SAN JOSE, Calif. -- Discrete-chip maker Diodes Inc. has shut down a U.K.-based fab and laid off workers amid a loss.
''Due to current and future expectations for the overall economy, we have identified a number of expense reduction opportunities to optimize our cost structure across the organization,'' said Keh-Shew Lu, president and CEO of Diodes (Dallas), in a statement.
''These initiatives include accelerating our plan to integrate the Zetex products into our manufacturing facilities, reducing manufacturing process and raw material costs as well as realigning our product development and wafer fabrication organizations, including a shut-down of our 4-inch fab line in Oldham, headcount reductions at our wafer fab in Kansas City and a hiring freeze at all other locations,'' he said.
A spokesman from Diodes said that the 4-inch fab line is being shut down. The company said that it will continue to invest in a 6-inch line in the U.K.
''This is actually not a new announcement, but a culmination of a long term plan for the Oldham, U.K. site since wafer manufacturing is being moved to a more advanced 6-inch fab facility on the same site -- an investment of around $7.5 million,'' the spokesman said.
Recently, Diodes acquired U.K.-based Zetex plc, a designer and manufacturer of high performance discrete and analog semiconductor solutions. Zetex had a fab in Oldham.
Zetex was originally the discrete business group of Ferranti Electronics and was sold to Plessey Semiconductors in 1988. A year later it was bought out by management and became Zetex Semiconductors plc.
Diodes also said revenue for the third quarter of 2008 increased 27.3 percent to a record $134.0 million as compared to $105.3 million reported in the third quarter of 2007 and increased 15.5 percent when compared to $116.0 million reported in the second quarter of 2008, which included one month of Zetex results.
Third quarter GAAP net loss was $2.9 million, or minus $0.07 per share, which included $14.8 million in net purchase price adjustments, consisting of a one-time non-cash $5.2 million inventory charge, a $0.2 million non-cash depreciation expense, a $7.9 million one-time non-cash write-off of acquired in-process research and development charges and $1.6 million in amortization of acquisition related intangible assets.
''For the fourth quarter of 2008, we expect market uncertainty to continue with an ongoing decrease in global demand, in particular for the consumer and computer markets, and estimate revenue to decline sequentially between 12 and 20 percent. We expect GAAP earnings per share to range between $0.07 and $0.13, which includes approximately $0.03 of purchase price accounting adjustments,'' he added.