So what’s new at Boston Scientific?
The Massachusetts company noted late Wednesday that it was initiating a 2014 Restructuring Program by which between 1,100 to 1,500 positions will be cut.
Natural attrition and targeted layoffs of specific positions will help save the company p re-tax operating expenses by about $150 million to $200 million by the end of 2015.
No details were given about where the positions will be cut.
In the quarter ended Sept. 30, revenue was $1.74 billion, flat compared with the same quarter the year before. The company dramatically reduced its loss to $5 million or 0 cents per diluted share, compared with a loss of $664 million or 48 cents per diluted share.
Boston Scientific’s CEO, Mike Mahoney, said the company’s earnings per share, excluding charges and other items was 17 cents per share in the quarter, higher than the 14-16 cents per share range the company had provided earlier and higher than the consensus estimate of Wall Street analysts. Several analysts also considered that the company had a very strong quarter.
Mahoney also noted that the company is seeing market stabilization of the cardiac rhythm management market, a big source of revenue for all the major device makers.
|Hear from a Boston Scientific R&D engineer from the company's CRM division at the MD&M Minneapolis Conference, Oct. 29|
An analyst from healthcare investment bank Leerink Swann believes Boston Scientific is showing success in its turnaround strategy by recording the second consecutive quarter where the company achieved positive organic growth. But Danielle Antalffy questions whether the company can sustain positive growth.
Meanwhile, Thursday the company announced that Capello is planning to leave Boston Scientific at the end of the year, which surprised at least one analyst given that the company is just beginning to turn itself around.
Capello will remain as a senior adviser until the middle of May to help his successor Daniel Brennan have a smooth transition. Brennan is currently Boston Scientific’s controller and senior vice president. He noted that his departure should not be considered as a sign that he thinks the prospects of the company are dim.
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