Micrel has revealed that it will reduce its workforce by 6% (approximately 55 people) as the company lowered sales and profit estimates for its fourth quarter. The timeframe for the layoffs was not specified.
The announcement was part of a Q4 2008 downward guidance revision. Micrel now projects Q4 revenues will be down 18 to 20% (due to fewer-than-anticipated orders in late November and December), compared with the company’s previous guidance issued in late October of down 7 to 13%. Micrel expects Q4 earnings per share to be approximately $0.06 to $0.08, compared with the previous guidance of $0.08 to $0.11.
"The shortfall in revenue is primarily a result of lower than anticipated OEM turns-fill orders and distribution re-sales occurring in late November and December," the company said. "The turns-fill deficit resulted from reduced orders from both the OEM and distribution channels. The book-to-bill ratio for the fourth quarter was below one."
