Intersil to cut 9 percent of workforce
EE Times
(11/05/2008 9:58 AM EST)
Including the previously-announced consolidation of the company's Palm Bay, Fla.-based facilities, Intersil (Milpitas, Calif.) expects to reduce its global workforce by approximately 140 employees.
The company expects to record one time pretax charges of approximately $20 million to $23 million, or $0.11 to $0.12 per share, after tax, during the fourth quarter for costs associated with the actions, including estimated impairment charges and other related costs.
This will reduce its overall annual operating costs by approximately $12 million to $14 million.
"Unfortunately, we are entering a period of significant uncertainty and we feel the prudent approach is to respond quickly," said Dave Bell, Intersil's president and CEO, in a statement.
The company recently said revenues for the third quarter were $218.7 million, a 10 percent increase from $198.3 million in the third quarter of 2007, and a 1 percent increase from $216.2 million in the second quarter of 2008.
Net income from continuing operations was $50.7 million, or $0.41 earnings per diluted share, as compared to net income of $36.0 million, or $0.27 earnings per diluted share in the same quarter last year. For the second quarter of 2008, the company reported net income from continuing operations of $38.0 million, or $0.30 earnings per diluted share.
It expects revenue in the fourth quarter to decline by approximately 20 percent to 25 percent. It expects GAAP earnings per diluted share of approximately $0.10 to $0.14 and non-GAAP earnings per diluted share of approximately $0.22 to $0.26.
Recently, Intersil signed a definitive agreement to acquire Kenet Inc., a supplier of low-power data converters, for an undisclosed price.
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