Here's the news from IMP. Any thoughts from those that follow IMP, last I heard there was rumor of a shareholder lawsuit.
SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 23, 1996--IMP Inc. (Nasdaq:IMPX) today announced that continuing softening in product
demand has necessitated further staff reductions. The workforce has been reduced by 89 employees, or approximately 23% of the total workforce. The company is also planning periodic factory shut downs to match production with demand. The company also announced that it has recently experienced significant yield losses on deliveries to a major customer. This yield problem has since been corrected, but will adversely impact both revenues and profitability for the quarter.
In addition, the company has also decided to cease gate array design and manufacturing activities to focus its resources on other aspects of the company's business. This will result in a one time charge, primarily due to inventory write-offs and the establishment of reserves. The adverse impact of the one time charges associated
with the downsizing activities and the termination of the gate array business, combined with the impact from the yield program, has not been quantified, but is expected to result in a very significant loss for the quarter ending Sept. 30, 1996.
The company also announced that, at the request of a major customer, it has canceled development of a custom read-channel device that was to be integrated into one of such customer's new products. Although there were no anticipated revenues from this product in fiscal 1997, it had been planned to contribute substantially to revenues in fiscal year 1998. Additionally, the company's results for the forseeable future will be impacted by the continuing slowdown in its business. Specifically, certain of its major customers have requested delays in delivery schedules and reductions in previously ordered amounts for IMP products. |
