or Disposal Activities.
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On October 18, 2019, Westell Technologies, Inc. (the “Company”) approved a plan to restructure its business, including a reduction of headcount that spanned locations, functions, and segments. The planned restructuring is scheduled to be substantially completed on October 18, 2019. The restructuring is part of a plan to reduce ongoing expenses and focus the business on three areas for new product growth: in-building wireless, fiber deployment, and remote monitoring.
The Company expects to incur charges totaling approximately $0.2 million for the estimated cash payments related to employee separation benefits. Substantially all of the $0.2 million of estimated cash payments related to this matter are expected to occur by December 31, 2019. The Company expects efficiencies and annual cost savings in excess of $1.7 million as a result of the restructuring.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995"
Certain statements contained herein that are not historical facts or that contain the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” “will,” “plan,” “should,” or derivatives thereof and other words of similar meaning are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, product demand and market acceptance risks, customer spending patterns, need for financing and capital, economic weakness in the United States (“U.S.”) economy and telecommunications market, the effect of international economic conditions and trade, legal, social and economic risks (such as import, licensing and trade restrictions), the impact of competitive products or technologies, competitive pricing pressures, customer product selection decisions, product cost increases, component supply shortages, new product development, excess and obsolete inventory, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the ability to successfully consolidate and rationalize operations, the ability to successfully identify, acquire and integrate acquisitions, the effect of the Company's accounting policies, retention of key personnel and other risks more fully described in the Company's SEC filings, including the Form 10-K for the fiscal year ended March 31, 2019, under Item 1A - Risk Factors. The Company undertakes no obligation to publicly update these forward-looking statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, or otherwise.