"We quickly addressed some cost issues that were even more magnified by he 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."

The company reiterated its plan to become profitable in 2007 as more business functions are outsourced or ended.