Applied Micro Circuits Corporation (ticker: AMCC, exchange: NASDAQ Global Market (.O))
News Release -
Applied Micro Circuits Corporation Announces Organizational Realignment and Reduction in Workforce
SAN DIEGO, April 9 /PRNewswire-FirstCall/ --
Applied Micro Circuits Corporation (Nasdaq: AMCC) today announced a
realignment of its global operations in the face of continued softness in its
end markets. The Company will move from a business unit structure to an
organization based along functional lines.
As of January 1, 2003, the Company had 912 employees in its worldwide
workforce. The Company expects to have approximately 626 employees by the end
of the calendar year, a 31% reduction. This realignment, combined with
consolidation of certain facilities and the previously announced closure of
AMCC's wafer fab will reduce ongoing operating expenses by $35-40 million
annually and fixed cost of sales overhead by $15-17 million annually.
The realignment will largely be completed by the end of June 2003 and
fully completed by the end of this calendar year. The Company expects that
costs and charges related to the corporate restructuring, which include
severance costs related to workforce reduction and consolidation of excess
facilities and other related fixed assets, will be recorded in the financial
statements for the March 2003, June 2003 and September 2003 quarters. The
Company has not yet determined the amount of the aggregate costs and charges
associated with the restructuring, as it is currently finalizing its plans.
"AMCC is dedicated to providing our customers with solutions that reduce
their development costs and time to market. The initiatives announced today
eliminate the overhead associated with business units without sacrificing
major product development or critical customer relationships," said Dave
Rickey, AMCC's chairman of the board, president and chief executive officer.
"The extended industry downturn has led AMCC to take action which will enable
the Company to return to profitability more quickly."
For More Information
Financial results for the quarter and fiscal year ended March 31, 2003
will be reported on April 24, 2003. Management will provide more details on
the restructuring plan and related accounting charges during the Company's
fourth quarter conference call scheduled for April 24, 2003, at 2:00 pm PDT.
You may access the conference call via one of the following:
Teleconference: (719) 457-2601
Conference ID: 528194
Web Broadcast: http://www.amcc.com .
Replay: (719) 457-0820 (available for 7 days following the call)
AMCC designs, develops, manufactures, and markets high-performance,
high-bandwidth silicon solutions empowering intelligent wide area networks.
AMCC utilizes a combination of digital, mixed- signal and high-frequency
analog design expertise coupled with system-level knowledge and multiple
silicon process technologies to offer integrated circuit products that enable
the transport of voice and data over fiber optic networks. The company's
system solution portfolio includes switch fabric, traffic management, network
processor, framer/mapper, PHY and PMD devices that address the high-
performance needs of the evolving intelligent optical network. AMCC's
corporate headquarters is located in San Diego. Sales and engineering offices
are located throughout the world. For further information regarding AMCC,
please visit our Web site at http://www.amcc.com or call our shareholder
information line at (888) 982-AMCC (2622).
This news release contains forward-looking statements, including, but not
limited to, statements regarding the company's restructuring plan, the amount
and timing of the restructuring charges, the timing and impact of the
reduction in force and the extent to which the restructuring will reduce
ongoing operating expenses and fixed costs of sales overhead and affect the
company's financial performance. These forward looking statements are subject
to certain risks and uncertainties, including, but not limited to, the
company's ability to implement the restructuring plan according to the
timetable and to the extent currently anticipated, possible changes in the
size and components of the restructuring charges and cost savings, the impact
of personnel reductions on product development efforts, the company's ability
to project accurately cost savings from the plan and general economic
conditions. More information about potential factors that could affect the
company's business and financial results is included in the "Risk Factors" set
forth in the company's Annual Report on Form 10-K for the year ended
March 31, 2002, and the company's other filings with the Securities and
Exchange Commission. Actual results could differ materially, as a result of
such factors, from those set forth in the forward-looking statements.
SOURCE Applied Micro Circuits Corporation
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