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Currency and Market Conditions Drive Need for Tundra Semiconductor Restructuring
OTTAWA, Nov. 12 /CNW Telbec/ - Tundra Semiconductor Corporation (TSX:TUN), a leader in System Int...
About this update from Tarku Resources Ltd
[{"type":"text","content":"\n\n\n\nOTTAWA, Nov. 12 /CNW Telbec/ - Tundra Semiconductor Corporation\n(TSX:TUN), a leader in System Interconnect, announced today that the Company\nis implementing a restructuring plan to immediately adapt its cost structure\nto the rapid Canadian dollar movement and telecom market conditions.\n\n\n"Two contributing factors compelled Tundra to make the decision today to\nreduce our overall expense base, including both elimination of positions and\nreduction of other operating costs. The rapid appreciation of the Canadian\ndollar is putting significant pressure on our financial results as indicated\nin Tundra's recently revised guidance for the second quarter. The\nstrengthening Canadian dollar has resulted in a near 15% reduction in Tundra's\ntop line revenue over the last several quarters. In addition, the\ncommunications market is currently experiencing an industry slowdown," said\nDaniel Hoste, President and Chief Executive Officer, Tundra Semiconductor. "We\nhave responded rapidly to this market and economic volatility to address our\nshort term cost requirements and to protect our long term strategy. We have\ncarefully executed this restructuring initiative to ensure that rolling out\nour planned product roadmaps and realizing our long term growth plan is\nachieved," continued Hoste.\n\n\nThe restructuring initiative will reduce Tundra's headcount by\napproximately 30 positions. Restructuring charges of approximately $4 million\nwill be recorded in the third quarter of fiscal 2008. Cost savings as a result\nof this activity are expected to be approximately $1.5 million on a quarterly\nbasis comprised of $1 million in research and development and $0.5 million\nfrom sales, general and administrative. The effect on fiscal 2008 third\nquarter financial results will be reflected in the guidance which the Company\nwill provide on November 29th in its fiscal 2008 second quarter earnings\nannouncement.\n\n\nCONFERENCE CALL AND WEBCAST\n\n\nTundra management will be holding a conference call today, November 12 at\n5:30 p.m. EST to address questions regarding this announcement. You may access\nthe conference call via any of the following:\n\n\nTeleconference: +1.416.644.3423\n\n\nReplay: +1.416.640.1917 Pass code: 21253216(number sign). The replay will\n\n\nbe available through November 19, 2007.\n\n\nAbout Tun...