SAN FRANCISCOFabless semiconductor vendor Conexant Systems Inc. has eliminated approximately 140 jobsor 11 percent of its work forceas part of a cost-reduction plan expected to save the company about $4 million per quarter.
Conexant (Newport Beach, Calif.) posted a GAAP net loss of $17.7 on revenue of $86.5 million for its first quarter of fiscal 2009, ended Jan. 2. The net loss compares with a net income of $917,000 for the prior quarter and a net loss of $9.2 million for the same period a year earlier, the company said.
The GAAP net loss for the quarter included $7 million in restructuring charges related to facilities formerly occupied by the Conexant's broadband media processing business, which was sold last year to NXP Semiconductors, Conexant said.
GAAP operating loss was $400,00 and GAAP net loss from continuing operations was $10.5 million, or 21 cents per share, Conexant said.
"The worldwide economic crisis that has impacted the financial performance of many of our peers, customers, and suppliers has dramatically affected us as well," said Scott Mercer, Conexant's chairman and CEO, in a statement.
Conexant said it recently eliminated about 140 positions worldwide, which represented a total headcount reduction of more than 11 percent. The company also announced that it has suspended the company match for the domestic 401(k) plan and imposed restrictions on spending.
Conexant said it expects revenue for the current quarter to be between $68 million and $74 million, or 14-to-21 percent lower sequentially, as a result of the effects of the overall economic environment. The company expects to report an operating loss for the quarter of $3 million to $7 million, or 18 to 26 cents per share.