SANTA CLARA, Calif.-National Semiconductor Corp. reported its progress with restructuring activities designed to improve profits it announced in February. The company expects to save about $30 million per quarter via the streamlining.
The company said it is actively pursuing the sale of its Information Appliance business unit, which consists mainly of its Geode line of microprocessors. It also is closing its cellular baseband business unit and cutting its worldwide work force by 340 people. The company will incur charges of $25 million to $30 million in the quarter ending May 25 for severance and impairment of certain assets.
Since February, the company has revised a technology and manufacturing agreement with Taiwan Semiconductor Manufacturing Corp. and reduced its work force by 8 percent, including the employees affected by the closure of the cellular baseband business.
“We are moving quickly to execute our plans to provide higher returns sooner to shareholders,” said Brian L. Halla, National’s chairman, president and CEO. “These steps increase our operating margins as we focus our investments in National’s high-value, high-margin analog products such as power management, portable power, displays, audio and op amp solutions.”
