Layoffs, plant closings and CEO exit roil AMCC

摘要

Manhasset, NY. — Analysts warned that Applied Micro Circuits Corp.'s decision to slash 20 percent of its work force will hurt its competitive capability. The moves, announced last week, to close facilities and lay off 150 employees were accompanied by a decision by chairman and CEO Dave Rickey to retire, effective in August. In a report by Thomas Weisel Partners LLC, analyst Jeremy Bunting warned that the closing of facilities in Israel supporting AMCC's network processor business, as well as other cuts, "risk AMCC's ability to keep pace with competitors such as PMC in telecom and Intel in the network processor segment." Weisel maintained AMCC's peer-perform rating for now, however.