Restructuring charges put Wright Medical in the red in Q3 (Memphis Business Journal)
The implementation of compliance regulations has resulted in a decrease in third quarter sales for Arlington-based Wright Medical Group Inc.
The company’s sales for the third quarter decreased by 2.9 percent to $118.2 million, compared to $121.7 million during the third quarter of 2010. Year-to-date, the company’s sales are $386 million, 1.4 percent higher than the first nine months of 2010.
The company recorded a quarterly net loss of $16 million, or 42 cents per diluted share, which it directly attributes to $14 million in charges from a cost restructuring plan it announced Sept. 15. The plan resulted in the elimination of 80 jobs, including between 40 and 50 locally.
The company also announced the appointment of Robert Palmisano as its new CEO in September. Wright’s previous CEO, Gary Henley, resigned in April.
The company, which specializes in foot and ankle implant devices, was the subject of an investigation by the U.S. Department of Justice into violations of the federal Anti-Kickback statute. It was accused of entering into paid consulting agreements with orthopedic surgeons to ...
