CAMARILLO, Calif.-- July 15,2016 -- Semtech Corporation (Nasdaq: SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced a worldwide reduction in force to align operating expenses with business conditions and leverage recent infrastructure investments. These actions, primarily targeted at sales, general and administrative expenses, are expected to reduce the total number of employees by approximately eight percent.
Mohan Maheswaran, Semtech's President and Chief Executive Officer, stated, "Given our recent revenue decline driven primarily by weak Korean smartphone demand, we have made the very difficult decision to reduce our headcount and operating expenses across a majority of Semtech's locations." Maheswaran continued, "Our recent investments in infrastructure such as our SAP® ERP system, and our Salesforce.com® and Workday® systems, will allow us to scale more efficiently as our revenue grows."
As a result of these actions, the Company expects to reduce its current annualized operating expenses by approximately $20.0 million once the reduction plan is fully executed. Semtech expects to record total charges related to these actions of approximately $3.5 million during the second and third quarters of fiscal year 2016. These charges consist primarily of termination benefits, including severance, which are expected to be settled in cash.
The Company will provide additional details of these charges when it reports second quarter fiscal year 2016 results, currently expected in late August.
Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, enterprise computing, communications and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC. For more information, visit http://www.semtech.com.