Analogic (ALOG) Reports In-Line Q1 EPS; Updates on Restructuring
Analogic (NASDAQ: ALOG) reported Q1 EPS of $0.55, in-line with the analyst estimate of $0.55. Revenue for the quarter came in at $115 million versus the consensus estimate of $115.07 million.
Update to Fiscal 2016 Restructuring Plan
Analogic previously announced a restructuring of its business in the fourth quarter 2015 that includes the transition of certain manufacturing activities from our Peabody, Massachusetts location to our existing facility in Shanghai, China, a reduction in force in order to align our research and development investment with expected customer funding in our Security and Detection business, and a voluntary retirement program available to eligible employees in the affected areas of our Peabody, Massachusetts facility.
Due to a higher than expected participation in the voluntary retirement program, the Company now expects to incur a restructuring charge of approximately $10 million in fiscal 2016 (compared with $6 million estimated in the fourth quarter of 2015), of which $3.3 million was taken in the first quarter of FY16 with the balance taken throughout the remainder of the fiscal year. The Company now expects annual savings on a pre-tax basis of approximately $4 million in fiscal 2016 and $11 million in fiscal 2017.
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