Friday, June 24, 2005

PMC-Sierra Confirms Q2 Outlook, Trims R&D

PMC-Sierra confirmed that is revenues in the second quarter of 2005 are expected to be at or near the high-end of the revenue range provided on April 20, 2005, following its first quarter earnings release. At that time, the revenue outlook provided was $70 million to $72 million in revenues for the second quarter of 2005, or 6% to 9% sequential growth. Additionally, by the end of the second quarter, the company's book-to-bill ratio is expected to exceed 1.1 as current quarter bookings are already greater than the Company's second quarter revenue outlook.

PMC-Sierra announced previously that it was eliminating 26 positions at a restructuring cost of approximately $1.5 million. The company has decided to eliminate approximately 63 further positions, primarily related to research and development, at a restructuring cost of approximately $5.9 million. PMC-Sierra currently has 902 full-time employees in its worldwide operations. The restructuring primarily relates to PMC's design and operations center in Santa Clara, California.

"Business conditions across all of our product groups are improving, with new communications and storage products contributing to our business momentum," said Bob Bailey, Chairman and CEO of PMC-Sierra. "Additionally, we are continuing to focus on improving the efficiency of our operations to enhance our on-going business performance."

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