ALARIS Medical Announces Second Quarter One-Time Charges.SAN DIEGO--(BUSINESS WIRE)--Aug. 6, 1997--ALARIS Medical Inc. (Nasdaq:ALRS ALRS Admiralty List of Radio Signals ALRS Alerting Service (aviation) ALRS Apache Leap Research Site ALRS Alternate Launch & Recovery Surface ALRS Automated Logistics Retrieval System ALRS Automatic Line Router Switch ) Wednesday said it expects to report its financial results for the second quarter ended June 30, 1997, in the coming week. Those results are expected to include a one-time $4.1 million charge incurred in connection with its assumption of direct operational control of manufacturing facilities in Mexico, as well as approximately $3.6 million of merger integration charges and a one-time non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $4.3 million incurred in connection with its termination of a product development license agreement with a third party. ALARIS Medical president and chief executive officer, William J. Mercer, said: "Post-merger we reviewed our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and determined that it is better for us in the long term to control our Mexican manufacturing facilities. The company also reviewed its products and research and development activities with a view to realigning its resources to focus on projects that will provide greater competitive advantage and shareholder return. "That review resulted in the termination of our license agreement with a third party developer of an ambulatory and alternative site infusion device infusion device Therapeutics A device used to administer therapeutics–eg, analgesics, antimicrobials, blood products, chemotherapy, nutrients. See Elastomeric infusion device, Electronic syringe infusion device, Mechanical infusion pump, Minibag. ." Mercer noted, "Demand for our products continues to be strong and our new sourcing agreements are expected to produce reductions in the cost of goods. "We entered the third quarter with a significant back order for instruments and disposables and we expect the second half of 1997 to be significantly improved over the first, producing healthy results for the full year." Previously known as Advanced Medical Inc., the company announced a name change to ALARIS Medical Inc. in May 1997. Its operating company operating company A business that engages in transactions with outsiders. , ALARIS Medical Systems Inc., is known for its IMED IMED International Medical Education Directory and IVAC IVAC Islington Voluntary Action Council (England, UK) IVAC Insert Valid Access Card (satellite TV hacking) IVAC International Video & Audio Convention IVAC Idle Air Control Valve brand names of intravenous infusion therapy systems. The company's principal line of business is the design, manufacture and marketing of intravenous infusion therapy products, periodic patient monitoring instruments and related disposables. ALARIS Medical's products are distributed to more than 120 countries worldwide. In addition to its San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. world headquarters and manufacturing facility, the company also operates manufacturing facilities in Creedmoor, N.C., and Basingstoke, Hampshire, U.K., and Tijuana, Mexico. -0- This news release contains forward-looking statements which are based largely on the company's expectations and are subject to a number of risks and uncertainties, certain of which are beyond the company's control. Actual results could vary materially from these expected results due to a variety of factors, including market demand for the company's products, future financial performance, and the company's ability to achieve anticipated costs savings and to successfully integrate its operations in Mexico. Risk factors, including, without limitation, changes in the market and competition, and foreign operations are detailed in the Securities and Exchange Commission filings of Advanced Medical Inc. and ALARIS Medical Inc., particularly the Advanced Medical Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filing for the year ended Dec. 31, 1997. CONTACT: ALARIS Medical Systems Inc., San Diego Barbara Burkett, 619/458-7038 or Financial Relations Board, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Stacy Roughan (general information) Moira Conlon, (investor/analyst) Steven Seiler (media contact) 310/442-0599 |
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