SLAB Spacelabs Regs

RNS Number:0498Q
Spacelabs Healthcare Inc.
24 January 2007

Spacelabs Healthcare Trading Update

LOS ANGELES, CA -- (MARKET WIRE) -- January 24, 2007 -- Spacelabs Healthcare,
Inc., (LSE: SLAB), issued a trading update today ahead of announcing its interim
results for the first half of fiscal 2007.

For the first half of fiscal 2007, Spacelabs Healthcare expects to announce
revenues of approximately $111.0 million, a decrease of approximately 1% when
compared to $112.0 million reported for the first half of fiscal 2006. Excluding
the revenues contributed by Del Mar Reynolds, acquired July 2006, revenues are
expected to decline by approximately 13% compared to the comparable period of
the prior year. The year on year decrease in revenues is primarily attributable
to weak sales in the U.S. which is historically a high margin market for the
Company. The Company expects to report an operating loss for the first half of
fiscal 2007 and will miss both the first half and full fiscal year published
analyst forecasts for 2007.

The Company has undertaken steps in order to integrate the recent acquisition of
Del Mar Reynolds and to eliminate redundancies in manufacturing and
administrative areas. To date, the Company has identified approximately $10
million of annualized cost savings including a reduction of approximately 8% of
its global workforce along with the closing and consolidation of five facilities
in multiple locations. These cost-cutting measures have already commenced and as
such the Company expects to realize cost savings of approximately $2 to $3
million net of associated restructuring costs during the second half of fiscal
2007 with the full benefit being realized in fiscal 2008.

In addition, the Company after analyzing its product lines divested certain
loss-generating non-core operations. This divesture was effective January 1,
2007 and these operations accounted for total revenues of approximately $8
million in fiscal year 2006.

Spacelabs Healthcare CFO, Nikhil Mehta, said, "The Company remains confident in
the underlying strength of our business and strategy. Our second quarter orders
in North America were the highest in five years and significantly higher than
the first quarter. However, not all orders received were shippable within the
period and as a result while our sales were sequentially higher than the first
quarter they were not enough to meet market expectations. We have undertaken
actions across the Company to aggressively integrate DMR and to identify
additional redundancies in our manufacturing and administrative areas. We
believe that as a result our Company will be fiscally stronger and better
positioned to benefit from growth. As such, we expect to have a stronger
performance in the second half of the fiscal year."

Spacelabs Healthcare CEO, Deepak Chopra, said, "Market fundamentals within North
America do not appear to have changed from historical levels. As such, we remain
confident in our business. We expect that the second half of the fiscal year
will benefit from the recent introduction of our anesthesia products in the
U.S., the launch of our low acuity monitor and the aggressive integration of the
diagnostic cardiology product line. Additionally, we should begin to see the
benefits of the aforementioned cost-cutting measures we have undertaken to
eliminate redundancies in our manufacturing and administrative areas. We will
continue to evaluate strategies to generate additional cost reductions and
margin improvements while we focus on our core product offerings within patient
monitoring and connectivity, anesthesia delivery and ventilation, diagnostic
cardiology and clinical trial services."

About Spacelabs Healthcare

Spacelabs Healthcare, Inc. (www.spacelabshealthcare.com) is an international
developer, manufacturer and distributor of medical equipment and services
including patient monitoring solutions, anesthesia delivery and ventilation
systems, diagnostic cardiology solutions and supplies and accessories selling to
hospitals, clinics and physicians offices. Additionally, the Company provides
ECG laboratory services to pharmaceutical companies undertaking clinical trials,
whereby patient ECG data is recorded analyzed, tabulated and interpreted.

The Company employs approximately 1,250 personnel in offices located in the UK,
Canada, India, France, Germany, Finland, Singapore and the United States.

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements include information
regarding the company's expectations, goals or intentions about the future,
including, but not limited to, the company's predictions about revenues, an
operating loss, cost-cutting measures and future product sales. The actual
results may differ materially from those described in or implied by any
forward-looking statement. In particular, the company has not yet undertaken
certain of the cost-cutting measures it has identified some may not ultimately
be implemented or realizable by the company. In addition, current expectations
regarding sales of anesthesia systems, low acuity monitors, cardiology and other
products may not ultimately prove accurate. Other important factors are set
forth in the Securities and Exchange Commission filings of OSI Systems, Inc. All
forward-looking statements speak only as of the date made, and the company
undertakes no obligation to update these forward-looking statements.

For further information, please contact:

Spacelabs Healthcare, Inc.
Tel: + 1 310 717 9182
Jeremy Norton
Director of Investor Relations




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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