SAN JOSE, Calif. Continuing to cut costs, Cirrus Logic Inc. on Monday (April 25) announced its intent to divest its digital video product line assets and focus operations around its analog, mixed-signal and embedded integrated circuits (ICs) for audio and industrial applications.
Cirrus Logic (Austin, Texas) has retained Lehman Brothers as its exclusive financial advisor in connection with a potential transaction involving the digital video product line assets.
Revenue associated with the digital video product line in the third fiscal quarter, ending Dec. 25, 2004, was $3.1 million or 7 percent of total revenue.
The move represents the latest cost-cutting measure for the company. In August of 2004, Cirrus said it was reducing its work force by 7 percent and will incur a $1.5 million restructuring charge in its second fiscal 2005 quarter ending in September.
In December, the company said it would reduce revenue guidance for the third fiscal 2005 quarter ending Dec. 25 and implement restructuring actions including reducing workforce and reorganizing its business across product lines rather than functions.