Expects to Reduce Expenses by $4.5 to $5 Million in 2007
MILPITAS, Calif., Dec. 13 /PRNewswire-FirstCall/ -- Sipex (OTC:
SIPX.PK) announced that as part of its overall plan toward profitability,
the Company has instituted a comprehensive restructuring plan. These
actions are a result of completing the transition to a fabless company and
needed to be more severe based on the weakness of the overall analog
market.
As a result of the restructuring, the Company expects to generate
savings in expenses in 2007 of approximately $4.5 to $5 Million. The
Company will take a one time charge for severance of up to $0.9 million in
the fourth quarter of 2006. In addition the Company plans to reduce costs
associated with contractors in administration and design, minimization of
discretionary sales and marketing spending, and movement of functions to
lower cost areas. The Company's employee population will be reduced to
approximately 250 from approximately 325 based on these workforce
reductions.
"We quickly addressed some cost issues that were even more magnified by
the recent slowness in the analog market. We evaluated all parts of the
organization and decided that in addition to this personnel reduction, a
more focused approach was needed," described Ed Lam, Senior VP of Marketing
and Business Development. "One of these focus areas revolve around reducing
our dependency on the commodity business. Even during the current market
weakness our higher value, more proprietary products are continuing to grow
as we win key designs. As part of the restructuring process, we will
further rationalize the product portfolio in order to eliminate products
and businesses that do not add value to the company and its shareholders."
"These actions, while difficult, are essential to Sipex becoming a more
agile and efficient fabless company not just for this coming year, but for
years to come," said Ralph Schmitt, Chief Executive Officer. "It will cause
the Company to focus further in two primary areas, Power and Interface, but
will not hinder our ability to grow significantly. We continue to execute
to our plan of getting to profitability in 2007."
Safe Harbor Statement Regarding Forward Looking Statements
This press release contains forward-looking statements concerning
Sipex's future events and results of operations including, but not limited
to statements about expected cost savings as a result of reductions in
Sipex's workforce, anticipated charges associated with the restructuring,
future rationalizing of Sipex's product portfolio, Sipex's future growth
and Sipex's ability to become profitable. Statements regarding the
Company's beliefs, plans, expectations or intentions regarding the future
are forward-looking statements, within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All such forward-looking statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
predictions and involve risks and uncertainties, such that actual results
may differ significantly. These risks include, but are not limited to, the
risk that Sipex may incur unexpected costs associated with the reduction in
force and do not achieve the expected cost savings, that Sipex may be
unable to appropriately address the recent slowness in the analog market,
that Sipex may be unable to grow revenues in future quarters, and that
general market conditions in the semiconductor industry may decline which
could prevent Sipex from becoming profitable. The Company disclaims any
intention or obligation to publicly update or revise any forward-looking
statements, whether as a result of events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. For further
discussion of these risks and uncertainties, we refer you to the documents
the Company files with the SEC from time to time, including the Company's
Annual Report on Form 10-K for the year ended December 31, 2005 and
Quarterly Reports on Form 10-Q for the quarter ended April 1, 2006, July 1,
2006 and September 30, 2006. All forward-looking statements are made as of
today, and the Company disclaims any duty to update such statements.
About Sipex Corporation
Sipex Corporation is a semiconductor company that designs, manufactures
and markets high performance, value-added analog integrated circuits (IC).
Sipex serves the broad analog signal processing market with interface,
power management and optical storage ICs for use in automotive, portable
products, computing, communications, and networking infrastructure markets.
The company is headquartered in Milpitas, California with additional
offices in Belgium, Canada, China, Germany, Japan and Taiwan. Sipex sells
products direct and through its distribution channels. For more information
about Sipex, visit http://www.sipex.com/ .
For additional information, contact:
Ralph Schmitt - Chief Executive Officer
Tel: 408-934 7500
Fax: 408-935-7678
Email: rschmitt@sipex.com
SOURCE Sipex Corporation
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Related links:
http://www.sipex.com/
http://www.prnewswire.com/comp/111683.html/
CONTACT:
Ralph Schmitt, Chief Executive Officer of
Sipex Corporation, +1-408-934-7500, or fax, +1-408-935-7678, or
rschmitt@sipex.com
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