This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IntriCon Announces Strategic Restructuring To Accelerate Future Growth

IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced a global strategic restructuring plan designed to accelerate the company’s future growth by focusing resources on the highest potential growth areas and reduce costs by approximately $3.0 million annually.

Specifically, the plan includes:

  • Reducing investments in certain non-core professional audio communications product lines;
  • Aggressively transferring specific product lines from Singapore to IntriCon’s lower-cost manufacturing facility in Batam, Indonesia;
  • Reducing global administrative and support workforce;
  • Transferring the medical coil business from the company’s Maine facility to Minnesota to better leverage existing manufacturing capacity, and exploring alternatives for the remaining security and microphone business, including possible sale; and
  • Adding experienced professionals in value hearing health and also focusing more resources in medical biotelemetry.

“As a company, we needed to better align our cost structure with current lower revenue levels—a trend that is continuing in the second quarter,” said Mark S. Gorder, president and chief executive officer of IntriCon. “These initiatives allow us to consolidate operations, reduce our global manufacturing footprint, lower our costs and provide greater focus on our strategic plan: growing the value hearing health and medical biotelemetry opportunities that hold the greatest potential to drive shareholder value.

“While challenges remain in the conventional hearing health channel due to high device costs and inconveniences in the distribution channel, we’re seeing opportunities for alternative care models such as the insurance channel—as evidenced by our hi HealthInnovations program—and the personal sound amplifier product (PSAP) market. Devoting more talent and financial resources to these channels, as well as adding sales, marketing and channel expertise, will better position us for success.”

As part of the restructuring, IntriCon will complete a global workforce net reduction of approximately 35 administrative and support employees, resulting in immediate annual cost savings of $2.0 million. The majority of the staff reductions are immediate, except in the company’s Maine operation, where there will be a phased approach. Impacted employees will receive financial support and outplacement assistance.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs