October 15, 2002-London-ARM Holdings PLC said it would cut its work force 10% by year’s end in order to reduce costs by about five million pounds and would take a one-time charge of about two million pounds, according to Dow Jones. Its pretax profit for the third quarter fell 38% to eight million pounds ($12.5 million) as revenue declined 11%.
The UK chipmaker’s revenue in the quarter ended September 30 was 33.3 million pounds, down from 37.6 million pounds in the third quarter of 2001, when ARM reported earnings of 12.9 million pounds. Diluted earnings/share were 0.6 pence for the latest quarter, down from 0.9 pence.
Warren East, ARM’s chief executive officer, told Dow Jones that even though the length and severity of the current semiconductor industry downturn has now impacted ARM’s financial results, the company is confident that its business model remains robust and resilient. “By taking decisive action to reduce our employee costs now, we will be better positioned to benefit from any improvement in market conditions,” Mr. East said.