http://money.cnn.com/news/newsfeeds/articles/djf500/200902261058DOWJONESDJONLINE000959_FORTUNE5.htm
Medtronic Freezing Pay, Eying Layoffs Amid Econ Pressure
February 26, 2009: 10:58 AM ET
Medical-devices giant Medtronic Inc. (MDT) plans to freeze its workers' base salary and trim compensation for its executive team in an effort to control costs while it faces economic and market pressures.
The Minneapolis-based company is also considering layoffs, although no specific decisions about how many employees could be cut, or from which areas, have been made, spokesman Steve Cragle said Thursday. Reductions would start in the 2010 fiscal year that begins May 1.
Chief Executive William A. Hawkins "discussed the need for some restructuring or downsizing of the workforce" during a meeting with workers earlier this week, Cragle said. Medtronic has about 39,000 workers overall.
The company also discussed internal moves designed to control costs, such as the salary freeze that will start in the new fiscal year and plans for a 5% executive pay cut.
The company pegged the moves to the turbulent global economic environment, which is expected to pressure certain parts of its business. Medtronic has also dealt with tough competition and eroding market share in some of its key businesses, including the market for implantable cardioverter defibrillators, or ICDs.
Hawkins in January ratcheted back Medtronic's long-term sales growth outlook to a 5% to 8% range, but the company continues to target earnings growth in a double-digit range, indicating the need to control costs.
Because ICDs protect patients at risk for sudden cardiac death, they aren't viewed as vulnerable to an economic slump. But Hawkins noted during Medtronic's recent quarterly earnings call that other parts of the company are, including products that fix spinal problems, along with products in Medtronic's diabetes and surgical technologies businesses.
"There is a lot of uncertainty in the global economy right now and Medtronic is not immune to that," spokesman Cragle said.
He noted Medtronic feels it had a solid fiscal third quarter, in which the company showed some signs of stability in key markets where it has struggled with competitive pressure.
"Despite that performance, we still see a lot of uncertainty ahead," Cragle said.
Medtronic announced plans in May last year to trim about 1,100 jobs as it realigned the workforce, with cuts targeting businesses where growth had slowed or where the company saw a chance to improve its operating leverage. The cuts were set to take place throughout the current fiscal year, and were expected at that time to be offset to an unspecified degree with hiring in faster-growing businesses.
Medtronic recently traded down six cents to $33.80.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com (END) Dow Jones Newswires
02-26-09 1058ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Friday, February 27, 2009
Thursday, February 26, 2009
FumeRunner: Intact Medical
Intact Medical last raised money about 1 year ago.
According to PWC's MoneyTree Survey Q2 2008:
Website: www.intactmedical.com
$ Received: $4,911,000
Financing Sequence: 10
Investors in Q2 2008 :
Morgenthaler Ventures
Undisclosed Venture Firm
According to PWC's MoneyTree Survey Q2 2008:
Website: www.intactmedical.com
$ Received: $4,911,000
Financing Sequence: 10
Investors in Q2 2008 :
Morgenthaler Ventures
Undisclosed Venture Firm
Wednesday, February 25, 2009
Layoffs: Seracare Life Sciences
SeraCare Reports First Quarter Fiscal Year 2009 Results
Tuesday February 17, 4:03 pm ET
...
“During the first quarter, we took a series of actions to optimize our opportunity for growth in the core business while reducing spending levels in support of our profitability improvement goals,” stated Gregory Gould, Chief Financial Officer. “The actions taken include a workforce reduction of over 10%, the suspension of annual salary increases for senior management and executives and other spending reductions across all areas of our operations. As a result of the global economic downturn, the Company did take a goodwill impairment which resulted in a $15.1 million charge this quarter, however we remain focused on growing the business and believe the value proposition of the Company’s business continues to be very promising.”
Tuesday February 17, 4:03 pm ET
...
“During the first quarter, we took a series of actions to optimize our opportunity for growth in the core business while reducing spending levels in support of our profitability improvement goals,” stated Gregory Gould, Chief Financial Officer. “The actions taken include a workforce reduction of over 10%, the suspension of annual salary increases for senior management and executives and other spending reductions across all areas of our operations. As a result of the global economic downturn, the Company did take a goodwill impairment which resulted in a $15.1 million charge this quarter, however we remain focused on growing the business and believe the value proposition of the Company’s business continues to be very promising.”
Layoffs: NMT Medical
NMT Medical Provides Preliminary Year End Financial Results and Clinical Trial Update
Tuesday January 13, 2009 8:00 am ET
...
As part of its ongoing review of the business, NMT implemented a series of cost reduction initiatives, including reducing headcount throughout the organization, reprioritizing its internal programs and restructuring various departments. These changes and adjustments also include both executive management and Board of Director compensation and stipend reductions.
“Given the current economic climate and the importance of our capital resources, we determined that it was prudent for us to reduce our expense levels,” said NMT Medical President and Chief Executive Officer John E. Ahern. “We remain confident that we have sufficient resources to complete our landmark CLOSURE I trial and bring the STARFlex® implant to the commercial market in the United States, pending U.S. Food and Drug Administration (FDA) approval.”
Executive Vice President and Chief Financial Officer Richard E. Davis said, “As we have indicated in the past, while we do not anticipate a fundraising effort in the near-term, we continue to evaluate alternative financing options should the Company choose to increase its liquidity in the future. Looking ahead, we expect our burn rate will decrease significantly in 2009 given the completion of our clinical trial enrollment work and the actions we have recently taken to reduce costs.
Tuesday January 13, 2009 8:00 am ET
...
As part of its ongoing review of the business, NMT implemented a series of cost reduction initiatives, including reducing headcount throughout the organization, reprioritizing its internal programs and restructuring various departments. These changes and adjustments also include both executive management and Board of Director compensation and stipend reductions.
“Given the current economic climate and the importance of our capital resources, we determined that it was prudent for us to reduce our expense levels,” said NMT Medical President and Chief Executive Officer John E. Ahern. “We remain confident that we have sufficient resources to complete our landmark CLOSURE I trial and bring the STARFlex® implant to the commercial market in the United States, pending U.S. Food and Drug Administration (FDA) approval.”
Executive Vice President and Chief Financial Officer Richard E. Davis said, “As we have indicated in the past, while we do not anticipate a fundraising effort in the near-term, we continue to evaluate alternative financing options should the Company choose to increase its liquidity in the future. Looking ahead, we expect our burn rate will decrease significantly in 2009 given the completion of our clinical trial enrollment work and the actions we have recently taken to reduce costs.
Layoffs: Analogic
AP
Analogic to cut 140 jobs amid economic turmoilWednesday January 28, 2:34 pm ET
Analogic to cut 140 jobs, or 9 percent of work force, amid economic turmoil
PEABODY, Mass. (AP) -- Analogic Corp., a provider of medical imaging and aviation security technology, said Wednesday it is cutting about 140 jobs, or 9 percent of its work force, because of the global economic turmoil.
The company said the job reductions, along with other cost-cutting plans, will lead to annual cost savings of about $9.6 million.
Analogic added it expects to take a restructuring charge of $3.4 million during the fiscal second quarter, which ends in January.
Analogic to cut 140 jobs amid economic turmoilWednesday January 28, 2:34 pm ET
Analogic to cut 140 jobs, or 9 percent of work force, amid economic turmoil
PEABODY, Mass. (AP) -- Analogic Corp., a provider of medical imaging and aviation security technology, said Wednesday it is cutting about 140 jobs, or 9 percent of its work force, because of the global economic turmoil.
The company said the job reductions, along with other cost-cutting plans, will lead to annual cost savings of about $9.6 million.
Analogic added it expects to take a restructuring charge of $3.4 million during the fiscal second quarter, which ends in January.
Layoffs: Palomar Medical
from their earnings call
http://seekingalpha.com/article/120983-palomar-medical-technologies-inc-q4-2008-earnings-call-transcript?source=yahoo&page=-1
Joe Caruso (President):
...Our goal is to remain cash flow neutral during this recession. This will not be easy as it is difficult to predict how long and deep this recession will be. We have taken steps to decrease our operating expenses in all areas of the Company including reductions in headcount and salary freezes. We will continue to monitor and adjust as we move forward.
http://seekingalpha.com/article/120983-palomar-medical-technologies-inc-q4-2008-earnings-call-transcript?source=yahoo&page=-1
Joe Caruso (President):
...Our goal is to remain cash flow neutral during this recession. This will not be easy as it is difficult to predict how long and deep this recession will be. We have taken steps to decrease our operating expenses in all areas of the Company including reductions in headcount and salary freezes. We will continue to monitor and adjust as we move forward.
Layoffs: Candela Corporation
from the company press release:
Candela Reports Second Quarter 2009 Financial Results
Jan. 20, 2009
...
The Company also reported cost reductions across the organization including a reduction in force and compensation reductions for all of its employees worldwide.
...
Candela Reports Second Quarter 2009 Financial Results
Jan. 20, 2009
...
The Company also reported cost reductions across the organization including a reduction in force and compensation reductions for all of its employees worldwide.
...
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