GigOptix (GGOX) Continues To Cut Costs, New Facility Lease Saves Over $550,000
Posted on: 10/08/2009 08:43 AM
GigOptix’ (GGOX) Bothell facility lease amendment to yield more than $550,000 savings through March 2011
Bothell, WA (October 8, 2009) GigOptix Inc. (OTCBB: GGOX) announces that on October 5, 2009, the Company entered into a Third Amendment to Schnitzer North Creek Lease Agreement, pertaining to the Bothell, Washington location of GigOptix.
The Company’s predecessor in interest, Lumera Corporation entered into the original lease in July 2005 which was then inherited by GigOptix, Inc. as part of the reverse merger in December of 2008.
Once the new agreement becomes effective, GigOptix’s Bothell office space will be reduced to 11,666 square feet as much of the space previously used has been vacated over the past year to improve efficiency.
This compares to a current monthly Base Rent of $43,641 and which would be increased in 2010.
To accommodate all the functions in the reduced space GigOptix plans to invest approximately $150,000 in tenant improvements. As an additional consideration in the new agreement the Company will pay $175,000. The total of this $325,000 is to be funded through the release of currently restricted cash otherwise not available to the company through March 2011.
During the period of 17 months through March 2011 the new lease will result in a projected cash savings to the Company is $752,785. Furthermore, net of the payment of the $175,000 funded by the release of restricted cash the total projected savings to the Company for this 17-month period are $577,785.
About GigOptix Inc.
GigOptix is a leading fabless manufacturer of electronic engines for the optically connected digital world. The Company offers a broad portfolio of high speed electronic devices including polymer electro-optic modulators, modulator drivers, laser drivers and TIAs for telecom, datacom, Infiniband and consumer optical systems, covering serial and parallel communication technologies from 1G to 120G. For more information, please visit www.GigOptix.com.
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