Posted By: Technology Staff Editor In: Information Technology written by Mark LaPedus, courtesy of EE Times
SAN JOSE, Calif. -- Amid a loss for the quarter, RF Micro Devices Inc. is eliminating all product development expenses in select wireless areas, including cellular transceivers and GPS solutions. The move will impact about 350 jobs at the chip maker.
RF Micro, which had a layoff last month, is now eliminating approximately $75 million in annual expenses by reducing investments in various wireless product segments. The company will continue to support current generations of its Polaris transceiver products at leading customers.
The company said it ''is engaged in discussions with strategic and financial buyers for some of these assets, but is not commenting currently on any potential transactions, including possible proceeds.''
RF Micro will take $40-to-$50 million in restructuring charges over the next two quarters. Meanwhile, the company said it is focusing its investments on RF components, including cellular front ends and other cellular handset components.
The company reported sales of $221.9 million in the quarter, compared to $257.3 million a year ago. It reported a loss of $16.5 million in the period, compared to a profit of $30.1 million a year ago.
Revenue in the June quarter is currently expected to be in the range of $230 million to $245 million, representing 4-to-10 percent sequential growth. GAAP net loss in the June quarter is currently expected to be in the range of minus $0.03 to minus $0.04 per diluted share and does not reflect any restructuring charges.
Last month, RF Micro said it would consolidate its U.S. production test facilities for high-volume cellular products--a move that impacted 80 jobs.
Late last year, Filtronic plc sold its compound semiconductor division, FCSL, to RF Micro for about $25 million in cash. The deal provided for RF Micro to retain the fab at Newton Aycliffe, England, which is already a supplier of GaAs pHEMT semiconductors to RF Micro.
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