AEQUITRON MEDICAL EXITS UNPROFITABLE OXYGEN CONCENTRATOR PRODUCT LINE; COMPANY EXPECTS TO ANNOUNCE LOSS FOR FIRST QUARTER
MINNEAPOLIS, Aug. 9 /PRNewswire/ -- Aequitron Medical, Inc. (NASDAQ-NMS: AQTN) announced today that it is discontinuing the sale of its unprofitable Silent Partner oxygen concentrators. As a result, the company is reducing expenses and restructuring its operations to focus on more profitable growth. Aequitron President and CEO Jim Hickey said, "I am convinced this is the right decision for us to make. Though the concentrators have performed reliably, current and anticipated costs have eroded their profitability and it no longer makes sense for us to continue in this business." Hickey emphasized that Aequitron will continue to provide support and service to customers who have previously purchased oxygen concentrators from Aequitron. The company will take a one-time first quarter charge of $750,000, $.10 per share, to account for the restructuring. Aequitron also expects to report an additional loss of $.04 to $.06 per share in the first quarter, which includes a one-time $.02 FASB accounting charge. Aequitron's first quarter ended July 31, 1993. The company plans to announce quarterly sales and earnings figures within the next two weeks. "Aequitron has not been immune to the downturn in the healthcare industry caused by the uncertainty surrounding national healthcare reform," Hickey said. "However, it's clear that the restructuring and expense reductions will improve profitability for the balance of the fiscal year and better position the company for growth." Aequitron Medical, Inc. designs, manufactures and markets electronic respiratory products for home health care and hospital use; and wheelchair lifts and automobile hand controls for people who face mobility challenges.
The company's common stock is traded on the
National Market System under the NASDAQ symbol AQTN.
-0- 8/9/93 /CONTACT: David Neuger, 612-333-6621 or (Home) 612-699-6730, or Edwin Neuger 612-333-6621 or (Home) 612-929-0945, both of Edwin Neuger & Assoc., for Aequitron Medical/ (AQTN)
CO: Aequitron Medical, Inc. ST: Minnesota IN: MTC SU: PDT
AL -- MN003 -- 0633 08/09/93 09:10 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Aug 9, 1993|
|Previous Article:||STECK-VAUGHN PUBLISHING CORP. ANNOUNCES SECOND QUARTER RESULTS|
|Next Article:||EVEREST MEDICAL NAMES SHANNON PRESIDENT AND CEO|