Tuesday, February 17, 2009
Vitesse Reduces Salaries, 401K Contributions
Camarillo-based Vitesse Semicondutor, a developer of networking semiconductors, said Tuesday afternoon that the firm is reducing the salary of its executives and other employees, forgoing annual merit increases, and suspending its 401(K) employer match, as the firm looks to take "strong actions" to reduce its spending in 2009. The firm--which disclosed the cutbacks along with its first quarter results--said the moves were targeted at helping the firm get to "cash flow neutrality" for the fiscal year, and because the firm expects 2009 to be "a challenging year" for its industry. The firm said it had earned $3.1M on revenues of $49.8M for the quarter, compared with a $4.9M loss on $52.5M for the similar quarter a year ago.