Wage, Job Cuts Burn Wayland Laser Maker
Amid a 19 percent revenue decline and a second quarter net loss more than five times greater than a year ago, Wayland-based Candela Corp. said it plans to cut jobs and reduce employee pay worldwide.
The company, which makes lasers used in cosmetic and other surgeries, will also close its Israeli operations and pay $3.85 million to settle class action and derivatives lawsuits filed against the company last year.
The company said revenue for its second quarter, which ended Dec. 27, was $28.8 million compared to $35.7 million for the same period the previous year. The company's net loss for the quarter was $25.3 million compared to a net loss of $4.6 million the previous year. Its operating loss increased from $4 million in the second quarter of last year to $9.1 million this year.
The layoffs, plant closures and the lawsuit settlement will result in $24.2 million in non-cash, pre-tax charges for the company.
Candela said it considered "strategic alternatives" with "several industry participants and investor groups" but decided to remain independent.
Candela executives were not available to discuss the extent of the company's wage and job cuts.
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