China's Spreadtrum Communications Inc. has taken a number of measures to reduce its costs, including downsizing its headcount by approximately 15 percent from the third quarter level.
Citing the downturn, the baseband supplier also expects its fourth quarter revenue to be approximately $10 million, compared with revenue of $20 million in the third quarter of 2008.
''Due to ongoing difficulties in the Chinese economy, customers serving the Chinese mobile phone market are experiencing unusually weak demand for mobile phones,'' according to the Shanghai-based company. ''Consequently, customers are not able to fulfill their prior commitment to the company.
Spreadtrum's third quarter revenue was $20 million, down 50 percent sequentially and 48 percent year-over-year. Third quarter baseband revenue declined 52 percent sequentially and 45 percent year-over-year to $19 million, Spreadtrum said.
Saying conditions in the Chinese mobile phone market remain challenging, Spreadtrum originally said it expected fourth quarter revenue to be approximately flat or slightly better than the third quarter.