Rf Micro Devices to Cut 350 Jobs

RF Micro Devices has announced that it is reducing its investments in wireless systems, including cellular transceivers and GPS solutions, in order to focus on core semiconductor component opportunities, including cellular front ends and other components in RFMD's Cellular Products Group (CPG) and the expanding portfolio of semiconductor components in RFMD's Multi-Market Products Group (MPG).

As a result, RFMD currently expects to eliminate product development expenses related to its wireless systems business by approximately $75 million this fiscal year - and lay off some 350 employees.

Bob Bruggeworth, president and CEO of RFMD, said, "While this is a difficult decision because of the impact on employees, these actions are the result of a comprehensive strategic review, including extensive market analyses and discussions with key customers and channel partners. We are confident the steps we have taken will increase shareholder value and provide significant long-term benefits to our global customers and stakeholders."

RFMD anticipates revenue growth in cellular transceivers in fiscal 2009, with transceiver revenue continuing in fiscal 2010.

Separately, the company announced that its quarterly revenue decreased approximately 13.7% year-over-year and approximately 17.2% sequentially to US$221.9 million. Operating loss was approximately US$31.6 million on a GAAP basis.

Posted to the site on 7th May 2008

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