RF Micro Devices, a provider of radio frequency components, has announced to reduce its investments in wireless systems including cellular transceivers and GPS solutions in order to focus on core semiconductor component opportunities.
As a result, RF Micro Devices (RFMD) currently expects to eliminate product development expenses related to its wireless systems business by approximately $75 million this fiscal year beginning in the June 2008 quarter, with the full benefit expected to be realized in the December 2008 quarter.
RFMD projects approximately $40 million – $50 million in restructuring charges, approximately two-thirds of which is expected to be non-cash, over the next two quarters with a global workforce reduction of approximately 350 employees.
The company is also engaged in discussions with strategic and financial buyers for some of these assets, but is not commenting currently on any potential transactions, including possible proceeds.
Bob Bruggeworth, president and CEO of RFMD, said: These strategic actions will enable RFMD to deliver more predictable financial results and substantially higher profitability. We anticipate steady financial improvement throughout the year, and we currently forecast at least 10% non-GAAP operating income and double-digit ROIC by the end of the calendar year.