Freescale Cuts Jobs Despite Profitable Third Quarter
Freescale Semiconductor Inc. (Austin, TX) announced that it was cutting 1,000 jobs, despite a profitable third quarter that saw revenue increase sequentially. The cuts in operations worldwide will result in an approximate fourth-quarter restructuring charge of $65 million.
"Reducing our infrastructure costs and rebalancing our resources generates savings that allow us to accelerate new product development, enhance technology leadership and drive greater customer intimacy across all our businesses," stated Chairman and CEO Michel Mayer.
Freescale's net sales in the third quarter were $1.43 billion, compared to $1.23 billion a year ago and $1.46 billion in the second quarter. Net income for the quarter was $57 million, or $0.15 per share, compared to a loss of $106 million in the year ago period and $43 million in the second quarter of this year.
For the current fourth quarter, the company expects to report revenues of $1.4 to $1.45 billion. It anticipates separation expenses of $25 million to $30 million, or $0.05 to $0.06 per share, in addition to the $65 million restructuring charge, which will translate to approximately $0.13 per share said.