Alliance Semiconductor Cutting 30% of Workforce to Restructure
Bloomberg News
July 22, 1998, 8:57 a.m. PT
Alliance Semiconductor Cutting 30% of Workforce to Restructure
San Jose, California, July 22 (Bloomberg) - Alliance
Semiconductor Corp. said it's cutting about 45 workers, or 30
percent of its domestic workforce, to reduce expenses as falling
prices for dynamic random-access memory chips continue to hurt
profits and sales.
Alliance, a chipmaker with 1998 revenue of $118.4 million,
also said it's exiting its graphics accelerator business, which
contributed 7 percent of revenue in fiscal 1998 and less than 1
percent for the quarter ended June 27.
The San Jose, California-based company said in previous
quarters it had heavy exposure to dynamic random-access memory
chips, or DRAMs, and it has been hurt by rapidly falling prices
in the DRAM product line. Cuts in the graphics division will
allow it to focus on its memory business.
''The restructuring program is expected to result in
significant cost savings and support the company's goal to return
to operating profitability,'' said Chairman and Chief Executive
N.D. Reddy.
Alliance Semiconductor fell 19/32 to 2 11/16 in midday
trading. |
