SAN JOSE, Calif. Looking to cut costs, communications-chip maker Integrated Device Technology Inc. (IDT) on Wednesday (Jan. 26) announced plans to cut 240 positions in North America.
IDT (Santa Clara, Calif.) also announced the consolidation of the company's Northern California operations, including its Salinas unit, into its new San Jose-based corporate headquarters. In addition, the company is centralizing and streamlining a number of manufacturing support, sales, IT and R&D positions.
Overall, this reduction in force will result in the elimination of approximately 240 positions in North America, with roughly 50 percent implemented as of Wednesday, while the balance will be transitioned over the next few quarters. The combined effects of these measures are projected to save approximately $5-to-$6 million per quarter.
"While the actions we are taking are quite painful, we need to ensure that our resources are dedicated to those areas that will best drive a healthy future for our company," said Greg Lang, president and CEO of IDT, in a statement.
IDT also said revenues for the third fiscal quarter were $95.7 million, a decrease of 1 percent compared to the second quarter of fiscal 2005 and an increase of 9.8 percent from the third quarter of fiscal 2004.
Including certain costs, charges and gains in accordance with GAAP, the company reported net income of $3.3 million, or $0.03 per diluted share, in the third quarter of fiscal 2005 compared to net income of $8.9 million, or $0.08 per diluted share, in the second quarter of fiscal 2005.
On a GAAP basis, the company reported net income of $2.3 million, or $0.02 per diluted share, for the third quarter of fiscal 2004. The second fiscal quarter of 2005 GAAP results include a $1.6 million gain on the sale of assets related to discontinued wafer operations in Salinas, Calif.
"As we anticipated, the December quarter was difficult," Lang said. "However, our investments in new markets, notably PC motherboard and DIMM timing solutions, have helped to mitigate the effects of customer inventory issues and the softness in the wireless infrastructure market."