Chip maker Cirrus Logic Inc has added some details to the restructuring plan it hopes will help it back into profitability. Alongside the disastrous second quarter results announced Wednesday, Cirrus also disclosed the operating figures from the core businesses it hopes to retain after its planned $500m restructuring that it revealed in September (CI No 3,503). In its second quarter through September, Cirrus made total losses of $121m compared to profits last time of $8.9m while revenues fell by 24% at $169.7m (although the quarter includes numerous ‘one- time’ charges totaling $123m). Stripping out the semiconductor joint manufacturing ventures with IBM Corp and Lucent Technologies Inc which Cirrus has struggled to operate at capacity and which are now earmarked for disposal, the on-going businesses generated $133m of revenues and earnings per share of $0.10, the company said. These businesses consist of linear and mixed-signal products for mass storage, audio and high-precision data conversion. However, with such large restructuring reserves being pushed through the accounts, it is extremely difficult to take these profitability claims seriously.
