SAN JOSE, Calif., March 25 /PRNewswire-FirstCall/ -- SiRF Technology
Holdings, Inc. (Nasdaq: SIRF), a leading provider of GPS-enabled silicon
and premium software location platforms, today updated quarterly
expectations for its fiscal first quarter ended March 31, 2008.
Based upon preliminary results, the Company's expectations for the
first fiscal quarter revenue are $60M to $62M revenue, compared to the
prior expected range of $71M to $77M. SiRF experienced greater than
expected softness in product demand from its customers especially in the
PND, or Personal Navigation Devices market.
In response to the continued economic uncertainties and expected
continuing consumer demand weakness in the first half of the year, SiRF has
implemented a corporate restructuring effort which will include a reduction
in force, the closing of two offices, and the cancellation or
reprioritizing of certain engineering projects. The reduction in force will
result in reducing the Company's headcount by approximately 7% by September
30, 2008. The reduction in force will be achieved by a combination of
immediate lay-offs, elimination of non-essential positions and attrition.
The closing of offices will include the closure of SiRF's South San
Francisco and the Stockholm, Sweden offices. Both closures are expected to
be completed by the end of September 2008. Although SiRF has made
considerable progress on the development of its mobile TV technology, the
market for mobile TV has been slow to ramp up. In view of this, the Company
has stopped further product developments in the mobile TV space and will
focus its efforts on its core business. Most of the engineers associated
with this project will be reassigned to other SiRF core technology
development programs. SiRF expects to incur pre-tax charges in connection
with this restructuring in the range of $1.5 - $2M through September 2008.
"Although we had anticipated demand softness in the first quarter, we
are disappointed that the expected demand ramp up late in the quarter did
not materialize," said Dr. Michael Canning, President and CEO. "Due to the
continuing economic uncertainties, we have decided to implement certain
cost reduction measures to improve our financial performance in 2008.
Although painful, these measures are essential to bring our expenses more
in line with the current business. We are focusing our resources on our
core businesses and especially on the release and ramp up of new products,
such as the SiRFstarIII-GSD3t and the recently launched SiRFprima which are
getting very good customer reception."
Quarterly conference call details:
SiRF will host a conference call this morning, March 25, 2008, at
approximately 8:00 AM EDT/5:00 AM PDT to discuss the restructuring.
This event is available through the SiRF Technology web site at
http://www.sirf.com by clicking on the "Investors" link. Listeners should
go to the website at least ten minutes before the event to download and
install any necessary audio software. For those unable to attend the live
broadcast, an archived version of the webcast will be available for twelve
The call can also be heard by dialing (800) 895-0198 (domestic) or
(785) 424-1053 (international) and entering the conference id: SIRF. A
telephonic replay will also be available approximately 2 hours following
the earnings call and will be available for two weeks. The telephone
playback of the conference call can be accessed by dialing (800) 243-8160.
About SiRF Technology Holdings, Inc.:
SiRF Technology Holdings, Inc. develops and markets semiconductor and
software products that are designed to enable location-awareness utilizing
GPS and other location technologies, enhanced by wireless connectivity
capabilities such as Bluetooth, for high-volume mobile consumer devices and
commercial applications. SiRF's technology has been integrated into mobile
consumer devices, such as automobile navigation systems, mobile phones,
PDAs, GPS-based peripherals and handheld GPS navigation devices, and into
commercial applications, such as location servers, asset tracking devices
and fleet management systems. SiRF markets and sells its products in three
target platforms: wireless handheld devices, such as mobile phones;
automotive electronics systems, including navigation and telematics
systems; and consumer and compute devices, including personal digital
assistants, notebook computers, recreational GPS handhelds, mobile gaming
machines, digital cameras and watches. Founded in 1995, SiRF is
headquartered in San Jose, Calif., and has sales offices, design centers
and research facilities around the world. The company trades on the Nasdaq
Stock Exchange under the symbol SIRF. Additional information about SiRF and
its Location Technology solutions can be found at http://www.sirf.com.
Except for the historical information contained herein, the matters set
forth in this press release, including but not limited to, our revenue
expectations, consumer demand, our ability to complete the restructuring by
September 2008 and our anticipated expense reductions and restructuring
charges, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as "to," "being,"
"possible," "may," "address," "designed to," "provide," "anticipate,"
"believe," "expect," "plan," "will," and similar expressions are intended
to identify forward-looking statements. These statements are not guarantees
of future performance and reported results should not be considered as an
indication of future performance. SiRF's actual results could differ
materially from those discussed in these forward-looking statements as a
result of risks and uncertainties, including, among others, the market for
GPS-based location awareness capabilities, our ability to keep pace with
rapid technological change, the semiconductor industry, international
operations and our ability to compete, our ability to successfully
integrate acquired businesses and other risks and uncertainties discussed
in the Company's Annual Report on Form 10-K for the year ended December 31,
2007 and from time to time in SiRF's SEC reports. These forward-looking
statements speak only as of the date hereof. We do not undertake any
obligation to update forward-looking statements.
SOURCE SiRF Technology Holdings, Inc.