In connection with the company's strategy to develop a next generation catheter, company management recently developed an end-of-life plan for its Prostatron control units and Prostaprobe treatment catheters resulting in a non-cash charge of $6.4 million being recorded in the fourth quarter of fiscal 2007 for the impairment of long lived assets in accordance with FASB Statement No.
"Accordingly, it has become evident that the Prostatron line will have a limited future life.
"The non-cash long lived asset impairments and inventory write-downs related to Prostatron will result in annual savings of $0.7 million in amortization expense and our recent 7% reduction-in-force will reduce annual expenses by nearly another $0.8 million.
Urologix acquired this patent in 2000 as part of the acquisition of the Prostatron product line from EDAP TMS S.A.
Urologix markets its products under the Targis and Prostatron names.
The
Prostatron is a computer-driven system designed to treat disorders of the prostate by raising the obstructing tissue temperature to therapeutic levels (45 to 50|degrees~C).
With this support, a healthy supply of both
Prostatron and Targis control units, and increased reimbursement in the physician's office and hospital, we anticipate a strong second half of fiscal 2002."