BASi (Bioanalytical Systems, Inc.) has reorganized its U.S. operations as part of its ongoing plan to reduce expenses, improve customer service and increase profitability. In addition to the realignment of operational and administrative responsibilities to increase efficiency, the company has implemented a workforce reduction aimed at reducing costs. Through attrition and layoffs that occurred during the past 60 days, including those made today, BASi has reduced its workforce by 12%. The company anticipates that the headcount reductions will result in cost savings of more than $2.0 million in fiscal 2007. A charge of approximately $500,000 associated with employee severance will be taken in the fiscal year ending September 30, 2006.
Commenting on the reorganization, executive vice president Edward Chait said, "With our new direction in Business Development we have focused on increasing revenues from diverse customers to reduce our concentration risk. With this reorganization we expect improved efficiency in delivering our products and services that will enhance our progress to profitability."
As part of the reorganization, chairman and chief executive officer Peter Kissinger announced that Richard M. Shepperd has been elected to serve as interim chief executive officer to help BASi add rigorous business discipline to company operations. Mr. Shepperd is an experienced, customer-focused, results-oriented executive with a proven track record in the pharmaceutical industry. Dr. Kissinger noted, "Dick has been helping us with planning for fiscal 2007, and we were fortunate to persuade him to stay on for the implementation. I am a scientist and an entrepreneur. As such, I will continue as chairman of the board and chief scientific officer, but let there be no doubt about it, Mr. Shepperd will be running and refining operations with our team of officers. In this competitive climate we need experienced help to drive profitability. Dick Shepperd is the right person to help us reorganize and think in new ways."