Urohealth to Take Acquisition-Related Charges

NEWPORT BEACH — Urohealth Systems Inc. said Wednesday that it will take charges of $29.5 million in its fiscal second quarter for costs related to several recent acquisitions.

The maker of medical products said it will take a $25.5-million charge in the quarter ending Sept. 30 to write down incomplete research and development costs from the acquisition of Richard-Allan Medical Industries Inc. Urohealth bought closely held Richard-Allan for $55 million in cash and stock in August.

Separately, the company said it will incur $4 million in restructuring charges for the May acquisition of Intermed Inc., a closely held company based in Sparta, N.J., and the purchase of two product lines from other companies in March.

In the second quarter ended Dec. 31, 1995, the company reported a loss of $14.7 million, or $1.20 a share, on revenue of $11.6 million. The results included a restructuring charge of $5.5 million as well as merger costs of $3.4 million. (The company changed its fiscal year in March 1996.)

Urohealth also said it arranged $35 million in credit with Banque Indosuez to pay the cash portion of the purchase of Richard-Allan, which is based in Richland, Mich.