AngioDynamics Announces Operational Excellence Program
Company Expects to Save $15 Million to $18 Million Over the Next Three Years
ALBANY, N.Y., Dec. 5, 2013 (GLOBE NEWSWIRE) -- AngioDynamics (Nasdaq:ANGO), a
leading provider of innovative, minimally invasive medical devices for
vascular access, surgery, peripheral vascular disease and oncology, announced
today a Company-wide operational excellence program designed to save $15
million to $18 million during the course of the next three years.
The initiative is expected to create greater efficiencies and drive business
performance improvements by focusing on several key elements, including
product rationalization, lean initiatives, supply chain optimization and
enterprise resource planning (ERP) implementation. The plan also incorporates
the consolidation of the Company's New York plants to establish a single
manufacturing center of excellence in Glens Falls and a distribution center of
excellence in Queensbury.
AngioDynamics plans to invest $5 million to $7 million in its Glens Falls
facility, on top of approximately $2 million in one-off charges, to increase
its capacity to accommodate the additional lines coming from the Queensbury
plant, where the Company will be maintaining its world-class distribution
facility. During the course of the three-year program it is expected that the
Company's New York employee base will be reduced by approximately 80-100
positions as a result of the New York reorganization.
"Our operational excellence program is focused on creating an organization
that is more efficient within the context of its current assets," said George
Bourne, Senior Vice President and Chief Technology & Operations Officer. "We
believe bringing our New York manufacturing teams under one roof and
centralizing our distribution center will result in the propagation of best
practices and continuous improvement techniques, while also contributing to
our overall efforts to reduce costs."
"The three-year savings of $15 million to $18 million will build on our
initial integration savings of $10 million in fiscal 2013 and $5 million in
fiscal 2014," added Mark Frost, Executive Vice President and Chief Financial
Officer. "This is an opportunity to not only bolster the gains earned through
recent acquisitions and the execution of our strategic plan, but to invest in
our New York team to position us well for the future by proactively
anticipating, and reacting to, the rapidly changing healthcare industry."
AngioDynamics Inc. is a leading provider of innovative, minimally invasive
medical devices used by professional healthcare providers for vascular access,
surgery, peripheral vascular disease and oncology. AngioDynamics' diverse
product lines include market-leading ablation systems, fluid management
systems, vascular access products, angiographic products and accessories,
angioplasty products, drainage products, thrombolytic products and venous
products. More information is available at www.AngioDynamics.com.
AngioDynamics and the AngioDynamics logo are trademarks and/or registered
trademarks of AngioDynamics Inc., an affiliate or a subsidiary.
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements regarding
AngioDynamics' expected future financial position, results of operations, cash
flows, business strategy, budgets, projected costs, capital expenditures,
products, competitive positions, growth opportunities, plans and objectives of
management for future operations, as well as statements that include the words
such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes,"
"seeks," "estimates," "optimistic," or variations of such words and similar
expressions, are forward-looking statements. These forward looking statements
are not guarantees of future performance and are subject to risks and
uncertainties. Investors are cautioned that actual events or results may
differ from AngioDynamics' expectations. Factors that may affect the actual
results achieved by AngioDynamics include, without limitation, the ability of
AngioDynamics to develop its existing and new products, technological advances
and patents attained by competitors, future actions by the FDA or other
regulatory agencies, domestic and foreign health care reforms and government
regulations, results of pending or future clinical trials, overall economic
conditions, the results of on-going litigation, the effects of economic,
credit and capital market conditions, general market conditions, market
acceptance, foreign currency exchange rate fluctuations, the effects on
pricing from group purchasing organizations and competition, the ability of
AngioDynamics to integrate purchased businesses, including Navilyst Medical
and its products, R&D capabilities, infrastructure and employees as well as
the risk factors listed from time to time in AngioDynamics' SEC filings,
including but not limited to its Annual Report on Form 10-K for the year ended
May 31, 2013. AngioDynamics does not assume any obligation to publicly update
or revise any forward-looking statements for any reason.
CONTACT: Company Contact:
Mark Frost, CFO
(800) 772-6446 x1981
Investor Relations Contacts:
EVC Group, Inc.
Michael Polyviou/Robert Jones
(212) 850-6020; (646) 201-5447
EVC Group, Inc.
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