LSI Logic to Cut 11 Percent of Work Force
Associated Press - Thursday October 28, 2:22 pm ET
Chip-Maker LSI Logic to Cut 11 Percent of Work Force or About 510 Jobs
MILPITAS, Calif. (AP) -- After posting lower third-quarter revenues and a higher loss, chip-maker LSI Logic Corp. said it plans to cut 11 percent of its work force, or about 510 jobs.
The maker of specialized chips used in storage devices, communications equipment and consumer electronics cited a slowdown in the worldwide semiconductor industry that has left companies struggling with larger-than-expected inventories. The cuts include 210 jobs in Silicon Valley.
Shares of Milpitas-based LSI were down more than 6 percent, or 30 cents, to $4.46 in Thursday afternoon trading on the New York Stock Exchange.
"LSI Logic is taking action to improve operating expenses and cost of sales, while aligning our (research and development) investments to the most attractive business opportunities," Bryon Look, LSI's chief financial officer, said Wednesday.
For the three months ended Sept. 30, LSI posted a loss of $282 million, or 73 cents per share, compared with a loss of $32 million, or 8 cents per share, in the same period last year.
Revenues declined 16 percent, to $380 million in the third quarter of 2004 from $450 million in the same period last year.
Excluding special items, including a $206 million noncash impairment charge related to a factory in Gresham, Ore., LSI lost $25 million, or 7 cents per share, compared with a profit of $17 million, or 4 cents per share, in the third quarter of 2003.
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