8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 11, 2015

ELECTRO SCIENTIFIC INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

OREGON	0-12853	93-0370304
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
13900 NW Science Park Drive, Portland, Oregon		97229
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (503) 641-4141

No Change

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.06    Material Impairments

On March 11, 2015, management of Electro Scientific Industries, Inc. (ESI) finalized a restructuring plan to streamline its manufacturing and development operations.  The restructuring will result in the closure of the assembly plant and development center located in Chelmsford, Massachusetts and overall staff reductions of approximately 45 employees. Products currently developed and manufactured in the Chelmsford plant will be transferred to other corporate facilities. The expected completion date for the plant closure is November 2015.  This plan will result in restructuring charges totaling approximately $5.5 million, comprised primarily of $2.7 million of severance and employee-related costs and $2.8 million of facility and other related costs including accelerated depreciation of leasehold improvements for facilities that will not be used going forward. As a result, the Company expects restructuring charges of approximately $2.0 million in the fiscal fourth quarter of 2015 with the remaining charges recorded as incurred, primarily in the latter half of fiscal 2016. The Company expects approximately $4.8 million of the charges will result in future cash expenditures.

Item 9.01    Financial Statements and Exhibits

(d)Exhibits

99.1    Press release dated March 16, 2015.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 16, 2015

Electro Scientific Industries, Inc.
By:	/s/ Paul Oldham
Name:	Paul Oldham
Title:	Vice President of Administration, Chief Financial Officer and Corporate Secretary

EX-99.1

Brian Smith                                            

ESI

503-672-5760

smithb@esi.com

ESI Consolidates Facilities to Streamline Operations

PORTLAND, Ore. - March 16, 2015 - Electro Scientific Industries, Inc. (Nasdaq: ESIO), an innovator in laser-based manufacturing solutions for the microtechnology industry, today announced a corporate restructuring that will streamline its manufacturing and development operations. The restructuring will result in the closure of the assembly plant and development center located in Chelmsford, Massachusetts, and overall staff reductions of approximately 45 employees. Products currently developed and manufactured in the Chelmsford plant will be transferred to other corporate facilities.

The financial impact is expected to be an annualized pre-tax cost savings of approximately $4.5 million once fully implemented during the fiscal third quarter ending December 2015. The company expects pre-tax charges of approximately $5.5 million in severance and facility-related costs, of which $2.0 million is expected to be recorded in the fiscal fourth quarter ending March 2015.

“This action will enable us to further focus our efforts on growing our business while consolidating manufacturing facilities and lowering our fixed cost base,” stated Edward C. Grady, president and CEO of ESI. “I would like to express my sincere appreciation to the affected employees for their valuable contributions to ESI. While these moves are difficult, they are a necessary step in our revitalization plan, to position us for future growth and profitability.”

About ESI, Inc.

ESI’s integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials in ways that differentiate their consumer electronics, wearable devices, semiconductor circuits and high-precision components for market advantage. ESI’s laser-based manufacturing solutions feature the micro-machining industry’s highest precision and speed, and target the lowest total cost of ownership. ESI is headquartered in Portland, Ore., with global operations from the Pacific Northwest to the Pacific Rim. More information is available at www.esi.com.

13900 NW Science Park Drive | Portland, Oregon 97229 | 503.641.4141 | www.esi.com

Forward-Looking Statements

This press release includes forward-looking statements about expected cost savings and charges and our fixed cost base. These forward-looking statements are based on information available to us on the date of this release and we assume no obligation to update these forward-looking statements for any reason. Actual results may differ materially from those in the forward-looking statements. Risks and uncertainties that may affect the forward-looking statements include the number of employees who accept relocation packages and the amount of savings from consolidating manufacturing and development operations.

13900 NW Science Park Drive | Portland, Oregon 97229 | 503.641.4141 | www.esi.com