UPDATE 1-Natus Medical to cut 50 jobs, cuts '10 EPS view

Wed Jan 13, 2010 8:38am EST

* Sees related charges of $2.5 mln in Q1

* Cuts 2010 EPS view to $0.45-$0.47 from $0.49-$0.51

* Sees 2010 adj EPS at $0.60-$0.62 * Raises '10 rev view to $198 mln from $196 mln

Jan 13 (Reuters) - Natus Medical Inc (BABY.O) said it will cut about 50 jobs, take related charges in the first quarter and lowered its earnings outlook for full-year 2010.

The medical device maker said in filing with the U.S. Securities and Exchange Commission that the job cuts were part of a reorganization plan to reduce costs resulting from Natus' acquisition of Alpine Biomed Holdings Corp.

Natus will record a restructuring charge of about $2.5 million in the first quarter, and cut its 2010 earnings per share outlook to a range of 45 cents to 47 cents, from its prior outlook of 49 cents to 51 cents a share, the company said in a statement.

Analysts on average were expecting the company to earn 54 cents a share, according to Thomson Reuters I/B/E/S.

Excluding the charges, Natus now expects earnings per share in the range from 60 cents to 62 cents.

However, the company raised its full-year 2010 revenue forecast to $198 million from its prior forecast of $196 million, citing improved business conditions since early November 2009.

As part of the restructuring, Alpine operations in Montreal, Canada, will be moved to Natus' Xltek facility in Oakville, Ontario, Canada, Natus said.

Also, Alpine's sales organization will be merged into Natus' global sales force.

Shares of the company closed at $13.96 Tuesday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Unnikrishnan Nair)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.