By The Associated Press
Special to CNET News.com
June 12, 2001, 8:55 p.m. PT
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.
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