Tality Restructures Its Wireline Communications Segment Moves to Accelerate IC Design and IP Business
SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 8, 2002--Tality Corporation today announced it would increase its focus on communications IC design and intellectual property (IP) used in wireline communications equipment. To facilitate acceleration in this segment of its business, the company will no longer provide board-level, mechanical and packaging services for data- and tele-communications equipment. The move has no impact on Tality's wireless business.
"Our chip-level business has remained relatively healthy for the past twelve months despite the battering the communications industry as a whole has taken," said Brent Hudson, president of Tality. "With growth expected to return first to the chip sector of the industry, we need to focus our effort in order to fully capitalize on the market recovery. Strengthening our IP position and continuing to build on our strong silicon design value proposition are our top priorities for the wireline communications segment of our business."
As a result of the actions announced today, Tality will reduce headcount by approximately 200 people. The reductions will result in the closure of the company's Ottawa, Lowell and Noida design centers. A restructuring charge of approximately $25M will be taken in Q1 for severance, facility closure and related asset write-offs.
"Making strategic decisions that have an adverse impact on employees is always difficult," said Hudson. "However, narrowing the scope of our business in this market enables us to balance our need to drive towards profitability and continue feeding the stronger components of the business."
Tality continues to offer system, chip and board-level services and IP targeted at the wireless communications market.
Tality Corporation, a subsidiary of Cadence Design Systems, Inc. (NYSE:CDN - news), is the world's largest electronic product development outsourcing provider. Leading and emerging technology companies around the globe leverage Tality's engineering services and intellectual property for the design of complex electronic systems and integrated circuits. Tality is headquartered in San Jose, Calif. For more information about Tality, please visit us at www.tality.com
Note to Editors: Tality is a trademark of Tality Corporation. Cadence is a registered trademark of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
Contact: Tality Corporation
Jim Douglas, 408/944-7955
Leslie Taschner, 415/477-4542