Tunc Doluca, CEO of Maxim (San Jose, Calif.) announced the move during a conference call to discuss the company's financial results for the second quarter of its fiscal 2015 financial year.
The company made net loss of $71.7 million on revenues of $566.8 million in the quarter. The loss was due to special items that consisted primarily of $138 million in charges related to impairment of goodwill and other assets related to the MEMS business, $28 million in charges related to restructuring activities, including the closing of a wafer fab in San Jose, and $23 million in charges related to acquisitions.
The quarterly sales were down 2 percent from the $580 million revenue recorded in the prior quarter, and a 9 percent decrease year over year.
"We are on track to achieve our previously announced cost reduction plans, which will enable us to reduce spending while we focus investment in our growth businesses. We also decided to stop investment in Consumer MEMS and Touch technology," said Doluca in a statement.
The company expected to achieve revenues of between $565 million to $605 million in the next quarter.
In the conference call Doluca said: "So even though we’re stopping investment in consumer MEMS, we really are taking those resources and going to apply them to automotive. And that business, we can continue to grow, because the superior performance of our products are valued by their customers."
Doluca said that stopping investment in touch technology however would have some impact on the automotive side of the business. "The investment in bio and environmental sensors are pretty much independent of this, so those go forward, where we can add value in mobile with those types of sensors," Doluca said.
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