Martek Biosciences Corporation, the US group which produces DHA and EPA omega-3 ingredients, is to consolidate all its sales activities related to products for the food and beverage industry in a bid to streamline operations.
The company said it expected to take a one-off charge of around $1.5 million to cover the cost of redundancies and other expenses relating to the move, which will see the food and beverage sales team join Martek's other sales and marketing operations at the company's headquarters in Columbia, Maryland.
Jerry Keller, Martek's senior vice president of sales and marketing, will now be responsible for all of Martek's sales and marketing activities. Ten employees and consultants currently associated with the food and beverage industry sales will leave the company, including Mark Braman, executive vice president and head of sales to the food and beverage industry.
Martek also confirmed that it expected to post revenues of around $12 to $14 million in the third quarter ending 31 July, although net losses are expected to exceed the company's previous guidance of $2 to $2.5 million due to the $1.5 million restructuring charge. However, Martek said it did not expect the restructuring to negatively impact full year sales, which are likely to be around $45 to $47 million.
The restructuring will also mean a change to the terms of the purchase price provisions of its acquisition of OmegaTech, now known as Martek Biosciences Boulder Corporation. This acquisition was completed in April, but the share portion of the purchase price tied to net sales and gross profit margin objectives over the next 24 months has now been revised to extend the measurement periods by an additional six months.