Newport Beach chipmaker Mindspeed Technologies Inc. reported an operating loss for the recently ended quarter and said it plans to send more work offshore to cut costs.
Mindspeed, which makes networking chips, said it saw an operating loss of $7 million in the September quarter, vs. $4.6 million a year earlier.
Sales were $32 million, flat with a year earlier and down from the prior quarter.
Mindspeed said it plans to lower expenses in the next two quarters by sending some engineering work to Ukraine, India, China and Dubai.
“We believe that shifting engineering resources to our offshore locations will result in a more cost-effective worldwide development organization as well as more efficient localized support for our international customers,” Chief Executive Raouf Halim said. “In fact, we expect to increase our total worldwide headcount by approximately 10% with additional research and development staff in our offshore design centers.”
Mindspeed expects to save $14 million a year with the changes.
