Device company Alphatec Holdings, Inc has announced that its French affiliate, Scient’x S.A.S. and its subsidiary Surgiview S.A.S. (collectively, “Scient’x”) has begun a process aimed at significantly restructuring its business operations with a view to reducing annual operating expenditures by between $2 and $6 million on an annualized basis.
The restructuring of Scient’x is part of the Company’s strategy of streamlining the organization and lowering cost structures, with an expectation to improve its profitability in 2014 and beyond. The net effect is likely to see the Scient’x’s workforce reduced by 76 in total.
The plan is aimed at achieving multi-year reductions in operating expense, yielding improvements in international gross margins and increasing overall operating margins.
The Company would incur one-time restructuring costs associated with the implementation of this plan consisting primarily of transition, severance and other costs related to work force reductions. Additional details on the longer-term financial benefits related to the proposed changes as well as more information on one-time costs are to be divulged by Alphatec Holdings subsidiary, Alphatec Spine during its Q3 2013 earnings call.
“The decision to begin the process of restructuring our operations in France was very difficult but ultimately was based on the management team undertaking a thorough analysis of the current and future market environment and Scient’x’s ability to remain competitive while meeting our customers’ needs with the best and most affordable solutions,” said Les Cross, Chairman and CEO of Alphatec Spine, Inc. “Upon completion, this restructuring should leverage Alphatec Spine’s current global investment in manufacturing, infrastructure, and sales distribution capacity, while still providing Scient’x’s customers, distributors, and suppliers with immediate and long-term benefits.”
“We appreciate the significant contributions of those employees who could be impacted by this plan and their dedication to Scient’x and their customers. We will do everything possible to assist all affected employees and their families,” said Mr. Cross.
Source: Alphatec Spine, Inc., Globe Newswire