UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 29, 1997
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Lukens Medical Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-11109 22-2429965
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(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation) Number)
3820 Academy Parkway North, NE, Albuquerque, New Mexico 87109
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (505) 342-9638
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(Former name or former address, if changed since last report)
Exhibit Index on Sequentially Numbered Page 4
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INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events.
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Registrant's press release dated December 29, 1997 is filed herewith as
exhibit 20 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
20. Press release of Registrant dated
December 30, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
LUKENS MEDICAL CORPORATION
(Registrant)
By: /s/ Robert S. Huffstodt
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Robert S. Huffstodt, President
and Chief Executive Officer
Dated: December 29, 1997
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EXHIBIT INDEX
Sequentially
Exhibit Numbered Page
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20. Press release of registrant dated
December 29, 1997. 5
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NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact: Robert S. Huffstodt
LUKENS ANNOUNCES CHARGE TO 1997 EARNINGS
ALBUQUERQUE, NM, December 29, 1997 --- Lukens Medical Corporation (NASDAQ-LUKN)
today announced that it expects to take a charge against 1997 net earnings of up
to $3.5 million. A substantial portion of the charge is an inventory write-off
relating to the discontinuation of many low-margin or slow-moving suture
products based on the Company's desire to limit its sales activities to
selected, more profitable markets. The Company has also revised its inventory
costing policies, and reduced the valuation of certain investments, which add to
the magnitude of the charge. The announcement came at the conclusion of a major
strategic review initiated by the Company's new Chairman, Robert L. Priddy.
Earnings from ongoing operating activities, which the Company expects to be
ahead of 1996, are not impacted by the charge.
Robert S. Huffstodt, President & CEO, said, "We all agree that the time has come
to take a more conservative view of the markets we are trying to penetrate, as
well as the breadth of the product lines that we offer. For a long time, we have
tried to address every suture niche and need. For example, our many attempts to
grow a worldwide cardiovascular suture business have met with only sporadic and
limited successes, while demanding a large and expensive inventory, which is
then subject to obsolescence issues as well. This is no longer going to be our
strategy as we will eliminate hundreds of product codes from our line, and focus
on serving our key customers better. At the same time, we will be focusing on
the more profitable lines, both in sutures, and in our non-suture businesses. By
redirecting many of our resources, we see ourselves better able to accelerate
the impact from our India venture, for example, where each needle we make
increases our gross margin significantly. In fact, all of the steps we are
taking are aimed at improving cash flow and long-term profitability."
Added Robert L. Priddy, Chairman, "I see both this charge and this change in
focus as critical steps in our progress toward becoming a true growth company.
By maximizing our attentions and our resources on the truly profitable and
significant opportunities we have facing us, we stand a much better chance of
success. I look forward to 1998 and expect that the steps we have taken to
re-focus the Company will really begin to show results. At the same time, we
will continue to review all ways to enhance shareholder value."
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"Safe Harbor" Statement under the private Securities Litigation Reform Act of
1995: The statements which are not historical facts contained in this release
are forward looking statements that involve risks and uncertainties, including,
but not limited to, the ability of the Company to continue to obtain financing
for its activities, the effect of economic conditions both domestically and
internationally, the impact of competition, the ability of joint venture
partners and distributors to sell the Company's products, changes in customer
preferences and trends and other risks detailed in the Company's Securities and
Exchange Commission filings.
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