Sonicblue cuts staff by 30 percent

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By The Associated Press
Special to CNET News.com
June 12, 2001, 8:55 p.m. PT
http://news.cnet.com/news/0-1006-200-6262377.html?tag=prntfr
Sonicblue said Tuesday it has cut its 813-person work force by 30 percent as part of a plan to achieve profitability by early 2002.

The Santa Clara, Calif.-based digital media technology company said it will take a $120 million charge to cover the cutbacks, excess inventory and other asset write-offs. It also projected a 50 percent annual revenue growth rate during the next two years.

In addition, the company said it intends to “monetize” about half of its holdings in United Microelectronics, a chip subcontractor. Sonicblue said its total UMC holdings are worth about $500 million.

The company, whose product line includes Rio MP3 audio players, was formerly a graphics chipmaker but reinvented itself a year ago through a series of acquisitions.

Its latest acquisitions of Sensory Science and ReplayTV, are expected to officially close during the current quarter.

Shares of Sonicblue were down 12 cents to close at $3.93 on the Nasdaq Stock Market.

Copyright 2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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