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Two FPGA vendors announce layoffs

Posted: 09 Jun 2008     Print Version  Bookmark and Share

Keywords:FPGA vendors  IC market  reorganisation 

Two FPGA vendors Xilinx and QuickLogic separately reported layoffs. Xilinx said approximately 250 positions will be vacated estimating to about 7 per cent of the company's workforce. Meanwhile, QuickLogic reduced its headcount by 17 per cent.

Amid a lull in the IC market, two FPGA vendors such as Xilinx Inc. and QuickLogic Corp. have separately reported layoffs.

As a result of reorganisation, Xilinx said it will reduce approximately 250 positions, or about 7 per cent of the company's workforce. The reduction is expected to be completed by the end of the next fiscal quarter, according to the San Jose-based FPGA house.

Xilinx expects to record restructuring-related charges of approximately Rs.72.04 crore ($18 million) to Rs.88.05 crore (22 million) as part of the reorganisation expenditure. The charges will impact its Q1's operating expenses, which were forecast to be approximately flat sequentially for the June-ending quarter.

No other details were given. Previously, FPGA rival Altera Corp. gave its midquarter update for the Q2 2008. The company expects that sequential revenue growth will be achieved towards the high end of the company's previous 1 per cent to 4 per cent guidance.

Meanwhile, QuickLogic has reduced its headcount by 17 per cent. The move is part of an effort to focus on its ASSPs, of which it calls customer specific standard products (CSSPs).

Last year, QuickLogic backed away from the FPGA market, saying it will instead focus on CSSPs. It noted that it will no longer position its PolarPro line for mainstream FPGA applications. The company will continue to sell FPGA products to niche-oriented applications in the aerospace, military and related fronts.

Regarding the layoffs, the company will record noncash impairment charges of Rs.7.20 crore ($1.8 million) to Rs.9.61 crore ($2.4 million) and one-time cash charges of approximately Rs.2.00 crore ($500,000) between Q2 and the end of the Q3 2008.

"In addition to improving our agility and the scope of opportunities we can address, this new alignment significantly lowers our breakeven point and positions QuickLogic to scale more profitably in the succeeding quarters to come,'' said E. Thomas Hart, chairman, president and CEO, QuickLogic, in a statement.

''While CSSP design activity has continued to grow, the aggregate softness of consumer demand continues to hamper the ability of our customers to forecast when their new designs will go into production,'' he stressed.

- Mark LaPedus
EE Times





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