Lumenis Ltd. (Nasdaq: LUMEE) announced yesterday that it had reached an agreement with RH Technologies Ltd. to outsource its manufacturing and service operations at its Pleasanton, CA site.
Currently Lumenis' landmark Lightsheer System for hair removal, and the Relume and B-Clear Systems for aesthetic and medical-aesthetic applications, are being manufactured in Pleasanton. This agreement is one of the milestones of the company's turnaround plan, whereby Lumenis intends to close sites and reduce costs. The company expects to save approximately $5 million over the next four years as a result of this agreement. The R&D and marketing activities previously based in Pleasanton will be transferred to the company's offices in Santa Clara, CA.
Lumenis president and CEO Avner Raz said, "RH has a proven track record in running manufacturing operations for medical devices and other high tech products. This new agreement will allow us to reduce costs while maintaining the expertise and highest standards developed over the years in Pleasanton, and at the same time providing continuation of employment for our employees." RH Technologies Ltd. is considered to be the largest contract manufacturer in Israel. RH will operate at the existing site in Pleasanton, and will supply Lumenis with products and the related parts and service. The agreement is for an initial term of four years and covers approximately 45 employees who will be transferred to RH. RH will also purchase certain inventory from Lumenis. The transaction is expected to close next week.
Lumenis develops, manufactures, and markets state-of-the-art proprietary laser and intense pulsed light devices. Its systems are used in a variety of aesthetic, ophthalmic, surgical and dental applications, including skin treatments, hair removal, non-invasive treatment of vascular lesions and pigmented lesions, acne, psoriasis, ENT, gynecology, urinary lithotripsy, benign prostatic hyperplasia, open angle glaucoma, diabetic retinopathy, secondary cataracts, age-related macular degeneration, vision correction, neurosurgery, dentistry and veterinary
Published by Globes [online] - www.globes.co.il - on 07 January 2004