Vitesse cuts 70 jobs, posts another loss

SAN JOSE, Calif. — Amid another loss in the quarter, Vitesse Semiconductor Corp. on Monday (Jan. 23) said that it has implemented a major cost-cutting program, including the elimination of jobs.

This restructuring involved the closure of one design facility and the termination of approximately 70 employees. In connection with this restructuring, communications-chip maker Vitesse recorded a charge for severance, fixed asset impairment and lease termination costs in the amount of $1.3 million.

Vitesse also said revenues in the first quarter of fiscal 2006 were $53.0 million, compared to $44.5 million in the first quarter of fiscal 2005, and $48.2 million in the fourth quarter of fiscal 2005.

On a generally accepted accounting principles (GAAP) basis, net loss for the first quarter of fiscal 2006 was $14.1 million, or minus $0.06 loss per share, compared to net loss of $17.2 million, or minus $0.08 loss per share, in the first quarter of fiscal 2005 and net loss of $68.9 million, or minus $0.32 loss per share, in the fourth quarter of fiscal 2005.

Vitesse's President and CEO, Lou Tomasetta, painted a mixed picture. "I am pleased to see our revenues grow 10 percent sequentially to $53.0 million in the first fiscal quarter in spite of the challenges we faced with longer assembly and test lead times,” he said in a statement.

"We saw operating expenses decline during the quarter as a result of the cost cutting measures that we had previously announced,” he said. “This will take us a step closer towards attaining profitability."