Vitesse Semiconductor Corp. Announces Work-Force Reduction
CAMARILLO, Calif., May 2, 2001 (BUSINESS WIRE) -- Vitesse Semiconductor Corp. (Nasdaq: VTSS chart, msgs) (the "company") today announced that in response to
current market conditions that are adversely affecting the company and the industry at large, it will be reducing its work force by approximately 12 percent in the quarter
ending June 30, 2001.
Vitesse currently employs 1,280 people worldwide.
Vitesse President and Chief Executive Officer Lou Tomasetta said: "This action was necessary in light of the slowdown in customer demand and the need to size the
company to previously announced revenue expectations. As an additional measure to reduce the company's operating expenses, upper management will be taking 10-25
percent salary reductions."
As a result of the work-force reduction, Vitesse anticipates that it will record a one-time charge of between $1.5 million and $2.0 million in the third quarter of fiscal 2001.
Vitesse Semiconductor is a leading designer and supplier of innovative, high-performance semiconductors utilizing state-of-the-art processes for the manufacturers of
next-generation DWDM and optical networking communications equipment. Vitesse also develops storage area networking ICs and enclosure management products.
The company's products address the needs of Core, Access, Optical and Enterprise network equipment manufacturers that demand a combination of high speed, high
complexity and low power dissipation.
Vitesse has headquarters in Camarillo and operates two fabrication facilities, in Camarillo and Colorado Springs, Colo. Company/product information can be found on the
Web at www.vitesse.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the
company's expected financial results for the three months ending June 30, 2001. The company's actual results could differ materially from its forward-looking statements for
a variety of reasons. For a more complete discussion of the risks and uncertainties that may cause the company's actual results to differ materially from its forward-looking
statements, read the reports the company files from time to time with the Securities and Exchange Commission, including its annual report on Form 10-K for the year
ended Sept. 30, 2000, and its quarterly report on Form 10-Q for the three months ended Dec. 31, 2000.
Contact:
Vitesse Semiconductor Corp., Camarillo
Eugene F. Hovanec, 805/388-3700 |
