PMC-Sierra announced a corporate restructuring that include the closure of two of PMC-Sierra’s R&D centers in Winnipeg, Manitoba and Saskatoon, Saskatchewan. The total work force reduction under this restructuring is expected to be approximately 175 positions across the organization. PMC-Sierra currently has 1,183 employees worldwide. The restructuring will begin immediately and is expected to be substantially complete by the end of the third quarter of 2007.
Overall, the company expects the restructuring will reduce on-going annualized operating expenses by an estimated $20 to $24 million per year.
Regarding current business activity levels, PMC-Sierra’s revenues for the first quarter of 2007 are expected to be between the middle to high end of the range that was provided during the company’s webcast conference call on January 25, 2007 following its fourth quarter 2006 earnings release. At that time, the revenue outlook provided was a range of $98 to $105 million for the first quarter of 2007.
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