FRISCO, Texas--(BUSINESS WIRE)--Jun. 5, 2013--
Greatbatch, Inc. (NYSE:GB) today announced a realignment of its
operating structure to optimize its continued focus on profitable
growth. Greatbatch Medical and Electrochem Solutions today operate
independent operations and sales & marketing groups; those will now be
combined into singular sales & marketing and operations groups serving
the entire Greatbatch organization.
“We’ve spent the past eight years successfully integrating and
consolidating our organization. With that mission accomplished, we can
set our sights squarely on our growth target to achieve 5 percent
organic growth or better,” said Greatbatch President & Chief Executive
Officer Thomas J. Hook. “As we shared with investors earlier this year,
the company is progressing from strictly a developer of components and
sub-assemblies to an organization capable of developing complete medical
devices for OEM customers. Our realignment into a more unified
Greatbatch will allow us to reinvest in both our core business as well
as emerging platforms in pursuit of substantial growth.”
Four senior executives have been appointed to new positions in the
company:
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Andrew Holman, formerly vice president, Global Sales & Marketing,
Orthopaedic Product Development, Greatbatch Medical, is named
executive vice president, Global Sales & Marketing, Greatbatch, Inc.;
-
Mauricio Arellano, formerly president, Greatbatch Medical, is named
executive vice president, Global Operations, Greatbatch, Inc.;
-
Susan Bratton, formerly president, Electrochem Solutions, is named
executive vice president, Business Development, Greatbatch, Inc.;
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And George Cintra, formerly vice president, Research Development and
Engineering, Electrochem Solutions, is named senior vice president and
chief technology officer, Greatbatch, Inc.
As announced at its Investor Day this past March, Greatbatch is
leveraging its portfolio of more than 1,000 patents to more fully tap
the potential of its multi-billion dollar end markets, specifically in
cardiac and neuromodulation, portable medical, vascular and
orthopaedics. Eighty-eight percent of its revenues are currently derived
from the medical device sector.
“We fully anticipate that this realignment will have a positive
short-term and long-term impact on our financial results. Under our
plan, the Company expects to incur restructuring charges in the range of
$4.2 to $5.0 million, which will include employee severance and
termination benefits,” said Greatbatch Senior Vice President and Chief
Financial Officer Michael Dinkins. “When fully implemented, this plan is
expected to result in annual savings of approximately $7.0 to $7.7
million. Based on the short-term impact of this realignment and our
current view of the balance of the year’s financial results, we are
raising our adjusted diluted earnings per share guidance range to $2.00
to $2.05 per share from the previous range of $1.90 to $2.00 per share.
These results exclude the impact of the restructuring charges mentioned
above.”
The company will provide its normal guidance update with its 2nd
quarter earnings release.
About Greatbatch, Inc.
Greatbatch, Inc. (NYSE: GB) provides top-quality technologies to
industries that depend on reliable, long-lasting performance. The
company develops and manufactures critical medical device technologies
for the cardiac, neuromodulation, vascular and orthopaedic markets; and
batteries for high-end niche applications in the portable medical,
energy, military, and other markets. Additional information is available
at www.greatbatch.com.
Forward-Looking Statements
Some of the statements in this press release, including the expected
cost savings resulting from the announced realignment and the
information provided on its adjusted diluted earnings per share
guidance, are “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933, as amended, and section 21E of the
Securities Exchange Act of 1934, as amended, and involve a number of
risks and uncertainties. These statements can be identified by
terminology such as “may,” “will,” “should,” “could,” “expects,”
“intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,”
“potential,” or “continue,” or variations or the negative of these terms
or other comparable terminology. These statements are based on the
Company’s current expectations. The Company’s actual results could
differ materially from those stated or implied in such forward-looking
statements. Risks and uncertainties that could cause actual results to
differ materially from those stated or implied by such forward-looking
statements include, among others, the following matters affecting the
Company: our dependence upon a limited number of customers; customer
ordering patterns; product obsolescence; our inability to market current
or future products; pricing/vertical integration pressure from
customers; our ability to timely and successfully implement our cost
reduction and plant consolidation initiatives (including the
consolidation of our Swiss orthopaedic operations); our reliance on
third party suppliers for raw materials, products and subcomponents; our
inability to maintain high quality standards for our products;
challenges to our intellectual property rights; product liability
claims; our inability to successfully consummate and integrate
acquisitions and to realize synergies; our unsuccessful expansion into
new markets; our ability to realize a return on our substantial RD&E
investments, including system and device products; changes in and
challenges related to compliance with governmental laws and regulations,
including regulations of the U.S. Food and Drug Administration and
foreign government agencies regulating medical device approvals; our
inability to obtain licenses to key technology; regulatory changes or
consolidation in the healthcare industry; global economic factors
including currency exchange rates and interest rates; the resolution of
various legal actions and other risks and uncertainties described in the
Company’s Annual Report on Form 10-K and in other periodic filings with
the Securities and Exchange Commission. The Company assumes no
obligation to update forward-looking information in this press release
whether to reflect changed assumptions, the occurrence of unanticipated
events or changes in future operating results, financial conditions or
prospects, or otherwise.
Source: Greatbatch, Inc.
Greatbatch, Inc.
Investor Relations:
Elizabeth Cowell,
214-618-4982
ecowell@greatbatch.com
or
Media:
Christopher
Knospe, 716-759-5727
cknospe@greatbatch.com