Bad News: Additional Writeoffs; Good News: W/O Writeoffs, the EPS is
in line with Street Estimates.
biz.yahoo.com
Monday February 2, 5:24 pm Eastern Time
Company Press Release
IDEXX Announces $9 Million Fourth Quarter Charge To
Complete Previously Announced Business Restructuring
WESTBROOK, Maine--(BUSINESS WIRE)--Feb. 2, 1998--IDEXX Laboratories, Inc.
(NASDAQ:IDXX - news) announced today that it expects to take a non-recurring charge to
earnings in the fourth quarter of approximately $9 million to complete previously announced business
restructuring activities that commenced in 1997. The charges relate primarily to expanded
restructuring activities in certain business areas, consolidation of veterinary practice management
software operations, streamlining of certain U.S. operations, restructuring of several veterinary
clinical laboratories, and certain other actions. It also includes an additional write-off of
approximately $2.9 million in development costs associated with the acquisitions of Professionals'
Software, Inc. and Advanced Veterinary Systems in 1997, not included in the Company's previously
announced non-recurring charge for the third quarter of 1997.
According to David E. Shaw, Chairman and Chief Executive Officer of IDEXX: ''Today's
announcement is the result of a careful process to make changes intended to put us on strong footing
to create attractive long term value at IDEXX. Our management team, including several new
members, conducted a thorough review of our business in the planning and budgeting process for
1998 and beyond. The results of this process included several business restructuring decisions that
led to this fourth quarter charge. A majority of these restructuring activities have already occurred in
conjunction with our efforts to resolve issues that impaired IDEXX performance in 1997. There are
many reasons to be confident about the quality of our business franchises and excited by the
opportunities they afford us. The actions reflected in this charge are a further indication of the strong
commitment of our management team to achieve profitability levels and long term growth consistent
with the quality of our franchises.''
The Company expects that its fourth quarter earnings, before the effect of the charges described
above, will fall in the range of current analyst estimates. Earnings are scheduled for release on
February 12, 1998 after the close of the market.
-0-
This press release contains forward-looking statements that involve a number of risks and
uncertainties. Factors that could cause actual results to differ materially from those reflected in the
forward-looking statements include, but are not limited to, those that are discussed in the Company's
Annual Report on Form 10-K for the year ended December 31, 1996 and Quarterly Report on
Form 10-Q for the quarter ended September 30, 1997, in the section captioned ''Management's
Discussion and Analysis of Financial Condition and Results of Operations.'' |
