Boston, MA 10/25/2013 (wallstreetpr) – It seems that the mistake of 2005 will continue to haunt Boston Scientific Corporation (NYSE:BSX) forever. The company’s profit and loss accounts have bled for last 8 years since the time company decided to purchase heart implant maker Guidant for an eye-popping $27 billion. And that was the last time company made a profit at annual level. The reason for same is that soon after this overvalued acquisition, the demand for such special heart implants tapered down.
Company has announced its plans to reduce its workforce by 1500 over the next two financial years. Company expects this to result in savings of about $200 million from this exercise. The money saved would be used to pare debts and partly fund company’s expansion plans. The last time company such an exercise, it had trimmed the workforce by almost 10% or 2400 in January this year.
On Thursday, company also declared its Q3 results to for financial year. Revenues have remained stable at $1.74 billion. But company has reported a loss of $5 million for the said quarter. Though it is a loss, it is still way better than what it bled in Q3 last year, when its losses were of tune of $665 million. But company has also said that if it was to remove the affects of one-time extra ordinary items, it would have resulted in a earnings per share of about 17 cents.
Though company’s shares tanked almost 6% after this announcement, the share prices have more than doubled in last one year and they are pretty close to a five year high. As per the analysts, there is still time left before optimistic calls can be issued for the company as it is facing increasing competition and gross margins which are on a downtrend. But some company enthusiasts have pointed towards lower and declining losses and have the view that it might be a good time to start accumulating shares of company for the long term.
