Source/Type: CompoundSemi Online -- Compound Semiconductor Supply Chain News - Reported News

RFMD Announces Restructuring and Focus Shift
Author: CompoundSemi News Staff

May 7, 2008... RF Micro Devices (RFMD) of Greensboro, North Carolina USA has announced that it is reducing its investment in wireless systems such as transceivers and GPS solutions. RFMD reports that it is shifting its focus to its core semiconductor component opportunities including cellular front-ends, the components in its Cellular Products Group (CPG), and the components in its Multi-Market Products Group (MPG).

The company expects to eliminate product development expenses related to its wireless systems business by about $75 million this fiscal year beginning in the June 2008 quarter. RFMD plans to realize the full benefit of the expense elimination in the December 2008 quarter. In the short-term the company estimates about $40 million - $50 million in one-time restructuring costs over the next two quarters. The company said that two-thirds of the restructuring expense is expected to be non-cash with the global staff reduction of 350 employees.

Bob Bruggeworth, president and CEO of RFMD, said, "These strategic actions will enable RFMD to deliver more predictable financial results and substantially higher profitability.” He continued, “We are investing in growing markets where we have a demonstrated track record of success, and we will measure our progress using operating income and return on invested capital (ROIC) as key performance metrics.” He concluded, “We are confident the steps we have taken will increase shareholder value and provide significant long-term benefits to our global customers and stakeholders." Company News Release

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