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Semtech Corporation (Nasdaq: SMTC), http://www.semtech.com a leading supplier of analog and mixed-signal semiconductors, today announced a reduction in its workforce by approximately 6 percent as part of a previously announced restructuring effort that is expected to strengthen its focus and increase future operating efficiencies. As a result of these activities, the Company also expects to take one-time charges that include, but are not limited to: employee termination benefits, the write down of inventory, goodwill and other intangibles and the impairment of fixed assets and other assets. Such charges are currently under review and additional details will be provided when Semtech reports its fourth quarter fiscal year 2014 financial results in early March.
“Due to the significant reduction in demand in the second half of our fiscal year 2014, we have initiated a series of operating expense reductions across the Company. We believe these actions position the Company to accelerate earnings growth as our overall demand returns to growth”
The estimated financial impact of the recent activity is expected to reduce full, normalized annual operating expenses by approximately $35.0 million for the Company’s fiscal year 2015.
“Due to the significant reduction in demand in the second half of our fiscal year 2014, we have initiated a series of operating expense reductions across the Company. We believe these actions position the Company to accelerate earnings growth as our overall demand returns to growth,” said Mohan Maheswaran, President and Chief Executive Officer of Semtech Corporation.