Exar Corporation announced that it has taken additional substantive steps to reduce overall operating expenses and cost of goods sold. The Company also confirmed revenue guidance provided in the Company's earnings conference call on February 1, 2012.
Company President and CEO Louis DiNardo commented, "In support of our goal to achieve consistent profitable growth we continue to align and scale our workforce with our market, product and financial plans. We have taken meaningful action today that is comprehensive and includes adjustments in all functional areas of our company and regions of the world. We eliminated approximately 120 positions, or 30% of our worldwide headcount. This action is estimated to be $12 million in annual gross savings of which approximately 30% are in operations functions and 70% are in R&D and SG&A."
"Coupled with our actions in February 2012, which eliminated 53 positions and an estimated $9.7 million in annual gross spending, the total impact of our restructuring actions in the March quarter represent a significant reduction in headcount and spending while fostering focus on new product development and growth."
Estimated Aggregate Actions in the FY'12 March Quarter
169 Total Positions Eliminated
40% of Worldwide Headcount
$21 Million in Annual Gross Savings
"We believe that our remaining headcount of approximately 270 people is adequate and appropriate to support our needs in sales, marketing, product development, finance, human resources and other functional disciplines while we drive growth in our target markets. Our basic cost structure is sound; we have a major design center in China, a majority of test operations offshore and we are now a lean organization. Our goal is to provide appreciation in shareholder value through growth and profitability. We will continue to add key resources as necessary to support our growth plan. We are very comfortable with our ability to recruit and retain top talent to support market and product development in our areas of focus," added Mr. DiNardo.
Focus Products and Markets
Power Management and Control - Networking, Communications, Computing and Industrial
Data Compression and Security - Networking, Storage, Data Warehousing and Data Analytics
Connectivity and Interface - Industrial, Consumer and Computing
High Performance Analog Mixed-Signal - Industrial, Communications and Consumer
Mr. DiNardo concluded, "We are on track to support the range of revenue guidance we provided in our fiscal year 2012 third quarter earnings call. Our bookings have improved quarter-over-quarter and we see positive signs in sales through our channel partners."