Zilog cuts 35% of workforce amid losses

"The rapid contraction in the global economy and the clouded outlook for demand has caused us to take significant cost reduction actions that included a 35 percent reduction in our worldwide headcount and a 10 percent salary reduction for all of our North America employees along with executive staff," said Darin Billerbeck, Zilog's president and chief executive, in a statement.

Sales for the three month and nine month periods ended Dec. 27, 2008 were $13.0 million and $50.2 million, respectively, as compared to $17.0 million and $50.5 million for the comparable periods a year ago.

The GAAP net loss for the three month period ended December 27, 2008 was $5.7 million or 33 cents per share as compared to $2.4 million or 14 cents per share for the same period a year ago.

The GAAP net loss for the nine month period ended December 27, 2008 was $9.0 million or 53 cents per share versus $7.3 million or 44 cents per share for the comparable nine month period a year ago. The net loss for the three and nine month periods also reflects special charges of $1.7 million and $2.8 million, respectively.

''Although the market is still difficult to call, we believe sales for the March 2009 quarter will decline between 5 and 15 percent from the December 2008 quarter levels," according to the Zilog CEO.