SAN FRANCISCO—Chip maker CSR plc said Monday (Dec. 12) it would discontinue investment in the digital TV and silicon tuner product lines it recently acquired when it bought Zoran Corp. and lay off about 800 employees by the end of the second quarter of 2012.
CSR (Cambridge, U.K.) said it expects to save about $60 million per year as a result of these and other changes. The company expects to take a charge of about $10 million for restructuring by the end of the second quarter of 2012.
CSR said it is making the cuts to sharpen the company's focus on areas where it has leadership positions and the ability to deliver differentiated platforms and products. The company said it would continue to support and deliver products to customers in these areas, and will continue to develop connectivity, other home entertainment products and peripherals related to the DTV market.
"We continue to take a disciplined approach to capital allocation and cost control," said Joep van Beurden, CEO of CSR, in a statement. Beurden said CSR would focus investments in areas where the company has a strong position, including the areas of voice and music, automotive infotainment, cameras, document imaging, gaming and Bluetooth low energy devices.
“We will also continue to invest in a range of products for attractive growth markets including handsets and computer peripherals," Beurden said.
CSR said it expects to have about 2,400 employees at the end of the second quarter of 2012, down from about 3,200 employees at the end of September. The company said it continues to expect fourth quarter revenue to be between $230 million and $250 million.
Looks like CSR is much broader than I thought. I only knew them through their Bluetooth chips. Their chips and tools are nice. I think business wise is a smart decision to focus. It’s good to have a broad portfolio but not too broad. However, is always sat to know that people are getting laid-off. Be able to develop a company is a gigantic and praise worthy venture.
CSR get patents, IP and design teams to start with.
Zoran had lots of video processing that isn't TV or Tuner specific like "DVD Multimedia Processors". Also, while Cisco discontinued the "Flip" video camera using Zoran COACH chips the technology should be a drop in for a mobile phone platform.
There are also things like sourcing agreements that can have a big impact.
Perhaps Zoran had advantageous wafer pricing/tech contracts.
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