CAMARILLO, Calif. -- Vitesse Semiconductor Corp. here today (July 22) announced it will shut down its wafer fab in Colorado Springs, Colorado, after it was unable to find a buyer for the plant.
The Camarillo-based company also formally exited the optical module business amid financial losses in its communications-chip business.
The company reported sales of $39.7 million in the third quarter, compared to $38.9 million in the third quarter of fiscal 2002. On a GAAP basis, net loss for the third quarter of fiscal 2003 was $95.0 million, or minus $0.47 loss per share, compared to net loss of $735.9 million, or minus $3.71 loss per share in the third quarter of fiscal 2002.
In the third quarter of fiscal 2003, the company decided to discontinue its line of optical module products due to continued depressed levels of demand for these products. The company is currently evaluating its options for this product line, including the possible sale to a third party of the related assets and operations.
Vitesse also decided to close its 6-inch gallium arsenide (GaAs) wafer fabrication facility in Colorado Springs by the end of September 2003. In connection with this decision, the company recorded a charge for severance and benefits in the third quarter of fiscal 2003 in the amount of $0.5 million.
"As discussed previously, for some time we have been evaluating alternatives for the Colorado Springs fab," said Vitesse President and CEO Lou Tomasetta said, in a statement.
"Over the past few quarters, we tried to find a suitable buyer for this facility but were unable to identify an economically viable opportunity. I am very disappointed to see us lose some of our most talented and hard-working employees at both of these facilities. However, these are decisions dictated by the economic realities of the difficult environment we are currently in, and we believe they are in the best interests of our shareholders," he said.