Bio-Dental Technologies announces reorganization of IDT subsidiary.SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif.--(BUSINESS WIRE)--Feb. 8, 1996--Bio-Dental Technologies Corp. (Nasdaq NM:BDTC BDTC Base de Donnees Toponymiques du Canada (French: Database of Canada Toponymic) ) Thursday Thursday: see week. announced that it has initiated a reorganization of its Integrated Dental Technologies Inc. (IDT IDT Integrated Device Technology, Inc. (Santa Clara, CA, USA) IDT I Don't Think IDT Identity Theft IDT Interrupt Descriptor Table IDT Integrated DNA Technologies IDT Inactive Duty Training IDT Instructional Design & Technology ) operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. into two business units: IDT Camera Systems and IDT Software Products. The reorganization is designed to reduce operating costs operating costs npl → gastos mpl operacionales and return Bio-Dental to profitability by eliminating low-margin activities, which include the sale, installation and service of computer hardware, as well as the aggressive marketing of the concept of the totally integrated, "paperless" dental office. Instead, the company will now emphasize the higher-margin core technologies of IDT that enable a dental office to operate more efficiently, cost-effectively and with enhanced patient care. The reorganization is expected to be complete by the end of the company's fiscal year, March 31, 1996. Pursuant to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , Bio-Dental will take a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge to fourth-quarter earnings of approximately $1 million associated with employee severence, certain contractual obligations, the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of goodwill and inventory and related costs. Curtis M. Rocca III, president and chief executive officer of Bio-Dental, said: "Bio-Dental's intra-oral cameras and dental software products are strongly positioned to be leaders in markets that are already large and well-established. While our software products and camera systems represent significant components of the comprehensive integration of advanced technologies in a dental office -- a concept that we believe still represents the office of the future -- the market for this concept remains relatively small, and it is one that requires expensive and time-consuming resources to develop and grow. "Our capabilities, at this point, are simply far advanced of the marketplace acceptance of this concept. Our financial performance has been hindered by a combination of extraordinary costs associated with marketing this concept as well as the selling, installation and servicing of low-margin computer hardware. Going forward, we will no longer be involved in those particular activities. "We anticipate that this reorganization will reduce non-sales staff by more than 20 percent, eliminate non-performing product lines, and deliver budgeted savings of approximately $1 million per year." continued Rocca. "Moving into fiscal 1997, we will operate from a more finely tuned and less risky strategic plan," Rocca added. "We are confident that by focusing more sharply on our higher-margin software and imaging systems at IDT and on our core business at The Supply House, we will improve operating results and return to profitability." Bio-Dental Technologies Corp. manufactures, markets and distributes dental supplies and proprietary, high-technology dental products to the $2 billion professional dental supply market in all 50 states and Canada. CONTACT: Bio-Dental Technologies Corp. Curtis M. Rocca III, 916/638-8147 or Silverman Heller Associates Eugene G. Heller, 310/208-2550 |
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