WAYLAND, Mass., Oct. 9 -- Candela Corp. plans to terminate Physician Sales & Service Inc. as a distributor when their agreement expires in October 2002 because of the "significant fluctuation" of the PSS World Medical Inc. unit's quarterly purchases under the agreement. Candela also said it notified PSS that it is in default of certain obligations that may lead to a termination of the deal before it expires next Oct. 2. Candela said it may hire additional direct sales staff to handle distribution of the aesthetic and medical laser systems.