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February 21, 2008 |
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ADVANCED MEDICAL: To Reduce Workforce by 150 Positions To further enhance its global competitiveness, operating leverage and cash flow, the Board of Directors of Advanced Medical Optics Inc. on Feb. 12, 2008, committed to an additional plan to reduce its fixed costs. The additional plan includes a net workforce reduction of approximately 150 positions, or about 4% of the company's global workforce. In addition, AMO plans to consolidate certain operations, including the relocation of all activities at the Irvine plant, to improve its overall facility utilization. This additional plan includes workforce reductions and related expenses, outplacement assistance, facilities-related costs and accelerated amortization of certain long-lived assets. AMO expects to complete these additional activities in 2008 and estimates the total non-recurring pre-tax charges resulting from the additional plan to be in the range of US$25.0 million to US$30.0 million, substantially all of which will be incurred in 2008. The significant majority are expected to be cash expenditures. On Dec. 18, 2007, the company disclosed that it would relocate its femtosecond laser manufacturing operations from the Irvine plant to its excimer laser and phacoemulsification manufacturing facility in Milpitas, California, as well as the the assembly of IntraLase disposable patient interfaces from the Irvine plant to AMO's facility in Puerto Rico. About Advanced Medical Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/ -- develops, manufactures and markets ophthalmic surgical and contact lens care products. Sales for the twelve months ended June 24, 2005 were approximately US$921 million. The company has operations in Germany, Japan, Ireland, Puerto Rico and Brazil. * * * As reported in the Troubled Company Reporter-Europe on Oct. 12, 2007, Moody's Investors Service downgraded Advanced Medical Optics, Inc.'s Corporate Family Rating and Probability of Default Rating to B2 from B1. The rating outlook was revised to stable. Ratings hold to date. |
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