The restructuring plan, aimed at "significantly [reducing] our operating expenses," will result in charges to Solta’s books by the 1st quarter of 2014, according to a regulatory filing.
Solta said the layoffs are expected to cost between $1 million and $1.3 million, including cash severance payments of $500,000 to $800,000, "the majority of which is expected to be paid during the 4th quarter of 2013," according to the filing.
The Hayward, Calif.-based company also said it will shutter a plant in Louisville, Colo., it picked up in the $31 million acquisition of Sound Surgical in January. That move is expected to cost about $500,000, including facility closing and contract termination costs, according to the filing.
"The company expects to record all of these restructuring costs by the 1st quarter of 2014 and expects the restructuring plan to be substantially complete by the 1st quarter of 2014," Solta said in the filing.
Earlier this week Solta posted profits of $644,000, or 1¢ per share, on sales of $33.5 million for the 3 months ended Sept. 30, compared with losses of $2.9 million on a 4.2% sales decline compared with Q3 2012. Adjusted to exclude 1-time items, per-share losses were -4¢, compared with analysts’ expectations of -3¢.