Medical devices company Align Technology Inc. (ALGN: Quote) said Wednesday it is initiating a set of organizational changes to more effectively support business functions along its Clear Aligner and Scanner and CAD/CAM Services product lines. As part of the measures, the company named new heads of the businesses and slashed about 25 jobs.
Align said it will incur about $2.1 million in costs for severance of which $1.9 million will be recognized in the fourth quarter of 2012 and $0.2 million in the first quarter of fiscal 2013.
The company also said it expects fourth-quarter results to come in at the low-end of its earlier guidance, citing continued softness in the dental market and the disruption of its customers’ practices from Superstorm Sandy.
Align had previously forecast fourth-quarter adjusted earnings of $0.21 to $0.23 per share on revenues of $134.2 million to $137.8 million.
Analysts currently estimate earnings of $0.23 per share on revenues of $136.38 million for the fourth quarter.
Detailing its organizational changes, Align said Product and brand marketing veteran Greg Morrow will join Align as vice president and general manager for the Clear Aligner product line, reporting directly to Tim Mack, senior vice president, marketing and business development. Mack will continue in his current position and take on the additional role of general manager for the Scanner and CAD/CAM Services product line.
In addition, Dana Cambra, vice president, research and development, has left the Company. On an interim basis, Align President and CEO Thomas M. Prescott will oversee R&D and Information Technology.
Align stock closed at $26.14, down 1.47%, on the Nasdaq. In after hours, the stock dropped 5.39%.
To receive FREE breaking news email alerts for ALIGN TECHNOLOGY INC and others in your portfolio
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com