QLogic to cut jobs as part of restructuring
QLogic to cut jobs, consolidate engineering efforts as part of plan to improve profits
ALISO VIEJO, Calif. (AP) -- Computer networking equipment supplier QLogic says it will cut an unspecified number of jobs as part of a larger restructuring plan to improve its profitability.
The Aliso Viejo, Calif., company said the efforts to streamline operations will save roughly $20 million a year.
Along with the workforce reduction, QLogic said Tuesday that the restructuring plan includes consolidation of several engineering activities and more focus on product development. The company declined to comment further on the number of jobs and other details of the plan.
The company expects the actions will be largely complete within the next year. It plans to reinvest part of the savings in new products development and programs.
QLogic anticipates that it will take a $20 million to $23 million pre-tax charge in connection with the restructuring, most of it the first half of fiscal 2014.
The company appears to be going through a number of major changes. It announced earlier this month that President and CEO Simon Biddiscombe had resigned to pursue other opportunities. Chief Financial Officer Jean Hu was named interim CEO.
QLogic's net income fell 68 percent to $73.1 million, or 78 cents per share, in its most recent fiscal year. The drop was due in part to weaker demand in its industry and several special items affecting both years. It earned 81 cents per share on an adjusted basis. Revenue fell 13 percent to $484.5 million.
QLogic shares rose 45 cents to close at $10.26.
