MANHASSET, N.Y. Storage and network semiconductor supplier Applied Micro Circuits Corp. announced Wednesday (July 27) it would reduce its 750-person workforce by 5 percent as part of a restructuring plan.
Applied Micro Circuits (San Diego, Calif.) also announced quarterly results for the first fiscal 2006 quarter. The company posted a net loss of $4.2 million, or 1 cent per share, on sales of $64.7 million, compared with $5.3 million, or 2 cents per share on sales of $64.2 million the previous quarter and $21.8 million or 7 cents per share on sales of $67.4 million in the year-ago quarter.
The company hopes to further improve its financial picture through the restructuring actions, expected to reduce operating expenses by $1 million per quarter starting the third fiscal 2006 quarter. AMCC will incur a $2 million to $3 million charge in the second fiscal 2006 quarter.
The headcount reductions are designed to eliminate job redundancies, said Kambiz Hoosmand, president and chief executive of Applied Micro Circuits, during a conference call with analysts. They are the latest changes at a company that has also seen extensive management transition over the past year, the most recent move the resignation
of chief operating officer Thomas Tullie in June. Tullie has not yet been replaced.
Hoosmand added during the call the company would increasingly focus its product development to address high-growth markets such as triple-play services in networks, high-growth storage markets such as Serial ATA (SATA), and embedded applications such as PowerPC and programmable SoC architectures.
For the second fiscal 2006 quarter, Applied Micro Circuits forecasts flat revenue, with gross margin of 60 to 61 percent.