SIRF: $332M loss, to reduce headcount by 7-9%

SIRF: $332M loss, to reduce headcount by 7-9%
Last Thursday GPS semiconductor company SiRF announced a net loss of $332.6 million or ($5.41) per diluted share for its second quarter ending ended June 30, 2008. The revenue in the quarter was $63.1 million, a decrease of 10.6 percent from $70.6 million reported in the second quarter of 2007. Gross margin was 21.0 percent, as compared to 53.9 percent a year before.

The loss incurred by SiRF includes $215.7 million of goodwill impairment, $42.9 million in acquisition-related intangibles impairment and $34.2 million of provision for income taxes (includes valuation allowance on deferred tax assets of $38.0 million), $11.8 million of impairment on a note receivable, $10.3 million in stock-based compensation expense, $6.2 million in amortization of acquisition-related intangible assets, and $0.1 million in restructuring charges in the second quarter of 2008.

SiRF also announced it will reduce its headcount (710 people today) by 7 to 9% by the end of September. SiRF expects to incur a total pre-tax restructuring charge in the range of $0.5 million and $1.0 million related to the severance for terminated employees.

Sunday, July 27th 2008

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