WOBURN, Mass. -- Continuing its efforts to cut costs, wireless-chip startup Skyworks Solutions Inc. late today announced plans to shift its indium-gallium-phosphide (InGaP) manufacturing and process lines from Sunnyvale to Newbury Park, Calif.--a move that will impact 11% of its workforce, or 450 employees.
When completed, the combination of these actions will reduce the company's worldwide headcount from 4,200 to 3,750 employees. This also includes 1,900 employees located at the company's assembly and test operation in Mexicali, Mexico.
Late last year, Alpha Industries Inc. and Conexant Systems Inc.'s wireless IC business announced plans to merge. The combined wireless-chip company, to be called Skyworks Solutions, last month officially became a new and public company.
And in its first day as an independent company, Skyworks announced that it would reduce its headcount by 8% and consolidate its manufacturing sites in an effort to cut costs. At the time, the company consolidated its manufacturing and test operations in Maryland and Massachusetts, thereby relocating its assembly operations to a facility in Mexicali (see June 26 story ).
The moves are aimed to cut costs amid losses in its operations. Today, the company announced revenues of $113 million, and a net loss of $182 million, or minus $1.92 per share, for the third quarter of fiscal 2002, which ended on June 28, 2002. This compares to sales of $51 million and a loss of $142, or minus $1.64 a share, in the like period a year ago.
"On a pro forma basis, assuming Alpha and Conexant's wireless business were together throughout the entire quarter, revenues would have been $137 million, up 7% sequentially, with a $19 million operating loss, excluding one-time items, in line with the guidance that both businesses established at the beginning of the quarter," said David J. Aldrich, Skyworks' president and chief executive, in a statement.
"Overall I am extremely pleased with the performance of our newly combined business over the past few months, particularly given that we successfully completed the many merger-related tasks within the aggressive timetable set forth back in December," he said.
The company is looking to become profitable by year's end. "Based on our current book-to-bill of 1.14, we expect sequential revenue growth of approximately 10% to $150 million in the September-ending quarter," Aldrich said.