Applied Micro Circuits Corporation announces organizational realignment and reduction in workforce

10 April 2003 San Diego, CA Lightwave -- Applied Micro Circuits Corporation (AMCC) announced a realignment of its global operations in the face of continued softness in its end markets. The company will move from a business unit structure to an organization based along functional lines.

10 April 2003 San Diego, CA Lightwave -- Applied Micro Circuits Corporation (AMCC) announced a realignment of its global operations in the face of continued softness in its end markets. The company will move from a business unit structure to an organization based along functional lines.

As of January 1, 2003, AMCC had 912 employees in its worldwide workforce. The company expects to have approximately 626 employees by the end of the calendar year, a 31% reduction. This realignment, combined with consolidation of certain facilities and the previously announced closure of AMCC's wafer fab will reduce ongoing operating expenses by $35-40 million annually and fixed cost of sales overhead by $15-17 million annually.

The realignment will largely be completed by the end of June 2003 and fully completed by the end of this calendar year. AMCC expects that costs and charges related to the corporate restructuring, which include severance costs related to workforce reduction and consolidation of excess facilities and other related fixed assets, will be recorded in the financial statements for the March 2003, June 2003, and September 2003 quarters. The company has not yet determined the amount of the aggregate costs and charges associated with the restructuring, as it is currently finalizing its plans.

"AMCC is dedicated to providing our customers with solutions that reduce their development costs and time to market. The initiatives announced today eliminate the overhead associated with business units without sacrificing major product development or critical customer relationships," said Dave Rickey, AMCC's chairman of the board, president, and chief executive officer. "The extended industry downturn has led AMCC to take action which will enable the company to return to profitability more quickly."

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