SAN DIEGO, Sept. 29 /PRNewswire/ -- ThermoTrex Corporation (Amex: TKN) announced today that its ThermoLase Corporation subsidiary will record aftertax restructuring and other charges totaling approximately $15 million in its fourth fiscal quarter, ending October 3, 1998.
A charge of approximately $8.3 million will be incurred as a result of the company's decision to close three of its domestic Spa Thira locations along with the spa in France. An additional charge of $6.7 million will be incurred to write off certain tax assets, primarily loss carryforwards. These charges will reduce fourth quarter 1998 diluted earnings per share by approximately $.79. The company estimates that these actions will result in fiscal 1999 operating savings of approximately $2 million.
ThermoLase will close its spas in Miami and Palm Beach, Florida, and in La Jolla, California. The remaining 11 domestic spas will be converted into full- service, luxury day spas, under the Greenhouse name.
ThermoTrex Corporation manufactures general-purpose and specialized X-ray equipment as well as minimally invasive breast-biopsy systems. In addition, the company offers personal-care products and laser-based hair-removal services. ThermoTrex also conducts advanced-technology R&D and is currently developing a laser communication system, products for the medical imaging and avionics markets, and is pursuing industrial applications for its advanced- materials technology. ThermoTrex is a public subsidiary of Thermo Electron Corporation. More information is available on the Internet at http://www.thermo.com/subsid/tkn1.html.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include those set forth under the heading "Forward-looking Statements" in Exhibit 13 to the company's annual report for the fiscal year ended September 27, 1997. These include risks and uncertainties relating to: product development and commercialization, market acceptance, government regulation and healthcare reform, patient reimbursement, competition, management of growth, ability to attract qualified personnel, intellectual property rights and litigation, product liability, dependence on significant OEM relationships, risks associated with the company's acquisition and spinout strategies, and the potential impact of the year 2000 on processing date- sensitive information.
Investor: 781-622-1111, or Media Contact: 781-622-1252
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