Media365
As part of the company’s quarterly report on Tuesday, CEO Sassine Ghazi said that a push to develop its own intellectual property (IP) was not achieving the desired results – partly because of the challenges in China.
Ghazi said he would be refocusing resources on other areas and was reducing the company’s headcount by about 10 per cent.
“Our results were primarily impacted by underperformance in the IP business as we had the expectation of deals that did not materialise, driven largely by the following three factors: one, new export restrictions disrupted design starts in China, compounding China weakness; two, challenges at a major foundry customer are also having a sizeable impact on the year,” Ghazi said on a call with analysts.
“And finally, we made certain road map and resource decisions that did not yield their intended results,” he said.
The shares fell more than 19 per cent in late trading. They had been up 25 per cent this year through the close.
