Circuit maker Intersil to cut 150 jobs

Integrated circuit maker Intersil will cut 150 jobs, says 2Q revenue to exceed forecasts

Associated Press

MILPITAS, Calif. (AP) -- Intersil Corp. said Friday that it will cut 150 jobs, about 10 percent of its workforce, as part of a shift of spending from manufacturing into product development.

The company also announced that its second-quarter earnings would be better than it had expected.

The Milpitas, Calif., company makes integrated circuits for consumer electronics, aviation, autos and other uses. It reported having nearly 1,500 employees at the end of last year.

Intersil said revenue in the quarter that ended July 5 would be $144.8 million. Analysts surveyed by FactSet were expecting $138.2 million along with a loss of 2 cents per share.

The company said it is undertaking a "rebalancing initiative" to shift its operating expenses into growth areas. Intersil said it will cut spending in manufacturing, sales and administration to allow for "incremental investments" in product development at about the current spending rate.

Intersil said the job cuts would likely be gradually offset by hiring in design and development over the next few quarters.

The company expects to take a restructuring charge of about $8 to $12 million. Intersil is scheduled to release second-quarter results on Tuesday.

The announcement came after the stock market closed. Intersil shares were up 31 cents, or 3.5 percent, to $9.12 in aftermarket trading..

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