Martek Biosciences Corp (Nasdaq: MATK) announced immediate plans to restructure its plant operations to reduce manufacturing costs and operating expenses starting in Q1 2007.
When fully realized, the restructuring is expected to result in gross profit margin improvement, primarily from eliminating idle facility charges.
“These actions, while difficult, are essential to Martek becoming a more efficient and stronger company, and should enable the company to better serve its customers and capitalize on growth opportunities for years to come,” said Steve Dubin, CEO of Martek Biosciences Corporation. “In part, this restructuring was made as a result of improvements in Martek’s production processes over the last three years that have resulted in meaningful productivity improvements.”
Revenue Guidance Update
Martek’s fourth quarter revenue is now expected to be approximately $66 million, which is at the high-end of the previously provided guidance range of $63 million to $66 million. Total revenue for FY’06 is now expected to be near $269 million (+24% vs. fiscal year 2005), which is also at the high-end of the company’s previously provided guidance range.
Martek is a leading manufacturer of a vegetarian form of DHA omega-3 products, used in foods, beverages, infant formula.
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