Minimally invasive medical devices maker Urologix (OCT:ULGX) tied up its previously announced restructuring efforts, laying off an unspecified number of employees in order to "refocus the allocation of company resources and improve long-term profitability."
The Minneapolis-based company said that it notified all affected employees and completed its organizational changes, but a spokesperson declined to provide details on how many employees were let go and what locations were targeted.
Urologix had warned earlier this year that it would lay off a number of employees in a restructuring move designed to save more than $1.5 million a year. New comments provided few additional details, but Urologix bumped its estimated savings to more than $2.5 million annually, taking effect later this year.
"The development of a new organizational structure reflects 1 important goals for Urologix. The first is to create a sustainable core business that should position the company to become operationally cash flow positive. The second is to evolve Urologix’s strategy to align our business with broader shifts in the urology market, which is evolving towards both consolidation of urology practices and hospital employment of urology care providers," CEO Greg Fluet said in prepared remarks. "We believe that our reorganized sales team can continue to provide high quality service to current customers as well as prove the ability to engage larger healthcare institutions. We expect that this initiative will create a more effective and efficient sales team, and will provide sustainable improvements in Company profitability."
The company also released some preliminary figures for its 3rd quarter of 2014, saying it expects to report revenues of $3.4 million, an 18% decline year-over-year. Urologix had about $816,000 in cash on hand at the end of the quarter, according to the company statement.
The company plans early in May to release the full details of its 3rd quarter earnings. ULGX shares were up 0.6% today, trading at 15¢ apiece as of about 1 p.m. EST.