Marvell cuts 400 jobs, posts loss
written by Mark LaPedus, courtesy of EE Times Amid a loss for the quarter, Marvell Technology Group Ltd. plans to reduce its headcount by 400 employees, or approximately 7 percent of the company's total workforce. The workforce reduction will affect all functions of the company's global workforce, and in particular positions based in the United States and Israel, and to a lesser degree, other international locations. The plan is expected to be completed in the fourth quarter of fiscal 2008. The company expects to incur a restructuring charge in connection with the plan of up to $8 million in the fourth quarter of fiscal 2008 related to severance and other expenses. "It is difficult to announce changes to our workforce, but we have made this decision with the utmost care and respect for the hardworking and talented individuals involved," said Sehat Sutardja, Marvell's president and CEO, in a statement. "Marvell is making progress to reduce costs and streamline operations, and we view this as a necessary additional step towards achieving our long-term financial model." Marvell also said revenue for the third quarter of fiscal 2008 was a record $758.2 million, an increase of 46 percent over net revenue of $520.4 million for the third quarter of fiscal 2007 and a 15 percent sequential increase from net revenue of $656.7 million for the second quarter of fiscal 2008. Net loss under generally accepted accounting principles (GAAP) was $6.4 million, or minus $0.01 per share, for the third quarter of fiscal 2008, compared with net income under GAAP of $6.0 million, or $0.01 per share, for the third quarter of fiscal 2007. |
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