Microtune Lays Off 10% Of Employees, Cuts Executive Pay
Tuner Supplier Had 220 Employees at End of 2008
Todd Spangler -- Multichannel News, 10/16/2009 2:27:09 PM
Microtune, a supplier of digital tuners for cable modems and set-top boxes, will cut its work force by about 10% and reduce the base salary of top company managers by 5%, the Plano, Texas-based company said Friday.
The company's customers in the cable sector include Arris, Cisco Systems, Motorola, Pace, ADB, Panasonic and Samsung.
As of Dec. 31, 2008, Microtune had 220 employees. The company said it expects the job cuts to be substantially completed before the end of 2009. It anticipates incurring restructuring charges of between $1.3 million and $1.5 million primarily for cash severance payments.
"The company is taking these actions as part of a larger cost-reduction effort in order to streamline operations and more closely align costs with revenue in an effort to achieve profitability as quickly as possible in the current challenging economic environment," Microtune said in an 8-K filing with the Securities and Exchange Commission.
In addition, Microtune will cut the pay for five senior executives by 5%, including CEO James Fontaine. Microtune said the salary cuts were recommended by the company's management and will continue for a period of 18 months.
Microtune had a net loss of $7.7 million on revenue of $35.5 million for the first six months of 2009, compared with $2.4 million net profit and $52.1 million in revenue for the first half of 2008.
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