Jennifer Whitney02.13.08
Natus Medical Inc. will cut staff and consolidate facilities to save about $2.4 million in 2009, the company said Monday.
San Carlos, CA-based Natus did not say how many of its staff members will lose jobs, but said it will "eliminate redundancies" in field sales and service personnel resulting from its acquisition of diagnostic test maker Xltek in October.
The company said it will centralize the research and development activities supporting each of the company's three main product families.
Activities associated with North American diagnostic neurology product lines will be consolidated at the Xltek facility in Oakville, Ontario, Canada; activities associated with newborn hearing screening and diagnostic hearing product lines will be consolidated at the Bio-logic facility in Mundelein, Ill; and activities associated with other newborn care products will be consolidated at the Olympic Medical facility in Seattle, Wash.
Natus said the plan also provides for the hiring of new employees in other areas. but did not provide specifics.
CEO Jim Hawkins said, "We believe that with the recent Xltek acquisition, Natus has now achieved a critical mass that enables it to effect this strategic consolidation and realize the economic benefits that should flow from it. We will eliminate duplicate functions and streamline our operations allowing us to deliver new products to the market in an even more efficient manner. We expect this integration and restructuring will also position us to further increase productivity, promote more efficient sales support, and strengthen a superior customer experience, all in line with our strategic plan."
The company also reaffirmed fiscal first quarter guidance 8 cents to 10 cents a share on revenue between $34.5 million and $36 million.
SOURCE: Silicon Valley/San Jose Business Journal