(RTTNews) - Chipmaker Microsemi Corp. (MSCC: News ) said Wednesday that it will close its manufacturing plant in Scottsdale, Arizona by April 2011 as part of its ongoing program to reduce inventory levels and improve its overall cost structure and business model.

The Scottsdale plan's remaining product lines will be transferred to other Microsemi plants similar to other transfers that have occurred to date.

Microsemi said it expects annual savings of $20 million to $25 million after the consolidation activities are completed in 18 months.

The Irvine, California-based company expects to record one-time charges of $24 million to $26 million in its fiscal fourth quarter for severance and related benefits, lease termination and facility closure costs. Additional consolidation costs of $3 million may be incurred over the closure period, the company added.
The company noted that the costs will not impact its fourth quarter non-GAAP guidance, which calls for earnings of $0.22 to $0.23 per share.

Microsemi shares are currently trading at $13.70, down 37 cents or 2.63%.

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by RTT Staff Writer

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