CESSATION OF BUSINESS

6 Months Ended

Apr. 04, 2026

Cessation of EA Equipment Business

On March 25, 2025, the Board of Directors of the Company approved a strategic plan related to the cessation of the EA equipment business. As part of the plan, the Company began the process of winding down the EA equipment business in an effort to prioritize core semiconductor assembly business opportunities and enhance overall through-cycle financial performance. The cessation of the EA equipment business is subject to a consultation process with the applicable works council and union representatives, which the Company initiated in the third fiscal quarter of 2025 and, as of April 4, 2026, has substantially completed. The wind down activities remain ongoing and are expected to be substantially completed by the end of fiscal 2026, after which there will be some service support activities to serve out the remaining customer obligations.

Wind down charges as a result of these activities incurred during the six months ended April 4, 2026 were accounted in accordance with ASC 420, Exit or Disposal Cost Obligations and ASC 712, Compensation—Nonretirement Postemployment Benefits. The wind down charges are primarily recorded in the Company’s "All Others" category. We plan to fund the cash costs through existing cash balances.

Employee termination benefits

The Company incurred employee termination benefits pertaining to ongoing and one-time benefit arrangements in accordance with ASC 712 and 420. The movement of the balances as of April 4, 2026 is summarized below:


(in thousands)	Ongoing employee benefit arrangements		One-time employee benefit arrangements		Total
As of October 4, 2025	$	4,380	$	957	$	5,337
Additions charged to expense	$	—	$	2,340	$	2,340
Cash payments	$	(1,423)	$	(1,508)	$	(2,931)
As of April 4, 2026	$	2,957	$	1,789	$	4,746

The costs related to the one-time employee benefit arrangements were recorded within "Selling, general and administrative" in the Consolidated Condensed Statements of Operations, and are expected to be paid progressively as we complete the wind-down activities. We expect to record between approximately $2.0 million and $4.0 million of these costs throughout the completion of the wind-down period.