* Company to Record Charge for 2.5 Percent Headcount Reduction
* Management Reaffirms Its Third Quarter and Full Year Earnings Guidance
IRVINE, Calif., August 1 -- Edwards Lifesciences Corporation (NYSE: EW), a global leader in medical technologies to treat advanced cardiovascular disease, announced today that it expects to record an estimated $8 to $10 million after-tax charge in the third quarter resulting from an approximately 2.5 percent reduction of the company's workforce of 5,000 employees worldwide. The decision to streamline operations will enhance Edwards' ability to achieve its near-term earnings growth goals, and further position the company for revenue growth.
""Since becoming an independent, publicly traded company in 2000, Edwards Lifesciences has taken several significant steps to transform into a faster- growing, more profitable company,"" said Michael A. Mussallem, Edwards' chairman and CEO. ""We have consistently increased our underlying growth rate by focusing on our core franchises, divesting less strategic operations, and consolidating our Japan business. We also have been investing aggressively to further accelerate our growth rate, and the investments we have been making in R&D are beginning to show tangible results as we expect a record number of new product launches in the second half of this year.
""These actions are difficult because we value our people very much,"" Mussallem continued, ""However, it is also important to ensure that our resources are prioritized to attain our aspirations."" He added that there was very little impact on either the company's sales or hourly manufacturing employees.
Mussallem also said that Edwards remains on track to achieve its previously stated 2003 goals of growing net income 14 to 16 percent, generating free cash flow of $85 to $90 million, and increasing R&D investments at or above the underlying total sales growth rate. Finally, the company remains comfortable with its previously stated earnings guidance for the third quarter, and the high end of the range of analysts' consensus earnings estimates for the full year 2003.
About Edwards Lifesciences
Edwards Lifesciences is a leader in advanced cardiovascular disease treatments and the number-one heart valve company in the world. Headquartered in Irvine, Calif., Edwards focuses on four main cardiovascular disease states: heart valve disease, coronary artery disease, peripheral vascular disease and congestive heart failure. The company's global brands, which are sold in approximately 100 countries, include Carpentier-Edwards, Cosgrove-Edwards, Swan-Ganz and Fogarty. Additional company information can be found at www.edwards.com .
This news release includes forward-looking statements that involve risks and uncertainties including those related to achieving near-term earnings growth goals, accelerating revenue growth, product launches expected in the second half of the year; the achievement of 2003 goals for R&D investment, net income growth and free cash flow generation; and more generally, the ability to generate growth through product development and/or acquisition; the ability to generate and maintain sufficient cash resources to increase investment in growth opportunities, repay debt or repurchase shares; the impact of foreign exchange; timing or results of pending or future clinical trials; actions by the U.S. Food and Drug Administration and other regulatory agencies; technological advances in the medical field; product demand and market acceptance; the effect of changing economic conditions; and other risks detailed in the company's filings with the Securities and Exchange Commission. These forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements.
Edwards Lifesciences and Edwards are trademarks of Edwards Lifesciences Corporation. Carpentier-Edwards, Cosgrove-Edwards, Fogarty, and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the U.S. Patent and Trademark Office.
Contact Information :
Media, Barry R. Liden, +1-949-250-5070
, or Investors, David K. Erickson, +1-949-250-6826, both of Edwards Lifesciences Corporation