News

25 March 2009

 

GigOptix cuts salaries to save $900,000 annually

GigOptix Inc of Palo Alto, CA, USA, a fabless provider of III-V-based modulator and laser drivers for telecom, datacom, Infiniband and consumer optical systems, has implemented a company-wide salary reduction plan as part of its ongoing efforts to reduce operating expenses.

Operating expenses for 2008 were $13.2m, up from $7.7m for 2007, due mainly to December’s merger with Lumera Corp of Bothell, WA (which makes polymer electro-optic modulators) and the acquisition in January 2008 of Helix Semiconductors AG of Zurich, Switzerland (which makes transimpedance amplifiers, limiting amplifiers, and VCSEL drivers).

The salary reduction plan is designed to reduce labor costs and improve the firm’s financial performance in the face of an uncertain economic environment.

To make expense savings of $900,000 on an annualized basis, salaries have been cut by 18% for CEO Dr Avi Katz, 15% for the other executive officers, and 10% for other employees. In recognition of their foregone salary, each employee will receive a special grant of stock options equal to 10% of their outstanding options.

“Fiscal responsibility is an important key to our ongoing success, and cost reduction is imperative in today’s climate to ensure that we maintain the strongest financial position possible for our shareholders,” says Katz. “By preserving the personnel who are instrumental to our organization and asking everyone to take less, starting at the top, we can continue to focus on meeting our short- and long-term financial goals,” he adds.

See related item:

GigOptix Inc launches after completion of Lumera merger

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