Medical device manufacturer Analogic ($ALOG) is eyeing about 140 job cuts as it pares down its operations to save $6 million per year.
The company acquired ultrasound system supplier Ultrasonix for $83 million in March, and now it's consolidating its ultrasound transducer manufacturing, shuttering a plant in Colorado and shifting operations to its base in Pennsylvania.
The company is hanging on to a Vancouver facility it netted in the Ultrasonix acquisition but plans to consolidate the plant's manufacturing and support systems with its other operations.
Analogic will wrap up the effort by the end of the 2014 fiscal year, the company said, incurring charges of about $5 million in the process.
"These restructuring activities are consistent with our ongoing strategy of leveraging our existing operational footprint and aligning our operations with our strategic objectives," CEO Jim Green said in a statement. "... The cost savings from these activities will enable ongoing investment in our advanced technologies while continuing to support our stated multi-year operating margin goals."
Last quarter, Analogic pulled in $138.6 million in revenue, a 10% increase over the previous year, but a spike in costs and taxes cut net income in half to $9.8 million.
- read the announcement