CNS Cuts Staff 25% Amid Restructuring

CNS Inc., the maker of Breathe Right nasal strips and other health-care products, said it has cut 20 jobs, or 25% of its work force, as it restructures.

CNS, based in Eden Prairie, Minn., said it recorded an immediate charge of $1.2 million, or 8 cents a share, in connection with the restructuring.

Employees whose jobs were cut will receive severance pay and help in finding other jobs, Chief Executive Marti Morfitt said.

“Our primary focus is on leveraging the highly successful turnaround in our Breathe Right business and returning the company to sustainable profitability,” Morfitt said. “We now have the scale and momentum to achieve those goals.”

CNS said the cost-cutting moves should save $2 million to $2.5 million annually.

The company also said it anticipates a loss of 16 to 18 cents a share for the current quarter. Analysts surveyed by First Call/Thomson Financial had estimated a 3-cent-a-share loss.

CNS expects sales for the second quarter ending June 30 to range from $14 million to $15 million, compared with $13.3 million in the same period last year.

Shares of CNS fell 45 cents to $4.30 on Nasdaq.