Looks like shes posting another loss due to restructuring:
Lumonics to Report Fourth Quarter 1998 Loss, First Quarter Restructuring
KANATA, ON, January 14 /CNW/ - Lumonics Inc. today announced it
expects
to report an after-tax loss of between $3.5 million and $4 million (21
cents
to 23 cents per share) for the three months ended December 31, 1998.
The
company expects to release its year end audited results on February 25,
1999.
The loss is primarily attributed to the extended downturn in
worldwide
capital equipment markets, particularly the semiconductor industry. As
a
result, Lumonics' sales mix continued a shift to lower margin products.
In
addition, the company incurred higher than expected costs associated
with the
introduction of new products and the manufacture of large, custom
systems.
Sales in the fourth quarter will be approximately $52 million.
In response, the company plans to reduce its global workforce by
12%. To
cover the associated costs, Lumonics will record a restructuring charge
of
between $1.3 million and $1.6 million in the first quarter of 1999.
''Considering both business conditions and our pending merger with
General Scanning, we are taking further action now to reduce costs,''
said
Warren Scott Nix, President and Chief Executive Officer. ''Our
restructuring
plan is specifically targeted at areas where we can reduce ongoing
expenses,
improve cash flow and enhance the competitiveness of both Lumonics and
the
merged company.''
Nix said Lumonics' sales are likely to remain between $45 million
and
$55 million per quarter pending a recovery in capital equipment
spending.
However, because of lower backlog to start the year, first quarter 1999
sales
are expected to come in at the lower end of this range.
''The restructuring we have announced today should allow Lumonics to
eliminate losses at a sales volume of approximately $45 million per
quarter,''
said Nix. ''However, because of the timing of our restructuring
initiatives,
we expect to report a further loss in the first quarter of 1999. Our
efforts
are focused on restoring profitability beyond the first quarter and
positioning Lumonics or the merged company for the eventual rebound in
capital
equipment spending.''
Nix said the merger between General Scanning of Watertown,
Massachusetts
and Lumonics is expected to close in the first quarter following
shareholder
and regulatory approvals. Transition teams, made up of representatives
of
both companies, have made preliminary recommendations on how the
significant
synergies between the two companies can be realized.
''The transition teams' reports provide a blueprint for the merged
company,'' said Nix. ''We have carefully considered their
recommendations to
ensure Lumonics' restructuring will not only benefit Lumonics but will
smooth
the way to an efficient, effective and rapid merger. Our restructuring
initiatives are also consistent with the strategic restructuring
undertaken by
General Scanning in the fourth quarter to improve their performance
prospects.''
Nix said Lumonics remains ''enthusiastic and confident about our
proposed
merger and the long-term prospects for GSI Lumonics, which will be one
of the
largest and most resourceful providers of laser-based equipment in the
world.''
Founded in 1970, Lumonics is a world leader in designing,
developing,
manufacturing and marketing of laser-based advanced manufacturing
systems for
semiconductor, electronics, aerospace, automotive and packaging markets.
These systems are used in highly automated environments for
applications such
as cutting, drilling, welding, marking and coding a wide range of
products and
materials. The company has installed more than 14,000 systems
worldwide for
some of the world's best known companies. The company's web site
address is
www.lumonics.com.
-0- 01/14/1999
For further information: Investor Relations, Lumonics, Tel:
613-592-1460 (extension 1306) or Des Bradley, Vice President Finance &
CFO, Tel: 613-592-1460 |
