Salt Lake-based Sonic Innovations Inc., a digital hearing aid and auditory testing equipment company, announced on Wednesday a net loss for the third quarter of 2005 and a management team reshuffling.
For the financial quarter ended Sept. 30, Sonic recorded net sales of $24.4 million, up 8 percent from the same quarter last year. However, the company reported a net loss for the quarter of $7.29 million, compared to a net loss of $660,000 for the third quarter of 2004. The company said the increased net loss included an asset impairment charge, which is expected to be $5.76 million, and a restructuring charge of $1.19 million. Excluding the asset impairment and restructuring charges, the third quarter 2005 net loss would have been $349,000, the company stated.
"Our hearing aid business was profitable in the third quarter, but losses in our Tympany business drove net earnings into negative territory," said Andrew G. Raguskus, the company's former president and chief executive, who was named chairman of the board Wednesday. "As a result, we have restructured Tympany and have recorded associated asset impairment and restructuring charges. New hearing aid products are positioned to help drive sales growth worldwide."
Raguskus replaced Kevin J. Ryan, who will remain a director of the company.
Samuel L. Westover was named Sonic's new president and CEO, effective immediately, the company announced Wednesday.
Westover has been a member of Sonic's board of directors since 2002. Most recently, he served as president and chief executive of CIGNA Dental and president of CIGNA HealthCare's small-business division.
In addition, Sonic announced that Craig McKnight has been elected to its board and will replace Westover as chairman of Sonic's audit committee and a member of its governance and nominating committee.