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RF Micro Devices Inc of Greensboro, NC, USA says that it is consolidating its production test facilities for high-volume cellular products to reduce manufacturing cycle time, improve customer service, and improve overall profitability.

The consolidation represents the final phase of a transfer to its main production test facility in Beijing, China, which will handle high-volume cellular products currently tested in the firm’s production test facility in Greensboro, NC, where about 80 staff in will be affected, the firm anticipates. RFMD currently employs over 2000 staff in North Carolina.

“RFMD’s international revenue is over 90% of total revenue, and it is imperative that our supply chain aligns with our customers' manufacturing facilities, which are located primarily in Asia,” says RFMD’s president and CEO Bob Bruggeworth. “While this is a difficult decision because of the negative impact on employees, these actions are necessary to better serve our customers, ensure competitiveness and help position RFMD for long-term sustainable profitability,” he adds.

The consolidation is part of an ongoing process to improve efficiencies, eliminate duplicative operations and better align resources for improved profitability. RFMD anticipates that it will record a cash restructuring charge of about $1m, most of which should be recognized in the June quarter. The consolidation is expected to be completed in the September quarter and is should improve cash flow and profitability by $3-3.5m on an annualized basis.

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