SAN CARLOS, Calif. (AP) — Medical-device maker Natus Medical Inc. on Monday said it will consolidate some operations and cut jobs to reduce costs, and reaffirmed guidance.
The company will consolidate its diagnostic neurology product lines in a plant in Ontario, Canada; its newborn hearing screening and diagnostic hearing-product lines in a plant in Mundelein, Ill.; and its other newborn care products at its facility in Seattle.
It will also cut an undisclosed number of field sales and service personnel that are redundant since it acquired Xltek, a diagnostic test maker, in October.
Natus will also cut some production resources as it outsources assemblies to contract manufacturers. Natus plans to hire some new staff for other functions.
While the plan won't save money in 2008, as cost cutting will be offset by about $800,000 in severance costs, it is expects to save $2.4 million in 2009.
The company reaffirmed fiscal first quarter guidance given in December of earnings of 8 cents to 10 cents per share on revenue between $34.5 million and $36 million. The first quarter ends March 31.
Analysts polled by Thomson Financial predict a profit of 10 cents per share on revenue of $35.2 million.
For fiscal 2008, the company reiterated earnings guidance of 68 cents to 70 cents per share on revenue of $160 million. Analysts expect a profit of 68 cents per shares on revenue of $158.9 million.