Micro Therapeutics (NASDAQ:MTIX)
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Micro Therapeutics Consolidates Manufacturing Capabilities
IRVINE, Calif., Dec. 29 /PRNewswire-FirstCall/ -- Micro Therapeutics, Inc.
(MTI) (NASDAQ:MTIX) today announced the consolidation of its global
manufacturing operations into a single manufacturing location at its
headquarters in Irvine, California, and the closure of its facility in Bochum,
Germany effective December 30, 2004. The Irvine facility will now supply
global demand for all MTI products, including its expanding line of embolic
coils.
"This move is an important and necessary step in our efforts to achieve
operating profitability," said Thomas C. Wilder, MTI's president and chief
executive officer. "We anticipate that the consolidation of our operations to
the Irvine facility will yield benefits in terms of manufacturing costs,
overhead expense structure and customer service."
As part of the consolidation, MTI has given notice of termination to
approximately sixty employees in Germany. MTI anticipates that it will record
total charges in the 2004 fourth quarter of between $2.5 and $3.5 million,
which includes $1.8 to $2.5 million related to employee severance costs,
contract terminations and project management, and non-cash charges of $700,000
to $1.0 million related to the impairment of assets that will not be
transferred to Irvine.
About Micro Therapeutics, Inc.
Micro Therapeutics develops, manufactures and markets minimally invasive
medical devices for the diagnosis and treatment of vascular disorders. The
company's primary focus is on catheter based technologies and products for the
interventional neuroradiology market. Micro Therapeutics' products include the
Sapphire(R) and Sapphire NXT lines of embolic coils, the ONYX(R) liquid embolic
system, and a broad line of micro catheters, guidewires, and occlusion balloons
that are utilized in the treatment of cerebral vascular disorders.
Statements contained in this press release that are not historical information
are forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially
from those projected or implied. Such potential risks and uncertainties
relate, but are not limited, to, in no particular order: expected margin
improvement and operating expense reductions as a result of the closing of the
Bochum facility, the accuracy of the company's cost estimates in connection
with the closing of the Bochum facility, product demand and market acceptance,
the impact of competitive products and pricing, effectiveness and pace of
current and future product development, success of clinical testing, the impact
of intellectual property litigation and regulatory approval. More detailed
information on these and additional factors which could affect Micro
Therapeutics, Inc.'s operating and financial results are described in the
company's Forms 10-QSB, 10-KSB, and other reports, filed or to be filed with
the Securities and Exchange Commission. Micro Therapeutics, Inc. urges all
interested parties to read these reports to gain a better understanding of the
many business and other risks that the company faces. Additionally, Micro
Therapeutics, Inc. undertakes no obligation to publicly release the results of
any revisions to these forward- looking statements, which may be made to
reflect events or circumstances occurring after the date hereof or to reflect
the occurrence of unanticipated events.
DATASOURCE: Micro Therapeutics, Inc.
CONTACT: Harold A. Hurwitz of Micro Therapeutics, Inc., +1-949-837-3700;
or Rob Whetstone or Robert Jaffe, both of PondelWilkinson Inc.,
+1-310-279-5963, for Micro Therapeutics, Inc.