Its pro forma loss per share was at the high end of the $0.15 to $0.20 range previously given. Revenue increased about 10 percent sequentially in the core analog and Internet businesses, as previously forecast. The company¡¦s gross margins were up significantly from 32 percent in the June quarter, but lower than guidance of 44 to 46 percent. Operating expenses declined significantly from the June quarter.
The company believes its core Analog and Internet businesses will grow slightly in the December quarter. This expectation excludes revenues anticipated from the pending acquisitions of ShareWave, LuxSonor and Stream Machine.
Based on current market outlook, the company will be reducing its worldwide workforce by approximately 300 employees or about 30 percent in the December quarter. It anticipates annualized savings of approximately $15 million to $20 million from this action. It will take a one-time cash charge of $4 million to $5 million in the December quarter, plus a non-cash restructuring charge of approximately $15 million.
Now that we have exited the hard-disk drive business, we are continuing to lower expenses to match revenue projections, and to drive toward our long-term 20 percent operating profit model, said David D. French, president and chief executive officer. We have focused on digital entertainment, the market which I believe will lead the semiconductor industry to its next growth cycle. Our products are designed for the high-growth entertainment electronics businesses. In these applications, our technologies will provide an increasing percentage of the system value, allowing the opportunity for increased market share and profitability.
SOURCE: COMPANY PRESS RELEASE
