Heartport to Cut Work Force and Production

Heartport Inc. said it plans to cut a third of its 380 employees, scale back manufacturing and take an unspecified restructuring charge in the second quarter to cuts costs and return to profitability. The Redwood City maker of cardiac surgery systems also named Frank Fischer to the post of chief executive, succeeding company founder, Chairman and CEO Wesley Sterman, who will continue to serve as Heartport’s chairman. “We are taking these actions now to give Heartport both the experienced leadership and time we need to fully realize the large market opportunity that exists,” Sterman said in a statement. Heartport shares this week fell to a record low of $9.38 amid concern that doctors have been slow to adopt the company’s minimally invasive Port-Access surgery systems, which can help surgeons fix or replace heart valves while speeding patient recovery. On Thursday, the shares rose 31 cents to close at $10.19 on Nasdaq. The company said it will disclose its restructuring charge in July, when second-quarter results are released. It also said it plans to cut general and administrative expenses, send more clinical training specialists to work directly in hospitals with surgical teams and focus research and development on making Port-Access procedures easier and faster. Heartport last month reported a first-quarter loss of $13.1 million, or 56 cents a diluted share. Sales of Heartport’s instruments, which let surgeons perform some heart surgeries without cracking open the rib cage, totaled $7.5 million during the quarter.