"Although we had anticipated demand softness in the first quarter, we are disappointed that the expected demand ramp up late in the quarter did not materialize," said Dr. Michael Canning, President and CEO. "Due to the continuing economic uncertainties, we have decided to implement certain cost reduction measures to improve our financial performance in 2008. Although painful, these measures are essential to bring our expenses more in line with the current business. We are focusing our resources on our core businesses and especially on the release and ramp up of new products".
SiRF also announced it has implemented a corporate restructuring effort which will include a reduction the Company's headcount by approximately 7% by September 30, 2008, the closing of its South San Francisco and Stockholm (Sweden) offices as well as the end of its developments in the mobile TV space. SiRF expects to incur pre-tax charges in connection with this restructuring in the range of $1.5 - $2M through September 2008.