Endosonics of Rancho Cordova, CA, said it expects to report revenues of approximately $11.6 million for the quarter ended December 31, 1999. The figure represents an approximate 10% increase in revenues over the previous quarter, and exceeds analysts' expectations, according to the company.
Despite the encouraging results, Endosonics said it will continue to work toward reducing its non-sales workforce by about 10%, or approximately 38 employees, in order to focus its efforts on sales and key research and development projects. The company said that over the past year it has also made significant investments in automation, quality assurance and planning systems in order to boost productivity.
In October Endosonics reported a net loss of $3.2 million for the quarter ended September 30, 1999, which it attributed to a decline in international orders, especially in Europe.
The company said it has resolved all outstanding issues with European distributor Jomed, which it accused last fall of not honoring its payment obligations. Nevertheless, Endosonics will now rely on its direct sales force to market to customers in France, Belgium, the Netherlands and Luxembourg, in addition to its current direct marketing efforts in Germany, according to the company. Jomed will continue to distribute Endosonics' products in certain countries.
While the restructuring was driven by last year's lower-than-expected sales of new products, new marketing efforts will focus on the company's core business, according to CEO and president Reinhard Warnking. Endosonics develops and manufactures intravascular ultrasound imaging and functional assessment products.
By AuntMinnie.com staff writersJanuary 11, 2000
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