News

3 March 2009

 

RFMD cutting 100 jobs worldwide and shutting Shanghai plant

In a Form 8-K report filed with the US Securities and Exchange Commission (SEC) yesterday, RF Micro Devices Inc of Greensboro, NC, USA announced an operating expense restructuring (to be completed by the end of the March quarter) that includes the elimination of about 100 jobs worldwide (about 2% of its workforce) – mainly in sales, administrative and R&D staff - along with reductions in supporting expenses.

The restructuring is expected to reduce RFMD’s expenses by $12-15m on an annualized basis (starting from the June quarter), and result in aggregate pre-tax charges of about $13m (including about $2.5m related to one-time employee termination benefits, $8m related to impaired assets, and $2.5m of expenditures related to lease and other contract termination costs).

In addition, in an earlier Form 8-K filing on 24 February, RFMD announced a restructuring to reduce manufacturing costs by consolidating its China back-end test & assembly operations from its Shanghai site into its primary facility in Beijing as well s outsourcing certain non-core manufacturing operations.

The Shanghai closure (to be completed by the end of the September quarter) is expected to reduce RFMD’s annualized manufacturing costs and operating expenses by about $4.5m (starting from the December 2009 quarter), and result in aggregate pre-tax charges of about $4.5m (including $1.4m related to one-time employee termination benefits, $1.2m related to impaired assets, and $1.9m of expenditures related to lease and other contract termination costs).

RFMD says that it does not currently plan any further operating expense reductions. However, it says that it will continue to evaluate the global macroeconomic environment and pursue additional opportunities to cut costs and expenses as necessary.

See related items:

RFMD receives award from China’s Semiconductor Industry Association

RFMD generates $40m free cash flow; March quarter to be free cash flow positive

Search: RFMD

Visit: www.rfmd.com