In a move that Luther Medical Products Inc. predicts will make it profitable before the end of summer, the Santa Ana-based catheter maker said that it has acquired a neurological diagnostic equipment manufacturer for cash and stock.
Ron Luther, Luther Medical's president, declined to say how much his company paid for Neuro Diagnostics Inc. of Garden Grove.
However, the price included 300,000 shares of Luther Medical stock, he said. Traded in the over-the-counter market, Luther Medical closed at a bid price of $1.0625 a share Monday.
Neuro Diagnostics will generate $2.5 million in revenues this year, boosting Luther Medical's anticipated 1987 revenues to $3.6 million.
More importantly, Luther said, the deal will enable struggling Luther Medical be profitable within two months.
Neuro Diagnostics has been losing money, but Luther said he plans to impose cost-cutting measures on the company, which initially will be operated as an independent division of Luther Medical.
Already, Neuro Diagnostics's work force has been slashed by half to less than a dozen, Luther said. The manufacturing will be farmed out to other companies, and prices of some products will be raised, Luther added.