Microtune Notes 10% Layoff
4:10 PM -- Microtune Inc. (Nasdaq: TUNE), a maker of silicon tuners for cable modems and set-tops, said it will terminate about 10 percent of its workforce and chop the pay of some top execs in the wake of a reorganization that will wrap up during the fourth quarter.
Microtune did not specify how many employees will be affected or which areas are getting hit the hardest, but a company spokeswoman noted that the company will discuss more detail on the reorg when the company reports third-quarter numbers next Thursday (Oct. 22).
In an 8-K, Microtune said it was making the cuts to "streamline operations and more closely align costs with revenues" as it looks to return to profitability ASAP. Microtune posted a non-GAAP net loss of $2.2 million in the second quarter. (See Microtune Plays Q2.)
A handful of Microtune execs will also feel the pinch, though not nearly as severely, after the board approved a 5 percent salary cut. On that list is CEO James Fontaine, whose adjusted salary will still be $332,500.
Microtune, which could see increased competition from MaxLinear Corp. next year, expects to be hit with $1.3 million to $1.5 million in restructuring charges. (See MaxLinear Tunes Up Cable Power Play .)
— Jeff Baumgartner, Site Editor, Cable Digital News